Vision 2014: Migrating-to-a-holistic-customer-view
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Vision 2014: Migrating-to-a-holistic-customer-view Presentation Transcript

  • 1. ©2014 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Public. Migrating to a holistic customer view A panel discussion Paul Akey ScotiaBank Mike Freeman Compass Bank Andrew Beddoes Experian Philippe St-Aubin Group Desjardins Mike Pfeifer Experian Panelists: #vision2014
  • 2. 2©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.  To share with you experiences from the industry from clients migrating from a traditional account level to a customer centric approach to portfolio management  To share opportunities and challenges  To understand the drivers and motivation for change  To provide insight into business benefits Session objectives
  • 3. 3©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Holistic customer management Definition: The ability to consider the complete relationship between the customer / member and the financial institution in the execution of strategic decisions across the Customer Life Cycle
  • 4. 4©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.  Check deposit (DDA) account (both salaries deposited)  Credit card  Line of credit  Mortgage Mr. & Mrs. Brown  Check deposit (DDA) account  RSP savings  Car loan Mrs. Brown  Check deposit (DDA) account  Secondary DDA account  RSP savings  Credit card Mr. Brown Definition of a customer 1 2 3 4 A vital component of customer level decisioning is the methodology used to define a customer
  • 5. 5©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Weak Strong Predictivepower The importance of cash flow information Power of data from different sources  Cash flow data impact varies by product type  Cash flow data increases the power of the scorecards  Use of all sources of traditional account data and cash flow data provides best resultsLoans Primary DDA account Customer Level (including DDA) Customer Level (including DDA, savings and credit bureau) Non- primary DDA account Credit cards
  • 6. 6©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Holistic customer management Essential components Holistic customer management Risk evaluation Customer definition Customer level risk grade Strength of relationship Adaptive control capabilities Affordability / ability to pay Net monthly income Expected monthly expenditure Known credit commitments Disposable income Product offering Apportionment Push vs. pull strategies Offer validity period Capital requirements Operational deployment User interface design consideration Legal considerations New business and customer management
  • 7. 7©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Holistic customer management Essential components Consumer Small Business Full customer view
  • 8. 8©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. ACQUISITIONS LOS 1 LOS 2 LOS 3 LOS 4 LOS 5 LOS 6 Loanoriginationsystem Solution overview CUSTOMER MANAGEMENT Decision engine B.P. 1 Bookingplatform B.P. 2 B.P. 3 B.P. 4 B.P. 5 B.P. 6 DATAAGGREGATIONLAYER When?  New credit request  Renewals  Limit increase request Decision engine  Application score  Initial decision: approve / refuse / refer  Limit / loan amount  Rate / terms  Product bundle  Mamc  Cross-sell order When?  Monthly batch  Product billing  Significant event EXISTING CUSTOMER LENDING PARAMETERS  Customer risk grade  Strength of relationship  Customer credit limit  Customer value indicator  Product credit limit  Maximum additional monthly commitment  Propensity scores
  • 9. 9©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Fast track processes  Servicing implications – Best-in- class approach to ensuring good customer experience AND manage marketing outreach by aligning offers with availability of exposure while being done in a way that recognizes customer strength-of- relationship  Push/pull strategies – Global best-practice typically uses this process in a reactive way based on consumers applying for additional products instead of active cross-sell. Can be used to limit cross-sell to most appropriate products as well  Consumer sentiment – Consumer “net promoter” scores dramatically increase with fast- track processes Fast track originations Enables ability to mitigate risk and improve customer experience! New credit request Existing borrowerNew customer / non-borrower Full data capture and bureau check Full customer risk assessment Accept Reject Refer Loan amount requested < MAMC Loan amount requested > MAMC Bad risk grade Reject/full Good risk grade Approve Fast-track Accept on signature
  • 10. 10©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Panel discussion
  • 11. 11©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Holistic customer management Q1: What are the business benefits which draw your organization towards the adoption of a customer-level approach?
  • 12. 12©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Holistic customer management Q2: Customer level decisioning is not a new concept. It has been widely adopted at various stages of the Customer Life Cycle across the globe. a) Why do you think that U.S. financial institutions have been relatively slower adopters? b) Canadian financial institutions have adopted this concept far more rapidly than their U.S. counterparts. Why do you think this might be?
  • 13. 13©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Holistic customer management Q3: What were the principle business challenges you faced as part of the migration process?
  • 14. 14©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Holistic customer management Q4: Which area of the Customer Life Cycle do you see as having the largest potential business benefit from migration to customer level?
  • 15. 15©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Holistic customer management Q5:a) In what ways have your customers / members benefited post migration from account level to customer-level decisioning? b) In what ways have you, the lender, benefited post migration from account level to customer- level decisioning?
  • 16. 16©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Holistic customer management Q6: What technological challenges did you face and how were they overcome during the migration process?
  • 17. 17©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Open questions
  • 18. 18©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. For additional information, please contact: Andrew.Beddoes@experian.com Mike.Pfeifer@experian.com Hear the latest from Vision 2014 in the Daily Roundup: www.experian.com/vision/blog @ExperianVision | #vision2014 Follow us on Twitter
  • 19. 19©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Visit the Experian Expert Bar to learn more about the topics and products covered in this presentation.