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How to build a data analytics strategy in a digital world


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This presentation will take you through TSB Bank’s journey from first establishing the audit function through to developing a data analytics strategy as the organization gets ready to move to a new, state-of-the-art online banking platform.


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How to build a data analytics strategy in a digital world

  1. 1. How to Build a Data Analytics Strategy in a Digital World Ian Kirton Internal Audit, TSB
  2. 2. The views expressed by the presenters do not necessarily represent the views, positions, or opinions of AuditNet® LLC. These materials, and the oral presentation accompanying them, are for educational purposes only and do not constitute accounting or legal advice or create an accountant-client relationship. While AuditNet® makes every effort to ensure information is accurate and complete, AuditNet® makes no representations, guarantees, or warranties as to the accuracy or completeness of the information provided via this presentation. AuditNet® specifically disclaims all liability for any claims or damages that may result from the information contained in this presentation, including any websites maintained by third parties and linked to the AuditNet® website. Any mention of commercial products is for information only; it does not imply recommendation or endorsement by AuditNet® LLC
  3. 3. Agenda • Overview of TSB, our team, our approach • Our data analytics experience so far • Future vision and plans
  4. 4. TSB – The New Bank with a 200-Year History
  5. 5. TSB – The New Bank with a 200-Year History 6.6 Million Customers • £22.3 billion in current accounts and savings • £18.3 billion in mortgages • £1.3 billion of loans 8,500 ‘Partners’ • 631 branches • 10 head office locations • 29 million items of new marketing literature to support launch 3-year Project • May 2011 management team appointed and 5,500 branch colleagues moved to create the Verde team • May 2012 recruitment started for core functions • 4,400 colleagues involved in project build
  6. 6. TSB – The New Bank with a 200-Year History 2 Develop Audit Strategy 3 Organise Resources 4 Implement Strategy Growth Strategy Branding Strategy Market Strategy Product Strategy Operational Strategy Internal drivers External drivers Audit StrategyAudit Committee Expectations Executive Views Risk Views Regulator Expectations External insights Internal Insights • Agree Charter • Agree scorecard • Define structures • Conduct risk assessment • Evaluate against each strategy • Develop audit plan (Targeting process) • Prioritise work • Execute plan • Periodically recalibrate the plan • Review audit performance • Re-evaluate strategy and audit plan • Continuously improve • Adapt to emerging business and audit requirements Audit Resources Co-source Resources Critical Strategic Requirements Audit infrastructure (GRC, IDEA, EUC’s) Risk assessmentsMI on key processes, critical controls, hot spots, issues Audit Plan Industry trends 1 Leverage organisational strategy
  7. 7. Building Audit Capability from Scratch Universe Methodology People Systems and Tools
  8. 8. 1. You can import data of any size 2. The source data is protected (read-only) 3. Helps you develop tests which are repeatable 4. IDEA can import data in a wide range of file types 5. Makes it easy to perform analyses of data 6. You can select samples using several sampling techniques 7. Makes it easy to join data tables so you can match or compare different files 8. Automatically generates a complete history that documents analyses Why Use IDEA?
  9. 9. Supporting audit testing. Examples: • Identifying exceptional items • Performing analyses • Checking calculations • Cross-matching data between systems • Testing for gaps and duplicates • Sampling Small Steps – Our Experience so Far
  10. 10. Case 1 - Credit Risk Acquisitions Decisioning Strategy Dummy data used to prove test design
  11. 11. Case 2 - Fees, Charges to Accounts and Credit Cards Checking application of correct fees and charges to all Personal Current Accounts (PCA) and credit cards • Fees and changes must be charged in accordance with published tariffs and aligned to T&C’s • High customer service and regulatory interest in accuracy • 1.6 Million transactions (approximately 80 GB) • Data transfer, cleansing and joins using IDEA • Initial analysis showed 99% accuracy • Deep dive on exceptions to understand differences • Positive assurance over whole population = value add
  12. 12. Case 3 - Reviewing Partner Performance Management Used IDEA to look at HR data for 5,933 partners, plus relevant sales and training accreditation data for a two-year period. Looked at range of correlations relating to: • Grievances • Partners ‘Off Track’ more than twice vs. formal Performance Improvement Plans • Resignations • Dismissals Audit team compared the data across 3 regions as well as comparing performance rating data with sales data to establish whether there was any correlation. Tools like IDEA provides more insights, greater assurance in each audit. Also easy for auditors to use as the functionality is simple to use.
  13. 13. Extracts Used to Summarise the Findings During the Audit
  14. 14. TSB will soon migrate to our own IT platform. Opportunities to: • Enhance audit access to data • Develop our capabilities The journey continues - our migration to a better place Data Sources ETL Data Warehouse Business Intelligence
  15. 15. In July we announced TSB would be the first bank in Europe whose customers will use Samsung’s iris recognition to log in to their mobile banking app Eye Eye
  16. 16. Our Vision Build a strong connected and collaborative culture with a central point of communication that encourages encourages Partners to share and promote information, ideas and feedback quickly. The Vision and Objectives Driving the New Digital Workplace Our Objectives 1. Provide the sort of tools that encourage an agile and digital way of thinking 2. Provide ways for Partners to talk and collaborate easily and effectively 3. Create a platform that brings TSB’s values to life and encourages behaviours that supports this 4. Provide best in class digital content and tools that help attract and retain Partners 5. Unlock powerful insight and fuel innovation by providing dynamic ways to share ideas
  17. 17. Some Digital, Agile Organizations
  18. 18. Our New Digital Workplace
  19. 19. Search and Share Anything Within Seconds Putting customers first
  20. 20. Collaborate in Real-Time Collaborative
  21. 21. Some New Tools Existing apps New apps in O365 New intranet links (examples)
  22. 22. Knowing where you are is a good place to start. Have had successes at an early stage of the data analytics journey Migration creates an opportunity to develop approach and look at: • Team structure and skills • Technology and techniques • Training • Wider use of data analytics Developing a Roadmap for a New Data Analytics Strategy
  23. 23. This means, we need to: • Underpin the audit universe with data that allows us to spot trends, target resource in the highest areas of risk. • Use data as the vehicle to increase breadth and depth of coverage, efficiency and the targeting of adverse trends throughout the audit plan. • Develop the capability to continuously monitor key controls and undertake regular, repetitive data audits of common activities. Data Analytics - Where We Want To Be We want to be a world class audit function that develops and optimises the use of its internal skills and uses the right tools to better focus audit effort, broaden our coverage and deliver each audit efficiently.
  24. 24. Data Analytics Outline Plan 2020 • Use predictive analytics to support audit planning. 2019 • Enhanced data capabilities with continuous auditing and control monitoring H2 2018 • Data teams and analytics embedded in audit delivery H1 2018 • Data SME in place. Data sources identified to support audit universe
  25. 25. How to Build a Data Analytics Strategy in a Digital World Ian Kirton Internal Audit, TSB
  26. 26. Questions: Email: