The document outlines a webinar presented by Ian Kirton from TSB, focusing on building a data analytics strategy in a digital environment. It discusses TSB's history, current operations, and the planned advancements in their data analytics capabilities, emphasizing the importance of using technology for audit processes. Additionally, it includes details about the logistical aspects of the webinar, including CPE credit information and attendee engagement instructions.

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How to Build a Data
Analytics Strategy in a
Digital World
Ian Kirton
Internal Audit, TSB
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Introductions

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Agenda
• Overview of TSB, our
team, our approach
• Our data analytics
experience so far
• Future vision and
plans

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POLLING QUESTION 1
How to Build
a Data Analytics Strategy in a Digital World
TSB – The New Bank with a 200-Year History

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POLLING QUESTION 2
How to Build
a Data Analytics Strategy in a Digital World
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

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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
Define Plan Execute Evaluate Improve
• 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
Building Audit Capability from Scratch
Universe Methodology
People Systems and Tools

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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?
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

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POLLING QUESTION 3
How to Build
a Data Analytics Strategy in a Digital World
Case 1 - Credit Risk Acquisitions Decisioning Strategy
Dummy data used to prove test design

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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
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.

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Extracts Used to Summarise the Findings During the Audit
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

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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
Our Vision
Build a strong connected and collaborative culture with a central point of communication that
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

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POLLING QUESTION 4
How to Build
a Data Analytics Strategy in a Digital World
Some Digital, Agile Organizations

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Our New Digital Workplace
Search and Share Anything Within Seconds
Putting customers first

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Collaborate in Real-Time
Collaborative
Some New Tools
Existing apps
New apps in O365
New intranet links
(examples)

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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
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.

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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
Questions?

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How to Build a Data
Analytics Strategy in a
Digital World
Ian Kirton
Internal Audit, TSB