Can Business Intelligence in Banking Grow Its Business?
Let us assume that you are an outbound contact center looking at identifying opportunities for your banking products.
You have two types of customers – internal customers who are already using one or the other products or services of your bank, and the lists you buy from outside about whom you have no information.
Now, you will have to address these customers differently.
Customer Lists That You Bought
First, let us address the lists that you buy. You don’t know much about them, but you have an idea about the demography of these customers. They are based out of cities, between 30 and 45 years of age, working professionals with an average income of 50K per month.
You can run this information against your business intelligence tool and determine that these customers will likely take auto or personal loans.
Now, you divide the list into two halves and run a campaign on personal and auto loans for each half separately. You will provide them options to input their interests on your offer in your voice broadcasting campaign.
Assume that 100 people respond positively to both the campaigns sent to 10000 people separately.
Now, you have 200 qualified leads that your contact center agents can reach out to for these products. The likelihood of them becoming customers are very high.
Now, you again run the demography against your business intelligence tool and learn that the following likely products would be consumer appliance loans and jewel loans. Then you run campaigns on those, and you get 200 interested prospects.
Likewise, you keep running this data against your business intelligence platform to figure out options to convert the list into customers.
You know which products to promote to which demography with business intelligence instead of shooting in the dark. A technology like voice broadcasting makes the lead generation process more efficient.
Importance of Business Intelligence in Banking
Now, let us look at the existing customers. Here, you have so much information about the customers and they do day-to-day transactions using your products and utilize your services regularly.
Let us look at some of the scenarios.
Scenario 1 – Customer Retention and Growth
Your business intelligence platform can pull out information about all those customers who have been paying the term loans that they have taken against collateral on time. It can identify all those customers on the verge of closing the term loans.
Your agents can get in touch with them and offer them an overdraft facility against the same collateral without going through legal opinion, valuation reports, or approval process.
Here, the advantage for the customers is that they would have liquidity, and they pay interest only against the principle that they use.
Scenario 2 – Offer Top-up Loans to Good Customers
Let us assume that 20% of your personal loan customers are about to close their loans. Your business intelligence platform identifies the good apples among this 20% who have never defaulted and who have good CIBIL scores and pulls them out.
Now, your agents can contact them and offer a top-up loan with no additional processing requirements. All they have to do is give their acceptance over the phone and the amount gets credited to their accounts.
Scenario 3 – Offer Top-Up Loans for Home Improvement
Your business intelligence platform can look at all your home loan customers who have been paying for the last 10 years, and pull that data out.
Now, they are likely to go for home improvement, for which they may require additional liquidity.
Armed with this information, your agents can approach those customers for a top-up loan for home improvement.
Scenario 4 – Reach Out to Prospective Education Loan Customers
Your business intelligence platform can pull out information of all teenager accounts in the age group of 15-17. This group is most likely to go for higher education, and they might want to opt for an education loan.
Now, your agents reach out to their parents about the available education loans. The likelihood of them converting is very high.
Check out our video on the importance of business intelligence for call center
Upselling, cross-selling to existing customers, and selling to new customers need not be tough.
With the right business intelligence platform, banks can quickly identify the most likely prospects for all of their products and sell to them easily.
We have only scratched the surface of the potential of a business intelligence platform in this article – in reality the opportunities are plenty, and it can quickly grow the bank’s business manifold.