Hyper-personalisation in fintech: moving towards super apps

Hyper-personalisation has emerged as a key trend in the European fintechs and financial services industry. However, there are significant challenges related to technology and scalability that need to be addressed before it becomes widespread.

Despite the clear benefits of hyper-personalization demonstrated in e-commerce and entertainment, most banks are unable to offer a similar level of personalization. This shortcoming is primarily due to the challenges of unsystematized rapidly growing data and the changes in organizational mindset required to prioritize person-centric services. In other words, it is difficult to chart a sure course into the future with so much incoming data.

Drawing on our extensive experience, we strive to anticipate the future of fintech services. To this end, we maintain a continuously updated database of best practices among digital services. Would you like to glimpse the near future of person-centric technologies with us? Get in touch!

Hyper-personalisation: next big thing in banking

Today's customers anticipate that their financial institutions will possess a deep understanding of their needs, behaviors, and preferences. This expectation is shaped by their experiences in other fast-growing digital sectors, such as e-commerce and entertainment, where hyper-personalisation has been successfully implemented.

Hyper-personalisation is the process of using real-time data to provide highly relevant services, products, and content to customers. This level of personalisation goes beyond basic demographic segmentation, utilizing data from various sources, including transactional history, browsing behavior, social media activity, and more. The goal is to create a unique, individualized experience for each customer, enhancing satisfaction and loyalty.

Сustomers are looking for the level of detailed understanding around their needs... What’s more, they are willing to give up their data in exchange for it. Yet, over nine in 10 banks cannot currently offer customers hyper-personalisation.

Deloitte

This lag is due to the fact that it requires significant technological, regulatory, and infrastructural developments to make Hyper-Personalisation Imperative a reality in the European financial sector. The second reason for the lag is that the field of opportunities is too blurred - there are so many best practices in person-centric; and the number of top practices is itself variable.

Hyper-personalisation is the next big thing in banking

The Banker

Key kill-features in e-commerce and entertainment: what attracts customers?

Yes, indeed, technologies are developing rapidly and we often learn about their existence already from the implemented functionality of applications. We are used to cool features - we, as customers, clients, users, - like to be surprised with something new, convenient and interesting. The number and variation of these chips is staggering; here are the main key features in e-commerce and entertainment that attract users through hyper-personalisation:

E-Commerce

1. Personalized product recommendations:
   • Based on browsing history: Suggestions tailored to what customers have previously viewed or shown interest in. Utilizing real-time data and insights into customer preferences to enhance user engagement.
   • Purchase history: Recommendations based on past purchases, predicting what customers might need next. This leverages ai-driven hyper-personalization to improve conversion rates and customer satisfaction.
   • Similar customer preferences: Using data from similar customers to recommend products that might be of interest, ensuring a higher level of personalization and fostering customer loyalty.
2. Customized shopping experience:
   • User interface customization: Altering the homepage layout based on user preferences and past behavior. This enhances the level of personalization and overall customer-centric experience.
   • Tailored content: Displaying blog posts, articles, and videos that align with the customer’s interests. This can be driven by ai algorithms and real-time data analysis.
3. Predictive analytics:
   • Inventory management: Predicting which products a customer might buy next to ensure stock availability, utilizing data points and predictive analytics to improve efficiency.
   • Sales forecasting: Using customer data to anticipate future sales and plan accordingly, ensuring financial products and services are aligned with customer needs.

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Entertainment

1. Personalized content recommendations:
   • Streaming services: Suggesting movies, games, TV shows, or music based on viewing or listening history. This approach uses real-time data and AI-powered algorithms to enhance UX.
2. Adaptive UX:
   • Customized interfaces: Adjusting the UI to highlight preferred genres, artists, or types of content, enhancing customer-centric design and user satisfaction.
   • Interactive features: Offering interactive features like quizzes or polls that adapt based on user responses, improving customer engagement and satisfaction.
3. Engagement analytics:
   • Behavioral analysis: Tracking user interactions to understand and predict content preferences, using AI-driven insights to improve user engagement.
   • User feedback integration: Incorporating user feedback to refine and enhance content recommendations, fostering a customer-centric approach.
   • Customizable content: Allowing users to personalize aspects of their content experience, such as creating custom watchlists or playlists, driven by AI capabilities.

Super apps as the future of fintech

And this brings us to the question of super app.

