SAS® Customer Analytics for Banking


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Banks and credit unions are constantly at risk of losing customers or members, and in order to stem the flow, they may offer their best customers better rates, waive annual fees and prioritize treatments. However, such retention strategies have associated costs, and you cannot afford to make such offers to every single customer. The success and feasibility of such strategies is dependent on identifying the right customer for the right action.

SAS® Customer Analytics for Banking turns raw data into insight that banks and credit unions can use to manage marketing strategy intelligently and increase customer retention. The integrated software infrastructure enables business users to analyze complex customer behavior hidden in large volumes of historical data.

You can then use that information to answer critical business questions, such as which customers are likely to try a new product and which are likely to leave the bank entirely. Learn more at

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SAS® Customer Analytics for Banking

  1. 1. SOLUTION OVERVIEWSAS Customer Analytics ®for BankingLower acquisition costs, improve retention rates and increase wallet shareOverview ■ ChallengesBanks are constantly at risk of losing • No single view of the customer.customers, and in order to stem the flow, Customer data often resides in multiplethey may offer their best customers bet- operational systems across differentter rates, waive annual fees and prioritize lines of business, leading to disparatetreatments. However, such retention and duplicate customer data.strategies have associated costs, and • Inability to predict customeryou cannot afford to make such offers to behavior. Inconsistent and incompleteevery single customer. The success and customer data, plus lack of collabora-feasibility of such strategies is dependent tion across departments, make it hardon identifying the right customer for the to build effective behavioral models.right action. • Ineffective or nonexistentIdentifying which customers are most segmentation/customer profiling.likely to leave is just the first step; you Early withdrawals and low retentionmust also be able to subsegment cus- rates jeopardize opportunities fortomers at risk of attrition into those cus- recovering acquisition expenses overtomers most likely to respond positively the long specific offers. Likewise, cross-selling • Decreased customer loyalty.and up-selling campaigns also should be Increased competition continuallytargeted at those customers most likely to erodes customer loyalty.respond to and be accepted for offers.SAS® Customer Analytics for Bankingturns raw data into insight that bankscan use to manage marketing strategyintelligently and increase customer reten- You can then use that information totion. The integrated software infrastruc- answer critical business questions,ture enables business users to analyze such as which customers are likely tocomplex customer behavior hidden in try a new product and which are likelylarge volumes of historical data. to leave the bank entirely.
  2. 2. Better understand and drive decisions related to customer profitability■ Key Benefits How SAS® Can Help Uncover New Sales Opportunities, and Increase Wallet Share SAS Customer Analytics for Banking SAS Customer Analytics for Banking delivers specific analytical techniques to Fast and accurate segmentation, model enables you to: help you understand and drive decisions development and management for all • Create a single view of the customer. related to customer profitability. The solu- consumer-banking products give you • Uncover new sales opportunities tion enables you to segment customers greater insight into retention and cross- and increase wallet share. according to a multitude of variables – sell/up-sell strategies. Predictive analytics • Improve retention rates. demographics, geographies, account (e.g., decision trees) can help you identify • Reduce marketing costs. history, etc. – to create more meaningful potential cross-sell and up-sell prospects. and targeted marketing programs. Easy-to-use segmentation capabilities enable analysts to better understand■ Key Differentiators The solution helps you improve reten- which customer characteristics lead Only SAS Customer Analytics for Banking tion rates by determining causes and to reduced usage and attrition. That provides you with: predicting future customer attrition. In understanding can then be used to • Superior data management capabilities. addition, by applying analytics to his- experiment and identify specific groups torical data, you can increase revenue for model development or action. • A banking-specific data model and and wallet share by knowing which prebuilt analytic capabilities. customers are good candidates for Improve Retention Rates • Improved productivity via user- cross-selling and up-selling. friendly interfaces and intuitive, SAS Customer Analytics for Banking Web-based reporting. lets you develop, validate, deploy and Create a Single View of the Customer track customer analytics models with SAS Customer Analytics for Banking greater speed, more flexibility and at a consolidates all customer data into lower cost than outsourcing alternatives. one place – regardless of source. The You can perform ongoing, on-demand solution cleanses the data and trans- scoring of new and existing customer forms it to provide a complete picture applications to identify the best custom- of the entire customer relationship. In ers for retention and cross-sell/up-sell addition, the solution: strategies. Detailed analytics, such as cluster analysis, give you insight into the • Supports both customer-centric and major factors that influence customer household-centric views. retention, and an accurate early-warning • Delivers consistent, accurate, verifi- alert system identifies those customers able and up-to-date information. likely to leave in the future. • Includes a comprehensive warehouse data model that serves as a single Reduce Marketing Costs version of the truth and standardizes banking data elements to ensure con- SAS Customer Analytics for Bank- sistent terminology and reporting. ing enables you to connect offers to the right customers using predictive analytic techniques based on demo- graphic, geographic and behavioral data across the organization.
