THE BIG BANK THEORY

OF DECISIONING
A Comprehensive Guide to Crafting
Financial Universes With Data & Certainty
TABLE OF CONTENTS

The Big Bank Theory Of Decisioning

Introduction

The Floating Landscape of the Banking Revolution

1. Agile Challengers and Market Disruption
2. The Big Quest for the Customer Loyalty Crown

From Broad Strokes to Precision

A Deep Understanding of Decisioning
1. The Essence of Decisioning in Banking
2. Redefining the Customer-Bank Relationship with Decisioning 2.0
a. Decisioning 1.0
b. Decisioning 2.0
3. Data-Driven Strategies: The Heart of Decisioning
Data-Driven Strategies in Real-life Example
4. Predictive Analytics for Proactive Decisioning

The Transformative Impact of Decisioning

Across Banking Domains
1. Enhanced Marketing Strategies
2. Optimized Risk Management
3. Fraud Prevention and Customer Security
4. Informed Customer Insights
5. Agile Product Development and Management
TABLE OF CONTENTS

The Benefits of AI-Driven Decisioning in Banking

a. Relevancy in Customer Interactions
b. Faster Loan Processing (Time-to-Cash)
c. Economic Outcomes with Reduced Defaults
d. Improved Customer Targeting
e. Significant Reduction in Credit Losses
f. Early Risk Detection
g. Customized Credit Offers

Overcoming Barriers to Innovation

Navigating Roadblocks in a Digital Journey
1. Breaking Down Data Silos
2. Modernizing Legacy Systems
3. Ensuring Data Privacy and Compliance
4. Fostering a Culture of Innovation
5. Keeping Up with Emerging Technologies

Embracing the Now and the Next in Real-time

Marketing & Decisioning with Evam
1. The Great Benefits of Evam — The Ultimate Real-Time
Marketing Hub
a. Real-Time Data Processing and Analysis
b. AI-Driven Insights
c. Ease of Integration
INTRODUCTION
The banking industry is witnessing a paradigm shift in marketing
decision-making. Traditional approaches are being replaced by advanced,
real-time, and data-driven strategies. This guide will walk you through this
transformation, introduce the concept of Decisioning 2.0, and highlight
how banks can navigate these turbulent waters to achieve
marketing excellence.

Join us in exploring how banks can leverage cutting-edge technologies

and data analytics to stay ahead of the curve in an extremely competitive
market. Here is your chance to go beyond understanding these massive
changes and become a part of them.
THE FLOATING LANDSCAPE OF THE BANKING
REVOLUTION
The banking industry is at the center of a digital revolution, a seismic shift
that is redefining the essence of financial services. This revolution
transcends mere technological advancements and the emergence of new
fintech players. It's fundamentally about how banks adapt to evolving
customer needs and expectations in an era where digital integration
is the standard.

Agile Challengers and Market Disruption

New players, agile start-ups, and tech-savvy disruptors are reimagining
banking, challenging the status quo of traditional financial institutions. In a
world where 60%¹ of customers say personalized experiences lead them
to repeat purchases, these innovators are not just competing; they are
rewriting the rules, offering faster, more individualized services that
resonate with the digital generation.

Traditional banks are not mere spectators in this revolution. To stay in

the race, they are accelerating their digital transformation. But it's a path
lined with challenges: increased market volatility, evolving regulatory
landscapes like Open Banking, and the imperative to share data in
unprecedented ways.

The Big Quest for the Customer Loyalty Crown

In an era of continuous evolution in the banking industry, the ultimate
prize is customer loyalty. Today's customers, empowered by technology,
expect banking to be as intuitive and responsive as the other digital
services they use daily. Winning their loyalty means understanding them
as individuals, appreciating their unique needs, and delivering solutions
that speak directly to them.

¹ McKinsey & Company - The big reset: Data-driven marketing in the next normal 1
However, realizing this customer-centric vision is easier said than done.
Many banks grapple with the legacy of outdated systems, siloed data, and
processes that hinder swift, innovative responses. These challenges can
stifle the ability to leverage valuable insights, making it hard to deliver the
personalized experiences customers seek.

Companies focused on improving

CX saw an annual revenue
growth rate of

17% ²

FROM BROAD STROKES TO PRECISION

A Deep Understanding of Decisioning
In the dynamic landscape of modern banking, 'decisioning' has become
more than a buzzword. It's a pivotal element in the playbook of innovative
banks. But what exactly does decisioning entail in this context, and
why is it so crucial?

The Essence of Decisioning in Banking

At its core, decisioning in banking is about making informed, data-driven
choices that directly impact customer experiences and business
outcomes. It's a shift from intuition-based to insight-driven strategies,
where every decision is backed by robust data analytics and
predictive modeling.

