(a) The customer analytics solution, integrated with the universal banking solution, provides holistic customer analytics for banks, through both insightful business reports and rigorous statistical models. This enables the business to cross-leverage analytic output to strengthen its customer engagement and management strategy, resulting in institutionalization of customer relationships and differentiation of service experience. The solution empowers banks with comprehensive analytics support, ranging from data acquisition to reporting and analysis, leveraging quantitative modeling techniques and multi-dimensional reporting. It provides critical information such as customer attrition scores or profitability scores to enable comprehensive understanding of the customer. These scores can also be extended to front-end applications or combined with online tacit information to facilitate timely and effective decision making. Customer analytics solution presents banks with the flexibility to pick and choose specific customer analytic functions relevant to the business, across the customer life-cycle stages of acquisition, development and retention.
(b) Key Modules
• Campaign Management
• Cross-sell and Product Holding Analysis
• Customer Profitability and Lifetime Value Analysis
• Attrition and Loyalty Analysis
• Transaction Behavior Analysis
• Service Request Analysis (c) Business Benefits
• Robust Framework for Customer Acquisition, Development and Retention.
• The solution encompasses end to end analytics across the customer relationship life-cycle. The interactive modules provide banks with a robust framework to understand the customer better and facilitate differentiated customer experience.
(d) Enhanced Customer Value: The analytics solution increases the bank's relationship revenue through analytical insights that facilitate effective cross-sell and up-sell, improved stickiness, targeted loyalty programs and profitable repositioning of offerings. This enables banks to take customer centric decisions and enhance customer value.
(e) Improved Decision-making Support: Arming banks with best-in-class analytical CRM capabilities throughout the customer lifecycle, customer analytics solutions empower the business with the intelligence to make informed, well-advised and timely decisions.
(f) Reduced Time to Market: The solutions provides predefined data mapping, extraction programs and data aggregation, draw analytical outputs through an automated process. The in-built analytical models and reporting templates further reduce time to go-live, significantly.
(g) Low Total Cost of Ownership: Customer analytics solutions mandate minimal investments in terms of infrastructure capabilities and resources. The technology agnostic solution can be deployed on banks' existing reporting and modeling tools with minimal customization effort.
6.4.2 Wealth Management
[email protected], [email protected], 09994452442
(a) Wealth management solutions are mostly modular, fully scalable, integrated core banking and investment management system designed for the specific needs of retail and private banks. They offer unique combination of an extensive portfolio of functions with impressive flexibility that enables end-to-end processing of investment products from diverse asset classes including structured deposits, structured notes, equities, mutual funds and insurance.
Financial institutions can leverage the solutions' rule-based definitions to launch new products -such as dual currency deposits, principal protected deposits, range accrual deposits, mutual funds and insurance products - with a distinct time-to-market advantage. Integrated with core banking and CRM solutions, the wealth management solutions ensure unique customer definition, a single, unified view of the customer's portfolio across asset classes and seamless flow of transactions. This helps banks capitalize on their customer base to create additional revenue streams, by offering HNWI and the mass affluent extended products and services.
(b) Key Modules
• Structured Products
• Mutual Funds
• Equities
• Insurance
(c) Business Benefits: Leverage the HNWI Opportunity - Finacle wealth management solution enables financial institutions to derive rich integrated insights about the HNWI client's investment portfolio. Sophisticated analytics, relevant financial planning and asset allocation tools can be deployed, to leverage the opportunities presented by hot listed clients to explore prospects for cross-selling and fee-based personalized advice.
(d) Ease of Enhancing Product Portfolio: The user-friendly solutions provide flexibility to tailor solutions and create new product flavors for emerging customer segments. It enables business users at the bank to add innovative functionalities and features to their offerings, without changing the source code of the application. The solutions also interface seamlessly with satellite and specialized systems, easily supporting faster rollout of new products at the bank.
(e) Higher Operational Efficiency: The solutions enable Straight Through Processing (STP) and are fortified with a powerful integration framework to interface with the bank's core banking solution and external data sources. This plays a crucial role in minimizing operational delays and ensuring seamless transaction flows at the bank.
Every financial operation is processed identically. Execution either ensures a successful update of all related data or a complete rollback incase of a technical problem. Consistency and reliability are guaranteed. Fully integrated and component - based, the solution also ensures consistency of data.
[email protected], [email protected], 09994452442
Access rights are rigorously managed, every transaction request is checked and systematic records are maintained as audit trails, ensuring robust security. The solutions allow users belonging to different legal entities to work on a single system and database. This directly results in significantly lower implementation costs and ease of centralized reporting for the bank,
(f) Lower Total Cost of Ownership (TCO): Built on new-generation technologies, wealth management solutions are generally future-proof and can be seamlessly integrated with other enterprise applications. With proven scalability and a flexible architecture, they ensure protection for the bank's technology investments.
The points discussed in the foregoing are only illustrative to highlight the application and features of technology in retail banking provided by one software company. There are different effective solutions provided by different software vendors. There are innumerable features available in the technology side for effective delivery of retail banking services. These features along with a good CRM solution will enable the banks to cross sell effectively and achieve total customer satisfaction. The pictorial illustrations and features are shown below.
Fig. 15.2 Financial Advizor (Source-website of a software solutions company)
[email protected], [email protected], 09994452442
Terminal Questions
1. Process models in retail banking are structured as
(i) Horizontally Organised Model where individual process platform supports one product only.
(ii) Vertically Organised Model where functionality is provided across all products.
(iii) Predominantly Horizontally Organised Model with some modularization within a product oriented feed back.
(iv) Predominantly Vertically Organised Model is a hybrid model that offers common information for most of the related services.
(v) Any one of the above.
Ans: v
2. The technology models adopted by banks are (i) Fully outsourced model
(ii) Partially outsourced model (iii) In house model
(iv) Anyone of the above.
Ans: iv
Key
1.(v); 2. (iv)
Let Us Sum Up
• Technology is the foundation on which the retail banking edifice is built across the globe. Technology is the enabler for building and translating a customer data base into retail banking business. Banks adopt different technology platforms in line with the global trends. New generation private sector banks were started with technology advantage of a single server environment.PSB banks also have reengineered their technology initiatives and started implementing core banking solutions networking the customers and accounts in a single platform. Most of the PSBs have completed the core banking solutions process while in a few banks the level of implementation is in various advanced stages.
• There are basically four approaches followed by retail banks in integrating technology with retail banking processes.
They are,
• Horizontally Organised Model where individual process platform supports one product only. The sub data in the model are not shared with other products and product platform.
• Vertically Organised Model where functionality is provided across all products. In this model, customer information is centralised. Centralised customer information builds common origination and servicing processes across all its retail banking products.
• Predominantly Horizontally Organised Model with some modularization within a product oriented feed back.
Customer data integration is available to a certain extent for other products.
• Predominantly Vertically Organised Model is a hybrid model that offers common information for most of the related services. The basic information is available across products for common services to the various products.
[email protected], [email protected], 09994452442
• Technology initiatives were adopted by banks in different ways. Some banks had implemented through in house resources for development and implementation while some other banks had done it through outsourced vendors.
Some banks followed a blend of proprietary as well as outsourced model. Scalability and Sustainability are the main issues in all these models. The models outsourced as well as in-house developed offer various customer analytics solutions for the banks to help them in customer identification, need mapping and offering the right products and services.
Keywords
Horizontally Organised; Vertically organised; outsourced model; in house model, blended model; customer identification; need mapping.