Predictive Analytics for
Banking & Financial Services
Obtain actionable insights from your data to achieve growth and avoid reputational risk
Rising customer expectations of the flexibility and personalisation being delivered by your competitors and other sectors.
Predictive Analytics for Banking & Financial Services
Banking and Financial Services face several challenges. These are:
- Rising customer expectations of flexibility and personalisation
- No let-up in the continued attention by the regulators
- Rapid shifts in customer behaviour in line with changing technology
- Increasing levels of fraud coupled with significant shifts in its form
- New competitors in the sector
Version 1 can enable you to obtain actionable insights from your data, improve the balance sheet, achieve growth and avoid reputational risk.
Primary Analytics Solutions for Banking & Finance
Design the analytical solution that is best for your business.
Marketing & Customer Experience
Embrace the power of Advanced Predictive Analytics to provide differentiated and personalised customer experience. Use a holistic analytical marketing approach and a comprehensive CRM strategy that will support decision-making, optimisation and automation across different marketing activities and CRM operations in financial institutions.
- Use Enterprise Data to leverage customer intelligence and personalize customers’ banking experience and satisfaction.
- Reveal customer insights to identify new marketing opportunities and effectively address customer needs in real time.
- Develop financial products or services tailored to banking behaviours.
- Optimise offers by determining Next Best Action for individual customers, and drive profitability by presenting the right offers, in the right channel, at the right time.
- Understand the factors behind customer acquisition, loyalty and retention and reduce churn.
Consolidate all available information from different sources of data, inside or outside the organisation, into a single structured and detailed set of marketing customer attributes and key performance indicators. This includes Financial Positioning, Product Ownership, Transactional Behaviour, Channel Preferences/Usage, Profitability and Customer Value, Credit Risk Information, and Investment and Loyalty Profile.
- Serves as the data infrastructure for any CRM and Marketing Activity.
- Provides the base for all reporting and predictive modelling needs across CRM and Marketing Departments.
- Minimizes overall dependency on IT resources.
- Delivers industrialised customer insights through the deployment of key performance indicators into Banks’ Operational Channels such as Branches or Call Centres.
- Provides improved personalised customer experience and satisfaction, through data visualisation of customer insights into customers’ contact points such as mobile banking or online banking.
Customer Base Segmentation
Develop segmentation schemes that divide customers into useful and actionable segments and reveal customer insights by exploring different aspects of customers’ banking behaviour (spending patterns, demographics, channels preferences, transactions activity, customer value index) during the customer lifecycle.
Design marketing Analytical Strategies and match profitable products, based on customer segments to increase sales and generate profits by focusing on individuals’ customer banking needs.
- Provides a greater understanding of customer profiles, needs and market trends
- Uncovers variation in current, future and lifetime behaviour of customers and forms long-term CRM vision and marketing strategies
- Guides New Products and Services Development tailored to customers’ banking behaviour
- Supports the identification of marketing opportunities and design of targeted offers based on customer value, risk and price elasticity
- Improves the efficiency and planning of banks’ sales channels and networks
Optimise Offers and Marketing Efforts
Maximize profitability by using Advanced Predictive Analytics and propensity models for Banking to identify best prospects for new product offerings, increase existing products/services usage or substitute existing products and services with new more profitable ones.
Predict the response to an offer and minimize marketing costs by determining customers’ Next Best Action or offer, weighted on banks’ profitability metrics and individual customers’ risk scores and assessments.
Customer Retention, Acquisition and Loyalty
Adopt a proactive analytical approach to identify the risk factors that influence customer acquisition and retention, and prevent churn effectively, early in time to enhance customer loyalty.
Determine early warning signals such as a reduction in transaction volume, credit spending or in deposit balances and send customized offers to the people most at-risk of churn.
Combine Customer Insights from Segmentation models and offers optimisation to develop targeted retention campaigns.
- Reveals changes or patterns in behaviours, indicating factors which may cause disloyalty or churn
- Predicts churn and analyse risk indicators early in time with confidence
- Develops effective and personalised customer retention strategies and improve products or services design to enhance customers’ loyalty
- Examines Customer Service and Satisfaction, by using Text Analytics and analyse customer interactions such as Branch visits or call centre calls
- Identifies the reasons behind customers’ disloyalty inside the organisation
- Helps to Understand previous successes and challenges in trying to attract more and better customers
“Version 1 were brilliant. they helped us turn our situation around so that we are now spending 80% driving outsights out of our data and 20% of our time actually collating data. We are now able to concentrate our time and resources implementing our customer strategy.”
