FIS Active Analytics Suite. Delivering Segmentation-driven Digital Marketing, Merchant Offers

Transcription

1 FIS Active Analytics Suite Delivering Segmentation-driven Digital Marketing, Merchant Offers Price Optimization and Risk Management Performance Analysis

2 The FIS Active Analytics Suite helps financial institutions tap into new revenue streams through more precise segmentation, dynamic cross-sell capabilities, and early risk identification driven purely by actionable insights. 2 FIS ACTIVE ANALYTICS SUITE

3 FIS ACTIVE ANALYTICS SUITE The financial services market is undergoing a dramatic shift, one that is defined by the intersection of rich data and personalization in a banking everywhere environment. Actionable insights will be the fabric of banking relationships going forward. In fact, 94 percent of senior executives attending the FIS Spring 2013 Executive Forum listed analytics as their top priority. To meet this urgent need, FIS has launched a full set of analytic solutions, called the FIS Active Analytics Suite, that enable financial institutions to mitigate economic risk, tap into new revenue streams through more precise customer segmentation and optimized pricing. Marketing and cross-sell capabilities can also be improved by delivering targeted, relevant and timely offers to customers across multiple digital delivery channels. Consumers benefit from personalized, timely offers based on their transactional behavior and lifestyle attributes. This degree of personalization and differentiated experience, which was previously found only in retail environments, creates a feeling of trust and intimacy between consumers and their financial institution that is key to customer loyalty. The FIS Active Analytics Suite builds upon FIS data analytics capabilities, which includes market-leading merchant offers, loyalty and rewards programs, along with customer segmentation, tailored pricing and consulting services. The suite solutions help financial institutions leverage actionable insights to drive dynamic, digital marketing campaigns and targeted offers, based on unique behavioral and transactional data. As a result, institutions can strengthen loyalty and forge deeper relationships with their customers and increase efficiency and effectiveness of marketing campaigns. By providing real-time, relevant opportunities to consumers, the suite also increases profitability, revenue and share of mind and wallet share. At the same time, the actionable analytics allow institutions to identify emerging risk red flags, calculate economic capital and more. The FIS Active Analytics Suite consists of four solutions, which are available together or separately: FIS Pinpoint Marketing This advanced analytics engine identifies Key Lifestyle Indicators (KLI) among a financial institution s customers based on their real-time transactional behavior and interactions with their financial institution and uses them to dynamically assign customers to targeted, profitable, singular segments. These KLIs are used to initiate real-time targeted campaigns with relevant, personalized bank offers that drive strong customer engagement and cross-sell. FIS Pinpoint Merchant Offers This solution, while maintaining customer anonymity, helps create personalized offers for consumers based on their transaction behavior and other data, thus creating more compelling incentives that drive increased transaction volume and revenue for financial institutions. FIS Pinpoint Pricing Another key component of the Active Analytics offering is price optimization capabilities that empower institutions to maximize the profitability of a product or customer relationship through pricing, using modeling to understand the impact of price changes across multiple scenarios. FIS Early Risk Manager This advanced analytic solution utilizes statistical regression models to predict safety and soundness risk. A risk dashboard containing 25 different reports predicts CAMELS rating, compares risk management performance to peer group, calculates economic capital requirements, and identifies red flags of emerging risks before they happen FIS and/or its subsidiaries. All Rights Reserved.

4 FIS Pinpoint Marketing combines active analytics, segmentation and integrated digital marketing into one tool that can dynamically deliver relevant product and service messages in the customer s channel of preference based on their real-time transactional behavior, key interactions with their financial institution and lifestyle indicators. 4 FIS ACTIVE ANALYTICS SUITE

5 FIS PINPOINT MARKETING Actionable analytics to increase your bottom line Today s customers are overwhelmed with a constant stream of advertising messages, which are not relevant to their lifestyle and personal preferences. By unlocking the power of the data you re already collecting in your CRM system and through your marketing research, the FIS Pinpoint Marketing solution can help you understand and even anticipate the needs of your customers so you can engage in meaningful, targeted conversations. FIS Pinpoint Marketing anonymously and securely aggregates transaction data for all of your customers, including product mix, activities, spending patterns and life events. This active analytics process uses algorithms to produce Key Lifestyle Indicators (KLI) that collectively describe who a customer is, what they re interested in and what they re looking to buy. Since data is updated in real-time (or daily), as your customer s lifestyle changes, the KLIs automatically update to maintain a real-time picture of their preferences. KLI assignment includes a propensity element-based on several factors they are not assigned on a yes or no basis, nor assigned based on limited exercise. The FIS Pinpoint Marketing system weighting considers a customer s: Transaction history Frequency of action Transaction amount Other customers within KLI category KLI models are always adapting and changing and each individual customer can have one KLI or hundreds of KLIs assigned to them at any given time. In addition, KLIs can be added or removed depending on the individual s transaction history. Customers move in and out of KLI groups based on their behavior, creating a campaign audience that is always changing without any manual intervention. This proactive, dynamic and predictive modeling creates a 360-degree view of each customer, allowing you to utilize KLIs to define and target potential audiences. Relevant marketing messages are then delivered to your customer via the delivery channel that is most relevant to them, at the exact time they are most likely to act. There is no manual management or maintenance of audiences for marketing campaigns; the KLIs manage the audience automatically. Delivery channels include: Your financial institution online banking websites Internet sites frequented by customers (anonymously, maintaining GLBA and FFIEC compliance) Social media Mobile ATM Assisted channels Key benefits of FIS Pinpoint Marketing include: Easy integration; minimal internal resource and staffing requirements Low-risk entry; pricing models tied to conversions of products and services More efficient use of marketing spend using KLI targeted delivery Ability to accurately measure campaign results through complete attribution reporting across all channels, and increased customer retention through delivering a clear and consistent voice across channels Ability to expand messaging and cross-sell delivery outside bank sites to more than 4 million Internet sites that customers frequent 2013 FIS and/or its subsidiaries. All Rights Reserved.

