[FREE WEBINAR] Optimizing Manufacturing Operations Using Advanced Analytics and Simulations Book your seat!

banking Archives | Quantzig

Tag: banking

customer analytics

3 Interesting Ways Banks Can Curtail Customer Churn Rate | Quantzig

Acquiring new customers is a more expensive process when compared to the retention of old ones. This is one of the main reasons why leading companies have put reducing the customer churn and improving their customer retention capabilities on their priority list. The banking sector is among the industries recording the largest rate of customer churn every year.

The rising competition in the market, which gives customers the liberty of choice and better offers, is one of the primary contributors to customer attrition for retail banking companies. To state the obvious, providing effective, meaningful service is key to reducing customer churn. But how can companies in the banking sector get there and bring down customers leaving them for competitor brands?  To identify early signs of potential customer churn, banks first need to start getting a holistic 360-degree view of the customer base and their interactions across multiple channels such as bank visits, calls to customer service departments, web-based transactions, mobile banking, and social media interactions. This would allow them to detect early warning signs of customer churn such as reduced transactions or stoppage of auto-pay or negative experiences, and you can take specific actions to prevent churn. 

At Quantzig, we understand the impact that customer churn rate can have on your business. And to help banking and financial services companies provide the best customer service and reduce customer churn rate, our team of experts have highlighted three strategies that they must consider:

How to Curtail Customer Churn Rate?

(more…)

Retail analytics

Retail Banking Sector market analysis – How marketing mix optimization solutions helped a retail banking firm to find optimize the marketing mix

Marketing Mix Optimization for Retail Banking ClientQuantzig, a global analytics services provider, has recently completed their latest marketing mix optimization solution for a retail banking firm. The retail banking sector is under tremendous pressure to develop digital and data processing capabilities in order to simplify their business processes. Additionally, the companies in retail banking also need to cater to the growing needs of the customer about transactional accounts, personal loans, credit and debit cards, and mortgages.

“The marketing mix optimization solution offered by Quantzig assisted the retail banking client to accurately monitor, forecast, and periodically assess the impact of marketing campaigns on their market performance.” says an industry expert from Quantzig.

Request your FREE demo today!

The marketing mix optimization solution focused on quantifying the impact of marketing decisions of the past and forecasting future sales. By factoring in the impact of various media channels, the client was able to allocate marketing resources to form an optimal marketing mix optimally.

Additional Benefits of the Marketing Mix Optimization Solution

  • Evaluate the impact of different components of marketing plans
  • Understand the trends in the specific industry and pricing differences across sales regions
  • Develop robust marketing models to improve top-line revenue and ROI continuously
  • To know more, request a free proposal

To know more about how our marketing mix optimization solution helped the retail banking client

Get more info


Related posts

Retail analytics

Top Challenges Hindering the Growth of the Online Banking Sector

The emergence of online banking has made offering banking services that much more comfortable. It has provided speed and convenience to the customers. Long gone are those days where customers had to drive to the banks and stay in the queue just to check their account balance or make deposits. Today, the same work can be done in the comfort of their home with just a few clicks. It comes as no surprise that  51% of US adults participate in online banking. Although online banking simplifies trading and provides convenience to both banks and the consumers, there are some distinct challenges and issues in the online banking sector. The problems can range from technical factors to habitual factors. Banks aspiring to drive the adoption rates of online banking should be well aware of suchFree demo issues.

Challenges in the online banking sector

Traditional banking habits

As mentioned earlier, 51% of US adults participate in online banking, however, on the hindsight, 49% of them still don’t. A majority of such people are susceptible to change and are well versed in traditional banking. Such aversion to change is usually due to lack of trust in the online system or the inability to operate online portals. As a result, banks are struggling to convince people to adopt online banking. In this case, banks can simply demonstrate the benefits of online banking and drawbacks of traditional banking to their customers.