  3. 3. Capabilities • Data cleansing provided in native languages, with specific language • The ability to be deployed in multiple databases, including SAS, Oracle,Superior Data Management awareness and localizations for more Microsoft SQL Server, Teradata than 20 worldwide regions. and DB2.An enterprise data management environ-ment lets you access data from virtually • Out-of-the-box standardization rules • Business data definitions consistent any system in any form (e.g., bureau, that conform data to corporate stan- with global banking data standards.application, billing-payment and transac- dards, plus the ability to build cus- • A customer analytics-specific data tion data), transform and cleanse data, tomized rules for special situations. mart with hundreds of derived andand handle data migration projects – all • An interactive GUI that enables data aggregated variables to facilitatethrough a versatile environment that is stewards to profile operational data analytics and reporting.easy to deploy. In addition, the solution and monitor ongoing data activities. • Support for a variety of business issues.provides: • Customized and reusable data quality • An easy-to-access, consistent, robust business rules that can be accessed Reporting and Business Intelligence data mart for integrated data extrac- directly within process job flows. Comprehensive, easy-to-use business tion, householding/deduplication, • The ability to migrate or synchronize intelligence software provides insights to mapping and loading capabilities. data between database structures, empower users at all levels to make bet-• The ability to add custom fields to the enterprise applications, mainframe ter decisions faster. Capabilities include comprehensive banking data model. legacy files, text, XML, message portals and dashboards, report viewing,• Wizards for accessing source sys- queues and a host of other sources. report building, advanced data explora- tems, creating target structures, • The ability to join data across sources tion, Microsoft Office integration, guided importing and exporting metadata, for real-time access and analysis. analysis, metadata management, and building and executing data ETL guided SAS OLAP cube creation and process flows. Banking Data Model application development. In addition,• A dedicated GUI for profiling data and the solution includes: A comprehensive, scalable data model identifying and repairing source system • A Web-based, interactive reporting provides a single version of the truth for issues, while retaining the business interface for business users. an enterprise data warehouse covering rules for later use in ETL processes. all key banking areas. Historical data is • Query capabilities for all levels of • Data cleansing and augmentation, stored at a granular level to support all users across multiple BI interfaces. and can be customized for real-time reporting and analytical requirements. • The ability to slice and dice multidi- processes. The solution supports all consumer- mensional data using a special slicer• Enterprise connectivity to data lending products and has the flexibility to dimension and by applying filters on sources – ODBC, IBM DB2/UDB, extend to new lines of business as needs any level of a hierarchy. Microsoft Access and Excel, Microsoft arise. The solution also includes: • Critical first-alert, call-to-action dash- SQL Server, Netezza, Oracle, Sybase, • A comprehensive dictionary that boards that let you detect and pre- SAS, Teradata, core banking systems describes thousands of banking data empt scorecard instability, as well and more. elements. as deliver performance information• Support for unstructured and • A complete mapping of physical data to executive management and other semi-structured data. structures to business terms. decision makers.• Data quality embedded into • Both logical and physical data • Dynamic business visualization tools all processes. models – e.g., ERwin data models for interactive data exploration, visual and SAS metadata. queries and more.
  4. 4. • Access to SAS capabilities for data including creating variables on demand provide early-warning indicators when access, reporting and analytics without requiring code development. a key customer’s behavior is about directly from Microsoft Office, includ- • The ability to combine model predic- to change. ing Word, Excel and PowerPoint. tions to form a potentially stronger• Wizard-driven report creation within solution (e.g., averaging, voting Greater Productivity Microsoft Office tools. and maximum). Only SAS provides prebuilt processes • Model evaluation to compare multiple and analytic techniques with a ready-to-Data Mining and Predictive Modeling models in a single framework for all deploy architecture specifically designed data sources. to address a wide range of bankingSAS Customer Analytics for Bankingenables data miners and business business challenges, which boosts theanalysts to create highly accurate pre- Why SAS®? productivity and self-sufficiency of yourdictive and descriptive models based business analysts and subject matter Superior Data Management experts. In addition:on the analysis of vast amounts of datawithin the bank. Results can be shared Only SAS gathers all customer data into • A guided, user-friendly interface throughout the organization to deliver a single version of the truth by pulling enables business analysts to developanalytical information and incorporate together data from all touch points and predictive analytical models for cus-models into business processes. The distribution channels. The solution also tomer analytics, including those forsolution also includes: automatically validates data as part of segmentation, retention, cross-sell• A powerful set of interactive data prep- the data integration process so you can and up-sell. aration tools for optimally addressing be confident in its integrity throughout • SAS’ award-winning business intel- missing values, filtering outliers and the organization. ligence technology enables intuitive, developing segmentation rules. Web-based reporting.• An unmatched suite of predictive Banking Data Model and • A portal framework hosts scorecard- and descriptive modeling algorithms, Prebuilt Analytics ing, dashboards and other reporting including: decision trees, neural SAS helps you jump-start your analytic capabilities to disseminate information networks, memory-based reason- capabilities with banking-specific logical throughout the organization. ing, hierarchical clustering, linear and and physical data models. In addition, • Business users have ready access to logistic regression, associations, mar- SAS enables you to: online reports containing performance ket basket analysis, sequence and data in historical comparisons with • Reduce costs and implementation Web path analysis, and more. drill-down capabilities on the latest time with prebuilt customer data• A convenient GUI application for marts and predictive models. key metrics, such as line of business exploring segmentation and creating revenue and retention rates. • Accurately forecast customer behav- data sets for model development, ior using SAS’ powerful predictive analytics. • Analyze data for trends to segment markets, determine customer value and calculate retention scores thatAbout SASSAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market.Through innovative solutions delivered within an integrated framework, SAS helps customers at more than 50,000 sites improveperformance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the worldTHE POWER TO KNOW® . SAS Institute Inc. World Headquarters +1 919 677 8000 To contact your local SAS office, please visit: SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. Copyright © 2011, SAS Institute Inc. All rights reserved. 104970_S65991.0211