Data Insights to drive the new banking era
16 Jun 2021
The banking environment is rapidly changing. With the rise of new competitors such as FinTech, the consistent updates of standing regulations, the companies that survive are those that drive innovation and better customer service. In today’s landscape, that means adapting to a digital environment.
At VASS, we have created Cleo Banking: an AI-based digital platform focused on developing and deploying solutions. This improves the value of any insights that a company gains through these processes.
What can banking achieve thanks to Artificial Intelligence?
Artificial Intelligence (AI) aims to accelerate the application construction cycle thanks to already available bricks, or modules. This allows for existing retraining models and algorithms that essentially learn, with active tracking capability of the accuracy of predictive models.
This provides the following primary benefits:
An improved 360º view of the customer
- More personalised recommendations and
- Streamlining the customer experience
- Improvement of the product portfolio
From all types of data, Artificial Intelligence and Machine Learning can create a categorisation that gives rise to two types of predictive analytical models: Soft and Deep Insights.
- Soft Insights: The most straightforward analysis, based on analytical queries on the categorised movements that allow, based on a series of rules, to evaluate customer behaviour
- Deep Insights: Allow for the development of models that help to predict future behaviour, through clustering or segmentation techniques, classification, regression, time series, etc.
New value-added services for all types of banks
This new evolution in insights focuses on four areas:
From the core of banking, there will be a change that will allow the inclusion of new systems for data categorisation, risk analysis, etc.
- Global categorisation
- Categorisation of transactions, cards, account statuses, and billing
- Risk scoring
- Intelligent contracting of new financial products and the granting of credits and microcredits
- New legal claims systems
- Income and expense forecasting
Marketing actions will be increasingly more effective and personalised thanks to:
- Customer segmentation
- The personalisation of offers, recommendations, and experiences
- Cross-selling and up-selling of new services
The customer is at the centre of this system and its strategy. All of its capabilities go towards gaining insightful knowledge of them for proper tagging and segmentation, detecting pattern anomalies, generating alerts for possible fraud, and allowing them to extract direct debit receipts.
Driven New Business
The banking environment is changing and, among it, the basis of all business. Thanks to these insights, giving customers a boutique experience is easier than ever: spotting patterns for customer retention, account identification, new scoring systems, and new business models such as marketplaces, or even marketing non-financial products such as insurance can be done smoothly.
All of this can be applied to different banking models, from corporate banking or private banking to Fintech, as all of them need to have an intensive knowledge of data and a platform and technology capable of extracting the greatest value for your business.