and can provide the same basic
services to all its customers. For one
bank to differentiate itself from the
other banks, the only thing it can
do is provide superior service, and
superior service is based on customer advice about a suitable mutual fund
analytics. By using analytics, the offering or similar product.
loyalty of your customers will be far
Most customers are unable to
greater than by any other means that manage their finances themselves.
you might adopt. People are so busy from morning
For example, we analyzed our entire
until evening that they have no time
customer base and came up with a to look at the balance in their savings
list of several hundred thousand pre- bank. They want somebody to tell
approved personal loan customers. them: “Hey, you’ve got 500,000
We made them offers through our rupees in your account, so why don’t
mobile app, and whenever these you set up a public provident fund
customers want to avail themselves of account for you to keep 150,000
the pre-approved loan, in just two or rupees every year?” This kind of
three simple steps taking less than two valuable advice drives loyalty, and the
minutes, the amount is credited into banks that survive will be those that
their account. This has been a super- do it well.
hit product, and every day, thousands
of customers make use of it.
The differentiator of tomorrow for
any bank in the world is going to be
How do you use analytics
in risk management?
Risk is impact multiplied by
analytics. The finer your analytical probability. In the past, it was difficult
algorithms, the better your results to ascertain impacts or probabilities.
and the better your service to the Today it is possible for us to know
customer. impacts and probabilities with much
greater certainty. We can now use
How does analytics
change the interactions
at the branch?
Our bank has 425 million customers,
analytics to reduce overall risks in the
banking environment.
The biggest risk in banking is
credit risk, or the risk of default.
which means that every branch has Previously, the process of due
tens of thousands of customers. In diligence often would take several
such a scenario, it is not possible for days. Today, I can do analytics-based
tellers or relationship managers to due diligence on the fly, which gives
have personalized knowledge of all me great confidence on whether or
their customers. By making analytic not to issue a loan to someone. We
insights available to them through can also know whether a customer
a digital interface, their customer remains creditworthy or not, and if
interactions become more specific creditworthiness has gone down, we
and more fruitful. If I know the risk can take corrective action as quickly
appetite of and the sale history to as possible. That means our biggest
a customer, I can provide informed risk, credit risk, can be brought down.
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