86% of financial institutions have stated in recent research that personalization is a clear, visible priority for the company and its overall digital strategy, with the vast majority (92%) planning to invest further in the practice. Banks haven’t quite quite broken the personalization barrier in terms of allocating the necessary resources needed for full-scale implementation. In fact, according to research from PwC, 42% of banks cite that internal resources and workforce training are their greatest barriers to achieving personalization success.
This is often the byproduct of personalization technology being seen as “plug and play”–with onboarding producing initial quick wins that get relegated as a “nice-to-have” rather than a critical growth opportunity for the business. This perception means fewer overall resources and funds are allocated to these efforts, and personalization is only implemented as a channel-by-channel marketing tactic, severely limiting its potential. Yet, when done right, personalization offers a powerful advantage, with Boston Consulting Group estimating a $2 trillion dollar opportunity over the next five years for brands that excel in this area.
In this article, we’ll discuss how organizational challenges stemming from underinvestment, siloed departments, competing priorities, and insufficient expertise hinder banks’ ability to sustain personalization long term. We’ll also introduce a new, simplified solution that is helping banks bypass these resource constraints and deliver instant, impactful results that were previously out of reach.
To drive meaningful results, effective personalization requires not only a powerful personalization engine, but a combination of the right technical and strategic skills alongside industry expertise. While a small, dedicated team collaborating across channels is an ideal setup, most banks can take a critical first step by appointing a dedicated program owner. This person manages the day-to-day of running personalization campaigns while also driving the organization’s ability to capture valuable data insights, analyze its customer base, and then action the findings through the creation of targeted, relevant experiences. However, research from Forrester commissioned by Dynamic Yield by Mastercard in 2024 found that 33% or less of banks across the globe have a dedicated business owner to shepherd a personalization program¹. By region:
Due to the portfolio-centric organizational structure of most banks, responsibility often falls to a portfolio manager who is already balancing competing priorities as a product marketer and strategist. While personalization may be a focus for them today, it may not be tomorrow. This dynamic results in a “stop-and-start” approach to personalization, revealing its shallow integration within broader business strategies. Compounding the issue, banks frequently face challenges in acquiring professionals with the right expertise, often constrained by fierce competition for skilled talent in this emerging field. As a result, banks are forced to make tough choices—either allocate budget toward attracting top-tier talent or onboard less-experienced hires who require significant training and development to close the gap.
To deliver on the promise of personalization, another key component is uniting cross-functional teams. Customers increasingly expect seamless and unified experiences across all digital touchpoints, and this is based on a proper audience segmentation strategy that takes into account each channel of execution. For instance, if a bank sends an email, not only should the email content be personalized, but it must ensure that the following touchpoint—like a landing page—continues that tailored narrative and creates a cohesive experience. At the moment, many banks often limit their personalization efforts to a single channel, such as email, while channels like push notifications and in-app messaging often remain untapped.
Banks can establish a structure—whether a small, dedicated team or a single owner working cross-functionally—that enables seamless collaboration across channels to test, iterate, and implement personalization campaigns. To avoid a disjointed customer journey, clear key performance indicators (KPIs) are defined, focusing on metrics like customer acquisition and retention. These KPIs are then translated into product and IT goals, linking personalization efforts to revenue impact. This approach helps demonstrate the program’s value to executives and supports long-term success.
However, as previously stated, most banks don’t have a dedicated owner to do this work, meaning most teams resort to personalizing in an ad hoc way, leading to inefficiencies and delayed execution. In fact, additional research from Forrester commissioned by Dynamic Yield by Mastercard in 2024 found that less than 30% of banks across the globe have multiple teams collaborating to execute omnichannel personalization in a consistent, holistic way². By region:
While resource constraints remain a significant barrier for banks aiming to scale personalization, a solution like Personalization Breeze offers a strategic path forward by alleviating the pressure of securing headcount, addressing the skill gap, and managing the day-to-day operations of campaign ideation, execution, analysis, and reporting. Further, it augments a bank’s existing CRM data with Mastercard’s proprietary AI models—fueled by 112 billion+ transactions—to predict where cardholders are likely to spend next. This empowers banks to deliver targeted messaging in a fully compliant way across various channels, including email, app push notifications, in-app messages, and mobile content blocks. With a lower total cost of ownership, banks can then focus on their core business objectives while delivering exceptional personalized experiences.
Reach out to your Customer Success or Account Manager to learn more about how we can make personalization a breeze for your financial institution.
1 The State of Digital Personalization in European Banks – A Forrester Consulting Thought Leadership Paper Commissioned by Dynamic Yield by Mastercard
2 The State of Digital Personalization in LAC Banks – A Forrester Consulting Thought Leadership Paper Commissioned by Dynamic Yield by Mastercard
3 The State of Digital Personalization in Asia Pacific Banks – A Forrester Consulting Thought Leadership Paper Commissioned by Dynamic Yield by Mastercard
4 Advancing Digital Personalization Maturity At EEMEA Banks In 2024 – A Forrester Consulting Thought Leadership Paper Commissioned by Dynamic Yield by Mastercard
