Financial institutions are increasingly exploring the use of blockchain and the concept of open finance to improve the efficiency and transparency of their operations, especially when it comes to improving the customer experience.
Open finance should be considered to involve collaboration between financial institutions and financial service providers to offer customers a wide range of solutions. Blockchain technology can facilitate interoperability between different systems and enable the secure exchange of information between different industry players.
According to the Febraban Banking Technology Research 2023, the total budget of Brazilian banks allocated to technology should reach R$45.1 billion this year – a 29% increase compared to 2022 (R$34.9 billion). And, among the aspects reinforced by the institutions that participated in the study, are the prioritization of personalization in the relationship with the client and more efficiency in the exploitation and analysis of data.
The fact, however, is that banking operations are increasingly digitized, as well as the format of interactions. Communications are massified and automated, but no one wants to be treated just like another consumer. Such a scenario shows the importance of offering exceptional experiences to your audience through data analysis, as well as products, services and interactions aligned with their expectations.
Let’s go then the importance of blockchain and open finance approaches for understanding the desires and needs of people.
The role of blockchain in customer experience
This technology offers a secure and transparent system for the storage and transmission of reliable information. In this way, it provides faster and cheaper payments, better traceability and ease of access to financial services, thus improving the personalization of solutions. It should be noted that some of the leading institutions in Latin America use this approach to monitor transactions, gain insights, improve decision making, streamline processes and better understand the needs of their customers. This is the case of banks such as Santander and Itaú Unibanco (Brazil), Banco Estado (Chile) and Banco de Crédito del Perú (BCP).
Security and integrity of data: the blockchain provides an additional layer of security and guarantees that the data is not easily adulterated or corrupted, an essential feature for the development of financial services due to the authenticity and accuracy of the information analyzed.
Transparency and traceability: the technology allows the transparent recording of all operations and facilitates the tracking of the history of a certain asset or transaction, a valuable resource for financial analysis because it provides a more complete view of the flow of funds and the interactions between the different parties involved. It also allows the consumer to verify movements on their own, thus increasing their confidence.
Efficiency and reduction of intermediaries: financial processes are faster and more simplified, without the need for intermediaries and with considerable cost reduction. In addition, process automation through blockchain-based smart contracts dispenses with manual data reconciliation, reducing errors and delays. In other words, making transactions more agile and efficient, with lower fees and charges, improves the customer experience.
Personalization and controlled access to data: Customers control their data and determine who can access it. It is thus possible to offer personalized experiences, allowing the selective exchange of information with banks and financial services organizations and, consequently, the development of offers more adapted to the individual demands of consumers.
Loyalty programs and rewards: With the development of token-based loyalty programs, in which it is possible to accumulate points and exchange them for rewards, the consumer experience becomes more attractive and rewarding. Technology also enables a more effective management of this type of action, in addition to simplifying and ensuring transparency to the rescue process.
Open finance for personalization and customer experience
By allowing the exchange of information between different institutions, open finance plays an important role in this aspect, which can consent to aggregate their bank accounts, investments, credit cards and other products on a single platform. This offers a complete, real-time view of your finances, as well as a better understanding of your positions and expenses. This aggregated data also allows financial service providers to format more personalized services and recommendations.
It is, in fact, an evolution of open finance, which received a broader denomination by wrapping, in addition to traditional financial products, exchange data, credentials, investments, insurance and pensions, among others.
This feature provides a more complete view of customer needs, as banks and organizations can offer products and services more aligned to the wishes of their audience. Another important aspect is that understanding consumer behavior, based on their history, enables more assertive and secure decision-making in the release of resources, in addition to reducing the risk of default.
Open finance offers numerous possibilities. For example, the analysis of shared data will make it possible to offer advice and financial management to the consumer (some institutions already offer such modalities). And the trend is that this evolves towards services linked to the customer’s interest in the acquisition of goods such as smartphones, cars or houses, among others. That is, by considering aspects such as financial situation, investments, obligations and inflows of resources, among other useful information, it will be possible to compose an offer that makes the realization of these wishes viable.
It should also be noted that, according to the Open Banking Excellence (OBE) report, carried out in collaboration with the University of Oxford, Brazil is advancing to be the largest success story in the world in open finance and, soon, must surpass the United Kingdom, a pioneer nation in the modality. In Latin America, in addition to Brazil, countries such as Mexico and Colombia already have regulations on the subject, while Chile, Argentina and Peru have been moving in that direction to start implementing the system as quickly as possible.
An important reflection
These trends point towards the development of even more digital (and, at the same time, more personal) days to add quality and relevance to communication and interaction with the consumer. That is, approaches more oriented to their profile and mindset, instead of a perspective merely focused on the availability of products. After all, banks and financial institutions must offer a single view across all their systems and channels. And in that sense, Topaz solutions make it possible to build experiences that live up to those expectations at all stages of the customer journey.