Innovative products, strategic regional expansion and client-centric approaches are driving Itaú Unibanco’s success in navigating a challenging economic landscape
Global economic growth is expected to remain modest, with the IMF projecting a rise of just 3% in 2024, largely due to persistent inflation and ongoing geopolitical tensions. This challenging environment is placing pressure on financial institutions to adapt their strategies to maintain client satisfaction and market share.
Against this backdrop, Brazil’s Itaú Unibanco is taking proactive measures by leveraging artificial intelligence (AI) and expanding its regional presence, ensuring it not only meets but anticipates the evolving needs of its private banking clients.
Achievements
Itaú Unibanco’s private banking division made substantial strides in 2023, particularly through the reorganisation of its advisory team and the introduction of innovative products.
Recognising the diverse needs of its clientele, the bank developed 17 distinct client profiles based on criteria such as market knowledge, life stage and engagement levels. This meticulous profiling allowed it to allocate its specialists more effectively, ensuring tailored services and enhanced client satisfaction.
One of the standout initiatives was the creation of a pioneering credit product specifically designed for the high-income segment.
The ‘Renovation and Construction Financing’ product addresses a previously unmet need in the market, enabling clients to finance up to 100% of their construction and renovation projects. This product not only prevents decapitalisation but also aligns with clients’ cash flow needs, reflecting Itaú’s deep understanding of the financial planning requirements of its customers.
Impact and results
The impact of these initiatives has been profound. The reorganisation of Itaú Unibanco advisory team has led to a more personalised client experience, contributing to a 10-point increase in the bank’s Net Promoter Score (NPS) since 2022, surpassing the excellent level.
This improvement in client satisfaction is a testament to the effectiveness of the bank’s tailored approach and the strategic use of AI in understanding customer profiles and preferences.
The ‘Renovation and Construction Financing’ product has been equally successful, resulting in a nearly 20% increase in net credit income between 2022 and 2023. Despite the challenging economic environment, clients have expressed high levels of satisfaction and loyalty, recognising the added value this product brings.
Furthermore, the bank’s strategic expansion into the Northeast and South regions of Brazil has already shown an increase in the market share there compared to 2022, illustrating the success of its regional growth strategy.
Conclusion
Itaú Unibanco’s achievements in the private banking sector underscore the importance of innovation and strategic planning in navigating today’s complex financial landscape.
By anticipating client needs and offering tailored solutions, the bank has not only improved client satisfaction but also enhanced its market competitiveness.
Itaú Unibanco remains committed to continuous improvement and innovation, with its track record suggesting a steadfast dedication to leveraging technology and strategic insights to serve its clients better.
As the bank celebrates its centenary, the focus on dynamism and renewal promises a future where customer relationships and financial excellence remain at the forefront of its operations.