Clari5

A ‘Yin and Yang’ Approach to Growing Topline and Bottom-line

How To Monetize your Anti-Fraud Solution to Make Money for you

Yin and Yang blogsIn Chinese philosophy,   yin and yang (also yin-yang or yin yang, ‘dark-bright’) explains how seemingly opposite or contrary forces may actually be complementary, interconnected, and interdependent in the natural world.

This intriguing idea actually applies perfectly in the context of banking, if we were to see the yin as saving money (from losses) and the yang as making money (from sales).

The fundamental principle is that the very same investment in data analytics and real-time decisioning for detecting/preventing fraud can be monetized for earning more revenues.

Imagine an intelligent system that understands customers’ behavioral patterns to detect and prevent fraud is also creating precise personas for marketing teams to target.

This is because the same extreme real-time, context-aware logic/approach used to combat cross-channel fraud can also help enable intelligent, hyper-precise targeted and contextual customer engagements.

At the heart of the hypothesis lies the fact that banks have the ‘soul’ of the customer.

Customer flowBanking is the only industry where the entire life of the customer flows through it. A bank knows how much its customers earn, where they live, where they travel to, how much they spend, who’s part of the family, whether they own their home, even how much fuel they put in the car.

No other industry (not even telco or retail) has this very special privilege of having a 360 degree view of a customer’s life. Only banks have the advantage and ability to actually convert this ‘resident intel’ to their benefit.

A real-time, enterprise-wide, cross-channel fraud management solution requires that every banking transaction is available in memory in real-time.

But since only a relatively small percentage of transactions are fraudulent and since the data is available in the system memory, the bank can run positive scenarios in real-time after having assigned fraud risk to certain transactions during the negative-scenario test-run.

Absolute real-timeThe solution can use the same data captured per transaction and analyze the spending and behavior patterns to throw up potential cross-sell and up-sell scenarios in absolute real-time.

Precise data analytics on behavior patterns helps create intelligent and efficiently targeted customer interactions and campaigns to grow the topline.

So while the solution helps the bank’s larger enterprise fraud management initiatives with …

  • A unified case management system for fraud/AML investigation with 360-degree view of behavior across products and channels in one single place.
  • Extreme real-time, context-aware, cross-channel fraud detection and prevention.
  • Monitoring financial and non-financial transactions of customers, accounts, users and employees across branch and channel transactions in real-time to detect suspicious fraud and respond with the right decision in real-time and generate alerts for investigation.
  • Monitoring Salary Accounts’ to identify increase in Salary Credits or non-usage of Salary Accounts.

… it can also be used for –

  • Tracking customers’ POS/E-com channels transactions for generating extreme real-time, as-of-the-moment cross-sell and up-sell alerts.
  • Identifying customers who usually travel internationally and offering them custom products in real-time.
  • Creating customer delight in branch and digital transactions.

So altogether the bank benefits from a –

  • Smart, intelligent, extreme real-time solution that manages fraud detection/prevention as well as enables customer revenue maximization.
  • Non-invasive, bolt-on solution that integrates seamlessly with source systems and reduces TCO.
  • Lowered cost of compliance of fraud and AML regulatory requirements.
  • Single, unified platform that helps protects the bottom-line and grows topline.

Unified Fraud ManagementWhile there may not be many solutions that have the ability to see topline and bottom-line as 2 sides of the same coin, CustomerXPs’ Clari5 seems to one. Its unified fraud management platform leverages the same context-aware, real-time decisioning to enable real-time customer cross/upsell.

Clari5 handles exceptionally large data volumes across multiple channels and source systems in real-time, and processes transactional as well as non-transactional events in real-time and applies over 150 rules to generate alerts in real-time that can be leveraged for both fraud management as well as revenue enhancement.

Banks get to use the same real-time insights that helps combat fraud to also generate profits because the approach that uses the same fundamental logic to protect/save money (curb fraud losses) is also being used to make money (upsell / cross sell).

If banks can view their topline and bottom-line as the yin and yang of their operations, then a single solution that helps achieve both can very well be the proverbial one stone designed to kill two birds.

Find the truth about your Customers, yourself!

In an age where even scientific discoveries are turning out to be unreliable, scientists, of course state that these are “self correcting” and therefore in the long run, the truth shall prevail, businesses have something to worry about, mainly so because they need to take quick decisions based on the information they have available today and cannot wait till a more “accurate” version of the truth arrives tomorrow. To take a parallel in the medicine industry, many times wrong diagnosis has harmed businesses more than wrong strategy.

