REAL TIME ANALYTICS: EVOLUZIONE DEL RAPPORTO BANCA-CLIENTE Convegno ABI Dimensione Cliente 2015 Roma, 9-10 Aprile Walter Ballardin Presales & Consulting Director Finance Market Unit SAS Italy
THE DIGITAL REVOLUTION IS UNDERWAY.. 10* 4* Disruptors 318* 118* 4* 5 481* 153* Pillars of disruption Mobile Social Cloud Big Data Analytics Traditional Business Models? Digital disruption has demolished 52% of the Fortune 500 since 2000 (SOURCE: CONSTELLATION RESEARCH, 2014) But there is a bigger lesson - which is that a retailer without a substantial online presence, including mobile, is on a fast road to obsolescence Robert Peston - BBC * Company evaluation in billion USD, 2.4.2014 Reuters
WHERE ARE WE NOW?..HALF A WAY OF THE CHANGE % Active Adult Population 100 80 60 40 20 0 Period of Transition Traditional Consumer Transitionals Digital Natives 2024 2022 2020 2018 2016 2014 2012 2010 2008 2006 2004 2002 2000 Source: PwC UK Up to 2010 Traditional consumer behaviour is the majority 2010 2018 Transitional behaviour is the majority 2019 and beyond Digital native behaviour dominates
CUSTOMERS DO NOT KNOW CHANNELS
DEVICES ARE MORE THAN ONE CHANNEL
NEXT BEST CUSTOMER JOURNEY 1 2 Actual demand Real-Time Interaction Location Based Next-Best Action Real-Time- Interaction Sales Offer 1 2 3 4 Inbound Inbound Inbound Outbound Inbound Outbound
THE CENTRAL ROLE OF REAL-TIME ANALYTICS Real-Time Analytics a ticket to improved sales, higher profits and lower marketing costs. the dawn of a new era in which machines begin to think and respond more like humans
THE FUTURE IS TODAY
SAS CUSTOMER DECISION HUB SOLUTION CONCEPT Campagne Marketing Servizi-Attività Programmi di vendita Comunicazioni Pianificate Strategie di Contatto Priorità CUSTOMER DECISION HUB Decisioni Strategiche Regole di Contatto Vincoli Limiti di Canale/Budget Modelli Analitici Eventi Dati Transazionali Potenziali, Risk Storico
BANKING CASE REAL TIME CONTEXTUAL MARKETING
TOP 20 LARGEST BANKS IN THE WORLD BY MARKET CAPITALIZATION Celebrating 200 years in 2017 Multiple Brands: providing retail, business, institutional banking and wealth management services 12.2 million customers $7.1 billion cash earnings in FY13
TO BRING THE OLD WORLD BANKING EXPERIENCE TO THE NEW WORLD Insight Big Data Interaction X-Channel Innovation New Revenue Streams
BIG DATA HUB : DATA SOURCES ARE GROWING FAST Insight Big Data Interaction X-Channel Innovation New Revenue Streams Behavioural Data From Partial view Slow access to the information Few Models Segmentation Data Transactional Data Propensity Data To 360 view In-Memory Exploration Model Factory Risk Data
CUSTOMER INTERACTIONS ARE GROWING FASTER Insight Big Data Interaction X-Channel Innovation New Revenue Streams Double Campaign Revenue Grow (year on year) Conversion rate by Channel from < 5% to > 25% Number of Transactions and average amount +20%
AN EXAMPLE OF REAL-TIME CAMPAIGN: CREDIT CARD PURCHASE DECLINE 2 wants to purchase a product on ecommerce Website Billing Engine Network stream 3 Interaction X-Channel Additional Info Profile Models Current Balance Current Limit Decision Process 5 4 Event Stream Processing 6 Using customer profile and analytical models in real time to determine eligibility and new credit card limit offer Event Stream Processing Rules to identify declined payment and fires an overdraft event to RTDM 8 SMS Server Send Offer via SMS to customer s mobile You have reached your credit card limit. We can increase your limit by 500 Euro. Please answer with Yes to get the extension Innovation New Revenue Streams Real Time Decision Engine Checks cusomter credit card limit! Limit reached! payment declined 1 Insight Big Data 7 Offer Increase credit card limit by 500 Euro Business Rules Rule Flow containing RuleSets for high, medium and low risk customers
SMART SUPER WALLET Insight Big Data In-app commerce platform for banks which combines m-banking, m-commerce and m-payments makes bank s customers able to buy: daily groceries bus, train parking or cinema tickets order take-away food taxis or book flights all this within one bank app and one User Experience. Interaction X-Channel Innovation New Revenue Streams
GRAZIE! Walter Ballardin Presales & Consulting Director Finance Market Unit SAS Italy Mob +39 335 7626639 walter.ballardin@sas.com www.sas.com/italy