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Financial Services SolutionsAnalytics value across the customer lifecycle We help financial services companies attract, manage and retain profitable customers by efficiently and effectively applying a wide range of advanced analytics capabilities tailored to each business need.
Customer Segmentation
Customer Segmentationgo to top
Business Problem: Bank and customer communication has amplified into complex multi-channel interactions over the years, resulting in explosive growth in terms of sheer information captured by the system at an individual level. Enhanced competitiveness and focus on continued profitability results in stakeholders across the bank assessing portfolios in greater granularity across multiple parameters. Solution: Portfolio-level segmentation uses profiling techniques over a broad set of parameters such as profitability, spends, behavior, and transaction frequency. This process acts as a diagnostic, as well as contributes to strategy enhancement. Deliverables:
Proactive Retentiongo to top
Business Problem: Banks spend increasing amounts to secure and enhance consumer relationships. With greater access to behavioral insight, profit conscious players have begun to move to concentrating efforts and money to retain customers with greater profit potential instead of a conventional, all-inclusive approach. Solution: A response model-driven attrition strategy that enables identification of profitable/high potential customers on the basis of parameters, and helps in strategy formulation in order to secure the most profitable customers. Deliverables:
Campaign & Response Managementgo to top
Business Problem: Market dynamics have made it imperative for banks to assertively adapt for greater customer engagement at every stage of interaction, while objectively assessing the returns from such marketing investment. Therefore, the communication of personalized value propositions to customers and learning from successive campaign cycles assumes critical importance. Solution: Campaign & Response Management is a set of processes designed towards usage of data analysis for the creation and execution of marketing campaigns, and evaluation of responses generated from them. Deliverables:
Activation & Onboardinggo to top
Business Problem: Timely service activation after acquiring customers is a key challenge faced by banks. Early activation is an important precondition for achieving strategic objectives such as higher share of wallet and higher customer lifetime value. Inactivity leads to attrition and customers that don't activate their account/cards early are unresponsive to activation offers later. Solution: A predictive analytics-based solution for inducing usage through targeted campaigns and incentive programs. Further dimensions to the same process are opportunity/risk assessment studies if activated. Programs developed are customized for specific customer segments, for higher impact and faster recovery of marketing investments incurred during acquisition. Deliverables:
CLTVgo to top
Business Problem: The greatest asset for any business is its customers and the value of those customers over their lifetime. Using a broad base of lifetime value indicators, banks are aiming to implement a forward-looking view of each customer's potential and risk, and re-align various strategies to target their most valued clients to extract maximum profitability. Solution: Assessment of customer relationship potential in accordance with their expected relationship lifecycle, in order to provide a reference framework for a wide variety of processes such as customer acquisition, sequencing of campaigns, and attrition management. CLTV uses customer data, combined with predictive analytics, which segments out the profitable customers and quantifies the value they will bring to business in the future. Deliverables:
Market Benchmarkinggo to top
Business Problem: In today's competitive market, it is important for a bank to understand not only its own performance, but also to compare its performance with its peers. Banks want to better understand their portfolio and gauge their performance in the market across parameters like market share, growth, domestic and international usage, etc., to draw actionable insights needed to improve performance. Solution: These reports aim to provide a comprehensive view of an issuing bank's portfolio by comparing across a set of benchmarks over an eight quarter period. Inter-temporal comparisons are provided against benchmarks such as peers/country, and leaders. Deliverables:
Application Scorecardsgo to top
Business Problem: Application scorecards help the bank to assess the potential risk associated with the customer, based on the information from the application form. The scorecard can also provide the basis for risk-based pricing by allowing the bank to determine its price according to the propensity of default. Additionally, it optimizes the opportunity loss of rejecting a good customer and the credit loss of accepting a bad customer. Solution: A scorecard-based approach for evaluation of credit worthiness of an individual, on the basis of parameters such as past transactional behavior and profile, among others. Application scorecards leverage application-sourced data, as well as bureau information for assessing the credit risk associated with applicants and aids in approval of potential customers for credit products. Deliverables:
Behavioral Risk Scorecardsgo to top
Business Problem: Credit line management and pre-approval for cross-sell programs require a sophisticated understanding of customers' propensity to go delinquent. Behavioral risk score provides a forward looking view of customer risk and forms the basic building blocks for customer treatment for line increase/decrease, pre-approval eligibility for cross sell programs, and other asset products of the bank. Solution: The debit variant of application scorecards is aimed at risk quantification for liability, and customer acquisition for asset products on the basis of debit product behavior. Deliverables:
Fraud Managementgo to top
Business Problem: Fraudulent transactions are responsible for a large share of losses in the credit card industry. They is not only a monetary loss for the issuer, but fraud can also adversely affect the brand image and customer confidence. Additionally, fraud detection requires constant monitoring support to quickly identify and process. Solution: Development of predictive models for identification of fraudulent customers and transactions using multiple approaches such as neural networks, heuristic models, algorithms, and business rules. Deliverables:
Collections Scorecardgo to top
Business Problem: As card delinquencies and charge offs rise beyond historical norms, timely identification and treatment of delinquent accounts is critical to contain losses and optimize collections. Traditional methods of pursuing 'high exposure" accounts are inefficient in their use of scarce collection resources. An integrated collections and recoveries approach helps banks in building robust collections prioritization and contact strategies, and optimizes key decisions at various stages of the collections and recoveries business cycle. Solution: It uses debtor's historical behavior information and correlates that to transaction history, bureau information, card characteristics, and demographic data. Behavioral and demographic information is used to segment the portfolio of debtors and predict their behavior in the near future in order to ascertain delinquency levels at a portfolio-level. Deliverables:
Marketing Mix Modeling (MMM)go to top
Business Problem: Marketing optimization techniques help identify inefficiencies in marketing plans, by segregating sales from each of the marketing activities. It lets marketing managers identify the optimal level of spend across activities, across time, and across markets. As a result, they can make much more out of their marketing budgets, in terms of sales. Solution: MMM is a tool to optimize marketing budget across various marketing levers, and across time. It makes use of past data about marketing activities in terms of advertising across media channels, promotional activities, pricing, distribution, etc., and help us identify ROI through each of them, which becomes a guiding principle for future budget allocation. Additionally, it can also help simulate various marketing scenarios and estimate card sales. Deliverables:
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"Fractal has delivered to us powerful response models, helping us increase response rates by as much as 30%. Fractal’s strong analytics capabilities and excellent understanding of the banking business, helped deliver solutions that solve real business problems effectively. Their professional approach in managing delivery ensured that our expectations were exceeded through the engagement."
VP and Head, Database Marketing
World's leading Retail Bank
