Bank customer behavior analysis

 Measure what you manage ! Money in motion is THE driver of bank growth.

For decades banks have been struggling to overcome the challenges of legacy systems that impede simple, meaningful and critical information about business performance. At the root of all bank growth are three drivers - Sales, Cross-sales and Attrition. It has long been known that these are the keys to growth, but measuring the precisely and easily has been elusive because bank product, customer and management information systems do not record sources and uses of funds when transactions are executed. The "debit" and "credit" sides of an internal transaction such as a renewal, product switch or intra-branch transfer are separated at inception and they never come together again to enable a complete understanding of what is going on !

There are two ways to overcome this challenge. The first is very expensive - adding transaction identifiers to both sides of transactions to classify them by funding source attributes i.e. the "to" and "from" information needed to link up the transactions. This requires re-engineering at the source system level across the entire bank which is a very risky and dangerous investment most bankers will wisely choose to avoid.

The second approach is FlowTracker. We have developed and Patented an analytic methodology which calculates the flows of funds into, out of and among the Instruments in your Portfolios across the entire bank. The granularity of these metrics is extremely fine - by type of flow by Instrument - enabling a rich array of analytics to be performed.

The value of this information is derived from what in enables you to do differently. With FlowTacker you can:

  • eliminate the 30% rate of false positives that are inherent in all bank predictive scoring models today.
  • measure and compensate sales performance based solely on origination of new money sales and cross-sales (most banks overpay sales forces by at least 25%).
  • target the true at risk of churn customers, products and Instruments within your book of business and measure the outcomes precisely.
  • manage from solid facts that reconcile completely and precisely to your Portfolios. No more questions about "IF the numbers are right".

All of this and more is enabled by FlowTracker. Contact us to learn how we can revolutionize performance management in your bank !