“We have no intention of changing our software, as we have been highly satisfied with all aspects of the solution. Simply put, our daily operations would be impossible to solve satisfactorily without IBM SPSS software.”
“Without Modeler, it would be difficult to detect relationships between originators and beneficiaries who send and receive transfers internally. Criminals use these networks precisely because they won’t be detected by traditional systems.”
“With IBM SPSS Modeler, we have been able to transfer 80 percent of our money-laundering detection resources into bringing new business into the bank.”
“The training course was really beneficial with a balanced combination of theory and exercises! The training material was clear and practical, and Version 1's trainer using an interactive approach, was well organised and capable to cover all aspects and topics of the course thoroughly in a professional manner. I would highly recommend the course to others!"”
“I really enjoyed the course; it was exceptionally interesting and well-paced. I think it will be extremely beneficial in my work.”
Banking & Financial Services Case Studies
Case Study – OTP Bank
OTP Bank wanted to improve the speed and efficiency of its mortgage, loans and lease application processes, and make accurate, evidence-based decisions more rapidly than the competition. Upon implementing IBM SPSS Modeler, they can now uncover patterns and predicts risks associated with each applicant. As a result, the bank can quickly identify and approve those with low risks, accurately assessing borrowers’ credits to develop more precise revenue forecasts.
Case Study – Fiserv
Small and midsize banks and credit unions seek to attract, retain and grow profitable customer relationships while competing with the analytic capabilities of new mega banks. Working with IBM and using SPSS software, Fiserv is turning billions of transactions into actionable insights that help these banks better target offers and maximize their marketing dollars.
Case Study – Corona Direct
To sustain its current level of growth, Corona Direct’s customer acquisition campaigns needed to be profitable. Historically, the cost of securing new customers exceeded first-year revenues by almost 50 percent. The company turned to IBM SPSS predictive analytics software solutions to efficiently create, optimize and execute their outbound marketing campaigns.
Latest Resources from our Learning Hub
SPSS Webinar – Hot Tech Tips for Using SPSS Statistics Part 2
In part of this webinar on Hot Tech Tips for using SPSS Statistics, our Data Analytics consultant will take you through Custom Tables, Linear Regression, Logistic Regression and options for Survival Analysis in IBM SPSS Statistics. Download to learn more.
IBM SPSS Whitepaper – Customer Analytics in Banking
In this white paper, you will learn how your organisation can use customer analytics to understand what customers want and will do next, along with the key capabilities required to effectively conduct customer analytics. Download to find out more.
IBM SPSS Whitepaper – Predictive Analytics Solutions for Education
Download the IBM SPSS Whitepaper Predictive Analytics Solutions for Education to learn more.
What’s New in IBM SPSS Statistics v29?
Looking to quickly learn what’s new in IBM SPSS Statistics 29? Rather than reading a list of changes and new procedures, there is a quick way to tour what’s new and access help. Read our post for more info.
Tech Tips – Count Occurrences within Cases
We have a wide variety of Tech Tips for IBM SPSS created by our SPSS experts. This Tech Tip will help you count occurrences within cases in IBM SPSS Statistics.
Tech Tips – Annotating Nodes in IBM SPSS Modeler
We have a wide variety of Tech Tips for IBM SPSS created by our SPSS experts. This Tech Tip will help you annotate nodes in IBM SPSS Modeler.
Tech Tips – Accessing Help from Output in IBM SPSS Statistics
We have a wide variety of Tech Tips for IBM SPSS created by our SPSS experts. This Tech Tip will help you access Help from Output in IBM SPSS Statistics.
Tutorial – Getting Started with Custom Tables in SPSS Statistics
In this video, the first in our Custom Tables for SPSS Statistics series, our SPSS expert will help you get started with Custom Tables in SPSS Statistics. Presented by our SPSS Data Analyst, this is the first of four videos in the series covering SPSS Custom Tables.
IBM SPSS Whitepaper – Analytics: Real-world use of Big Data in Telecoms
Download the IBM SPSS Whitepaper Analytics: Real-world use of Big Data in Telecoms to learn more.
Tutorial – Running Chi Square Tests in Custom Tables in SPSS Statistics
In this short video, the second in our Custom Tables for SPSS Statistics series, our SPSS expert will help you run Chi Square Tests in Custom Tables for SPSS Statistics.This tutorial will include highlighting significant results, hiding cells with low counts and running multiple chi-square tests within the same table.
