Meet Rob 👋
Rob Knight, Atto's Chief Product & Technology Officer (CPTO), brings a wealth of expertise as a seasoned leader in organisations at the forefront of credit risk. With a strong background in Operations, Product, and Engineering leadership, Rob has championed far-reaching innovation for tech giants and spearheaded impactful digital transformations.
He discusses how data analytics, automation, and personalised solutions are shaping modern banking to better serve customers.
In today's financial landscape, banks face a variety of challenges—both operational and consumer-driven. Rob Knight, Atto’s Chief Product and Technology Officer, sheds light on how banks are adapting to modern pressures and maintaining their responsibility to customers. Below, we dive into a detailed Q&A with Rob, covering topics from customer data to the rise of automation and what it all means for banking consumers.
Q: Rob, in terms of portfolio management, what are the biggest challenges banks face today?
One of the main challenges banks face is truly understanding the financial pressures their customers are experiencing. Now, let's make a couple of assumptions here. Banks typically review their portfolios monthly, keeping an eye on credit scores and consumer data. But it’s not just about tracking that one credit score—customers have multiple products with a bank. They might have a current account, a credit card, a loan, and maybe even insurance with the same institution.
One of the game changers is being able to see financial changes before they get reported to credit bureaus. When banks detect early warning signs, like income fluctuations or spending pattern changes, they can intervene sooner. That prevents unnecessary distress for the customer and helps avoid risk of delinquency and subsequent potential losses.
If a current account customer starts to take out multiple short-term loans (this is what we call “loan stacking”), then this could indicate that they are likely to miss a credit card or loan payment. Often these short-term loans or buy now pay later facilities are not immediately reported to the credit bureaus.
It’s really about improving service and making sure banks adhere to consumer duty—especially given the financial pressures people are under right now, with inflation and wage stagnation driving many to take up additional work from multiple income streams.
At the same time, some customers are thriving in this economy. Banks need to be quick in identifying opportunities for these customers—like pre-approving a credit card or a car loan and hyper personalised engagement—which ensures the onboarding process is smoother and faster.
Q: That makes sense. But what about customers with accounts across multiple banks? How do banks handle that?
That’s a great point. While banks won’t directly market to customers who hold accounts at other institutions, they do have a way to understand general spending habits. Things like home insurance, pet insurance, or even utility bills—these expenses can give banks insights into where to target promotions or onboard new customers.
For example, let’s say a customer is spending a lot on home insurance. A bank might not know the exact provider, but they can offer a competitive deal for home insurance based on what they do know. It’s all about making broad, well-targeted offers without directly infringing on the customer’s relationship with their other banks.
Q: How does customer loyalty come into play, especially with younger generations like Gen Z?
Gen Z is a much more mobile demographic compared to older generations. They’re less likely to stick around with one bank simply because they’ve been there for years. Gen Z customers are more willing to switch accounts for a better deal, whether it’s a sign-on bonus or cashback. In fact, I know people who have opened multiple current accounts just to take advantage of these offers. It’s like a strategic game for them.
But here’s the catch—these aren’t always the types of customers banks want long term. Sure, they’ll open an account, grab the bonus, and maybe use a few services, but they’re not as likely to have deep involvement with the bank. There is little opportunity to drive lifetime value. Banks are looking for engaged customers—people who will open a credit card, take out a car loan, and eventually may even apply for a mortgage. Once banks find those "ideal" customers, churn isn’t as big of an issue. The challenge is attracting those who are there for the long haul.
Banks can minimise churn by offering premium services and ensuring customers feel supported. This is where real-time insight into a customer's financial situation is crucial. By monitoring changes in income or spending, banks can offer better-targeted services, whether it’s helping someone avoid financial distress or introducing a new product at just the right time.
Q: You mentioned earlier the importance of customer data. Can you explain how banks use this data to manage portfolios more effectively?
