The document discusses unlocking customer insights to drive business growth. It notes that only 28% of companies provide a good or excellent customer experience. It then provides examples of using customer data and analytics to increase revenue and profitability, expand product offerings, and enhance the customer experience. Specific use cases discussed include measuring risk-adjusted performance, aligning with customer life stages, implementing propensity modeling, and ensuring accurate corporate client profiles. The document concludes by discussing considerations for delivering effective, timely customer insights across the enterprise.

1. Unlock Customer Insights to
drive business growth
Stuart Houston
Global Solution Director
Financial Services Analytics
Oracle FS Global Business Unit

2. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.2
“In this age of the
customer, the only
sustainable competitive
advantage is knowledge of
and engagement with
customers.”!
Age of the Customer
Source: Competitive Strategy in the Age of the
Customer, Josh Bernoff- Forrester, 2012
Only 28% of companies earned a
"good" or "excellent" customer
experience rating.
"Excellence isn't an accident. It
happens from continuous,
purposeful focus.”
Source: Tempkin Group, Q1, 2012 enchmark Survey

3. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.3
Originations
TxnID
ProductID
Product
Amount
12324
506
5/1 ARM
$413,399
12325
507
30 yr Fixed
$513,699
BI Star Schemas!
Metrics: Margin = Sales - Cost, …!
Dimensions: Customer, Product, …!
“”Owns investment
properties….high spend in
Consumer Electronics “
Websites & Financial Data Providers!
Chaseonline.com, D&B, Acxiom, etc.!
“Laid off again…please
pass my resume to your
contacts…”
Social Media!
Customer Comments!
Enterprise Applications!
Branch, Call Center, CRM, Etc!
“Why did my escrow
payment increase…”
“Waiting on paycheck
from new job…”
Origination paperwork,
emails, Credit Reports,
Correspondence…..
Enterprise Content System
MS Office Documents, Internal Notes!
Behavioral analysis? Customer life
events? Broader financial picture of
customer? Match profiles to
successful previous experiences?”
Servicing
TxnID
Loan
CustID
Date
Fund
Price
506
2543
1233
10/3
P
&
Int
$4,340
507
2543
1233
09/4
Escrow
$958
What new, innovative ways can I segment my customers?

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Increase Revenue
and Profitability
• Improve Cross-Sell and
Up-Sell Opportunities
• Customer Churn
Prevention
• Improve Operational
Efficiency and Reduce IT
Cost
Expand Product
Portfolio
• New Product Development
based on social landscape
and trends
• Targeted Campaign and
Product Recommendation
Enhance Customer
Experience
• Customer Intimacy with
Holistic and Historic View
of Each Customer
• Customer Satisfaction &
Survey Management
• Effective, Accurate, and
Timely Fraud Detection
Photos courtesy of Google Images
Business Strategies and Use Cases for Customer Insight

5. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.5
OFSAA Benefits
Background &
Customer Needs Oracle Solutions
 Goal to achieve a unified view of
the customer across LoBs
 Consistent view of account
profitability
 Consistent view of Customer
Profitability across all
relationships with the bank
 Monitor Relationship Officer
performance incl. Cross-sell
without double-counting
revenues across LoBs
 Single view of Customer and
Relationship Officer P&L
 Accurate aggregations across
Customer, Product, RO and Org,
eliminating all double counts
 Ability to disproportionately
allocate revenue across ROs
 Pre-packaged reports delivered
weekly; exhaustive dashboards
for extended analysis and on-
demand report creation
 Ability to manage adjustments
 Institutional Performance
Analytics
 Reconciliation Framework
 Analytical Applications
Infrastructure (Forms and Rules
Framework)
Business Strategies and Use Cases for Customer Analytics
Client Example for Corporate Customer Insight

6. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.6
OFSAA Benefits
Background &
Customer Needs Oracle Solutions
 Goal to achieve a unified view of
the customer across LoBs
 Consistent view of account
profitability
 Consistent view of Customer
Profitability across all
relationships with the bank
 Risk-adjusted performance
metrics
 Need to calculate Customer
Lifetime Value
 Account and Customer P&L
(Actual & Forecast)
 Identify most profitable customers
(incl. within a channel)
 Customer Segment Profitability
 Relationship Officer Performance
 Exhaustive dashboards for
extended analysis and on-
demand report creation
 Ability to analyze in detail all the
P&L drivers
 Retail Performance Analytics
 Reconciliation Framework
 Analytical Applications
Infrastructure
Business Strategies and Use Cases for Customer Analytics
Client Example for Retail Customer Insight

7. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.7
Performance
Key Capabilities
Propensity Models: Pre-built product and channel propensity of customers
Score lists to identify optimal segments/ customers for treatment and track ROI
Predictive Models: Cross-sell, Up-sell scores, Likelihood of purchase, Customer Lifetime Value etc
Marketing Effectiveness: Campaign profitability & response tracking against plan and by key dimensions
Engagement Analysis: Wallet-Share, Spend diversity, product cross-holding, Attrition Analysis etc
Channel Effectiveness: Over/under performing Branches, Marketing ROI, response analysis across channels
Key Capabilities
Risk Summary: Customer
distribution across
Credit and
Delinquency bands
and related exposures
Expense Analysis
across Customer
Segments, Products,
Channels to
understand ROI
Revenue breakdown by
reporting lines like
Interest, Interchange,
Fee Income etc; top
performing segments
and products across
reporting lines
LOB specific Analysis
including customer
distribution across age,
income, profitability
deciles, balance
maturity
Managing the Customer Lifecycle

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“The industry is taking a hard
look at profitability and
performance. The spotlight is
on developing new products
and revenue sources, and
organizations will require
carefully crafted business
strategies to address the
effects of regulatory reform,
technology change,
competitive dynamics and
market movements..”
– “Deloitte Bank & Securities Industry
2011
“There is no doubt that our
reporting is getting more
sophisticated, but the trick
in reporting on all these
things is to make it simple.
The tendency is to give
more data, but the best
decisions tend to be made
from simple clear data.”
– CFO, Large Australian Bank
From Data to Information

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of the information
you need is
unstructured
What data do I need to consider?

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Use Case 1 – The Risk Adjusted Performance Challenge
Risk Band /
Profit Band
High Risk Medium Risk Low Risk Grand Total
High Profit
309 521 385 1215
Medium
Profit
448 231 121 800
Low Profit
115 85 842 1042
Grand
Total
872 837 1348 3057
Heat Map : Risk & Return
1 An accurate portrayal of risk should impact the recommendation engine
2 How can we improve risk profile of high profit customers?
3 How can we improve profitability of low risk customers?

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Use Case 2 – Aligning to Life Stages in Customer
Engagement
Tech
Savvy
Business
Owners
Ethnic
The segments are not as simple
as they used to be …

12. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.12
Use Case 3 – Propensity Modeling
The holy grail is to fine tune the
customer experience to be
relevant and of interest to
the customer base

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Use Case 4 – Accurate Corporate Client Profiles
1. Many challenges – is the
full corporate entity
represented accurately?
Subsidiaries? JV’s? …
2. Clear representation of
important trends, driving
detailed analysis
3. Alignment with enterprise
strategy?
4. Alignment with Incentives?

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What data do I need and
where do I get it from?
How do I make sure all
my system data is
consistent?
Why do I have to wait
until the end of the
month to get my
reports?
Great analysis … now
how do I use it to impact
my customer’s
experience?
How can I measure
the results of using
my new insights?
Barriers to the delivery of great customer insight …

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Faster Time
to Produce Insights
Cost Effective with
a quick ROI
Enterprise-Scale
Performance at
Extreme Volume
00:0000:0100:02
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Considerations for delivering effective customer insight

16. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.16
Collect
Real
Time
Web
Log
Entries
Acquire Organize Analyze DecideSource
Customer &
Transaction
Records
from Core
Systems
For Identified
customers,
track credit
decisioning,
non-financial
activity, social
activity, …
Explore current
Customer
Information
Batch
Archiving
of Web
Log
Entries
Products of Interest
Summarize
Customer
related
Information
for Analytics
Historical metrics
Monitor and track
Identified metrics
of interest
Customer
Monitoring
Recommend Action
Data
Transformation
Track Life Events
Identify
Statistical
Outliers
Alert Anomalies
Interact with
Customer
through any
channel at
any time
• Servicing
• Sales
• Marketing
Information Architecture necessary to deliver the promise

17. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.17
NoSQL
Database
Acquire Organize Analyze DecideSource
Customer
Records
from Various
Silos
For Identified
customers,
track bank web
pages visited
OFSAA
Financial
Services
Data
Foundation
OFSAA
Customer
Analytics
OFSAA
Customer
Insight
Modeling
Decisioning
Oracle
Endeca
Information
Discovery
Connectivity
Oracle
Rightnow
Social Media
Monitoring
Channels
Customer
Relationship
Management
Core
Processing
Systems
Hadoop
What data do I
need, where do I
get it from?
How do I ensure
consistency of
information?
I need my data
to be timely (at
least daily!)
How do I
positively impact
customer
experience?
How do I measure
success of customer
engagement
strategies?
Oracle provides a complete solution for Customer Analytics

18. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.18
Oracle Financial Services Customer Insight
Key Applications
Retail Performance
Analytics
Profitability Analysis across
key dimensions like Customer
Segment, Product, Org,
Geography, etc.
Channel Analytics
Customer Interaction analysis
through self-service &
assisted channels
Retail Customer
Analytics
Customer behavior analysis
to enhance engagement with
the Bank
Institutional
Performance
Analytics
Profitability across key
dimensions like Product,
Industry. A 360o view of a
corporate customer

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