Page 45 - BANKING FINANCE APRIL 2017

ARTICLE

(65%), Account functioning
(17%) and SMS alerts (12%).
State Bank of India Analysis on "New Young & Able to identify the affluent lot, Customer Analytics has
Affluent Savings Bank Customers" Metrowise distribution and the Proven Benefits from
in the age group 25-40 years for average products per each Acquisition to Retention
identification of Business identified customers Processes
Opportunities
Bank Austria Understanding where the A customer about to churn Helps to identify the
customer is in the product would be better candidate for product lifecycle of a
lifecycle using Big Data retention offers than a loyal customer and makes use
customer. of the understanding to
retain customers.
Singapore Citibank Grouping of customers according Personalized loyalty offers Increase in card usage
to their card usage habits based increases the card usage loyalty, retention and
on general transaction data such overall improvement of
as purchase frequency and offers, customer satisfaction
discounts at retailers and
restaurants
Zions Bank Derive insights about the Geographic footprint, Helps to strengthen the
growing Hispanic community education levels, home customer relationship
using Big Data ownership and affluence are and to grow the
some of the factors that Hispanic customer base
influence the community continuously
preference
Fifth Third Bank Studying various price points and Price predictions can be done Always their scenarios
the influence on customer for interest rates rise that will with rates in the market
acquisition and deposit levels happen in the future which helps in attracting
customers aggressively

Benefits of Big Data: ments from financial institutions. By implementing a
central, integrated and risk management platform
Based on the Analytics that are listed above, some of the
banks will be able to address these issues effectively.
broad benefits of Big Data can be summarised as below:
1. Customer Segmentation: The data, both structured 4. Compliance and Regulatory Reporting: Since everything
and unstructured, collected and analysed through the is documented in the financial world, implementing a
Big Data technology can be used to group customers Big Data platform will help in efficient monitoring of
into different segments. This will help in supporting sales fraud detection and security Data issues. This will ulti-
and in promotion, and marketing campaigns. mately end in better compliance and regulatory
2. Personalized Product Offering: The insight derived from reporting.
customer buying habits, channels of customer presence 5. Prevention of fraud: Proper leveraging of analytics and
and key influencers of customers will help to target new Big Data technology will help in arriving at a holistic
product and service offerings to the right customers. view of customers and identify patterns buried in data.

3. Risk Management: New regulations and better inter- This will be able to identify cluster information and dis-
nal management are always demanding new require- tinguish fraudulent activity from normal activity.

BANKING FINANCE | APRIL | 2017 | 45

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