Security and fraud instances

Security and protection against fraud and hacking are one of the most significant challenges for banks promoting online banking. In traditional banking, robbers would have to break into the bank to steal money from customers. However, skilled hackers can crack banks security measures to get customers detail and illicitly transfer money. For instance, almost 130 million British pounds were stolen from online bank accounts in 2015 through fraud. Additionally, the expansion of e-commerce provides an opportunity for fraudsters to misuse payment networks and steal sensitive information.

Cross-border transactions

One of the critical success factors of online banking is the implementation of the cross-border transaction as they play a vital role in the global trade. However, historically, cross-border payments have been slow, inefficient, and expensive. This is because most of the banks still use traditional infrastructure including national banking infrastructure which results in non-uniform development and software platforms that complicate cross-border transaction. New technologies including blockchain have been promising in overcoming such drawbacks to facilitate smooth cross-border transactions.

Technical issues

Banks are heavily reliant on online platforms to perform operational task including cash transfers, transaction recording, and information storing. A single system crash or a bug in their code can cause millions of dollars in losses or can even cause the bank to shut down its operations temporarily. Similarly, customers can lose trust in online banking when it’s not functional for that time. So banks face challenges in not only running their online platforms smoothly but also look towards their mobile apps.

Multi-currency and payment methods

The rise of global e-commerce has posed new problems in the online banking sector, that of using multiple currencies and payment methods. Consumers around the world use various payment methods including credit card, debit card, Paypal, bank transfers, e-wallets, mobile payments, and Sofortbanking. Merchants accept payments through such means and in different currencies. However, they face difficulty dealing with multi-currency, cross-border transaction, bank accounts, business entities, and regulatory hurdles. Such problems can usually be solved by selecting a payment service provider who can provide effective and immediate solutions to these problems.

To know more about challenges in online banking and banking sector:

Get more info


Related posts

IR20

Types of Risks Looming in the Banking Industry

The banking industry is by far one of the largest industries in the world. In the US, insurance, real estate, and financial industry account for 20% of the total GDP. In order to keep the economy smoothly flowing, it is essential that banking industry operates seamlessly. However, the truth is that the banking sector is far from stable, as banks face numerous risks which threaten not only their profits but also the economic balance as a whole. As a result, it is essential that banks perform proper risk analysis and mitigate such perils for smooth operations. Keeping risks unchecked can lead the world towards financial meltdown as witnessed in the 2008 global crisis. So what are theFree demo kind of risks faced by the banks that needs to be regularly monitored?

Credit risks

Credit risk can be defined as a risk that a borrower or the counterparty will fail to meet their obligations by agreed terms. Such risks occur due to borrowers inability to pay back loans arising out of interbank transactions, trade financing, foreign exchange transactions, swaps, bonds, financial futures, options, guarantees, and the settlement of transactions. To simplify the matter, a $100 borrowed and not paid back will result in banks taking the loss in full. Additionally, banks will have to redress the money from their lenders who can be government, other banks, or the general public. Such losses in large amount can cause a serious dent in the economy. The banking industry usually declares the high rate of interest for borrowers who are associated with high credit risk. Banks need to perform timely risk analysis at an individual level to protect its wealth.

Market risks

“Mutual fund investments are subject to market risks.” You may have heard this statement a thousand times over in the banking industry. So what is a market risk? It is the risk that causes losses in the bank’s trading books due to changes in interest rates, credit spreads, equity prices, foreign-exchange rates, commodity prices, and other indicators. However, this type of risks only troubles players who are into investment banking space since they are active in the capital markets. Market risks are hard to assess as some factors are highly volatile like commodity prices, whereas some are stable, but small deviations can cause big consequences like interest rates. Proper risk analysis can be carried out by dividing it as per their potential cause, i.e., interest rate risk, equity risk, currency risk, and commodity risk.

