ING DIRECT cautions lenders on customer analytics

Lenders must be careful not to over invest in customer analytics where a ‘less is more’ approach is often more valuable, according to ING DIRECT.

Banks should be using what the customer has given them rather than “pilfering data that is none of our business”, ING DIRECT executive director of distribution Lisa Claes told Mortgage Business.

“You’ve got to be very careful not to build the Rolls Royce in terms of customer analytics,” Ms Claes said.

“If you have a reliable Holden you can win the game,” she said, adding that banks have a tendency to believe they are more important than they are.

“People don’t need banks, they need banking,” Ms Claes said.

“You’ve got to deploy your analytics based on key customer milestones and within those milestones there is a cluster of data,” she said. “So you’re probably only looking at 20 data subsets, not 3,000.”

In a 7 April Mortgage Business story, Ms Claes flagged the massive opportunity for Australian lenders in digital.

“You can have that discrete set of data but you’ve got to know when to use it,” she said.

“There may be five or six milestone events in a customer’s life but there are only small windows of opportunity around those lifestyle events.”

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