TCS BaNCS Customer Newsletter TCS BaNCS #31 (September 2019) - Page 15

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. 15