Throughout the month of March, Finopotamus will celebrate Women’s History Month by featuring intriguing profiles and unique stories impacting the credit union and fintech industry.
By W.B. King
Chief Operating Officer of Tribe Payments Lynda Clarke recently released a report “The Hyper-Personalization Revolution: How Banks Can Deliver Tailored Financial Experiences.” As indicated in the title, she believes the days of standardized banking services are in the rearview mirror.
“With access to real-time data and behavioral insights, financial institutions can now offer highly tailored products, proactive financial guidance, and frictionless digital experiences,” she noted. The London-based Tribe Payments bills itself as being committed to delivering future-ready payments technology and payments processing for issuers and acquirers.
“Consumers today expect more than standardized banking services – they demand personalized, intuitive experiences that cater to their specific financial needs,” Clarke said.
“As digital transformation accelerates, banks have an unprecedented opportunity to leverage real-time data, artificial intelligence artificial intelligence (AI)-driven insights, and behavioral analytics to craft hyper-personalized solutions. This shift is not just about improving customer satisfaction; it is redefining the way financial institutions interact with their customers.”
Not a ‘Hyper’ Exaggeration
Citing a 2024 CMWire Insights report, “The State of Digital Customer Experience,” Clarke said 86% of companies implementing hyper-personalization strategies have reported improved customer engagement and business growth.
“For years, banks have used historical data to personalize customer interactions, tailoring services based on past behavior. While effective, this method is reactive rather than proactive. Hyper-personalization marks a significant evolution by integrating real-time data to anticipate customer needs before they arise,” Clarke stated. “It enables financial institutions to provide timely recommendations, proactive financial advice, and seamless digital experiences that align perfectly with an individual’s financial journey.”
She added: “Unlike industries where the term ‘hyper’ is often a marketing exaggeration, hyper-personalization in banking is already delivering measurable results.”
Pointing to McKinsey & Company research findings, Clarke noted that 76% of consumers express frustration over impersonal banking services. As a result, financial institutions must move quickly to integrate hyper-personalization into their offerings, she said. “However, doing so presents challenges. Legacy systems, strict regulatory requirements, and a traditionally cautious approach to adopting new technologies have slowed progress in some financial sectors.”
Banks and credit unions need to pay special attention to younger banking habits, Clarke shared. “Research indicates that 80% of Gen Z investors started investing before the age of 21. This generation expects seamless, highly personalized digital interactions and will gravitate towards financial providers that offer these experiences.”
Achieving a Competitive Edge
Financial institutions, she said, should look to the retail market for inspiration and this sector has already set a high standard for hyper-personalization, using real-time behavioral data to refine customer engagement.
“The benefits are evident, with companies that embrace hyper-personalization seeing 40% higher revenue from their tailored marketing efforts,” Clarke said. “But achieving a competitive edge doesn’t come from simply meeting customer needs, rather exceeding them.”
Among the suggested first steps is developing a strong data infrastructure, Clarke shared. “Banks should establish comprehensive data lakes and invest in predictive analytics to enhance their ability to anticipate customer needs. Clarity on personalization objectives is equally crucial. Identifying where hyper-personalization can have the most impact ensures that efforts are directed efficiently.”
Collaboration across multiple departments—marketing, product development, analytics and technology—is also essential to building a cohesive strategy.
“Financial institutions must take an iterative approach, using A/B testing and data-driven refinement to continuously improve their personalization efforts. Although banks are making strides in automation, many still struggle to implement true hyper-personalization,” she said. “While some financial institutions are moving in the right direction, real-time tailored interactions remain an untapped opportunity for most.”
The Bank of Ireland, she said, has successfully combined online and offline data to refine its personalized offerings, which resulted in a “noticeable increase” in digital application rates.
“HSBC has taken a similar approach by using AI to tailor credit card rewards, resulting in improved customer satisfaction and engagement,” she noted. “Meanwhile, digital banking leader Nubank has embraced AI-powered predictive analytics through its Precog system, which has improved real-time customer intent prediction by over 50%. By anticipating customer needs more accurately, Nubank has enhanced its service efficiency and deepened customer relationships.”
A Personalized, Relationship-Driven Journey
As banks, credit unions and fintechs look forward to operating in an increasingly competitive market, Clarke said they shouldn’t be simply promoting product features but rather creating true customer value.
“The investment in hyper-personalization is significant, requiring financial institutions to rethink their strategies, upgrade their technological capabilities, and adopt a customer-first mindset. However, the payoff is equally substantial – stronger customer loyalty, deeper engagement, and a competitive edge in an evolving financial landscape,” she said.
“For banks and fintechs alike, the message is clear: hyper-personalization is not just the future, it is the present. Institutions that embrace this shift will set new industry benchmarks, transforming banking from a transactional experience into a personalized, relationship-driven journey,” Clarke concluded.