A recent industry poll conducted by global analytics software leader FICO indicates that while nearly nine in ten banks in Asia Pacific utilize predictive analytics, only a small fraction have achieved highly advanced hyper-personalization strategies.
The FICO study revealed that 88 percent of banks are using predictive analytics to some extent to anticipate customer needs. However, a mere 11 percent described their hyper-personalization strategies as highly advanced. Dattu Kompella, managing director in Asia Pacific for FICO, noted the growing consumer expectation for personalized experiences from their banks, similar to those offered by platforms like Netflix and Amazon. He emphasized that banks that successfully meet these expectations will gain a significant competitive advantage in the market where customer experience is a key differentiator.
The poll highlighted significant barriers to achieving “segment of one” customer experiences. Nearly three-quarters (72 percent) of respondents acknowledged that their banks’ communication channels remain siloed or only partially integrated, hindering seamless customer engagement. Additionally, the adoption of automation remains inconsistent, with half of the executives reporting that no more than 50 percent of their customer-facing decisions, such as credit approvals, fraud alerts, and personalized offers, are automated.
The findings also indicated that the use of real-time data and advanced analytics by banks is still in its nascent stages. While 43 percent of executives reported leveraging real-time data significantly or fully for customer insights in areas like fraud detection and service, most banks remain at minimal or moderate adoption levels. Similarly, only 37 percent reported extensive or full predictive use of analytics, suggesting that while adoption is broad, the maturity of implementation is limited.
Kompella further explained that achieving hyper-personalization requires unifying data and decision-making across the entire customer lifecycle. He stated that every interaction, including a declined offer, a payment pattern, or a service request, contains valuable insight. By consolidating these activities, behaviors, and preferences into a single decisioning platform, banks can act on insights in real-time, fostering deeper customer engagement and loyalty. FICO Platform utilizes applied intelligence to leverage these signals, allowing banks to anticipate customer needs and deliver appropriate actions at critical moments.
The poll was conducted in November 2024 during FICO’s Platform Experience event in Singapore, gathering insights from over 30 senior executives and C-suite leaders from prominent banks across the Asia Pacific region.
FICO, founded in 1956, is a pioneer in using predictive analytics and data science to enhance operational decisions. The company holds more than 200 US and foreign patents on technologies that improve profitability, customer satisfaction, and growth for businesses across various sectors, including financial services, insurance, telecommunications, healthcare, and retail. FICO solutions are used in over 80 countries, ranging from protecting four billion payment cards from fraud to improving financial inclusion and increasing supply chain resiliency. The FICO® Score is a standard measure of consumer credit risk in the US, used by 90 percent of top US lenders, and has been made available in over 40 other countries.
