1. Tomorrow’s Knowledge,
Today
…numbers that can make or break your business
Credits (Group 7)
 Deepak Mishra (27)
 Sachin Kotgire (61)
 Tushar Khonde (81) 1

2. Will I ever get my money back?
2011:
• Painful saga
2010: continues...
• Spain, Portugal
comes down
2009:
• Germany steps in
• Iceland • EU – IMF rescue
government package ($955 bn)
2008: collapses
• G20 Spending
• Lehman, Banks • Gov. stimulus Disagreements
collapse ($787 bn)
• US Gov. • Greece joins too…
2007: intervenes –
• US Housing Bailouts, assists
downturn buy over
• Subprime • Heavy Job
Woes goes losses(unemplo
Global yment - 8.5%)
meet ….
2

3. 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
3

4. Who is helping banks to look at right things?
• Specializes in • Solution improves returns • 1st ever ‘hadoop’ powered
• Regulatory compliance generated by Home Equity app. for Financial services
products & services Lines Of Credit (HELOC)
• Customer Acquisition • Analyzes, automates
• Retention & Churn • Provides customer preference storage, processing,
based offers retrieval
• Barclays: Cross-channel sales
campaign • U.S. Bank: • Cost effective
• Increase in cross sell revenues
• Unicredit: by 300%($1 mn) • Cloud sol. available
• Spot customer churn • 189% y-o-y increase in
behavioral patterns responses from one Line of • Bank of America
Credit campaign
• Personalized offers across • Better understanding of
multiple channels • 73% increase in direct deposit IMPACT of new & existing
accounts products.
• 40% reduction in mailing • Examines credit &
• Finansbank: Identify prospects
volumes operational risks across
based on credit card holder’s
spending patterns different lines of business
4

5. Who is helping banks to look at right things? contd…
• Combines operational data • Unique, patented solution • Integrated suite of
(CRM, Financials etc) with VOC combining data into unified, customer analytics &
data -> VOCi cross-channel, experience engagement solutions
analytics framework
• Collection via web links, • Analyzes customer
comment portals, Email • Renders simple visuals sentiments around brands,
surveys, telephone hotlines, representing behaviors across offerings, services etc
customer feedback etc systems
• RBC:
• ING DIRECT: • Instant view and insights to • Uses ‘Attensity Analyze’
• Simplified financial products granular level information for customer analytics
• Helps identify right customer process to integrate over
• Create an emotional • Citibank: 1 mn pieces of customer
connection with customers • Implemented Traffic Viewer, a feedback
visual traversal mapping
showing customers movement • Gained better insights
through the bank’s IVR systems into customers pain-
points
• Identify time spent before,
after and between various
steps in the self-service
5

6. Who is Looking Beyond Numbers - HBOS
• Largest retail bank in UK
• Now part of Lloyds Banking Group
• 22 million current account customers
10 – 15%
increase in
Customer leads and
Service half of
Agent offers those
Predict the product
probable converted
cross-sell to sales
product
Analyze opportunity
customer’s
profile
6

7. Who is Looking Beyond Numbers – Fifth
Third Bank
• Fortune 500 bank with $111 billion in assets
• Based out of Cincinnati, OH
• More than 15 million account holders
400% ROI ::
Account
Customer attrition
Service Agent went down
offers new by HALF
Predict services &
Lost 9 out of probable discounts
10 reasons for
customers dissatisfaction
Analyze
customer
transaction
data
7

8. Who is Looking Beyond Numbers – WELLS
FARGO
• Fortune 500 bank with $1.3 trillion in assets
• Based out of San Francisco, CA
• More than 70 million account holders
61% jump in
lending sub
$5000 loans
Tailor product
& service
Automate needs
credit scoring
& customer’s
Competition ability to
from replay loans
community
banks to
capture
small
businesses
8

9. Banking on
Social Media
“prosumers” — professional,
productive, and proactive
consumers who typically
offer the most long-term
value to retail banks.
Reach
Reduce Costs
Customers
“Generation
C”
Restoring
Marketing
Confidence
9

10. Who stands where?
Forrester Wave: Predictive Analytics & Data Mining Solutions – Financial Services (2010-11)
10

11. 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
11

12. Q&A
12