Unveiling the power of data analytics: Revolutionising customer engagement in fintech

Vishesh Sharma

Data analytics and AI have played a crucial role in our operations when it comes to driving customer engagement and overall business growth, writes Vishesh Sharma, Chief Marketing Officer, Bajaj Financial Securities Ltd, in an exclusive interaction with Shruti Jain of Elets News Network (ENN).

Could you elaborate on the notable shifts you’ve observed in the Indian financial sector from traditional BFSI to Fintech, and how your organisation has adapted to these changes?rganisation has adapted to these changes?

Here are some of the ways we have adapted to notable changes in the BFSI and Fintech sector: 1. Financial Inclusion through Digital Reach: One of the significant shifts in the Indian financial sector has been the emphasis on financial inclusion, especially in rural areas, through digital means. Fintech companies have leveraged technology to offer services like digital payments, microloans, and insurance in areas where traditional banks often struggle to establish a physical presence. At Bajaj Financial Securities, we acknowledge the dynamics of these shifts and are leveraging technology at each step to provide a more simple and effective experience for users across different geographies.

2. From Brand-First to Customer-First Approach: The shift from a brand-first to a customer-first approach involves tailoring financial products and services to meet the specific needs of customers. Fintech companies are known for their agility and ability to quickly respond to customer demands and pain points, offering solutions that solve real consumer problems. We have embraced this approach by investing in customer-centric digital platforms and utilising data analytics to understand and cater to customer preferences.

3. Hyper-Personalized Products: Fintech companies leverage data analytics and artificial intelligence to offer hyperpersonalised financial products and services. They analyse customer data to provide tailored recommendations, investment advice, and credit offerings. We have also started investing in data analytics and AI to create personalised experiences for our customers. We use customer data to offer relevant product recommendations and improve the overall customer journey.

Digital transformation has been a buzzword in the financial industry. Could you share some specific strategies and initiatives undertaken by you to embrace digital transformation and enhance customer experiences?

We have embraced digital transformation in numerous ways, with the aim of boosting customer experience, such as:

1. Establishing a YouTube First Brand: By understanding the growing need for digital content in the financial landscape, we have adopted a ‘YouTube First’ approach. This strategy demands creating high-quality video content that provides valuable financial information to our customers. Using this approach, we have established an active presence on YouTube, by regularly publishing content on financial planning, market insights, and investment strategies. The goal of our content is to educate and empower our customers when it comes to making financial decisions.

2. Opting for a Multi-Format, Multi-Channel, and Multi-Lingual Approach: We understand that customers have diverse preferences when it comes to content consumption. To cater to a wide audience, we are striving to adopt a multi-format, multichannel, and multi-lingual approach. We are creating content in various formats including articles, videos, and infographics and, at the same time are in the process of building onto this approach and leveraging several other formats as well. This content is distributed across multiple digital channels such as our website, social media, and community platforms.

3. Improving Personalization Based on Data Analytics: Personalization is a key component of enhancing customer experiences. We use advanced analytics tools to collect and analyse customer data. This data is used to create customized options, product recommendations, and focused marketing campaigns.

Personalization enhances engagement and loyalty by delivering content and solutions that are relevant to the customer’s unique needs.

4. Regular A/B Testing: To ensure that our digital initiatives are effective and customer-centric, we employ A/B testing techniques. For example, we may test different website layouts, call-to-action buttons, or email subject lines to determine which version generates higher engagement or conversion rates. By analysing the results of these tests, we are in the process of continuously refining our digital strategies to optimise the customer experience.

In the context of the evolving regulatory landscape in India, how do you ensure compliance while fostering innovation in its fintech solutions at Bajaj Financial Securities?

1. Seeing Regulatory Changes for the Betterment of All Stakeholders: Bajaj Financial Securities as a brand recognizes that regulatory changes are essential for the betterment of all stakeholders, including brokers and customers. We closely monitor and adapt to regulatory updates to ensure that our fintech solutions remain in compliance.

2. Strict Compliance Guidelines for Handling Customer Funds: We prioritise strict compliance guidelines to safeguard customer’s interests. Compliance is a non-negotiable priority, and we adhere to all financial regulations to maintain trust and transparency. We have robust internal controls and compliance protocols in place to ensure that customer funds are handled securely and in compliance with regulatory requirements. Regular audits and assessments are conducted to verify adherence to these guidelines.