Here are a few reasons why research goes wrong in today’s world:

  • An interconnected world allows access to analysis in one part of the world, everywhere else. However conditions and assumptions underlying the analysis may not apply to your case

  • Hype about new media, like Facebook, Twitter and Mobile forces advertisers and marketers to embrace these channels so that they can brag about the logos. However, the ROI for the same may not justify the effort depending on how frequently decision makers in your segment access these channels

  • More data, more complexity – news gatherers try to hide the complexity of findings and analyses in simple terms, so that content is easy to read and generates more page views. However, only getting to the source of the content would tell the reader about the constraints and assumptions as well as the statistical probabilities observed

  • Terminology – different terms mean different things in the same language with the same industry. For example, a “savings account” could mean an fixed term deposit in the UK, whereas it means an interest earning demand deposit in India. An analyst reading about trends in savings accounts could make wrong interpretations owing to this

In summary, either

  • the third party research does not mean what you think it does, or

  • it isn’t relevant in your context, or

  • it works – and if it does, it’s more likely a fluke that’s not guaranteed to provide repeatable results

The solution?

  • do your own research

  • implement strategy based on this research

  • implement a feedback loop that proves / disproves your hypothesis

  • rinse and repeat

In the banking industry, it is more important than ever to not rely on trends, news sources and so called “independent” studies that are not validated for your customers, your business environment and your products based on your own data.

If you are a leading bank, you already have a huge amount of transaction data ready to be mined in real time. To find out how you can perform your own research to retain valued customers and maximize revenue, contact CustomerXPs at clari5@customerxps.com.

By Alok Kumar

Alok Kumar is Product Line Engineering Manager at CustomerXPs

He can be reached at clari5@customerxps.com

CustomerXPs offers real-time, intelligent products that empower banks with instant insights enabling influenced outcomes of deeper customer engagement and fraud-free transactions.

Five ways Banks can ensure annus horribilis for Customer Experience in 2014!

1. Offer to downgrade:  Banks can bombard the best customers with offers to downgrade their status. For example, they can get the relationship manager to call the platinum card holder and offer her to issue a silver credit card.

2. Cross sell irrelevant products: Its relatively easy doing this.  Run the algorithm on a customer relationship and identify the least fit product. The teller can than try to cross sell it to the unsuspecting customer. A new low can be achieved by wrong-timing the pitch. Example:  Offer a car loan at a cheaper rate to customer who purchased car last week.

3. Antipathetic complaint redressal mechanism:  There are more than one ways to do it. Make customers jump through hoops to reach the customer care executives.  Refuse to acknowledge that the problem exists. Get customers to start over every time they want to check the status. Cross sell irrelevant products when the customers call to complain.

4. Commoditize the customer:  Converting the customer from individual to a commodity has monopoly rule at the pinnacle of horrible customer experience.  One sentence that really does the trick is,” we deal with hundreds of customer like you.”

5. Continue with antiquated processes: After all, old is gold. Continuation with antiquated processes will ensure that customers have to fill forms in triplicate and visit multiple counters for each transaction. Then cross sell irrelevant products to them.

From the days when customer experience management was more titular than operational, today its closely correlates with lower customer attrition and better financial results for the banks.  Hopefully, the banks will endeavor to avoid the above 5 mistakes thus achieving superior results.

By Ratnesh Pandey

Ratnesh is Head of Marketing at CustomerXPs.

He can be reached at clari5@customerxps.com

CustomerXPs offers real-time, intelligent products that empower banks with instant insights enabling influenced outcomes of deeper customer engagement and fraud-free transactions.

Internet and Mobile Banking – The Game Changer

Are you tired of waiting in long queues?  Now, do instant banking on the move!

Technology has penetrated every sphere and banking domain is no more an exception. Boom in mobile gadgets has paved the way for advancement in banking industry. Whether it is a public or private sector bank, no bank wants to be left behind in this technological race. There is stiff competition among banks to utilize the best technology and provide their customers with enriched and enhanced experience.  In order to provide a unique experience banks are going digital.

Banking process has become easier, convenient and digitized. Whether it is a cheque leaf request, money withdrawal, fixed deposit, everything is done online and on the move.  This is unlike years ago, when things were done manually; chances of mistakes were more and used to a take long time. Banks also leverage the technology to deliver service excellence, to know customers better and serve them in a personalized way.

There is a constant increase in the amount of users who are utilizing cellphones for banking.  By 2015, worldwide mobile payments are forecast to reach US$945 billion, mobile money transfers to reach US$114 billion and the number of people making them to reach nearly 895 million. Mobile banking is not a new phenomenon but has rapidly improved and has shown steep growth in terms of technology used and solutions offered.  In upcoming years we will see more advancement in the mobile sector, where people will be able to perform any transaction from their mobile wallet. There will soon be a world of paperless banking, where everything will be done electronically.

By Sheetal Sharma

Sheetal is Assistant Manager-Marketing at CustomerXPs.  She can be reached at clari5@customerxps.com

CustomerXPs offers real-time, intelligent products that empower banks with instant insights enabling influenced outcomes of deeper customer engagement and fraud-free transactions.

Learn more about CustomerXPs Clari5