Predictive Analytics for banking

www.pi-cube.com

www.pi-cube.comBanking trends: 2016

Customer experience

(Sales + service)

Effective use of analytics

Decisions driven/supported by data

Digital channels expand and thrive

Market Consolidation (M&A)

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www.pi-cube.comData & Analytics

Bank Data

Information

Knowledge

Wisdom

Business

Intelligence

Predictive

Analytics

Prescriptive

Analytics

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www.pi-cube.com

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Business Intelligence Predictive Analytics

Orientation Rearview Future

Types of questions What happened?

When, who, how many?

What will happen?

What will happen if we change this one thing?

What next?

Methods Reporting (KPI’s, metrics)

Automated monitoring/alerting

Dashboards & Scorecards

Ad-hoc queries

Predictive modeling

Statistical analysis

Data/text/multimedia mining

Simulation/optimization

Data types Structured Structured/unstructured

Knowledge creation Manual Automated

Business value Reactive Proactive

www.pi-cube.comSMART Banking with Predictive Analytics

Driven by YOUR data

Surfacing quantified insights

Enabling YOUR informed decisions

Bring in the future with Predictive Analytics

POWER-UP your lending business

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www.pi-cube.comSMART banking

Data-drivenRisk-averse

Regulation-

compliantCustomer-aware

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www.pi-cube.comSMART Banking (web/mobile enabled)

COMPLIANCE

RISK

REVENUES

• Identify customer personas

• Find new customers

• Estimate customer lifetime value

• Maximize customer wallet share

• Reduce customer attrition

• Manage credit risk

• Optimize lending policy

• Re-structure loans proactively

• Assess default-risk

• Manage cash reserves

• Predict delinquency rate

• Enhance loan underwriting

• Improve loan applicant

selection

Proactive customer awareness

Proactive risk-aversion

Proactive regulatory compliance

DATA

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www.pi-cube.com

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Know your customer’s needs. Ahead of time.

• Customize your marketing to the

individual customer

• Make an offer at the point of

need

• Increase sales

• Create custom offers for your

best customers

• Increase customer loyalty

• Reduce customer attrition

www.pi-cube.com

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Protect your loan assets. Proactively

• Manage your loan portfolio

proactively

• Identify future problem loans

• Re-structure potential delinquent

loans

• Make better loans to your best

customers

www.pi-cube.com

Predictive Analytics

Life Cycle

Predictive Analytics RoadMap(PARM)

Business

UnderstandingIdentify use case

objectives

Data Exploration

& PrepCollect, review, select &

cleanse sample data

Model build

& validatemanipulate data &

draw conclusions

Implement &

DeployIntegrated web

application &

dashboard

Identify points of

contact

Review & prioritize

business objectives

Map business

objectives to use

cases

Joint SOW

(Develop, review,

signoff )

Use case 1 Use case 2 Use case 3 Use case …

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Predictive Analytics Roadmap

Identify problem

(use case)

Collect

sample data

Build & present

Predictive

Model(s)

Pilot Phase

(proof-of-concept)

MaintainModel optimization

Predictive Analytics Framework (architecture, process, connectors)

www.pi-cube.com

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