Discover treasure in your banking customer data with predictive analytics

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Global Banking Industry Marketing, Big Data, IBM

Two of the most evident, yet nonetheless transformational, trends impacting business today are the empowered consumer and digitization of commerce. These inclinations are strongly impacting banking, just as they are in other industries, and shaking traditional business models to the core.

However, just because these trends are quite evident and well-known doesn’t mean organizations have adapted well to this transformation. Sadly, bankers are behind the curve when it comes to addressing these challenges for which industries such as retail and telecommunications have made great strides. are probably more empowered and in control of the buying process now more than any time in the history of commerce. With ubiquitous connectivity and transparency, they can instantly compare products and services, get peer reviews and check pricing in seconds—anytime, anywhere. And digitization has flipped the commerce paradigm on its head from a time when organizations called the shots—deciding when, where and how products and services were offered—to today in which consumers are fully in charge.

Now organizations must adapt to an individual-centered economy in which banking consumers expect and demand a seamless banking experience that delivers value on their terms. Leaders are coming to grips with this consumer-empowered world and know they need fundamental change.

In a recent IBM study, improving understanding of individual customer needs was the top area in which chief executive officers (CEOs) saw the need for change to meet customer expectations. What is the driving force for companies to adapt and thrive in this transformation to an individual-centered economy? It is the new technology that leverages data and advanced analytics to discover new levels of customer insight. High-performing banks can accomplish several goals: 

  • Using big data capabilities to analyze volumes of customer data from more sources than their competitors and using analytics to turn customer data into insights.
  • Anticipating customer needs and behavior using advanced predictive analytics.
  • Applying insight with speed to take action in real time or just in time, whenever and wherever it’s needed.

The problem is, many banks do not perform analytics on some of their most insight-laden data: transactions and customer behavior. Banks have a treasure trove of data from transactions that can reveal much about customer needs, preferences and intentions.

To help banks leverage this behavioral data, IBM is introducing Behavior Based Customer Insight for Banking. It uses predictive analytics to help banks personalize customer engagement and deliver customized actions. And it employs advanced, pre-built predictive models to analyze customer transactions and spending behavior to deeply understand customer needs and propensities, anticipate life events and help provide a unique customer experience.