² Forrester - Customer Experience Drives Revenue Growth, 2016 2

Redefining the Customer-Bank Relationship with
Decisioning 2.0
The evolution from traditional decision-making models to what can be
termed 'Decisioning 2.0' simply harnesses the power of real-time data,
artificial intelligence, and machine learning to anticipate customer needs,
predict future trends, and deliver personalized banking experiences.

Decisioning 2.0 isn't just about responding to customer actions. It involves

understanding the customer's financial journey and providing them with a
solution before they even realize their need for one. This proactive approach
is redefining the customer-bank relationship, transforming banks from
service providers to trusted advisors.

Decisioning 1.0 Decisioning 2.0

A phase marked by generalized campaigns A transformational approach powered by AI

and a one-size-fits-all mentality. Decisions were and data analytics. This new phase heralds
largely reactive, based on broad customer proactive strategies, predictive modeling, and
segments and generic market trends. hyper-personalization.

Banks can now anticipate customer needs,

refine product/service recommendations, and
optimize customer journeys in real time.

Data-Driven Strategies: The Heart of Decisioning

The shift to data-driven strategies is at the heart of Decisioning 2.0. With AI
and Machine Learning capabilities, banks are now aggregating vast amounts
of data from various touchpoints – transactions, social media interactions,
customer service records – and analyzing this data to gain deep insights into
customer behavior and preferences.

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This data-centric approach enables banks to make smarter, faster, and
more customer-centric decisions and tailor their products and services
more precisely, ensuring that their offers resonate with individual
customer needs and lifestyles.

From personalizing loan offers to customizing investment advice,

data-driven decisioning is enabling banks to deliver value in ways that
were previously unimaginable. This means a lot in a world where highly
satisfied customers are 2.5x³ more likely to open new accounts with
their existing bank than those who are merely satisfied.

Data-Driven Strategies in Real-life Example:

Previously, a regional bank was sending the

same credit card offer to all its customers.

With Decisioning 2.0, it analyzes individual

spending patterns and takes data-driven
actions by offering cards with relevant
perks – travel benefits for frequent flyers,
cashback for shoppers, and so on.

This targeted approach improves

engagement rates and customer
satisfaction significantly.

³ McKinsey & Company - Rewriting the rules in retail banking 4

Predictive Analytics for Proactive Decisioning
One of the other most significant advantages of AI and ML in banking is
predictive analytics. This technology allows banks to anticipate customer
needs, often before the customers themselves are aware of them.

Predictive models can identify cross-selling and up-selling opportunities,

predict customer churn, and even forecast future market trends, enabling
banks to be proactive rather than reactive in their marketing strategies.

The global predictive analytics

in banking market size
is projected to reach

$5.43 billion
by 20264

Decisioning enables personalization at scale, which is a crucial factor

in modern banking marketing. Banks can use these technologies
powered by AI and ML to create personalized customer experiences,
from customized product recommendations to individualized
financial advice, all delivered in real time.

The only limitation to the scenarios that can be created is your

team’s imagination.
Doruk Mutlu
CEO at Evam

4 Allied Market Research - Predictive Analytics in Banking Market 5

THE TRANSFORMATIVE IMPACT OF DECISIONING
ACROSS BANKING DOMAINS

Enhanced Marketing Strategies

AI-driven decisioning empowers banks to deliver perfectly-timed
and relevant communications to customers. By analyzing
customer data and behavior, banks can offer personalized
services and products, ensuring that every interaction is both
timely and impactful.

Optimized Risk Management

Integrating AI into risk assessment enables banks to balance risks
and rewards more effectively. This advanced approach leads to
better outcomes for both the bank and its customers, ensuring
decisions are both prudent and profitable.

Fraud Prevention and Customer Security

Advanced algorithms play a crucial role in identifying and
preventing both transactional and sophisticated fraud. This
technology enhances security while maintaining a smooth
customer experience, ensuring trust and safety in banking
operations.

Informed Customer Insights

AI-driven decisioning equips banks with comprehensive data to
make well-informed decisions. This capability ensures fairness
and transparency in interactions, building a foundation of trust
with customers.

Agile Product Development and Management

By leveraging AI, banks can accelerate the introduction of new
products to the market and refine their upselling and retention
strategies. This agility allows banks to stay ahead of the game in a
competitive market and respond swiftly to customer needs and
market trends.

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THE BENEFITS OF AI-DRIVEN DECISIONING
IN BANKING

Relevancy in Customer Interactions

AI enhances the relevance of offers and communications, ensuring that customer
interactions are meaningful and impactful.