Operational risk

Losses that could arise from failed or inadequate internal processes, people, and systems or from external events is termed as operational risk. It also includes legal risk but does not incorporate strategic or reputation risk. Humans are prone to making errors and mistakes, and such errors can occur in the banking industry due to improper operational risk analysis. Filling incorrect information while clearing a financial instrument can cause loss of time to rectify that error and in some cases loss of money due to improper crediting of balance. Apart from human risk, operational risk can also occur due to system risk or process risk.

Liquidity risk

Liquidity risk arises when banks perform inadequate risk analysis relating to marketability of an investment which cannot be sold quickly enough to prevent a loss. In simple terms, it is a risk that disables a bank from carrying out their day-to-day cash transactions. Even though it may seem like a theoretical example, it happened in Northen England when one of the bank was taken over by the government due to its inability to repay the investors during the 2008 global crisis.

Business risk

Businesses in the banking industry may be unable to meet its anticipated profit targets due to various reasons. Sometimes they may even incur a loss in place of making a profit. In case of banks and financial institution, missing the target can have severe implications as banks will have to shuffle their investment and public money. Business risk arises due to the failure of bank’s long-term strategy and errors in estimation and forecasting of profit metrics. A proper business risk management strategy can ensure sustainability even in the harshest economic environment. Conducting thorough risk analysis by guaranteeing flexibility and adaptability to the market condition can help banks avoid business risk.

To know more about bank risk, banking industry, and risk analysis:

Get more info


Related posts

Global-Meetings-and-Events-Market_CMST31

Banking sector market analysis – How sales forecasting can help banking firms forecast their profit margins

banking sector

LONDON: Quantzig, a global analytics services provider, has announced the completion of their latest analytics engagement for a leading banking sector client. Despite the implementation of stringent regulations and increasing level of competition in the market, leading firms in the banking sector are looking for possible ways to improve their profit margins. However, factors such as the rising consumer expectations and regulatory pressures are posing a challenge for firms looking to establish their presence in the market space.

With the rising pressure on organizations to improve their profit margins, many firms in the banking sector have started facing the need to improve their operations. Sales forecasting helps companies to accurately forecast the future of rates, credit, and loans and work towards fine-tuning their budget variables – industry expert from Quantzig.

Request your FREE demo today!

The solution offered helped the banking firm to accurately predict the achievable sales revenue and profit margins. The client was also able to gain deep-dive insights into the potential market opportunities and devise an effective plan for future growth.

Additional Benefits of the Sales Forecasting Solution

  • Analyzed sales data to forecast the volume of sales
  • Identified key KPIs to help the client track and measure performance
  • To know more, request a free proposal

 


To know more about how our sales forecasting solution helped the banking sector client

Get more info


IR22

How Is AI Technology Going to Turn Tables for The Banking Sector?

Artificial Intelligence (AI) is no new term in the banking sector; in fact, many financial institutions have already found success with the help of AI. But how can this technology be leveraged for banking functions, you wonder? Artificial intelligence helps improve customer personalization, identify connections, and patterns that cannot be quickly figured out by humans and provides answers to several banking issues in real-time. But that is not all, here are some of the few other benefits that AI promises to offer to the banking sector:

Role of AI in BankingGet More Info (more…)

customer analytics in retail

Gear Up for The Top 5 Banking Industry Trends That are Going to Dominate in 2019

2018 has been an eventful year for the banking sector with a booming inclination of customers towards online banking, and new technologies like bitcoin and blockchain marking their territory in retail banking. Companies in the banking sector are continuously striving to eliminate the challenges and problems that the existing system is facing by continually monitoring their operations and incorporating the necessary changes on a regular basis. Retail banking companies have realized that success in the industry no longer depends on ‘who has the most number of bricks’ but how efficiently they can deliver services to the customers in a unique manner. With the never-ending hunger for innovation by the customers and the changing regulatory policies, we can expect some breakthrough banking industry trends in 2019. In this article, we have listed some of the most significant banking industry trends that are going to dominate 2019:

