itbi predators

8/7/2019 ITBI Predators

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In Banking and Finance

Puneet GuptaVarun Bajpai

09BM803709BM8059

Team Predators


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What is BI? The ability to apprehend the interrelationships of

presented facts in such a way as to guide actiontowards a desired goal.

Intelligence

The use of company data to facilitate decision-making by decision-makers, which meansunderstanding current functioning and anticipatingactions for well-informed steering of the enterprise.

BusinessIntelligence

Data Information


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Why BI?

Without BI companies are likely to :-

exceed budgets

miss expectations

improper usage of funds among various depts

miss sales opportunity ignore profitable markets

focus on less performing products and services

neglect measurable metrics


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Why BI?Companies often find themselves in precarious

position due to many factors such as

Companies often find themselves in precariousposition due to many factors such as

Lacking insight tooperationalinefficiencies

take longer to identifyand address issues

Lacking visibilityacross theenterprise

difficult to coordinateactivities acrossdepartments,divisions, partners,and customers

Lacking depth ofanalysis

miss seeing abnormalvariances and

understanding rootcauses that havematerial impact onearnings


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Why BI?

Without BI, Companies end up with .

multiple versions of the truth

misaligned action across the organization

difficulty in prioritizing

inability to perform in-depth analysis not knowing where to concentrate efforts

inability to measure departmental performance

unable to locate important information


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BI for Banking Institutions - ObjectivesIncrease Customer Base

Increase Operational Efficiency

Increase Customer Satisfaction

Customer Behavior Analysis

Adherence to guidelines

Staff Performance Analysis

Increase Profitability


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Achieving Objectivesy IncreaseCustomer Base

Analysis by

y Geographical Areay Industry

y ByCategory

y By Revenue

y

By Profitabilityy Demography


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Achieving Objectivesy Increase Operational Efficiency

Productivity Analysis

y No of transactions Target Vs Actualy Inter-departmental delay analysis

y Time Spent Vs Profitability Analysis

y IncreaseCustomer SatisfactionSuggest alternate investment plans based on past allocation and

performance


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Achieving ObjectivesyAdherence to Guidelines

y Locating Deviations

y Tracking money trails


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Example Loan Performance Analysis by

geographical area

demographic segments industry type, company turnover, profitability, age of

company

amount of loan, period of loan, interest rate

occupation, duration of occupation, designation salary range

educational qualifications, marital status

loan product features


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Income Perspectivey Non-interest income level

y Fee income level

y Gross profity Interest spread

Investment return Perspectivey Return on capital employed

y Return on operating capital

y Return on Equity

Cost Perspectivey Cost to assets ratio

y Overhead cost ratio

y Cost to Income

KPIs for Banking Sector


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KPIs for Banking Sectory Interest Perspective

y Profit margin

y Operating margin

y Interest margin

y Company assets Perspectivey Non-performing assets

y Reserve requirement

y

Return on average assetsy Risk Perspective

y Value at risk

y Capital adequacy ratio


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Monthly Account Snapshot Fact


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Dealing With Multivalve Dimension


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Some touch pointsy Identification and Retention of most valued accounts

yAccounts can be differentiated based on primary

balances and analyzed on that criteriay Understanding ever dynamic customer behavior based

on different parameters

y It may be relevant for the bank to capture and store

behavior scores relating to the activity orcharacteristics of each account and household

y Snapshot of historical monthly data may be used fordefining future products


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Insurance Sectory Core Processes:-

y Issue/Renew Policies

y Collect Premium Paymentsy Process Claims


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KPIs for Insurance Sectory Policy Transaction Fact

y Number of Policy Sale

y Value of policies sold

y Number of policies renewed compared to number of policies sold

y Number of policies sold as compared to quota


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KPIs for Insurance Sectory Policy Premium Snapshot Fact

y Number of missed premiums or lapses compared to total number ofpolicies sold

y Percentage of policies that lapse within the first two years


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KPIs for Insurance Sectory Claims Transaction Fact

y Total benefits paid as a percentage of premium

y Frequency of claims

y Time taken to process a claim


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Thank You

itbi predators

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