…numbers that can make or break your business

Tomorrow’s Knowledge, Today

Credits (Group 7) Deepak Mishra (27) Sachin Kotgire (61) Tushar Khonde (81) 1

Will I ever get my money back?

2007:

• US Housing downturn

• Subprime Woes goes Global

2008:

• Lehman, Banks collapse

• US Gov. intervenes –Bailouts, assists buy over

• Heavy Job losses(unemployment - 8.5%)

2009:

• Iceland government collapses

• Gov. stimulus ($787 bn)

• Greece joins too…

2010:

• Spain, Portugal comes down

• Germany steps in

• EU – IMF rescue package ($955 bn)

• G20 Spending Disagreements

2011:

• Painful saga continues...

meet ….

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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

Fraud

e.g. If customers shop more often @ discount stores, then they

don’t have much money and hence may not repay bills

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Who is helping banks to look at right things?

• Specializes in

• Regulatory compliance products & services

• Customer Acquisition

• Retention & Churn

• Barclays: Cross-channel sales campaign

• Unicredit:

• Spot customer churn behavioral patterns

• Personalized offers across multiple channels

• Finansbank: Identify prospects based on credit card holder’s spending patterns

• Solution improves returns generated by Home Equity Lines Of Credit (HELOC)

• Provides customer preference based offers

• U.S. Bank:

• Increase in cross sell revenues by 300%($1 mn)

• 189% y-o-y increase in responses from one Line of Credit campaign

• 73% increase in direct deposit accounts

• 40% reduction in mailing volumes

• 1st ever ‘hadoop’ powered app. for Financial services

• Analyzes, automates storage, processing, retrieval

• Cost effective

• Cloud sol. available

• Bank of America

• Better understanding of IMPACT of new & existing products.

• Examines credit & operational risks across different lines of business

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Who is helping banks to look at right things? contd…

• Combines operational data (CRM, Financials etc) with VOC data -> VOCi

• Collection via web links, comment portals, Email surveys, telephone hotlines, customer feedback etc

• ING DIRECT:

• Simplified financial products

• Helps identify right customer

• Create an emotional connection with customers

• Unique, patented solution combining data into unified, cross-channel, experience analytics framework

• Renders simple visuals representing behaviors across systems

• Instant view and insights to granular level information

• Citibank:

• Implemented Traffic Viewer, a visual traversal mapping showing customers movement through the bank’s IVR systems

• Identify time spent before, after and between various steps in the self-service

• Integrated suite of customer analytics & engagement solutions

• Analyzes customer sentiments around brands, offerings, services etc

• RBC:

• Uses ‘Attensity Analyze’ for customer analytics process to integrate over 1 mn pieces of customer feedback

• Gained better insights into customers pain-points

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Who is Looking Beyond Numbers - HBOS

Analyze customer’s profile

Predict probable cross-sell product opportunity

Customer Service Agent offers the product

10 – 15% increase in leads and half of those converted to sales

• Largest retail bank in UK

• Now part of Lloyds Banking Group

• 22 million current account customers

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Who is Looking Beyond Numbers – Fifth Third Bank

Analyze customer transaction data

Predict probable reasons for dissatisfaction

Customer Service Agent offers new services & discounts

400% ROI :: Account attrition went down by HALF

• Fortune 500 bank with $111 billion in assets

• Based out of Cincinnati, OH

• More than 15 million account holders

Lost 9 out of 10

customers

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Who is Looking Beyond Numbers – WELLS FARGO

Competition from community banks to capture small businesses

Automate credit scoring & customer’s ability to replay loans

Tailor product & service needs

61% jump in lending sub $5000 loans

• Fortune 500 bank with $1.3 trillion in assets

• Based out of San Francisco, CA

• More than 70 million account holders

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Banking on Social Media

Reach Customers

Reduce Costs

Restoring Confidence

Marketing

“Generation C”

“prosumers” — professional, productive, and proactive consumers who typically offer the most long-term value to retail banks.

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Who stands where?

Forrester Wave: Predictive Analytics & Data Mining Solutions – Financial Services (2010-11)

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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

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Q & A

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