Welcome!

Blog Feed Post

How banks can improve customer loyalty with Big Data

GFT creates a uniform database that transcends system borders. Simulations in real time forecast customer behaviour close to reality.

Stuttgart, 10th March 2014 - When a good customer suddenly becomes an ex-customer, the cries of dismay in many banks are loud: How could something like this happen? In most cases, there are warning signs - but the task of automatically spotting them amid the mass of daily data and interpreting them correctly has so far been virtually impossible. New Big Data solutions are now changing this. GFT is enabling banks to identify customers who are looking to leave, allowing them to quickly put countermeasures in place.

The churn rate, as it is known, has long since been one of the most important KPIs for telecommunications companies. It shows how many customers a company has lost within a given period. For banks, the churn rate has been of rather secondary importance in the past. They profited for many years from customer's low desire to change banks. New competitors and products, coupled with the financial and confidence crisis, have however reduced customer loyalty significantly. Structured churn management is needed - i.e. efforts to retain customers, especially the good ones.

GFT supports financial service providers in the planning and implementation of a churn management system. "Every bank that wants to retain its customers needs to ask itself three questions," says Marika Lulay, Member of the Board of the GFT Group and the person responsible for GFT's operations. "First: Who are my good customers? Second: How do I bring my customers' data together to recognise its signals? And third: What do I need to do if one customer is ready to change?" All of this essential information is recorded in a bank's different databases. But it is unstructured and often unlinked. "With our Big Data approach, we are ensuring that IT is no longer the stumbling block to a bank's opportunities. With our solution based on in-memory technology and the expertise of our consultants, we can create a uniform database for each client that transcends system borders. Regardless of the bank's IT landscape and without any new interfaces."

Because every bank is different, GFT's experts work closely with their clients to understand their needs. Firstly, they analyse the IT environment and clarify the following issues: Which database contains which data? How do I get to the data? How can I harmonise the overall data records of each customer so that I can obtain all of the relevant information in real time? In the second stage, GFT works with the bank to develop a process to make this new data repository usable. "This is where we take a very close look: What patterns are visible in the data from customers that have already left? How can we transfer these patterns to existing customers? And very importantly: How do I recognise a potentially good customer?" says Marika Lulay.

In other words, Big Data in a pure culture. To control this new mass of quality data, GFT uses SAP HANA on its churn management solution. All manner of different scenarios can then be simulated, such as the reactions of customers to a change in interest rates on overnight deposits. Or how customers react to special offers, i.e. how cross-selling potential can be utilised. "Of course, we are not recreating reality with these simulations. But thanks to the vast amount of data available, we're able to come very close to it. This represents an opportunity for financial service providers to step up their customer loyalty activities in a targeted manner. And finally, it's much cheaper to keep an existing customer than it is to win a new one," says Marika Lulay.

About GFT Group:
The GFT Group is a global technology partner for future digital issues - covering everything from discovering innovation to developing and implementing sustainable business models.

Within the GFT Group, GFT stands for competent consulting and reliable development, implementation and maintenance of customized IT solutions. The company is one of the world's leading IT solutions providers in the banking sector.

emagine offers companies the opportunity to staff their strategic technology projects both quickly and flexibly with capable experts. To achieve this, emagine has an international network of highly qualified IT and engineering specialists at its disposal.

CODE_n, the GFT Group's innovation platform, offers international startups, technology pioneers and established companies access to a global network. It's where ideas become business.

Headquartered in Germany, the GFT Group has stood for technological expertise, innovative strength and outstanding quality for over 25 years. Founded in 1987, the GFT Group achieved revenues of EUR 264 million in 2013 (preliminary and unaudited financial figures). With a global team spanning more than 2,100 employees, the company is represented in eight countries by its 32 local offices. The GFT Group is listed on the Frankfurt Stock Exchange (Prime Standard).

Contacts:
Felix Jansen
Head of External Communications
GFT Technologies AG
Filderhauptstr. 142
70599 Stuttgart
T +49 711 62042-115
F +49 711 62042-301
f[email protected]
www.gft.com

Rose Ross
Omarketing, for GFT UK & Ireland
[email protected]
+44(0)208 255 5225

Source: RealWire

Read the original blog entry...

More Stories By RealWire News Distribution

RealWire is a global news release distribution service specialising in the online media. The RealWire approach focuses on delivering relevant content to the receivers of our client's news releases. As we know that it is only through delivering relevance, that influence can ever be achieved.

Latest Stories
Docker containers have brought great opportunities to shorten the deployment process through continuous integration and the delivery of applications and microservices. This applies equally to enterprise data centers as well as the cloud. In his session at 20th Cloud Expo, Jari Kolehmainen, founder and CTO of Kontena, discussed solutions and benefits of a deeply integrated deployment pipeline using technologies such as container management platforms, Docker containers, and the drone.io Cl tool. H...
As more and more companies are making the shift from on-premises to public cloud, the standard approach to DevOps is evolving. From encryption, compliance and regulations like GDPR, security in the cloud has become a hot topic. Many DevOps-focused companies have hired dedicated staff to fulfill these requirements, often creating further siloes, complexity and cost. This session aims to highlight existing DevOps cultural approaches, tooling and how security can be wrapped in every facet of the bu...
In his session at @ThingsExpo, Dr. Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, presented the findings of a series of six detailed case studies of how large corporations are implementing IoT. The session explored how IoT has improved their economic performance, had major impacts on business models and resulted in impressive ROIs. The companies covered span manufacturing and services firms. He also explored servicification, how manufacturing firms shift from se...
Connecting to major cloud service providers is becoming central to doing business. But your cloud provider’s performance is only as good as your connectivity solution. Massive Networks will place you in the driver's seat by exposing how you can extend your LAN from any location to include any cloud platform through an advanced high-performance connection that is secure and dedicated to your business-critical data. In his session at 21st Cloud Expo, Paul Mako, CEO & CIO of Massive Networks, wil...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, presented an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He then expounded on the industry issues he frequently came up against as an analyst, and ...
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.