The role of CDPs in data-driven neobanks & wealth fintechs.

From knowing the "what" to understanding the "why", predicting the "when" and improving the "how" of customer engagement.

May 18th, 2021

During the past years the combination of new regulatory frameworks (i.e: EMI licensing), new tech providers as BaaS and OpenBanking APIs and the startup lean mindset conducted to the urge of neobanks, open banking based financial tools and new wealth management fintechs.

Most of these new companies started as a “layer” on top of a wholesale-regulated entity (neobanks use mostly the EMI license) and its tech framework. The end-customers are “shared customers” and the front-end relationship is led by the neobank whereas the backend (payment, cards management, etc.) is led by the wholesale entity. 

This pattern is shared by the modern roboadvisor and goal-based asset portfolio planning fintechs. Established firms manage the investment funds or pension plans while the front-end customer interface is led by the fintech.

The startups/fintechs intend to get revenues through different strategies:

    • Periodic comission or fremium models
    • Using the platform to upsell new goods or services matching customer needs

In both cases it is crucial to have a good understanding of the customers and their mindset. Customer insights can help offer an excellent customer service as well as products and services that resonate with them. Customers are more willing to pay fees or buy products if they the brand makes them feel special and customize the offer to their needs. This is key to increase LTCV in such a competitive environment.

These companies tend to avoid generalist multipurpose CRMs with expensive deployment costs. They also keep customer service simple by implementing a limited set of digital channels (web, app, chatbot+liveagent solution).

This is the ideal scenario to create customer-centricity based on a behavioral CDP, able to collect:    
    • the financial operations provided by the BaaS
    • information of interactions in the digital channels 
    • • PSD2 aggregation data if is used

to obtain among others:

    • 360º enriched customer profiles and behavioral analytics.
    •  Aggregated business intelligence.
    • Customer reclassifications and micro-segmentation of audiences based on behaviors
    • Digital channels performance monitoring.

In order to match properly the needs of this “financial” niche info needed a CDP may include:

    • Strict GDPR compliance (pseudo-anonymized identifiers).
    • Easy API integration with data sources (BaaS operations, digital channels, external events,        PSD2 aggregation data providers, etc.)
    • A powerful set of predefined customer-financial-events (payments, top-ups, transfers, internal       transfers, reimbursements, etc.) and related metrics.
    • API-based profiles to create actionability.

In Whenwhyhow we are creating a special version of our Behavioral CDP to tailor the banking/fintech needs and become the customer-centric data intelligence core. 

A fintech understanding the whys, whens and hows of their customers will be able to delight them and keep them engaged, improve the customer service and discover new business opportunities. 

Last but not least, we are conducting a survey about the PSD2 data enrichment and were the value is key. Short & annonymous :-) help us!

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