The largest banks and credit unions are adopting predictive analytics, turning Big Data into revenue-driving insight. As a result, they have gained a foothold in the market by offering fewer, but more relevant products to their customers. However, new advances in customer analytics will enable midsize banks and credit unions to level the playing field by going beyond predictive analytics to prescribe an action — capitalizing on their prediction.
A brief history of time
Banks have always had Big Data, but in recent years the largest financial institutions have learned how to use it. To date, a focus on data science has helped the five largest banks increase U.S. market share dramatically — gaining 108% from 2000-2013, according to FDIC statistics. And there are 640 fewer FDIC institutions from 2013 to 2014, a loss of 4.7 percent — a stark reminder of the customer sea change that’s crested over smaller institutions.
How to become the smartest bank on the block
The buy-in to Big Data analytics’ must first come from the top. Or very near it.
At the beginning of 2014, for example, Wells Fargo appointed its first Chief Data Officer, responsible for a budget of $100 million and in charge of 600 staff. Interviewed shortly after his appointment, A. Charles Thomas said his team’s first priority was delivering more complete and useful cross-selling information to employees on the front lines to help them make better-informed product recommendations.
“People think, if you bring together all this data, does that mean you’re going to try to sell me more stuff? My answer is, we should be trying to sell less stuff. In other words, relevance and timeliness are really critical,” he told American Banker magazine.
Leadership at larger banks can see the wisdom in investing in technology and skill resources that enable a clear picture of their best customers or members – and they have the deep pockets to do it. But once midsize banks and credit unions are armed with a new breed of actionable advanced analytics, they won’t need armies of analysts and massive Big Data budgets. They’ll generate greater revenue from clearer institutional knowledge, newfound best practices and actionable customer and member data.
With Saggezza’s TruVantage, Big Data becomes small and actionable.
Comprised of a suite of modules with sophisticated yet simple-to-use dashboards, TruVantage promotes enhanced customer relationships and creates a 360° view of the institution’s performance. It quickly and securely digs deep into customer data — allowing users to uncover valuable insights while recommending prescriptive actions that deliver impactful results.
With TruVantage you can:
1. See a 360° view of your institution’s performance
2. Increase retention and revenue by identifying up-sell and cross-sell opportunities
3. Halt customer churn and maximize customer lifetime value
4. Track the actions of your most profitable customers to gain best practices
5. Enlist an experienced Data Science Consultant to identify new revenue streams
6. See results in as little as 100 days with quick product deployment
How TruVantage is different
TruVantage provides a versatility that enables CEOs — and other decision makers — at banks and credit unions to take confident action in a way, and at a speed, that no other enterprise banking software allows. Built on Saggezza’s proven Big Data analytics product for Fortune 500 clients, TruVantage lets you quickly analyze and act upon customer and product insights, so you can respond to changing conditions faster than the competition.
Included with this transformative technology is the support of a Saggezza Data Scientist / Analyst assigned to each institution — analyzing your daily customer and business data, while training staff to uncover new opportunities, reduce expenses, retain customers and create new revenue streams. Serving as a strategic advisor to your institution, the data scientist will maximize your investment in TruVantage.
While the megabanks may have spearheaded the advanced analytics “movement”, they likely don’t have the one-on-one customer history and access that the smaller banks and credit unions do. That’s where TruVantage can enable the smaller institutions to strengthen customer relationships and drive revenue by making Big Data small and actionable.
Big Data may be a trending term, but it can deliver true advantages for financial institutions. Saggezza’s TruVantage is here to enable midsize banks and credit unions to better predict the future, and help them prescribe an action to act on it.
Interested in a free advanced analytics demo? Contact us