Be More Effective Than Dolly Parton On Open Banking

A data driven approach

Jos van der Maarel

Picture a large commercial bank, Parton Bank, offering current accounts and a range of products to great, loyal customers. Picture Carl as one of them. This good soul has accumulated wealth and has spread it across financial institutions. He just wishes life was simpler. He has too many banking apps.

Hoping and begging solves nothing.

Enter Jolene, a challenger in the banking arena. She offers an app that is, well, like a breath of spring. With his consent, transaction details from his various bank accounts are combined in Jolene’s mobile app. Still quite innocent, right? To Parton though, the situation is very unsettling.What if Jolene makes a pass? Let’s be clear, this is a risk. And not one you should mitigate merely by begging Jolene ‘please, don’t take my man’.

Jolene is just an example of Open Banking, made possible by a directive known as PSD2.Many third-party providers jump on the opportunities of PSD2 and pose a threat to banks like Parton. So what if you are at risk too? Here’s how you should respond.

First, you need insights.

  1. What might attract Jolene in Carl?
  2. What might attract Carl in Jolene: what are we competing on?
  3. How can Parton make its relationships Jolene-proof?

Translate this to the relevant levels.

  1. Overall: define the features that attract third-party providers
  2. Segments: make battlefield charts by segment and by third-party provider
  3. Individual: define the appropriate things to offer, do or say.

You have no choice than to be all out data driven here. Predicting your rivals moves is the name of the game. Discover in time what type of third-party provider will try to seduce which type of client, when and how.

Predicting your rivals moves is the name of the game.

You need advanced dash boarding, allowing you:

  • to hear the alarm bells early on,
  • to assess the battlefield areas (so you understand your strengths and weaknesses),
  • to generate tailor made next best actions.

Appropriate action is a combination of marketing automation and of the personal touch by your frontline staff. Make sure your account manager knows exactly what to say and when to say it. Data driven.

If you are a bank like Parton, don’t beg your rivals to stop. Be more effective than that.

Contact Jos van der Maarel at Keyrus to guide you through the steps.

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