Predictive analytics retail bank


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Predictive analytics retail bank

  1. 1. Tomorrow’s Knowledge,Today…numbers that can make or break your businessCredits (Group 7)  Deepak Mishra (27)  Sachin Kotgire (61)  Tushar Khonde (81) 1
  2. 2. Will I ever get my money back? 2011: • Painful saga 2010: continues... • Spain, Portugal comes down 2009: • Germany steps in • Iceland • EU – IMF rescue government package ($955 bn) 2008: collapses • G20 Spending • Lehman, Banks • Gov. stimulus Disagreements collapse ($787 bn) • US Gov. • Greece joins too…2007: intervenes –• US Housing Bailouts, assists downturn buy over• Subprime • Heavy Job Woes goes losses(unemplo Global yment - 8.5%) meet …. 2
  3. 3. Impact: Global Economic Slowdown  Impact on Stock Markets Globally  Losses to Investors  Freeze in Inter Bank Credit  Increasing Unemployment  Decline in Businesses Globally  Bailouts Aftermath: What did banks do? Purchasing information Spending habits & patterns Credit Scoring & Risk Fraude.g. If customers shop more often @ discount stores, then theydon’t have much money and hence may not repay bills 3
  4. 4. Who is helping banks to look at right things?• Specializes in • Solution improves returns • 1st ever ‘hadoop’ powered • Regulatory compliance generated by Home Equity app. for Financial services products & services Lines Of Credit (HELOC) • Customer Acquisition • Analyzes, automates • Retention & Churn • Provides customer preference storage, processing, based offers retrieval• Barclays: Cross-channel sales campaign • U.S. Bank: • Cost effective • Increase in cross sell revenues• Unicredit: by 300%($1 mn) • Cloud sol. available • Spot customer churn • 189% y-o-y increase in behavioral patterns responses from one Line of • Bank of America Credit campaign • Personalized offers across • Better understanding of multiple channels • 73% increase in direct deposit IMPACT of new & existing accounts products. • 40% reduction in mailing • Examines credit &• Finansbank: Identify prospects volumes operational risks across based on credit card holder’s spending patterns different lines of business 4
  5. 5. Who is helping banks to look at right things? contd…• Combines operational data • Unique, patented solution • Integrated suite of (CRM, Financials etc) with VOC combining data into unified, customer analytics & data -> VOCi cross-channel, experience engagement solutions analytics framework• Collection via web links, • Analyzes customer comment portals, Email • Renders simple visuals sentiments around brands, surveys, telephone hotlines, representing behaviors across offerings, services etc customer feedback etc systems • RBC:• ING DIRECT: • Instant view and insights to • Uses ‘Attensity Analyze’ • Simplified financial products granular level information for customer analytics • Helps identify right customer process to integrate over • Create an emotional • Citibank: 1 mn pieces of customer connection with customers • Implemented Traffic Viewer, a feedback visual traversal mapping showing customers movement • Gained better insights through the bank’s IVR systems into customers pain- points • Identify time spent before, after and between various steps in the self-service 5
  6. 6. Who is Looking Beyond Numbers - HBOS• Largest retail bank in UK• Now part of Lloyds Banking Group• 22 million current account customers 10 – 15% increase in Customer leads and Service half of Agent offers those Predict the product probable converted cross-sell to sales product Analyze opportunity customer’s profile 6
  7. 7. Who is Looking Beyond Numbers – Fifth Third Bank• Fortune 500 bank with $111 billion in assets• Based out of Cincinnati, OH• More than 15 million account holders 400% ROI :: Account Customer attrition Service Agent went down offers new by HALF Predict services & Lost 9 out of probable discounts 10 reasons for customers dissatisfaction Analyze customer transaction data 7
  8. 8. Who is Looking Beyond Numbers – WELLS FARGO• Fortune 500 bank with $1.3 trillion in assets• Based out of San Francisco, CA• More than 70 million account holders 61% jump in lending sub $5000 loans Tailor product & service Automate needs credit scoring & customer’s Competition ability to from replay loans community banks to capture small businesses 8
  9. 9. Banking on Social Media “prosumers” — professional, productive, and proactive consumers who typically offer the most long-term value to retail banks. Reach Reduce CostsCustomers “Generation C” Restoring MarketingConfidence 9
  10. 10. Who stands where?Forrester Wave: Predictive Analytics & Data Mining Solutions – Financial Services (2010-11) 10
  11. 11. What banks can do? Customer information available to you Customer’s life cycle stages and behavior patterns 360 degree view of the customer profile Competitors action and consequences Customer sentiments on social media platforms Don’t forget customer is KING 11
  12. 12. Q&A 12
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