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The Future of Risk Management: Why a Holistic Customer View is Key to Reducing Risk in 2025The Future of Risk Management: Why a Holistic Customer View is Key to Reducing Risk in 2025
A data-driven, risk-aware, and holistic customer view is at the center of future-proofed risk management for industry-leading banks.
4 Min Read
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Sponsored by FICO®
A holistic customer view is at the center of future-proofed risk management for industry-leading banks. We’ve seen it power enterprise customer strategies, allowing for highly personalized customer experiences and selling opportunities. A holistic customer view can transform traditional banks’ greatest weakness (siloed data) into their greatest strength -- a competitive asset that digital foes cannot match.
It sounds easy. It’s not. Here are the challenges and opportunities we see.
Challenge #1: Most Banks Aren’t Structured for Personalization.
It’s hard (if not impossible) to achieve customer-centricity if business lines cannot share customer information. That gold is hidden in siloes across the enterprise, making lines of business easy prey for digital predators. Nimble disruptors effectively use personalized, niche applications to pick off business lines’ valued customers.
Plus, when these lines of business don’t collaborate it results in valuable customer insights that are missed in a disconnected data jungle, where critical context cannot be connected and leveraged for relationship building or sharper risk management.
Opportunities
We’ve seen leading banks harness the power of looking across lines of business, with each touchpoint bringing every customer into sharper focus. Key moments contain unique perspective and relevant insight. As new interactions add up over time, insights can be shared, resulting in a more accurate picture of each individual customer. By unifying these insights, it becomes possible to gain a detailed, 360º view into a customer’s current and future needs.
Challenge #2: The Linear Customer Journey No Longer Exists.
Today’s customer journey isn’t what it used to be. Digital experiences can feel splintered and discordant when designed with linear, rigid workflows and myopic siloes.
These disconnected experiences can obscure customer opportunities and result in spotty risk management. Mutually beneficial, risk-aware customer relationships require real-time, precise personalization and decision strategies. When banks align with customers’ interests and put customers at the heart of every decision, it’s a win-win for all.
Opportunities
Leading organizations use platforms to power these decisions across all stages and lines of business, delivering optimal control over the customer journey.
The benefits to powering dynamic customer journey are:
Improved customer engagement and satisfaction, reduced attrition, and improved Net Promotor Scores.
Increased automation of marketing, credit line, pricing, and collections result in reduced operational costs.
More precision, relevance, and consistency in decision-making.
Better understanding of customers and the ability to act on insights in real-time.
Challenge #3: Your Best Customers Don’t Have Patience to Go Through Bad Digital Banking Processes.
Good customers won’t go through bad processes -- but fraudsters and higher-risk customers will.
Want to aggravate your best customers and damage your conversion rates? Inundate your hard-won customers with generic, untimely offers through disconnected channels that feel like they’re coming from different banks. That hurts the customer experience, loyalty, retention, trust, brand -- and it’s expensive and inefficient.
Opportunities
Organizations need to build processes that can deliver fast, smart, cost-effective, and risk-aware offers to attract, win, and retain the right customers. That means attracting and engaging with risk-aware, responsible applications, while deterring fraudulent or higher risk ones. Forward-looking organizations should review their digital experiences and ensure that they delight customers. Many institutions are in catch-up mode and have cobbled together processes that resemble the digital version of form-filling. These processes are vulnerable to competitors -- your conversion rates are suffering, and you may inadvertently cause adverse selection.
Challenge #4: Real-Time, Seamless, and Safe Account Opening Is (Really) Hard.
Today’s customers are busy, impatient, and digitally very savvy. (Admit it: you are, too.) Don’t we all want seamless experiences, real-time decisions, and convenience that still feels personal? We’ve seen our clients set impressive new global benchmarks:
Two-minute, fraud-aware onboarding. That’s fast.
Digital transactions increased more than 60% thanks to real-time onboarding.
Opportunities
To wrangle challenges and maximize the opportunities, banking executives can (once again) manage risk with a holistic customer view through a digital decision platform. Here’s how:
Get the data: Leverage easy, plug-and-play, agnostic access to proliferating global data sources.
Understand the risk: With real-time insights, you can run automated risk assessments for applicants and existing customers.
Make the decision: Shared decision assets (rules, analytics, scorecards) help you make the best decision time and time again. That drives your bottom line AND customer experience.
Monitor and learn: Interest rates, election years, natural disasters, global volatility -- the world is constantly changing. Banks must continually test, monitor, and learn to stay agile and refine strategies to stay aware, relevant, and competitive. FOBO (fear of becoming obsolete) is real, and the competitive race is tightening and intensifying.
Get Results That Deliver.
We’ve seen our leading client innovators achieve tremendous results with this data-driven, risk-aware, holistic approach. We believe risk management and customer experience rewards speak for themselves.
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