Post by account_disabled on Feb 22, 2024 1:56:14 GMT -5
The economic and financial profitability of many entities in the Banking sector could improve significantly thanks to data. The current scenario of its operations makes achieving profits a daily challenge, the same happens with its objective of increasing income. Low interest rates, higher capital requirements and expenses associated with certain customer segments increase pressure on bank profitability. iStock_000043881618_SmallPhoto credits: Solutions to problems of economic and financial profitability An effective way for banking entities to respond to these challenges and improve their economic and financial profitability is through the use of customer data and the application of predictive analysis techniques. A study by Aberdeen shows that banks and other financial services companies that use predictive models have achieved : Increase your new customer leads by ten percent.
Achieve a 167 percent gain in cross-selling and up-selling, compared to companies that had not applied predictive analytics techniques. How have they achieved these results? Following the following steps: 1. Identification . The first step is to identify the current and potential customers who are most likely to generate profitable relationships for the bank. One way to increase margins is by identifying opportunities to sell products to customer segments that offer the greatest potential for economic and financial profitability. 2. Analysis . In view of customer data, it is Chinese Student Phone Number List necessary to determine which products they are most likely to purchase, as well as the potential benefit they imply. To do this, they will be analyzed: Data related to products consumed by customers. Consumer demographics. Data from each client's profile, such as the income level of the family unit or properties, for example. Establishing priorities . With the information obtained, you can begin to prioritize prospects who are most likely to become customers, based on the similarity of their profiles with the entity's current consumers. Exportation of knowledge to other business areas.
The knowledge achieved, the source of economic and financial profitability , grows business opportunities if it is applied in different areas throughout the organization. The Commercial Department or the complaints and claims management department are two good examples of the value of this initiative. The data processed in this way offers a perspective that, in practice, helps, for example: Identify the best offers. Discover which channels are most likely to encourage the conversion of prospects and increase the economic and financial profitability of the entity. Determine the optimal price level for certain products with individual customers. Establish the price variance points that current customers have been willing to accept. Know the maximum rate that customers are likely to accept depending on the type of product or service.