3 Tips to Keep In Mind When Choosing an Offer Management Solution
By Binesh K, Strategy, CEO’s Office, SunTec Business Solutions
Technology has changed the way the world banks. Cloud-native fintechs have shown customers a new banking style that is hyper personalized, on demand and relationship-based. Traditional banking processes are now being replaced by customer-centric ones that put customer needs at the heart of process design. And as banking goes digital, there are increasing number of customer touchpoints that require a shift from transactional banking models to relationship-based ones. This has put the spotlight on offer management in the banking industry as a strategy to differentiate banks from their competition. To be effective, offers must be personalized, and need based.
Prices in a transaction between two arms of a company are compared to that between two unrelated organizations. And to be fit for comparison the transactions must be as similar as possible. This method is recommended by the OECD and the arm’s length principle can be applied to it easily as well. But finding a comparable transaction can prove to be difficult, which is why this is used only when there is enough information on the two transactions to compare.
2. Automated, Dynamic, Unified and Compliant:
When seeking an offer management system, banks must consider if the solution is technologically robust enough to automate processes to ensure dynamic, reliable, and comprehensive offer management. It must be able to eliminate human error and biases in day-to-day operations. Banks need a robust offer management solution that can roll out offers dynamically using real-time data. This requires the technology capability to understand the needs of each customer and the context in which the product or service is offered, and the channels through which the customer engages with the bank. A single view of customer engagement across touch points and sources is a critical requirement for developing dynamic offers. Also, the banking sector is governed by stringent regulations pertaining to the use of customer data. These regulations vary from region to region and are also evolving constantly based on the overall risk landscape. Banks must choose a solution that can monitor the regulatory ecosystem and ensure strict compliance.
3. An Agile Technology Platform:
Unfortunately, many banks still work with legacy core banking infrastructure that is not agile enough to handle and process real-time data to deliver actionable insights. The easiest way to overcome this is to use third-party solutions that can be deployed as an agile middle layer that seamlessly integrates with the legacy core. Such a cloud-native, AI-powered solution is agile and scalable enough to roll out contextual, effective offers and campaigns. The future of banking lies in customer-centric strategies. Banks must now adopt robust technology-powered solutions that can efficiently orchestrate the offer management lifecycle from customer transaction to tracking, to deriving usable insights, ideation, product development, testing and roll out. It is important to deploy a cloud-native, agile middle ware solution that can integrate with the bank’s existing legacy core and provide a highly agile offer management experience.
Banks must consider robust technology platforms that can create, orchestrate, and manage offers seamlessly. Here are three things to keep in mind when deciding on an offer management technology solution.
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