Absolutely. Banks have an enormous amount of data on their customers. They could see everything from income to spending habits, right down to where people shop and how often. However, just having this data isn’t enough. Banks often struggle with something called “technical debt,” which means their systems aren’t always integrated and are often outdated and slow. For example, a bank’s credit card system might not be fully connected to its current account system, even though both products belong to the same customer. That’s a missed opportunity to understand the full financial situation and engage more effectively with the end user.
Banks are investing time and resources into consolidating these systems, but it’s a long road. In some cases, banks acquire other companies—maybe a vehicle loan provider or an insurance company—and those systems don’t always integrate well with the existing infrastructure. That’s where banks sometimes need outside help to streamline processes and make the most of the data they have.
When it comes to income verification, for instance, we can use transaction data to identify regular salary payments or income from the gig economy. This would allow banks to see variable payments coming in from companies like Uber or Deliveroo and identify if someone is on a zero-hours contract. By using Atto to categorise spending, banks are enabling a clearer picture of affordability and creditworthiness—essentially, how much someone can realistically borrow and repay.
Q: What are the benefits for consumers when banks use this data to manage portfolios?
For consumers, the biggest benefits are speed and convenience. Let’s say a customer needs a loan or a new credit card. Instead of waiting until their credit score reaches a certain threshold, banks can engage with Atto; using real-time data to make quicker decisions. If they see that a customer has a stable income and good spending habits, they can approve a loan or a new product almost instantly. That saves the customer from waiting weeks and reduces the need for endless paperwork.
Another big advantage is personalisation. When banks have a clearer picture of a customer’s financial behaviour, they can offer more relevant services—whether that’s pre-approving a loan or alerting and supporting a customer when they might be in danger of financial stress. It’s a win-win because customers feel supported, and banks can act before problems arise.
Q: How does automation fit into all of this? Are banks moving toward more automated decision-making?
Automation has a significant impact on productivity. Banks are investing significantly in automation, and for good reason. It’s all about efficiency and cost-saving. If you’ve got 5 million customers, you need a way to make decisions quickly and without human intervention for every single case. Using Atto’s open banking solutions to automate decisioning helps banks reduce the cost to serve customers, which is especially important in countries like the UK, where we don’t pay for bank accounts directly.
When banks automate processes, it means fewer underwriters are needed, and decision-making becomes faster and more accurate. For example, rather than manually reviewing each loan application, automated systems can analyse a customer’s transaction history and income patterns to decide on suitability. It also allows banks to reallocate their human resources toward more complex tasks that require a personal touch.
In the future, I see banks moving toward what’s called “hyper-personalisation,” where every customer receives a truly tailored experience. This goes beyond just banking services—it could mean personalised financial advice, timely loan offers, or even investment suggestions based on daily updates to your financial profile.
Q: What’s the next big step for banks in managing customer portfolios?
The next big step is moving from reactive to proactive management. Right now, a lot of banks are still in reactive mode—they wait until a customer applies for a product or shows signs of financial trouble. But with the right data and tools, banks can anticipate those needs before they arise. They’ll be able to predict when someone is about to experience financial strain or when they might be ready for a new financial product.
By analysing spending patterns, income stability, and other data points, banks can intervene sooner, offering solutions like credit restructuring or new loan products at just the right time. It’s about shifting from “How do we respond to this problem?” to “How do we prevent this problem before it even happens?” That’s where the real power of modern portfolio management lies.
Q: To wrap up, what should customers take away from all of this?
Customers should know that banks are becoming smarter about how they manage portfolios and interact with them. The shift toward data-driven insights means that banks can provide more personalised, relevant services. This will result in faster decision-making, better products, and more tailored solutions.
The relationship between banks and customers is evolving, and it’s becoming more about partnership than just transaction. So, if you’re a customer, keep an eye on how your bank is innovating—you might find that banking in the future is a lot more intuitive and personalised than ever before.
There you have it—a glimpse into the world of modern banking from Rob Knight. With advancements in open banking, automation, and data analytics, banks are adapting to the challenges of today’s financial landscape, all while providing better services for their customers.
To discover how Atto can you navigate the complexities of portfolio management, book a demo with one of our team.
