Next Best Action: the role of machine learning in cross-selling
Now more than ever banks and insurance companies have realized the need of a personalized approach towards each and every client. This lets them both distinguish themselves among competitors and create meaningful relationships with their clients; thus, maximizing profit opportunities.
A useful tool is the so-called machine learning, through which computer systems are taught to solve problems according to information and experience they have accumulated through solving other tasks. Though machine learning may not seem directly connected to the finance industry, it is in fact a powerful tool for business analyses and forecasting. An example of such software already implemented in the finance sector, Next Best Action by VeriPark, helps banks understand their clients better.
How does technology improve customer service?
Banks must be able to communicate with every client according to his needs and preferences, as well as offer services that would actually be of interest to him. This is where machine learning comes in – thanks to it, the bank representative gets suggestions what to say [to the client], what to offer him that is connected to him, helping the employee to understand the client better.
In the context of cross-sell, instruments like Next Best Action give suggestions for your “next move” in accordance with the concrete client and service that he is looking for. All this is based on a predefined logic, perfected by a vast data model which offers deeper insights on each client. This allows the bank representative to “discuss with the client according to the information he has, to finalize a sale using less paper, with less signatures and automated processes from every point of view”, says Çınga.
Contemporary finance institutions realize there is a need to make communication with the client meaningful and based on valuable insights and lead to mutually beneficial relationships between both sides. Software based on the machine learning principle is a powerful tool that makes this easier than ever.
The insights were shared by Onur Çınga, Regional Manager for CEE at VeriPark during the Finance Tech Forum in Sofia Event Center. The event, which took place on the 10th of April and focused on the digital transformation of the sector, gathered more than 200 attendees from the finance industry.
If would like to learn more how specialized software can benefit your bank`s performance, get in touch with us. We will be happy to provide you with more information on the topic.