Analytics For Retail Banking - Marketelligent
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MarketIntelligent provides analytic services to help clients make better business decisions. They offer expertise in credit risk and marketing analytics across various banking products. Their services include developing scorecards to predict customer behavior, maximize profits from assets and fees, reduce losses, acquire profitable customers, increase activation and cross-sell revenues.
Analytics For Retail Banking - Marketelligent
- 1. • Profit-based Customer Acquisition Strategy • Revenue Scorecards; eg Total 180 days revenue • Campaign Management • Cross-sell Scorecards • Retention and Activation • Loan Prepayments • Loyalty and Winback • Pricing Analytics • Credit Delinquency Scorecards • Customer Approval and Conversion Scorecards • Optimal Loan Amount, Pricing and loan duration • Portfolio Loss Forecasting • Collections Analytics • Fraud Analytics • Basel II Analytics Credit Risk Analytics Marketing Analytics Analytics that impact all items of the portfolio P&L Example: Credit Cards RETAIL BANKING ANALYTICS Marketelligent is in the business of providing analytic services that help you make smarter business decisions. With deep expertise in Credit Risk and Marketing across asset- and liability-based Products, we offer an affordable global delivery model leveraging the best of domain expertise and analytic capabilities. New Accounts Acquired Accounts Closed Account Activation rate Payment Rate Total Ending Receivables Interest Cost of Funds Net Interest Margin Risk-based Fees Interchange Affinity Rebates Cross-Sell Annual Fees Net Credit Losses Net Credit Margin Operating Expenses Loan Loss reserve Net Income REVENUESEXPENSES Bank P&L Reduce Customer Attrition - Voluntary / Involuntary - Retention Strategies - Winback Improve profitability of Assets - Credit Line Strategies - Pricing - Balance Transfer Maximize Fee Revenue - Over Credit limit - Delinquency - Bad Check Reduce Net Credit Losses - Credit Line strategies - Pricingstrategies - Collections Acquire Profitable Customers - Whom to approve/decline? - What Pricing? - What Credit Line ? Increase activation rates - DeepeningEngagement - Inactive Customer Treatment Maximize Interest Revenue - Product Pricing - Customer Behavior – Revolvers, transactors, etc Increase Cross-sell Revenues - Revenue Enhancing Products - Breadth of relationships
- 2. CONTACT www.marketelligent.com MARKETELLIGENT, INC. 80 Broad Street, 5th Floor, New York, NY 10004 1.212.837.7827 (o) 1.208.439.5551 (fax) [email protected] 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 1 2 3 4 5 6 7 8 9 10 Random New Model Existing Model CumulativeDefaultRate Scorecard Deciles PREDICT USING SCORECARDS Design, develop and implement predictive scorecards across functions: response, approvals, delinquencies, collections, cross-sell, etc Acquisition Usage & Loyalty Value Time Retention Activation RETAIN & ACTIVATE Identify Customers at Risk of Disengagement via predictive scorecards. Take appropriate action to lower attrition. Segment Inactive Customers across various dimensions. Implement targeted activation campaigns. MAXIMIZE COLLECTIONS Collectability Scorecard Placement Balance (Amount the account entered Collections with) Required Effort (Efforts required to collect past dues) Develop & implement holistic strategies to collect efficiently; thereby reducing cost/dollar collected SEGMENT YOUR CUSTOMERS Segment Customers to better understand their needs and wants; their sensitivities to various factors, etc. RETAIL BANKING - CREDIT RISK & MARKETING ANALYTICS Lower defaults by upto 15% using approval scorecards Segment based on a specific objective; or natural clustering Increase activation by upto 20% by optimal targeting and right offers Increase Collections by upto 20% using Collection Scorecards