data analytics: transforming your data into meaningful ... · actionable metrics. elizabeth...
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Data Analytics: Transforming Your Data into Meaningful & Actionable MetricsELIZABETH MONTANARIProduct Manager, Business Intelligence
Source: North American Consumer Banking Survey (Accenture, 2016)
To deliver banking customer experiences that provide new value, retail banks must do things differently – and do different things:
DATA
Win the Data GameData is the currency of customer insight. Banks must refine data collection, preserve customer data privacy and digital trust, support insight-driven banking innovation and develop predictive analytical skills.
MARKETINGANALYTICS
Reinvent LoyaltyReal-time, personalized interactions can cultivate loyalty. Digital marketing platforms can help banks connect in ways that matter.
RELATIONSHIPS
Be Relentless About ServiceBanks cannot afford to take their eye off of superior customer service. It must be part of the bank’s genetic code, from the business strategy to the day-to-day culture. Service must be consistent and continually refined based on customer feedback.
ADAPTABILITY
Explore New RolesBanks can provide more value to customers by becoming a go-to resource for how they live, rather than being a pure financial utility.
CHANNEL MANAGEMENT
Master “Phygital” ExperiencesDeveloping banking channels in isolation from one another is risky. Customers want seamless “phygital” experiences that blend physical and digital. Minimizing channel conflict will help banks stand out.
BY 2020, ABOUT 1.7 MEGABYTES A SECOND OF NEW INFORMATION WILL BE CREATED FOR EVERY HUMAN
BEING ON THE PLANET.
US BANKS MANAGE OVER ONE EXABYTE OF DATA STORED ON THEIR SYSTEMS.
Source: McKinsey & Company (2017); Alacer Group (2015)
Account Numbers
Customer Demographics
Address
Age
Debit Card Transactions
Channel Usage
Mobile Banking Activity Credit Bureau Information
Credit Scores
Loan Originations
Product Information
Interest Rates
Website Click Rates
Account Open Date
Deposit Balances
Available Credit
Loan Balances
Purchased Prospect Information
Social Media Activity Complaints
Fees
Rewards
Product Referrals
Sales Leads
Bill Pay Transactions
Risk Rating
Credit Cards
Customer Preferences
Households
ATM Withdrawals
ATM Deposits
Branch Visit Transfers
P2P Payments
Payment History eStatements
Call Center Stats
VRU Activity
Payees
Peer Data
Online Banking Usage
pending Habits
DATASTRATEGY Analytics as a business function
Centralization
Investment in talent
Investment in technology
Culture alignment
DECENTRALIZED
Analytics
Executive Management
Analytics
Finance
Analytics
Lending
Analytics
Retail
Analytics
Marketing
CENTRALIZED
Analytics
Executive Management
Finance
MarketingRetail
Lending
BENEFITS OF CENTRALIZATION Data analytics as business function
Integrated team working towards same goals
Mitigate inefficiencies by removing the silos between functions
Deepen analytics expertise
Content with a purpose
One version of the truth
Governance / oversight
Consistent information delivered to org
Improved communication
CENTRALIZED DECENTRALIZED Average 4.83 contacts per month
Requests funneled through data team for evaluation
Knowledge sharing and deep expertise
More complex requests
Lower cost of ownership/maintenance
Strategic decision making focus
Positive, collaborative
Average 14.5 contacts per month
3x higher requests for assistance
Duplicate requests by teams
More time spent on mechanics of building report
Higher cost of ownership/maintenance
Operational focus
Challenged, frustrated
CENTRALIZED VS. DECENTRALIZED
INVEST IN TALENT Hire for your future
Entry level hires with technical aptitude
MIS, Finance or Business degrees
Develop data analytics expertise for the bank
Teach the banking terminology
Collaboration with stakeholders across the organization
INVEST INTECHNOLOGY Agile environment
Unified data warehouse• Customer centric design
User friendly and interactive toolset
Threshold alerts
Leverage partnerships
Dashboards & Predictive Analytics
Evaluating new systems – how to access data
Exte
nsiv
eR
estr
icte
d
Challenging
Abi
lity
to S
uppo
rt C
ompl
ex R
equi
rem
ents
Ease of Use
Simple
Core Database
Data Warehouse
Dashboards
Business Views
DASHBOARDS
Graphical views and trending
Clients utilizing every day to manage position and performance metrics across the institution
• Daily variance reports • Budget management and expense control
Consistent information available across organization
Collaborative discussions
Automated content to eliminate manual preparation
• Board Package
MARKETINGANALYTICS Customers expect a personalized and omni-
channel experience
Use data driven marketing platforms to understand customer
Deliver relevant and engaging messages through all channels
Continuous campaigns versus traditional marketing
Next best product offering
PREDICTIVEANALYTICS Predictive analytics models to analyze customer
activity and forecast future behavior
Predict customers likely to churn near-term
Act and proactively formulate strategies to retain relationships
CULTUREALIGNMENT Top-Down
Find Champions across the institution
Involve cross functional teams
Create policies and processes to drive action as part of daily responsibilities
Review performance metrics in management and team meetings
Decision-making based on data
ACTIONABLE METRICS Relevant
Timely
Drives an action event
Start with concepts from functional areas• What are critical metrics needed?• What will staff be held accountable for?
Rollout content to test group for use first
Apply feedback
Develop action steps
DATA PRESENTATION
Aggregate counts and balances
Graphical view
Trending
Easy to understand
Clutter free
Proper graph for communicating message
Use color to highlight action
ACTIONABLE METRICS
Monitor deposit balances change• Under or over $25K threshold prompts action
Branch staff required to review each morning for their specific branch
Details about activity are reported up to Management
Executive Team uses same data for review meetings
ACTIONABLE METRICSSCORECARDS Performance indicators
Monitor opened and closed accounts by branch
Monitor deposit balance goals
Ratio of balances to accounts
Compare results to goals
Incentive programs
MOST PROFITABLERELATIONSHIPS Internal policy created to review top 100
relationships monthly
High touch and personalized service to Top Customers
Market differently to these customers
Type of customer generating most profit
Product mix
Cross sell opportunities
Identify risks to top relationships
FOCUS ON METRICS Data analytics is an ongoing and evolving
process • Refine existing content • Build new content • Expand data sets
Transform your data into meaningful metrics today
• Start small • Leverage existing toolsets, available data and
expertise
THE THINKING THAT GOT US TO WHERE WE ARE IS NOT THE THINKING THAT WILL
GET US TO WHERE WE WANT TO BE.-ALBERT EINSTEIN
THANK YOU
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