Personalisation is the key to delivering better customer experiences and increasing loyalty in the banking sector. However, many banks are still lagging behind in this aspect, relying on outdated systems and processes that do not meet the expectations of today’s digital-savvy customers. One of the fintech companies that specialises in the personalisation of banking services is Backbase. Its Engagement Banking Platform helps banks to accelerate their digital transformation and offer personalised services to their customers.
What is Backbase and how does it work?
Backbase is a software company that was founded in 2003 in Amsterdam, Netherlands. It provides a cloud-based platform that enables banks and financial institutions to create and manage digital channels, products, and services. The platform consists of three main components: Backbase-as-a-Service, Backbase Digital Banking Platform, and Backbase Marketplace.
- Backbase-as-a-Service is a cloud-native solution that offers scalable, secure, and compliant infrastructure for hosting and running digital banking applications.
- Backbase Digital Banking Platform is a suite of tools and capabilities that allow banks to design, build, and orchestrate customer journeys across different channels and devices. It includes features such as identity and access management, content management, analytics, personalisation, orchestration, and integration.
- Backbase Marketplace is a curated collection of fintech solutions and services that can be easily integrated with the Backbase platform. It includes offerings from partners such as Mambu, Plaid, Stripe, Twilio, and more.
By using the Backbase platform, banks can create personalised experiences for their customers based on their preferences, behaviour, context, and needs. For example, they can offer tailored advice, recommendations, offers, and rewards to their customers based on their financial goals, spending patterns, life events, and more. They can also leverage data and analytics to segment their customers and optimise their marketing campaigns.
What are the benefits of personalisation in banking?
Personalisation in banking can bring many benefits for both banks and their customers. Some of the benefits are:
- Increased customer satisfaction. Customers appreciate when banks understand their needs and preferences and offer them relevant and timely solutions. This can increase their trust and loyalty towards the bank and reduce churn.
- Improved customer retention. Customers are more likely to stay with a bank that offers them personalised services and experiences. This can reduce the cost of acquiring new customers and increase the lifetime value of existing customers.
- Enhanced cross-selling and up-selling. Customers are more likely to buy additional products or services from a bank that offers them personalised suggestions and incentives. This can increase the revenue per customer and the profitability of the bank.
- Reduced operational costs. Personalisation can help banks automate and streamline their processes and workflows, reducing manual errors and inefficiencies. This can lower the operational costs and improve the quality of service.
How is Backbase expanding its presence in India?
Backbase is working with more than 150 banks and financial institutions in more than 40 countries, including India. In India, Backbase has partnered with several leading banks such as HDFC Bank IDFC First Bank, RBL Bank, Federal Bank, IndusInd Bank, Kotak Mahindra Bank, Yes Bank, Axis Bank, ICICI Bank, and more.
Backbase is looking to expand its presence in India by hiring more talent, opening new offices, and collaborating with more partners. According to Riddhi Dutta, Regional Head for ASEAN & South Asia at Backbase, India is one of the fastest-growing markets for digital banking in the world. He said that Backbase aims to help Indian banks become more agile, innovative, and customer-centric by providing them with the best-in-class technology platform.
Backbase also plans to launch its own innovation lab in India soon. The lab will serve as a hub for research and development, co-creation, prototyping, testing, and validation of new digital banking solutions. The lab will also foster collaboration between Backbase’s engineers, designers, product managers, customers, partners, academia, and startups.
