Anumati, Open Data, and AI: The Future of Mass Customization in Financial Services
Updated on Jun 1, 2023
One app, many faces
Think of the Amazon app. Look at the “home screen” of the app on your phone and that of your friend. No two storefronts look the same. Using your purchase history and preferences, Amazon constantly tweaks what it shows you in order get the highest chance for you to click and buy. Additionally, the algorithm is constantly refining its recommendation engine “people who bought this also bought that” basis its massive datasets of customer behavior.
Now look at a bank’s app. Notice how the app looks exactly the same for every customer? The same products, the same offers, the same rates of interests and so on. Why should this be so?
The good news is that banks now have more and more data thanks to the explosion of digital payments, regulated data gathering mechanisms such as Anumati, and sophisticated AI tools to process data at scale
A once-in-a-generation transformation
The financial services industry is undergoing a major transformation. The rise of new technologies, such as Anumati, open data, and artificial intelligence (AI), is enabling financial institutions to deliver more personalized and relevant products and services to their customers.
One of the most promising applications of these technologies is mass customization. Mass customization is the ability to provide products and services that are tailored to the individual needs of each customer, while still being produced at a mass scale. This is in contrast to traditional mass production, which involves producing a single product or service for a large number of customers.
Mass customization vs Mass Production
Mass customization is a major challenge for financial institutions. Traditionally, financial institutions have been unable to collect enough data about their customers to personalize their offerings. However, the rise of Anumati, open data, and AI is changing this.
Anumati allows customers to share their financial data with other organizations – safely, instantly, and with their explicit consent. These data can include bank statements, investment accounts, and insurance policies. Open data is data that is freely available to anyone who wants to use it. This data can include information about demographics, spending habits, and credit scores. AI is a powerful technology that can be used to analyze data and identify patterns.
By combining Anumati, open data, and AI, financial institutions can gain a deep understanding of their customers’ financial lives. This information can be used to create personalized products and services that meet the specific needs of each customer.
Mass customization can benefit both financial institutions and their customers. For financial institutions, mass customization can lead to increased customer satisfaction, loyalty, and revenue. For customers, mass customization can lead to better products and services that are more affordable and tailored to their individual needs.
The future of financial services is mass customization. By combining Anumati, open data, and AI, financial institutions can deliver more personalized and relevant products and services to their customers. This will lead to increased customer satisfaction, loyalty, and revenue.
Customize a product for a target segment of One
Here are some specific examples of how Anumati, open data, and AI are being used to mass customize financial products and services:
- A bank uses an account aggregator to collect a customer’s financial data. The bank then uses AI to analyze the data and identify the customer’s spending habits and credit score. Based on this information, the bank offers the customer a customized credit card with a lower interest rate and a rewards program that is tailored to the customer’s interests.
- An insurance company uses an account aggregator to collect a customer’s financial data. The insurance company then uses AI to analyze the data and identify the customer’s risk profile. Based on this information, the insurance company offers the customer a customized insurance policy with a lower premium.
- A wealth management firm uses an account aggregator to collect a customer’s financial data. The wealth management firm then uses AI to analyze the data and identify the customer’s investment goals. Based on this information, the wealth management firm creates a customized investment portfolio for the customer.
These are just a few examples of how Anumati, open data, and AI are being used to mass customize financial products and services. As these technologies continue to develop, we can expect to see even more innovative and personalized financial products and services being offered to customers in the future
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