Mastercard: Tailored Finserv Recommendations | FinTech Magazine

In the retail industry, offering tailored recommendations to customers using the latest technology has fast become the norm. 

But so far, particularly for legacy financial services providers, offering similarly bespoke recommendations to clients has been hard to achieve. 

This is why Harry Hanson-Smith, VP of Sales at Dynamic Yield by Mastercard, says recommendation strategies remain a much-untapped area for many financial institutions (FIs). 

Why FIs must leverage recommendations effectively

As the financial industry grows evermore vast, and customers shift increasingly to digital banking offerings, decision-making processes for financial products have grown more complex.

As such, the scope for offering tailored recommendations is wide and constantly evolving. For Hanson-Smith, the scope for recommendations goes beyond products alone. 

“FIs can leverage recommendations to provide valuable financial advice, educational resources, and personalised content,” he says, “to empower customers to make informed decisions about their financial well-being.

“However, many FIs have failed to leverage personalisation to facilitate learning and discovery effectively. 

“Where eCommerce has the ‘guided selling’ concept, which aids users in discovering products, FIs can adopt a similar approach to offer personalised, relevant and seamless customer engagement through product and resource recommendations based on user behaviour.”

Indeed, the financial services landscape is ever-evolving, and new technological advancements mean customer preferences are changing – so recommendation tools must be able to adapt to frequent market shifts. 

Hanson-Smith adds: “Emerging fintech players are reshaping the way FIs engage with their customers, which means recommendations can serve as a powerful tool to differentiate FIs from their competitors.

“By harnessing data analytics and machine learning algorithms, FIs can unlock deeper insights into behaviours and financial goals, enabling them to deliver highly personalised recommendations that really resonate.”