Banking Industry Trends 2019

Next-gen chatbots

Chatbots have proved beneficial for supporting customer interactions and has been one of the important banking industry trends helping to create a different user experience in the industry. Although chatbots are being widely used by several banking sector companies already, currently they are said to possess only the intelligence of a 2-3-year-old human being. What we could expect in 2019 from the banking sector is more advanced chatbots with improved quality of interactions, accuracy in decision making, and better speed of response.

bannerqz

Blockchain boom

According to IBM’s report on blockchain technology,” this technology is being adopted by banks and other financial institutions dramatically-faster than expected.” Several retail banking companies have realized the potential that blockchain has in improving their operations which has made them embrace this technology. Blockchain technology is one of the most rapidly growing banking industry trends and is expected to simplify the bank’s back-end operations by making them more secure and transparent.Request Proposal

Improved security

Security of sensitive user information has always been a significant concern and has been influencing banking industry trends since long. With the advent of technology, retail banks can scrutinize illegal practices in banking more accurately. 2019 looks like a promising year in the case of top-notch data security with the regulations for banking security becoming stricter and the rising expectations of the banking customers.

The rise of robots and machine learning

Investment in technology might burn a hole in the pockets of banking sector companies initially, but it will pay off in the long-run. With each passing year, the banking industry trends are changing rapidly and becoming technologically advanced, and 2019 is going to be no different. Robots are expected to replace human labor in several operational activities, and new regression models powered by machine learning are expected to raise the bar of service levels higher.


Want to know more about the future of the banking industry trends, opportunities, and challenges in 2019?

Contact US

Laptop with pen and spiral notebook on desk.

The Latest Trends to Watch Out for in Investment Banking

The global financial crisis has brought the viability of investment banking business model under scrutiny, resulting in banks struggling to redefine their roles. Therefore, evolution and innovation have become the need of the hour in the banking sector. This means that the investment banking companies that once comprised of private partnerships and focused only on specific markets and financial products have to reinvent themselves now. Technology disruption, talent wars, new business models and structures, and emerging fintech startups are creating a perfect storm in investment banking.

We take a look at the top 4 trends that are shaping the future of investment banks:Free demo

investment banking

Specialization

Earlier, the portfolio offered by investment banks were similar to a big fat menu card of restaurants. Companies in the banking sector were focused on cross-selling and up-selling financial products and services to the clients irrespective of the client’s actual needs. There is a gradual shift in this mindset in the investment banking sector towards a more personal and specialized approach. With increased competition and several emerging smaller fintech companies, large investment banks can no longer survive by becoming the jack of all trades. Today, many investment banks are keen on focusing their efforts and resources in areas where they can make an impact. Specialization has become the key to understanding the client’s needs in the banking sector.

Technology

Digitization has already paved the way for itself in the banking sector. Big data, AI, interactive platforms, the blockchain, and mobile technologies are changing the way of business in investment banking. Technology will help investment banks and customers to eliminate unwanted processes and intermediaries making things easier for both the parties.

Mobility and Security

Mobility refers to the easy access to information anywhere, anytime, and from any device. However, as far as the financial industry is concerned, they deal with confidential user information, so security of information is a significant concern. Additionally, there are several stringent regulations and legal policies that require investment banking companies to keep data security at the top of their checklist.

Rethinking Talent

Investment banking is becoming more inclined to the thought that “Employee satisfaction is the key to customer delight.” Especially after the emergence of platforms like Glassdoor and social media, where the negative work experiences can be made public, the players in investment banking have realized that their reputation is at stake here.

To know more about the trends, opportunities, and challenges in investment bankingGet more info

IR14

3 Banking Sector Challenges That You Need to Be Aware Of

The banking sector has consistently been one of the most promising industries in the past few decades. However, the current state of the world economy is an increasing concern for bankers. Recent market slowdowns, high debt, and interest rate uncertainties are not helping either. The advent of technology has proven to be both a boon and a bane for the banking industry, while it has many benefits of convenience and ease for both the customers and the players in the industry, technology is making the banking sector more prone to risks of security and criminality.

