Banking Analytics

Introduction
• Analytics is already heavily used in banking
• Analytics is a key enabler to many quite diverse parts of the
organization
Customer Analytics
• At the heart of banking is an understanding of the value of, and the opportunity that
comes from, the profitability of the customer.
• Ultimately banks need to be interested in four key elements:
• What is the customers’ propensity to buy?
• What is their likelihood to take specific action – and if so, what is the relevance of this?
• What is their likelihood to churn, or to leave the bank (especially in an Open Banking situation)?
• What is the lifecycle opportunity or lifetime ‘value’ of the customer?
• To do this requires a bank to understand and anticipate the needs of both existing and
prospective customers, which then allows them to place the right offer before them.
• This might be done at a granular (i.e. individual) level, or a broader-based ‘campaign’
approach.
Customer Insight
• The notion of a ‘customer 360-degree’ insight is not a new idea, yet many organisations, including banks, still
struggle to operationalise it.
• Conceived in the early ’90s, the concept has moved beyond a relatively straightforward CRM (Customer
Relationship Management) tool to one increasingly affected by modern trends such as:
• Mobile technology
• Chatbots and other automated services
• The advance of ‘digital’, including the Internet of Things
• Machine learning and AI
• The availability of analytical, cloud-based solutions and capabilities providing insight ‘on demand’
 • Behavioral
Sourcing • Sentimental
Data • Interactional
• External

• Continual Data Feeds

• Content Management
Data • Text Analytics
Effective Reservoir
• Device data analysis
Customer • Customer Identification

360 degree
insight
Creating
Insight

Key
Deliverable