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banking analytics

Banking Analytics: Transforming Business Operations in the Banking Sector

Today’s customers have become digitally empowered and that is why there is a need for the banking industry to harness the power of customer data with banking analytics. Banking analytics should be the part of every major initiative in the banking industry ranging from customer engagement, retention, to finance and workforce. Also, to harness both external and internal data banks need to leverage banking analytics.

Banking analytics helps a financial institution to be more efficient about the way it goes about targeting its customers, and therefore, be more customer-friendly.

Furthermore, analytics in banking can help banking firms in operational improvement, cost-cutting, and customer experience improvement. In this article, we have curated a list of a few benefits of banking analytics that can help banking firms to measure customer and product profitability, identify high-potential prospects and customers and improve the ability to target products and services to prospects or customers.

Talk to our experts to understand changing financial trends across key growth segments and uncover new opportunities.

Benefits of Banking Analytics

Customer acquisition & retention

Banking analytics can help companies to identify high-value customer segments that are most likely to respond. This can further help in expanding the customer base by acquiring the right type of customer. By leveraging analytics solutions, banks can predict which business action will them earn loyalty of their customers. Banking analytics aggregates customer data and offers an in-depth insight into each customer’s behavior. This can further help banking organizations to quickly determine which segments are the most appropriate to target for different products and services. As a result, banking firms can improve relationship with their customers leading to improved customer acquisition and retention.

Our banking analytics solutions offer a real-time view of business operations and factors that drive costs, revenues, and financial growth in the banking sector. Request a FREE proposal to gain in-depth insights.

Fraud Detection

For banking and financial firms across the globe, digitization has paved the way for fraudulent activities.  This has made it important for banks to have intelligent systems and tools to deal with fraudulent activities. By leveraging analytics in banking, banks can easily recognize frauds and analyze the suspicious activities in real-time. Analytics solutions that includes data integration and machine learning techniques can help banks to detect fraud by following a pattern through analytics dashboards. Implementing banking analytics can help automate such findings making fraud monitoring more effective and accurate.

Quantzig’s customized analytics solutions can help you understand customers’ credit behavior to determine the level of risk in real-time. Request a FREE demo to know more.

Cross-selling

Banking analytics can also be helpful in cross-selling of products. This can be done by analyzing the existing customer behavior and their interests for particular products. By compiling data with the help of banking analytics solutions, banking firms can gain valuable insights and determine where to focus their marketing efforts and which segments to target through marketing campaigns. Also, by leveraging banking analytics, banks and other financial institutions can personalize their communications with customers and offer  relevant banking products and services leading to revenue growth.

Request more information below to learn more about banking analytics and its benefits.

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Customer Analytics Engagement: How a leading banking and insurance company witnessed a 2x increase in customer loyalty

The client is a leading banking and insurance company based out of Denmark with a strong presence in more than 15 countries. With the rise in its global customer base, the company was looking at deploying an innovative approach to analyze attributes, journeys and behavior of its customers. Their existing approach failed to successfully engage customers in ways that would help them boost customer loyalty. Therefore, they approached Quantzig to leverage its customer analytics solutions to gain in-depth insights into end-user behaviors.

By leveraging Quantzig’s customer analytics solutions, companies can effectively track and monitor customer journeys and reduce churn. Request a FREE proposal to gain in-depth insights into our advanced analytics solutions.

Business Challenge

A host of different factors such as speed, agility, and access to reliable information are intersecting to subtly change the way the banking and insurance sector will operate in the years to come. Companies in the banking and insurance sector have traditional business models that aim at implementing secure systems. These models are unable to track and analyze customer journeys. This is where customer analytics solutions can help.

Our analytics experts help companies in the banking and insurance sector to reap maximum benefits from a well-segmented and thoroughly analyzed customer database. Get in touch with them right away!

The client, a leading company in the banking and insurance sector in Denmark, found it challenging to identify profitable customer segments, improve customer relationships and win back former customers. The declining customer trust and increasing risks prompted the client to take proper measures to deal with these challenges by leveraging advanced customer analytics solutions and approached Quantzig to help them effectively improve customer loyalty by reducing churn.

Solution Offered and Value Delivered

To help the client tackle their core business challenges, customer analytics experts at Quantzig adopted a comprehensive approach that aimed at gaining a 360-degree view of their customers in the first step. By leveraging Quantzig’s advanced customer analytics solutions, the client was able to identify higher-value customers which, in turn, helped them spend more time building customer loyalty programs to drive bottom-line results. Also, the banking and insurance company was able to identify flight risk customers and factors affecting their decisions.