Tech Tips – Customising Toolbars
We have a wide variety of Tech Tips for IBM SPSS created by our SPSS experts. This Tech Tip will help you customise toolbars IBM SPSS Statistics.
What’s New in SPSS Statistics v27?
SPSS Statistics v27 was launched in June 2020 with the biggest change compared to v26 being the inclusion of Data Preparation and Bootstrapping as standard functionality, as part of the SPSS Base module. This post will take a high-level look at these changes plus cover off the key enhancements in v27.
Tutorial – Running T-Tests & Building Bar Charts in SPSS Statistics
In this short video, the third in our Custom Tables for SPSS Statistics series, our SPSS expert will focus on running T-tests and building bar charts in custom tables. At the end of this short tutorial, you should be able to conduct a comparison of column means and generate graphs to build better and more visual output.
IBM SPSS Whitepaper – Improving Claims Management Outcomes with Predictive Analytics
Claims management professionals have to deal daily with formidable, and sometimes competing, challenges. Predictive analytics can help overcome the challenges encountered by Insurers. Download the whitepaper.
Tech Tips – Aggregate Records in IBM SPSS Modeler
We have a wide variety of Tech Tips for IBM SPSS created by our SPSS experts. This Tech Tip will help aggregate records in IBM SPSS Modeler.
Tech Tips – Anonymise Data in IBM SPSS Modeler
We have a wide variety of Tech Tips for IBM SPSS created by our SPSS experts. This Tech Tip will help you anonymise data in IBM SPSS Modeler
IBM SPSS Whitepaper – i2 Fraud Intelligence Analysis
Download the IBM SPSS Whitepaper i2 Fraud Intelligence Analysis on Identifying, investigating and disrupting fraud in insurance.
Tech Tips – Encrypting a Data File in IBM SPSS Statistics
We have a wide variety of Tech Tips for IBM SPSS created by our SPSS experts. This Tech Tip will help you encrypt a data file in IBM SPSS Statistics.
Fixing the Models that COVID Broke
Models are expected to degrade over time – no model lasts forever. With COVID-19, this has just happened more quickly and more radically than before. This post summarises a few tips on how you can ‘fix’ the models COVID-19 broke.
Tech Tips – Quick Change for Tables in IBM SPSS Statistics
We have a wide variety of Tech Tips for IBM SPSS created by our SPSS experts. This Tech Tip will help you format tables in IBM SPSS Statistics
IBM SPSS Whitepaper – Maximise Customer Value & Reduce Cost & Risk
Download the IBM SPSS Whitepaper Maximise Customer Value and Reduce Cost and Risk to find out how insurance companies can overcome their cost and risk challenges.
Tech Tips – Quick Sort in IBM SPSS Statistics
We have a wide variety of Tech Tips for IBM SPSS created by our SPSS experts. This Tech Tip will help you quickly sort your data in IBM SPSS Statistics.
Internal Fraud Can Erode Organisations – Predictive Analytics to the Rescue!
If fraud occurs in an organization, salvaging the situation is paramount. How can this be done? The answer is Predictive Analytics! Read our blog post to find out more.
IBM SPSS Whitepaper – Maximise Asset Productivity and Operational Performance
Download the IBM SPSS Whitepaper Maximise Asset Productivity and Operational Performance to learn more about the benefits of predictive maintenance.
Tech Tips – Encrypting an Output File in IBM Statistics
We have a wide variety of Tech Tips for IBM SPSS created by our SPSS experts. This Tech Tip will help you encrypt an output file in IBM SPSS Statistics.
Tutorial – Running Decision Trees Part 1
In this 3-Part video series on Running Decision Trees within SPSS Statistics, our SPSS expert will provide an introduction on Decision Trees giving you a basic understanding.
What’s new in IBM SPSS Statistics Version 26
IBM SPSS Statistics Version 26 includes new statistical tests, enhancements to existing statistics and scripting procedures, and new production facility capabilities. Read our post to find out more.
Tech Tips – Applying Labels to Bar Charts in IBM SPSS Statistics
We have a wide variety of Tech Tips for IBM SPSS created by our SPSS experts. This Tech Tip will help you apply labels to bar charts in IBM SPSS Statistics
Tech Tips – Quick Change to Graphs in IBM SPSS Statistics
We have a wide variety of Tech Tips for IBM SPSS created by our SPSS experts. This Tech Tip will help you change graphs created in your out put in IBM SPSS Statistics
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Discover More Industry-Specific Solutions
Version 1’s SPSS experts can consult and deliver a wide variety of analytics solutions across a broad range of industry sectors. Find out more at the links below.