Banking and Analytics - Correlation & Benefits

Saurabh Singh

Defining Goals and Strategies, Identifying key areas to focus and generating key trends out of the
market analysis, all these points boils down to analyzing data through Analytical tools and methods.
Also it is vital that we use Analytics in selling our products, making sure we are selling the RIGHT
product in the RIGHT manner.
We normally define the sales process in the following aspects in an ideal scenario:

Geographic and Personal requirements of customers Complete Need Analysis

Product Rules Making sure customer fulfills the criteria for the products in terms of
Compliance and Fraud etc.
Execution of Customer Need Analysis
Notifications and Alerts on Key Milestones of Account origination
Complete the Activation of Product/s Close the process

For reporting purposes for the Strategic group of the Company, it is required that we do tracking
based on milestones and data is available to support this analysis. For tracking purposes, we require
following information:

By using a customer Needs analysis as a function, we can actually do save requirements of

the customers and track it, even if they dont take up any offer
Doing the Trend analysis and identifying the most purchased products and try to improve the
process of originating it or maintaining it
The Behavioural aspects of the customers

The decisions which are made by the senior management of the organisation based are on the
numbers which comes out of trend analysis/Behavioural analysis. Analytics helps to derive to certain
conclusions by running mathematical calculations on MIS data. These numbers can then be
converted to running numbers and used to playback to senior management to strategize various
business units
There is also predictive analytics which comes in picture when it comes to risk management in the
banking institutions. This predictive modelling and data mining solution makes it easy to:

Reduce risk by combining structured and unstructured data to better evaluate claims,
customers and applicants, enabling you to approve more customers for higher credit limits,
without increasing default rates.
Increase profitability and customer loyalty by managing segmentation rules for predicting,
guiding and responding to customer actions.
Eliminate errors with decisioning flows that can be managed and deployed across multiple
environments, without the need for reprogramming.
Mitigate fraud by detecting anomalies and/ or systematic characteristics of fraudulent
transactions, whether processing large data volumes in milliseconds or flagging suspect
incidents in real time.

Benefits:

Streamlines regulatory compliance.

Saves time and reduces errors with one-click deployment of models, scorecards, and
workflows into production.
Enables automatic translation of predictions into business decisions.
Uses non-traditional, text-based data sources to produce robust analyses and scoring.
Let you personalize and centralize data management to increase control and transparency,
even with complex modelling and scoring.

Leads Management and Campaign

Savings, current and personal Loans

Process Re-engineering, Process Optimization and Enhancements

Managing cus

Direct Banking channel

Applicable to all Product Portfolios

Customer Need Analysis, Beha

Innovative services
Discounts and Benefits, Service Fees waiver and other portfolio benefits

References:
[1] http://blog.thegmid.com/tag/analytics-in-retail-banking/
[2] http://en.wikipedia.org/wiki/Predictive_modelling

Direct Banking channe