Quantzig’s customer analytics solutions use powerful predictive models to determine which actions typically precede a lost customer or sale and allow businesses to leverage data discovery to identify factors that affect churn. Request a FREE demo to know more.

Customer analytics solutions also helped the client to:

  • Increase customer loyalty by 2X
  • Identify potential customer segment
  • Better understand customer behaviors

Why choose Quantzig as your next analytics partner?

Quantzig is a leading analytics solutions provider that is well-known for assisting clients across the globe with its advanced analytics solutions. We help organizations across industries to gain data-driven insights and transform themselves into an analytics-driven organization. Our highly skilled team of data scientists, consultants, and analysts can help you analyze datasets in real-time so that you can take appropriate actions and solve critical business issues before it becomes a major crisis. Also, we work in collaboration with our clients to help them identify new opportunities, define robust solutions, and develop cutting-edge visual dashboards.

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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?

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IR35

Improving Cross Selling: 4 Things Retail Banks Should Not Miss Out

It’s no secret that most people bank with multiple institutions at a time. According to a recent survey, only 19% of retail banking customers held three or more products besides a checking account with their primary bank. This means that companies operating in this sector have ample scope for improvement for spiking up their profits. One of the essential capabilities that players in the retail banking market must consider is working on their cross-selling abilities. Given the larger picture, cross selling can improve the bottom line for retail banking, wonder how? The incremental cost of selling to existing customers is much lower than acquiring new ones. Furthermore, cross-selling is an excellent way for retail banking companies to develop customer relationships and generate revenue from lower cost targets. We have identified four ways in which banks can improve their cross selling performance:Free demo

Focus on the lowest hanging fruit 

The simplest way to make a sale to an existing customer is through engagement services that help customers use an account they already own. These services that are a part of most financial institution’s customer onboarding programs include a debit card, online banking, mobile banking, direct deposit, bill pay, automatic savings transfer, personal line of credit and security solutions such as privacy protection. These retail banking services help ensure that the customer will use the products they own more often. Consequently, the customer retention of retail banking companies will improve along with the overall customer experience.

Build customer relationships

 For cross selling efforts to be successful, retail banking companies must keep the conversation going beyond the customer onboarding process. For this, companies can rely on a number of platforms available today such as email, direct mail, statement messaging, SMS texts and as part of the online and mobile banking platforms. Furthermore, banks must also ensure that these messages and communications should be highly targeted and personalized. This will help companies to build better customer relationships and better facilitate cross-selling in the long run.

Constantly monitor opportunities

To grab opportunities before someone else does, it is essential for players in the retail banking industry to continuously monitor the opportunities available. Rather than using product-driven programs that are done seasonally, banks can consider funding more customer-centric programs that evaluate each customer’s propensity to opt for one or more of the products and services that are offered. Customers prefer to be provided with suggestions of services that will help them with their finances. Getting the timing right is an integral part of a great customer experience.

Utilize offline and online channels

The effect of different channels of communication might vary from customer to customer. Retail banking companies must use as many direct channels as possible to reach out to the current customer-base as a part of a robust multichannel marketing plan. This includes direct mail, email, statement inserts, banner ads on your website, ATM messaging, outbound calling efforts, etc. Banks can also encourage the use of online and mobile banking to make tasks easier for customers. This also acts as a channel to use cross-selling techniques and pitch products to the customers.


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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.

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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

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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.

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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.

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Banking Sector client leverages Customer Segmentation Solution to Enhance Business Opportunities

banking sector

LONDON: Quantzig, a global analytics services provider, has announced the completion of their latest customer segmentation solution for a banking sector client. The banking sector is highly fragmented and includes segments such as retail banking, corporate and investment banking, and asset and wealth management. The rising middle-class population and escalating household incomes in emerging markets are likely to increase the opportunity for players in the global banking industry.

“A reliable customer segmentation solution can help banking sector clients to decide on what data to be collected and efficiently gather data from sources. Furthermore, customer segmentation also helps banking companies to establish effective communication with their customers,” says an expert at Quantzig.

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The solution offered helped the banking sector client to gain a value-based segmentation in terms of the revenue. Additionally, the client was able to identify the most and the least profitable segment to build and maintain the relationship with them.

 

Additional Benefits of the Customer Segmentation Solution

  • Identified new services at comparatively lower costs and improved service offerings to meet customer expectations.
  • Analyzed the profit potential of each segment by understanding its revenue and cost impact
  • To know more, request a free proposal

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