Retail Bank

A bank plays a simple role of borrowing and lending money. A bank will strive to borrow the required deposit at a lower interest rate and lend to its lending customers at a higher rate.  So, the bank will have to

  • Attract the customers who has money to deposit
  • Decide on deposit interest rate and other services it will provide to the customers
  • Attract lending customers who are interested in borrowing money but will be able to pay back the borrowings
  • Decide on lending interest rate
Retail Bank and Products

Retail Bank and Products

Due to increased competitions and customer expectations, the banks have to be innovative in attracting the customers with right products and services.  The data analytics and insights is one the important lever for banks to be ahead of its competitors in finding our customer needs, building right products & services, attracting right customers cost effectively and increasing the relationship with the customers.

A bank or financial organization captures its customer information, transactions and interaction data for various regulatory and business requirements. Even before a person becomes a customer of an institution, the information about the person is captured and processed. For example, the bank buys customer risk profiles/scores from credit bureaus such FICOExperianTransUnion and also acquire information for some of the credit bureau or other information providers such as Axciom for contact prospects.

After a person becomes a customer, all customer interactions such as calls to the bank, transactions using cheques, debitcard or creditcard and demographic information using product application(s) are captured and stored. The banks and financial institution have to submit certain information about its customers and portfolios to the regulatory bodies such as Federal Reserve in US, FSA in UK and Reserve Bank in India.

The banks and financial service organizations also leverage information and data about their customer to

  • Understand customer needs
  • Design relevant products and offers
  • Improve operational efficiency
  • Reduce portfolio and business risks
  • Increase income and reduce costs

Typically, following type of analyses being carried out in Banking and financial services organizations

Analytics for each of the financial products and portfolios