Austria's Largest Bank Accelerates Predictive Analytics with InfiniteInsight®

Challenge

• With increasing competition in the financial services industry, Bank of Austria, Austria’s largest bank needed to optimize the speed, accuracy and frequency of their marketing.
• Bringing all sales and marketing activity under central control, together with a reform of direct marketing.
• Higher frequency of marketing promotions was vital, but that was something the bank's predictive analytics platform could simply not support.

Solution

• InfiniteInsight® 's ease-of-use by non-specialists that was the most compelling factor in the bank's decision.
• The data mart, running on six SQL Server 2000 servers, holds some 4 million customer records, including information on previous and prospective customers.
• Specific applications include prediction of propensity-to-buy, customer segmentation (cluster analysis) and retention analysis.
• Results from InfiniteInsight® analyses are fed back to the data mart from where they go into the bank's Epiphany system where they inform marketing campaigns.

Results

• The bank now routinely mounts a new customer campaign once every two weeks.
• Take-up rates of between 3% and 5% - up from 1%.
• Predictive analytics now supports approximately 20% of new business at the bank, which added up to some 50 million Euros in one season.
• With InfiniteInsight®, if a customer displays certain customer churn behavioural patterns - such as termination of products or a decrease in volume - staff can spot it in time and take appropriate action.
• Improvements in the accuracy and speed (and hence frequency) of the data analysis used to identify potential customers.
• In a month the bank can run a minimum of 20 models, something which before would have taken at least four months to process, thus improving time-to-market.
• InfiniteInsight® has made complex data mining much easier, allowing it to be used by many more bank employees.
• Vastly increased speed and productivity, making modeling effectively a production line activity.