Retail Banking Analytics
The financial industry is dealing with an enormous amount of data moving rapidly and smart analytics can provide the edge to give a competitive differentiation. The true strategic value of the data streams is in predicting consequential outcomes at critical decision points, optimizing operational decisions in core processes.
ALI approach to Analytics and data driven cultural adoption within an institution. Promote Analytics internally
Develop case Studies
Communicate Benefits in terms of cost savings or additional revenue
Credit risk and marketing response models are critically important for gaining new customers and marketing analytics can further enhance customer satisfaction, retention, and profitability. We can help you predict the profitability of a prospective customer using a new product before you market it, or knowing which person most needs their support call handled with extra care.
In order to contain costs, increase revenue, and mitigate risks, innovative financial analytics solutions are used to improve regulatory compliance, automate business processes, while improving customer experience. These capabilities are enabled by analyzing structured data and unstructured text from internal and external sources of data available to the banking and financial institutions. ALI expert analytics consulting expertise combined with internal organization commitment, the strategic value of data is multiplied to give you the ALI analytics edge over your competition.
ALI Marketing analytics provides a sustained competitive advantage by helping to understand customer from multiple dimensions and to adapt to a dynamic marketplace with changing customer needs. We help you personalize the customer banking experience through targeted products and services to improve customer loyalty and satisfaction.
ALI analytics consulting services can provide support at every step of the way — from assessing analytic strategy to managing the institutional challenges of integrating analytics into operational financial systems and banking processes. Making analytic insight accessible to the right people at the right time is critical to maximizing the value from data and building a data driven culture of excellence.
Our clients—whether small retail banks or credit unions with newly formed analytics teams or established pros—find that ALI help them better understand their data, works to strengthen their teams’ abilities, and using wide range of techniques to bring to the forefront basic and advanced levels of deeper insights aligned to their needs. Below are some examples of our banking and financial analytics solutions:
Improving the Effectiveness of Marketing Campaign
ALI will assess your brand and market position and will build cross-sell, up-sell, and next-most-likely marketing models for financial products and campaigns. We provide marketing solutions and assess in designing marketing campaigns and assess their effectiveness. The models identify offer and promotional opportunities with unique customer/product pairs for mass-market campaigns, as well as more rare and profitable “contact” sales opportunities. We also use custom association rules models to help our customer identify unique relationships in their data to find the best lift. We assist in devising optimal pricing strategies for your offerings. Evaluating your sales channels and their effectiveness and building accurate sales and profit forecasts for accurate budgeting and planning.
Customer Relationship Management
ALI will assist your CRM efforts using a data driven approach to focus on your customers to manage and improve your relationships with them. We identify hidden patterns in consumer behavior using advanced analytics to retain, acquire, and engage customers.
We help you segment and profile customers to predict customer loyalty and attrition. ALI predicts customer preferences so your offerings are targeted to your customer behaviors.
Loyalty Management Risk Scoring
Reward your best customers to increase customer lifetime value for each product and segment group using advanced analytics to drive conversion and retention. Your brand is built by loyal customers. In today’s economic environment fostering a deeper relationship with your clients has become crucial. The most loyal customers may have an outsized impact on your revenue and profits while also advocating your brand to other customers.
ALI’s approach to Customer Loyalty Analyses integrates extensive database mining with superior analytic techniques to identify the factors that are driving conversion and loyalty for each of your customer segments. We help you understand the factors that impact loyalty and lifetime value of your customers. We will assist you in improving the effectiveness of your loyalty programs by identifying the best customers and optimal ways to reward them. ALI analyst will analyze and forecast rewards trends so you can plan and manage your costs while optimizing loyalty offers.
Improving Credit Card Risk Scoring
ALI often provides an outside perspective to enhance the credit risk scoring models for clients with in-house team of decision science analysts with advanced degrees or no dedicated analytics expertise at all. We work with teams that routinely develop models to industry standards as well as ones just getting started with an internal team. We conduct independent model validation, review model methodologies, assumptions, data inputs, governance, implementation, monitoring and evaluation. Amazingly, ALI’s experts using a dozen modern data science algorithms was able to significantly improve the prediction of bad credit risks over the client’s models. The improved the early identification of customer accounts likely to default led to millions of dollars of annual gains for the client.
Identifying Risks in Brokerage Firm Applications
ALI designed and implemented sequence matching patterns, anomaly detection, and rare event analysis for a regulatory agency to identify risks and fraud in firms and agency fraud, compliance, anti-money laundering, and equity trading and market making applications. These technologies were incorporated into a product that operates on large data sets from government agencies to uncover patterns of suspicious behavior and provide actionable alerts to investigators within government institutions.
Predicting Financial Account Churn
ALI partnered with a bank to predict account closures (churn), prioritize marketing interventions, and understand precursors to customer churn. ALI predictive model was 21% more effective at predicting customer churn than existing techniques.
Rare event analysis, anomaly detection, sequence analysis, and SME based trip wire solutions are used by ALI to help you reduce fraud losses and minimize risk. We use supervise and unsupervised machine learning models to predict the likelihood and the dollar value of fraud. Our solutions help you implement strategies to efficiently target fraud and enhance operational efficiency.
The best model validation is done by an independent external source that was not part of the team that worked on the models being evaluated. ALI detailed step by step comprehensive look at all aspects of model development, monitoring, and governance assures compliance with regulatory bodies.
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