Are you a stakeholder in the banking sector? Then you need to stop everything you are doing right now and  prep yourself to face these challenges that are charging its way towards the banking sector:

Uncertainties in the Macro-Economic Environment

Though many economies have now returned to positive growth, macroeconomic risks remain a significant concern. Some of the major issues adding on to the bottling up tension in the banking industry are – the declining Chinese economy, unresolved conditions in the eurozone, unclear state of future interest rates, the slower growth rate in emerging economies, etc.Free demo

Rising Regulatory Concerns

The tightening regulatory requirements are leaving bankers in distress. Many players in the banking sector are of the opinion that these regulations are a costly affair that would eventually prove to be ineffective. There are increasing regulatory requirements and innovation and diversity as well especially in the case of big players in the banking industry. Over the course of time, the players in the banking industry are becoming more risk aware. However, banks are facing trouble in their efforts to meet compliance standards as they require a sizable amount of energy, money, and time to meet them.

Increasing Rate Of Cyber Attacks

The development of technology has made it easier for cyber-attackers and hackers to infect systems in the banking sector. The past decade has seen an increasing rate of cyber-crimes in the banking sector owing to the increased adoption of modern technology by banks such as crypto-currencies, real-time payments, distributed ledgers, etc. Cyber attacks that are being carried out on the banks could make them vulnerable to economic and regulatory risks and ultimately leave huge dents in their reputation.

 

Know more about the upcoming challenges and risks in the banking sectorGet more info

Related Insights:

Retail analytics

Do Not Fall Prey to Threats in Online Banking: Here Is All You Need to Know

Don’t you hate going to the bank and spending most hours of the day there standing in long queues? Who doesn’t! The banking sector players have realized this, and most of the banking companies have introduced their own mobile banking apps, facilitating on-the-go banking. But online banking may not be as merry as it seems, there are a large number of criminal eyes in the cyberspace that you need to beware of. Your banking and personal information is at stake here since your details could be exposed to various hackers and other online criminals that are slyly waiting to loot you. Does this mean you should refrain from online banking? Definitely not! Going by the age old saying “Prevention is better than cure,” let us take you through a few things you need to be careful of while using mobile banking:

mobile bankingFree demo

Evaluate Your Mobile Device Trust-worthiness

Mobile apps are built in such a way that they support a wide range of devices and operating systems. Therefore, the app could be exposed to potential vulnerabilities across different platforms. Though most of the modern smart devices ensure that regular updates for device security are provided to their users, customers often jailbreak their devices in order to access various functions that have been locked down by the provider, making the device vulnerable to external threats. Therefore, it is always better to ensure that you adhere to the security measures suggested by your OS and not undertake any transactions that are flagged as risky in your device, especially if you are using the same device for online banking.

Establishing User Identification

Cyber criminals undertake various steps to perform fraudulent transactions, exhibiting as many characteristics of normal customer generated transactions as possible in order to avoid the security radar. E.g., Cyber criminals entice customers into downloading various links/SMS forwards that will later be used to authenticate fraudulent transactions.  This will easily give them the access to the online banking credentials of the customer that has been saved on the phone. Many banking companies are formulating new methods to eradicate these types of crimes by methods such as OTP, which send a verification code to the registered customer mobile to undertake mobile banking transactions.

Cross-channel Infections

Cross channel infections refer to the corruption of a device caused by malware on the user’s PC. We often tend to connect our mobile devices to our laptops; cyber criminals observe these user behaviors and prompt the user to undertake certain actions while disguising themselves as a bank or a social media platform. The unsuspecting users often tend to follow the instructions or give out personal details, giving cyber criminals more scope to implant a malware attack on the user device. Cross channels infections can be avoided by the device’s geolocation, which alerts the users in case the account is being accessed from two distinct locations or other anomalies that may occur during online banking sessions.

To Know More About Cyber Security in Online BankingGet more info