Tài liệu Business Analytics and Data Warehousing docx

Business Analytics and Data
Warehousing
Business Analytics as a concept has come a long way, from being a novelty to a norm today
Suresh Kumar
Financial Services Asia
Pacific
Oracle Corporation
Agenda
•
Market Assessment
•
Business Analytics in Banking
•
Trends In Banking
•
Business Requirement in Banking
•
Oracle Business Analytics Solution
•
What Are Analysts Saying
•
Summary
•
Customer Insight – understand
customers better, improve interactions
and responsiveness, offer multiple
channels
•
Operations transformation of legacy
systems to improve process efficiencies
•

Corporate Governance – integrate Risk
Management in day-to-day operations
and performance management.
•
Reduce back office costs through
shared service centers, automation of
processes
•
Regulatory compliance requirements
•
Managing human capital for increased
competitiveness
Business Drivers
Business Drivers
Business Challenges
Business Challenges
Market Assessment: Banking
Key Business Drivers & Challenges facing the Banking Industry:
•
High cost of maintaining highly
customized older technology – many
organisations looking to replace core
systems
•
Fragmented data – difficult to
understand profitability of customers,
products and channels
•
Lack of automation to support key
Banking processes, eg: loan

origination, transparency and
accountability enabling regulatory
reporting/tracking
•
Consistency of service across
channels and improve cross selling
•
To service current business needs
through an adaptive IT architecture
•
To manage human capital and
internal knowledge
Business Analytics in Banking
2
nd
Time Around

Business Intelligence “Failure”
–
Prior limited success of BI-DWH were not just technology problems, IT was
only one of the many reasons

Growth in Distribution Channels & Delivery Systems
–
Branch, Internet, Contact center, ATM, Payments, Kiosks, Mobile Devices…

Lack of Industry understanding in the past
–
BI-DWH is about bank profitability & risk, retention and acquisition, not just
reporting

–
Understanding your customer (customer data), automation and integration
across systems

BI-DWH is now a Strategic Platform
Business Analytics in Banking
2
ND
Time Around
•
Unnecessary Software
Spending
•
Excessive Training
Development and Support
•
Multiple Versions of “Truth”
Multi-Vendor BI
Strategies
Integrated BI
Platform
•
Unified Data Layer
•
Centralized Tools
•
Shared Metrics
•
Complete Customer View

•
High Net Worth
•
Mass Affluent
•
Mass Market
•
Premier Banking
•
Geography
•
Demographics
•
Product
Segments
•
Alert/Notification
•
Sales Call
•
Correspondence
•
Email
•
Recovery Plan
•
Launch Marketing
•
Hold on Account
•

Retention Plan
•
Cross Sell
•
Personalized Plan
•
Account
•
Asset
•
Liability
•
Contact Behavior
•
Customer Information
•
Customer State
•
Warning/Fraud Detection
•
Request to Close an Account
•
Significant Balance Fluctuation
•
Address Change
•
Birthday
•
Call Frequency/Trends
•

Documentation/Funding
•
Fraud Alert
•
Last Payment or Prepayment Request
•
Maturity of Investment
•
Missed Payment
•
Name Change
•
New Channel/Product/Service
•
Trade Information/Transaction/Information
Retail
Banking
ActionsEvaluationsKey EventsIndustry
Value Proposition
•
Information driven Personalized service to the customer across all touch points
•
Help Increase customer retention and wallet share
•
Enable execution of segment strategies across branch, call center, web
•
Drive ROI from data warehouse / mining investments
Example – Retail Banking
Future Trends in Banking
Exception Based Banking – Real Time Interaction

Segment a Segment b Segment c…
Customer
Segmentation
& Analysis
Select
Acquire
Retain
Extend
$

What to Sell

Which Customer

What Price/Risk

What Channel

What Margin?
Customer Level
Profitability (RAROC)
Revenue Expense
Cost Of
Funds
Expected
Losses
Risk
Charges
Enterprise Wide Information
Data Warehouse

& Customer Data Integration
Customer
Accounts
Transactions
Products
Channels
Business Units
Financial Acct
Future Trends in Banking
Beyond Traditional BI-DWH: More Customer Centric Model
Future Trends in Banking
Empower All Users - Not Just the Few
Executives
Concise metrics on KPIs at corporate level
Highly correlated with overall strategic plans
Management
Focused on Key Performance Indicators for a business unit
Report employee performance versus goals
Broader scope of business
Employee Users
Targeted analytics to improve job performance
Broadest scope for ad-hoc analytics
Partners
Targeted analytics to improve multi-organization initiatives
Limited ad-hoc capability
Customers
Highly focused analytics to monitor customer
activity and guide behavior
Summary
Detailed