Super apps represent the next evolution in the digital banking landscape, integrating a multitude of financial services into a single, cohesive platform.

This approach aims to meet the diverse and dynamic needs of modern customers, who increasingly demand convenience, efficiency, and a seamless user experience.

Here’s a more detailed look at how super mobile apps function and their potential impact on the banking sector:

Integration of diverse banking services

Super apps consolidate various banking services into one platform, offering a unified user experience. This includes:

• Shared wallets: Customers can manage multiple accounts and payment methods in one place, allowing for easy transfers and payments across different accounts.
• Bill reminders: Automated notifications for upcoming bills and payments help customers manage their finances more effectively, reducing the risk of late fees and improving overall financial health.
• Investment options: Super apps provide access to a range of investment products, from stocks and bonds to mutual funds and cryptocurrencies. Users can track their portfolios, receive investment advice, and execute trades without leaving the app.
• Savings accounts: Features like automated savings plans, goal setting, and interest rate comparisons help users optimize their savings strategies.
• Loans and credit: Super apps can offer personalized loan products and credit options based on user data, streamlining the application process and improving approval rates.
• Insurance services: Integration of various insurance products, such as health, life, and property insurance, allows users to manage all their policies in one place.
• Budgeting tools: Advanced budgeting and expense tracking features help users monitor their spending, set financial goals, and receive insights into their financial habits.

Comprehensive financial services through one user account

The goal of a super app is to provide a comprehensive suite of financial services (and actually not just financial) accessible through a single user account. This approach has several key benefits:

• Seamless user experience: By integrating multiple services into one app, users enjoy a seamless experience without the need to switch between different platforms or remember multiple login credentials. This enhances convenience and user satisfaction.
• Enhanced data utilization: With access to a holistic view of a user's financial activities, super apps can leverage data more effectively to offer personalized recommendations and insights. This can lead to better financial decision-making for users.
• Increased customer loyalty: Offering a wide range of services in one place can increase customer loyalty, as users are less likely to switch to competing services when all their needs are met within a single app.
• Cross-selling opportunities: Financial institutions can leverage super apps to cross-sell products more effectively, using data insights to identify and target customers with relevant offers.
• Improved financial inclusion: Super apps can play a crucial role in improving financial inclusion by providing access to a wide range of financial services to underserved populations. This can include offering microloans, low-cost savings accounts, and financial education resources.

Convergence of future super apps

The future of super apps in banking is marked by a convergence of diverse digital realms. Users find it increasingly convenient to blur the lines between their gaming accounts in open worlds like Fortnite, Minecraft, and Roblox, their accounts in the metaverse, and their blockchain wallets and even services like Netflix and educational content platforms. This integration enhances their digital experience, offering seamless transitions between various platforms and financial services on-demand. This forecast is not merely speculative; it is a robust market trend driven by user demand for comprehensive and unified digital ecosystems.

By the way, it's not certain that the core of financial management will remain with banks - it's possible that entertainment ecosystems will take the lead, with banks becoming just a part of these broader systems.

So, in the coming decade, we will witness a significant changing consumer preferences - а shift in UX as new generations come of age. Younger users, who are digital natives, expect more integrated and intuitive interactions across their digital lives (read more in our App User Research: UX for Different Generations). This demographic change will drive the evolution of UX, pushing for innovations that cater to their seamless, cross-platform experiences.

Curious about how to design tailored UX for different generations? Discover our unique research findings and see how we can help you create experiences that truly resonate. Explore our exclusive collection now!

Conclusion

As we delve deeper into the possibilities of hyper-personalization within fintech, it's clear that the path forward is both promising and fraught with complexities. For financial institutions, the transition from traditional models to next-generation super apps that offer highly personalized services is not just an innovation but a necessity. Customers' expectations, shaped by advancements in sectors like e-commerce and entertainment, demand a similar evolution in financial services.

Markswebb stands at the forefront of this transformation. We offer unique insights and strategic expertise to help your institution not only adapt but excel in this new era. By partnering with us, you gain access to a wealth of knowledge and a network committed to innovation and excellence in fintech.

Let's pioneer a future where digital banking is not just functional but intuitively aligned with each customer's individual financial journey. Explore the potential with Markswebb and turn these emerging challenges into opportunities for growth and customer loyalty. Join us in redefining the boundaries of financial services. Reach out to us today.