Personalization in Banking: The Key to Customer Retention
Pritha Chaturvedi
Dr. Pritha Chaturvedi, Associate Professor, Domain Head of Finance, ICFAI University, Ranchi (Jharkhand) India.
Manuscript Received on 05 February 2025 | First Revised Manuscript Received on 12 February 2025 | Second Revised Manuscript Received on 20 March 2025 | Manuscript Accepted on 15 April 2025 | Manuscript published on 30 April 2025 | PP: 14-17 | Volume-11 Issue-8, April 2025 | Retrieval Number: 100.1/ijmh.G179311070325 | DOI: 10.35940/ijmh.G1793.11080425
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: In the highly competitive banking industry, personalization has emerged as a crucial strategy for improving customer retention. By leveraging advanced technologies such as artificial intelligence (AI), predictive analytics, and customer relationship management (CRM) systems, banks can deliver tailored services that meet individual customer needs. As customers increasingly expect relevant and timely interactions, banks that prioritize personalization are better positioned to meet these expectations and secure long-term growth. Studies indicate that effective personalization can lead to a 10-15% increase in sales conversion rates and a 20-30% boost in customer satisfaction. This article explores the importance of personalization in banking, identifies key objectives, reviews existing literature, and presents findings from recent studies and methodologies. The analysis highlights the challenges and opportunities of implementing personalization strategies and concludes with actionable recommendations for banks to enhance customer loyalty and long-term engagement. The paper provides insights from industry reports, real-life case studies, and interviews with banking professionals, presenting a comprehensive understanding of how personalization shapes the banking landscape.
Keywords: Personalization, Customer Retention, Banking Sector, Customer Experience, Digital Banking, AI in Banking, Banking Personalization Strategies, Predictive Analytics, Data, Digital Transformation, Customer Loyalty.
Scope of the Article: Management