6 FIS Pinpoint Merchant Offers helps create personalized offers for consumers based on their transaction behavior and other data, thus creating more compelling incentives that ultimately drive transaction volume and direct revenue for financial institutions. 6 FIS ACTIVE ANALYTICS SUITE

7 FIS PINPOINT MERCHANT OFFERS FIS Pinpoint Merchant Offers is an active analytics solution that delivers desirable, high-value discount offers to cardholders in order to drive spending at specific merchants as part of a comprehensive, digital loyalty program. By leveraging hundreds of national brands and thousands of prominent regional and iconic local brands, this solution delivers offers or deals that your customers will feel compelled to use. FIS Pinpoint Merchant Offers serves up offers relevant to your targeted customers. These offers help your customers save money and are easy to redeem. Once your customer activates the offer, they simply pay with a credit or debit card, and their reward is automatically credited to their account at your financial institution. For financial institutions, FIS Pinpoint Merchant Offers delivers an integrated, payment card-linked rewards experience through secure channels, thereby driving: Increased cardholder loyalty Real-time customer engagement Increased online and mobile banking adoption Growth in transactions and interchange activity Increased usage and spend Increased rewards program value Enhanced customer analytics As part of the FIS Pinpoint Merchant Offer solution, financial institutions are able to tap into new revenue streams tied to a consumer s DDA. The system tracks how much money you have saved the customer. FIS Pinpoint Merchant Offers provides targeting at scale, pay-for-performance pricing and precise measurement. As a result, merchants can maximize their advertising spend. They can: Target customers based on their behavior: location, frequency and total spend Craft a campaign customized to a specific group of customers Perform comprehensive customer measurement: incremental consumer trips, sales, post-purchase behavior Leverage a performance-based model, paying only for results and measure incremental sales For consumers, FIS Pinpoint Merchant Offers helps deliver a personalized experience that s easy and engaging: See personalized ads based on past purchases Instantly load selected ads and rewards onto their debit or credit card Receive rewards automatically when they shop and pay with their card Also earn cash-back rewards that are credited to their account 2013 FIS and/or its subsidiaries. All Rights Reserved.

8 FIS Early Risk Manager is a market-leading, unique solution that provides a comprehensive view of your institution s overall performance, including a proactive view of risk that utilizes a regression model to predict your CAMELS rating, identifying emerging risk red flags, calculate your economic capital, and more. 10 FIS TM ACTIVE ANALYTICS SUITE

9 FIS EARLY RISK MANAGER The FIS Early Risk Manager (ERM) solution is an innovative tool for financial institutions to attain optimal risk management performance. ERM utilizes quarterly call reports and a series of statistical regression models similar to what banking regulators employ to evaluate the safety and soundness of your institution. However, ERM goes beyond the regulatory models to identify emerging risks before they happen and enables an institution to precisely calculate economic capital in order to attain just the right amount of capital to account for all risks. ERM provides a risk dashboard of 25 reports containing key risk management intelligence. The statistically derived information is developed well in advance of emerging risks and focuses on four central points: CAMELS rating forecast Red flags for emerging risk Probability of undercapitalization Economic capital analysis Additionally, the ERM solution contains a what-if analysis function for proactive risk management. This enables a financial institution to mitigate risk before it emerges, allowing institutions to identify and avoid regulatory problems. With ERM, there is no software to download in order to implement this unique solution. ERM is a completely web-based solution that is hosted at a secure site. Integrated Risk Dashboard 2013 FIS and/or its subsidiaries. All Rights Reserved.

10 FOR MORE INFORMATION CONTACT FOR ADDITIONAL INFORMATION The FIS Active Analytics Suite helps financial institutions tap into new revenue streams through more precise segmentation, dynamic cross-sell capabilities, and emerging risk identification driven purely by actionable insights. For additional information, please contact your client relationship manager or call FIS 2013 ACTIVE FIS ANALYTICS and/or its subsidiaries. SUITE All Rights Reserved.