Faster Loan Processing (Time-to-Cash)

Predictive risk models expedite the loan approval process, enabling banks to provide
faster services to qualified customers.

Economic Outcomes with Reduced Defaults

Accurate credit assessments lead to reduced exposure to high-risk customers, thereby
maximizing economic outcomes and minimizing defaults.

Improved Customer Targeting

AI allows banks to lend more efficiently by enhancing customer targeting, thus serving a
broader and more diverse customer base effectively.

Significant Reduction in Credit Losses

Enhanced predictive capabilities of risk models significantly reduce credit losses,
contributing to the bank's financial health.

Early Risk Detection

Automated analysis of credit profiles enables early detection of potential risks, such as
borrower stress or repayment challenges.

Customized Credit Offers

Combining data-driven decision-making with intelligent analytics allows banks to provide
the most suitable credit offers to customers, enhancing satisfaction and loyalty.

Cost Reduction in Decisioning Processes

Automation of manual tasks in credit decisioning leads to significant cost savings and
operational efficiency.

Employee Satisfaction and Engagement

By automating routine tasks, employees can focus on more creative and value-adding
activities, leading to increased job satisfaction and productivity.

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OVERCOMING BARRIERS TO INNOVATION
Navigating Roadblocks in a Digital Journey
In the pursuit of a more customer-centric, data-driven approach in
banking, several barriers often stand in the way of innovation.
Overcoming these roadblocks is essential for banks to fully realize the
potential of modern decisioning and customer engagement strategies.

Breaking Down Data Silos

One of the most significant challenges banks face is the presence of data
silos within their organizations. These silos hinder the free flow of
information, making it difficult to achieve a comprehensive understanding
of customers. Breaking down these silos involves integrating disparate
data systems and fostering a culture of data sharing and collaboration
across departments. This integration is key to developing a unified
customer view that is essential for effective personalization.

Modernizing Legacy Systems

Many banks operate on legacy systems that are not equipped to handle
the demands of modern data analytics and real-time decisioning.
Upgrading these systems, while maintaining operational continuity, is a
delicate but necessary process. Embracing cloud computing and
adopting flexible, scalable technologies can provide the agility and
efficiency needed to support innovative banking practices.

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Ensuring Data Privacy and Compliance

As banks collect and analyze more customer data, adhering to data privacy
laws and regulatory compliance becomes increasingly complex. Banks must
navigate this landscape carefully, implementing robust data governance
frameworks and transparent data practices to maintain customer trust and
comply with regulations like GDPR.

Fostering a Culture of Innovation

A significant barrier to innovation in banking is often cultural resistance to

change. Encouraging a mindset shift throughout the organization is crucial.
This involves training staff, promoting a culture of continuous learning and
experimentation, and aligning leadership and organizational structures with
the goal of innovation.

Keeping Up with Emerging Technologies

Finally, keeping pace with emerging technologies and integrating them into
existing banking operations can be challenging. Banks need to stay informed
about developments in AI, machine learning, blockchain, and other
technologies that can drive innovation.

Partnering with a Martech company like Evam, an all-in-one, real-time

marketing platform provider, can supply banks with the cutting-edge tools
and expertise needed for this transformation.

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EMBRACING THE NOW AND THE NEXT
in Real-time Marketing & Decisioning with Evam
Decisioning is not just a new phase in banking technology, it’s a strategic
imperative for banks aiming to lead in the digital age. Its implementation
will dictate how effectively banks can leverage emerging technologies and
market opportunities to forge stronger, more profitable, and enduring
relationships with their customers.

The Great Benefits of Evam — The Ultimate Real-Time

Marketing Hub
For modern banking, Evam emerges as a pivotal real-time marketing hub
provider, revolutionizing the approach to real-time omnichannel
marketing with its innovative tools and solutions.

Real-Time Data Cross-Channel

Processing and Analysis Customer Engagement

Evam excels in handling and Evam's platform empowers

analyzing data in real time,
allowing banks to make swift
and informed decisions based
on the latest information.
banks to engage with
customers consistently across
various channels, resulting in a
seamless and personalized
customer experience.

AI-Driven Insights Ease of Integration

Leveraging advanced AI Evam’s platform is designed

technologies, Evam provides
deep insights into customer
behavior, enabling banks to
anticipate needs and tailor
their offers effectively.
for easy integration with
existing banking systems,
both on-prem or cloud,
ensuring a smooth transition
and quick adoption.

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Development Time To and & Privacy “Real-Time”
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customer ROI & time &
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 Are you ready to embrace agility and participate in
shaping the banks of tomorrow?

Let’s discuss how we can help you build a solid real-time

interaction marketing strategy and seize the
next big moment.

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