In an increasingly competitive retail banking market, new customer acquisition and customer retention are key to growth and success. Whether bricks & mortar or direct, firms are striving to improve the experience of today’s connected customer by developing a 360-degree view of their clients.
To achieve this comprehensive view, information concerning all a customer’s products needs to be collected and linked in a business data warehouse and master data hub covering:
- checking and saving accounts
- credit cards
- IRAs and retirement accounts
Historically, retail banks were organized around separate lines of business making the achievement of this holistic view of a customer very difficult. Extraction, alignment, and analysis of relevant information were made difficult through the long lead times to build a data warehouse and the slow processing supported by traditional extract, transform and load tools.
At the core of a customer-centric bank is a centrally available, business data warehouse and master data hub containing information about customers and the products and services they use. This customer profile is built up based on multiple sources; past history across multiple products and accounts need to be extracted, cleansed and aligned to new customer-centric business processes. The addition of external, third-party data can be used to enrich a bank’s understanding and modeling of its customers’ behavior. At the aggregate, demographic and economic data can be employed to model changes in behavior based on events and trends.
As a result of building a comprehensive profile of customers and the products and services they use, banks will be able to better execute against:
- Understanding Customer Profitability
- Appropriate up-sell and cross product targeting and promotion
- Predicting customer behavior based on analytic models and profiling
- Local demand for branches, sub-branches, and ATMs
- Identification of underperforming products, branches or services
- Detecting fraud identity theft and ensuring customer security