Phy-gital Roundtable: Breakfast Roundup from Germany and Netherlands

02 May '15 | Debjyoti Paul

German Shoppers: Meet Them in the Fast Lane to Phy-gital

15 January '15 | Ralf Reich

Shoppers Will Share Personal Information (But They Don’t Want to be “Friends”)

15 January '15 | Anil Venkat

Modernize or Perish: Property and Casualty Insurers and IT Solutions

14 January '15 | Manesh Rajendran

Benelux Reaches the Phy-gital Tipping Point: Omnichannel Readiness is Crucial

13 January '15 | Anil Gandharve

The New Omnichannel Dynamic: Finding Core Principles Across Industries

13 January '15 | Debjyoti Paul

Technology does not disrupt business – CIO day 2014 Roundup

02 December '14 | Anshuman Singh

Apple Pay – The Best Is Yet To Come

02 December '14 | Indy Sawhney

Digital transformation is a business transformation enabled by technology

01 December '14 | Amit Varma

3 Stages of FATCA Testing and Quality Assurance

06 October '14 | Raman Suprajarama

3 Reasons why Apple Pay could dominate the payments space

18 September '14 | Gaurav Johri

Beacon of Hope: Serving Growth and Customer Satisfaction

05 August '14 | Debjyoti Paul

The Dos and Don’ts of Emerging Technologies Like iBeacon

30 July '14 | Debjyoti Paul

What You Sold Us On – eCommerce Award Finalist Selections

17 July '14 | Anshuman Singh

3 Steps to Getting Started with Microsoft Azure Cloud Services

04 June '14 | Koushik Ramani

8 Steps to Building a Successful Self Service Portal

03 June '14 | Giridhar LV

Innovation outsourced – a myth or a mirage or a truth staring at us?

13 January '14 | Ramesh Hosahalli

What does a mobile user want?

03 January '14 | Gopikrishna Aravindan

Role of Analytics in improving a Retail Bank’s efficiency

Posted on: 24 June '13

Of late banks, and specially the retail banking division has been facing stiff challenge in not only retaining their customer base, but also maximizing the revenue and profitability. More and more customers have started using new age technology like smartphones, tablets and are accessing and sharing a lot of information on social media. Due to this abundance of information, customers’ stickiness to a bank has come down and they are more than ever willing to shift to other banks offering better products and services. The solution to this problem lies in identifying and analyzing customer data from various sources that can help banks:

  • Plan future strategies
  • Effectively manage everyday activities

The available customer data, which banks can analyze, are in the following forms:

  • Structured: Customer information (age, salary etc.), transaction data, etc.
  • Unstructured: Data from various social media sources like facebook, twitter, blogs etc., which is generally in the form of text.

Banks can analyze these voluminous data generated from several sources using models based on various analytical tools. These models not only help in increasing the effectiveness of various ongoing and future campaigns by banks, but also maximize the customer’s wallet share. Rather than offering products and services that they would like to sell, banks can offer customized and real time offers based on knowledge acquired from analysis of customer’s data and applying it effectively. Banks can take relevant and sustainable actions at the right time, at the right place.

In a series of blogs, with the help of relevant examples, we will try to understand how analytics can help banks maximize effectiveness of their campaigns, while increasing a customer’s wallet share during different phases of the customer’s lifecycle. The customer’s lifecycle for the purpose of this discussion can be broadly classified as follows:

  • Acquisition: This phase covers right from identifying an opportunity to its conversion
  • Relationship Management: This involves product expansion to existing customers through cross-selling and up-selling
  • Retention: This deals with retaining valuable customers and minimize the customer attrition based on the forecast of possible customer attrition

The role of analytics in retail banking cannot be underestimated and banks need to take a structured approach to effectively use it. This can help them not only in meeting their short term objectives of selling the right product at the right time to the right customer, but also other long term strategic objectives like focusing only on a particular set of customers, business areas or a product mix. What do you think? Please share your thoughts on this blog.

Vikash has 15 years of experience in the banking domain with core expertise in commercial banking. At Mindtree, he is involved in product development and management, and leading the Blockchain initiatives.