3. Avoiding Promises Beyond Our Scope: We operate with integrity and transparency, refraining from making promises that go beyond our scope of services or regulatory allowances. We believe in managing customer expectations realistically. Our customer-facing teams are trained to provide accurate information about our services and products. We prioritise clear communication to ensure that customers understand the nature and limitations of the financial solutions we offer.

4. Taking Data Protection Extremely Seriously: Data protection is a top priority at BFSL, given the sensitive financial information we handle. We are committed to maintaining the highest standards of data security and privacy. We have implemented stringent data protection measures.

5. Crucial Consent of the Customer: In the evolving regulatory landscape, obtaining explicit consent from customers is crucial. We respect the autonomy and rights of customers by seeking their informed consent for data usage and financial transactions. We have implemented transparent consent processes, both online and offline, to ensure that customers fully understand and agree to the terms and conditions of our services. Consent management is a central element of our compliance framework, aligning with evolving data protection regulations.

Can you provide insights into the role of data analytics and Artificial Intelligence in Bajaj Financial Securities’ operations and how these technologies are driving customer engagement and business growth?

Data analytics and AI will play a crucial role in this evolving landscape of operations when it comes to driving customer engagement and overall business growth. Here is how we leverage it:

1. Building an Efficient MarTech Ecosystem: As a brand, we recognize the importance of a robust Marketing Technology (MarTech) ecosystem to streamline marketing efforts and engage customers effectively. We have invested in advanced MarTech tools and platforms that integrate data from various sources, enabling us to analyse customer behaviour, preferences, and interactions across multiple touchpoints.

2. Personalized Communications Based on Data: Data analytics is leveraged to deliver tailored communications that resonate with individual customers. We use customer data to segment our audience and create personalised messaging, whether it’s email campaigns, SMS alerts, or app notifications. Personalization enhances the relevance of our communications and increases customer engagement.

3. Using Data Sets to Understand Content Effectiveness: Bajaj Financial Securities relies on data analytics to assess the performance of different content types and formats, helping us understand what resonates best with our audience. We analyse engagement metrics, such as click-through rates, time spent on content, and conversion rates, to determine which content is most effective at each stage of the customer journey.

4. Optimising Funnels Based on Tool Inputs: We optimize customer acquisition funnels by using data insights obtained from various tools and channels. We track customer interactions and behaviours at each funnel stage, from awareness to lead generation and account opening. Insights gathered from analytics tools inform adjustments to our marketing and sales strategies, ensuring a smoother and more efficient customer journey.

5. Scaling Content with AI: We are leveraging AI-driven content generation tools to create a wide range of content, from articles and videos to infographics and webstories. This allows us to engage customers across diverse platforms with timely and relevant content.

6. AI for Vernacular Content in the Same Style: Recognizing India’s linguistic diversity, we are building ways we can use AI to adapt content into multiple vernacular languages while maintaining a consistent brand style.

Looking ahead, what trends do you foresee shaping the future of fintech in India, and how are you preparing to stay at the forefront of these developments?

1. Major Digital Adoption: India is poised for massive digital adoption, with an increasing number of individuals and businesses embracing digital financial services. At BFSL, we are investing in user friendly, intuitive digital platforms that cater to the evolving needs of our customers. This includes mobile apps, web-based services, and seamless online account management to ensure accessibility and convenience.

2. AI-Led Marketing Communication: AI-driven marketing communication is becoming increasingly important for personalised customer engagement and lead generation. We continue to refine our AI-driven marketing strategies, using data analytics and machine learning to tailor our messaging and campaigns. This approach ensures that our communication remains relevant and resonates with individual customers.

3. Analytics Playing a Big Role: Data analytics is set to play a pivotal role in understanding customer behaviour, optimising processes, and making data-driven decisions. We are expanding our data analytics capabilities to gain deeper insights into customer preferences and market trends. This enables us to refine our products and services, enhance customer experiences, and make informed strategic decisions.

4. Super App Ecosystem Offering Comprehensive Financial Solutions: The trend towards super app ecosystems that provide a wide range of financial solutions within a single platform is gaining momentum. We are evolving our offerings to create a comprehensive ecosystem that encompasses a variety of financial products. This holistic approach simplifies access to diverse financial solutions for our customers.

5. Product Hyper-Personalization: Hyper-personalization is becoming a standard in the fintech industry, with customers expecting tailored financial products and services. We are expanding our efforts in hyperpersonalization by leveraging advanced AI algorithms to create highly customised solutions and product recommendations. This will ensure that each customer’s financial journey is unique and optimised to their specific goals and preferences.

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