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

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estr

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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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