STRATEGIC
TACTICAL
ACTIONABLE
RELATIONSHIP
INFORMATIVE
Business Users
Requirement
Business Users Want Answers
Credit Risk
Credit Risk
Credit Risk
Credit Risk
Retail
Retail
Retail
Retail
Finance
Finance
Finance
Finance
H R
H R
H R
H R
Market Risk
Market Risk
Market Risk
Market Risk
Liquidity Risk
Liquidity Risk

Liquidity Risk
Liquidity Risk
Strategic Issues
Strategic Issues
Strategic Issues
Strategic Issues
Tactical Issues
Tactical Issues
Tactical Issues
Tactical Issues
Operational Issues
Operational Issues
Operational Issues
Operational Issues
?
Business Users Want Answers
•
What is the customer break up across
various categories (e.g. salaried, self-
employed and professionals; rural and
urban)?
•
How has this changed over the last three
months in different organizational units
reporting to me?
•
What is the demographic and lifestyle
break up of my customers?
Customer Segmentation
Customer Segmentation

RETAIL
RETAIL
RETAIL
RETAIL
•
How are organization units performing
vis-à-vis targets in terms of various
products (e.g. mortgages, cards, consumer
finance, vehicle finance)?
•
Which branches are doing better in which
products?
Budget Achievement
Budget Achievement
•
What are my customer acquisition costs across
different products lines / channels?
•
How is sales performance across different
delivery channels (agents, branches,
telemarketing / call centres)?
Customer Acquisition
Customer Acquisition
•
How many existing customers bought other
products of the bank?
•
How many existing customers availed more of
their credit facilities, or went in for an increased
level of the same facilities?

•
What is the average number of products per
customer? Does this differ between different
customer segments? Could I see how it is in my
organizational units, so I can get branches with
lower products per customer to move to higher
products per customer?
Cross Sell / Up Sell
Cross Sell / Up Sell
Business Users Want Answers
•
What are the top reasons for customers to
leave?
•
How many of my customers have been lost
across different organizational units in the
last month? In the last quarter?
Customer Attrition
Customer Attrition
RETAIL
RETAIL
RETAIL
RETAIL
•
What is the customer transaction
break-up across different delivery
channels (branches, ATMs, Internet
banking, POS, telebanking, mobile
banking, etc)?
•

What is the peak/non-peak transaction
load of various bank ATMs over a
period of time?
•
What is the potential of migrating
transactions to lower cost channels?
Channel Usage / Efficiency
Channel Usage / Efficiency
Business Users Want Answers
•
What is the break-up of the portfolio in
terms of industries, geographies,
product / instrument types? And how
has this changed over the last two
quarters?
•
How has my credit portfolio been
changing in the last 12 months across
different credit grades?
•
How are my ratings migrating /
transitioning over a period of time
(usually over the last couple of years)?
•
How are organizational units at meeting
their portfolio targets?
•
How is the predicted vs. realized default
rate in my branches?
Credit Portfolio

Credit Portfolio
CREDIT RISK
CREDIT RISK
CREDIT RISK
CREDIT RISK
•
How much of my NPLs are in time buckets
above 3 months past due?
•
What is the categorisation of NPLs in different
severity grades?
•
What is the industry-wise break-up of NPLs
across different exposure types / product types /
instrument types?
•
Which credit grades / which geographies /
which instruments / which collaterals are my
NPLs?
•
Which categories of NPLs to focus on for
recoveries (based on past track record, etc)
NPL Analysis
NPL Analysis
Business Users Want Answers
•
What are the major cost heads in
branches / organizational units?
•
How are branches performing vis-à-vis

budgeted costs? Which cost heads are at
variance with budgets?
Cost Analysis
Cost Analysis
FINANCE
FINANCE
FINANCE
FINANCE
•
Number of invoices on hold due to issues
pending resolution.
•
How many purchases are made outside
the standard contracts ?
Procurement
Procurement
•
Which are my more profitable branches?
Regions? How has this changed over the
last three quarters?
Profit & Loss Analysis
Profit & Loss Analysis
•
Branch wise Trial Balance?
•
Analysis of Region wise\Area Wise\Territory
wise\Branch wise info?
•
Online information on value of assets pledged
with the Branch?

Financial Analysis
Financial Analysis


•
What is the provisioning for different
categories of assets? How much has this
changed from the last quarter?
Assets
Assets