large australian bank...solution fico ® price execution solution for deposits results the client...
TRANSCRIPT
© 2020 Fair Isaac Corporation. All rights reserved.
Decision ManagementDecisioning
CASE S
TUDY
Large Australian Bank delivers over 800K varying price points across products, geographies, channels, and branches.
Large Australian Bank
Client Large Australian Bank*
ChallengeNeeded to reduce banker escalations to the price desk for customer-specific requests while driving digital adoption.
Solution FICO® Price Execution Solution for Deposits
Results
The client achieved superior market agility by implementing the deposit pricing engine to manage 800K+ price points. This dramatically reduced banker-initiated escalations to the back office by empowering them with the right prices for the right customers, maintained critical deposit balances while reducing rates by several bps, and significantly enhanced digital adoption by providing effective rates within the mobile channel.
”FICO’s pricing tools are like the tried-and-true, perfect track pants compared to an ill-fitting, off-the-shelf suit. The system is extremely powerful and flexible and allows you to do everything you need to do in an easy, comfortable manner.”
Director of Deposit Pricing, Large Australian Bank
* This case study is based on information from a FICO client that requested anonymity.
© 2020 Fair Isaac Corporation. All rights reserved. 2
DecisioningDecision ManagementCase Study: Large Australian Bank
them to deliver customer-centric strategies through a precise, analytically driven, best-in-class price execution platform.
Retained customers by moving beyond the promo rate With the solution, the bank offered a differentiated customer experience that produced loyalty, higher retention rates and referrals, as well as longer-term relationships with their most profitable customers. The solution worked in conjunction with the bank’s optimized pricing data to determine a retention rate for customers who were identified with a high attrition risk.
Using advanced analytics, the bank optimized a set of prices and terms for each individual customer based on differences to rate sensitivity. They were able to provide differentiated pricing strategies to out price (not over price) their competition.
Attracted the right customers & improved their experience The large Australian bank wanted their deposit customers to gain real value from the banking relationship across the many pricing touchpoints. The bank wanted to move beyond a “one-size-fits-all” pricing approach, and instead deploy a granular pricing strategy that defined rates through various dimensions (customer segment or geography), allowing them to offer the right prices to the right customers compared to a single promotional rate across the enterprise. Moreover, frontline bankers were flooding the back-office price desk with exception requests given the “one-size-fits-all” pricing strategy.
With the solution, the bank delivered the right prices, to the right customers, at the right time, and through the right channel. FICO® Precision Price Execution allowed
Simplified complexity The solution allowed the bank’s pricing managers to provide a customer-specific price discretion range to the frontline bankers. This allowed bankers to effectively negotiate with customers, significantly decreasing the number of escalations made to the back-office price desk.
With the solution, the bank’s pricing and product management professionals can define more customer-centric promotions for deposit products. Through an intuitive UI, users can define promotion conditions, such as minimum balance, offer duration, or ownership of related products. The bank’s business users can easily add eligibility criteria tied to additional product ownership, accelerating time-to-market, and delivering personalized and appealing campaigns.
With FICO® Precision Price Execution Solution, the bank was able to:
Maintain deposit balances while reducing interest rates by several basis points
Massively decrease escalation rates to the price desk by ensuring the right prices were available for bankers to offer to their customers at the right time
Significantly enhance digital adoption using effective pricing strategy across channels
Delivered transparency: Received end-to-end auditability of pricing decisions with improved transparency
Tested & monitored performance: Simulated how pricing changes impacted their portfolio and obtained KPIs on demand
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With FICO® Precision Price Execution, the bank is testing pricing strategies to pull ahead of their competition. They can validate pricing with customers, and then deliver price offers with no manual workarounds. Built-in champion/challenger testing allows them to discover ideal pricing solutions. They can implement and test quickly in a continuous learning loop for more granular, profitable pricing strategies against their competition.
Gained full transparencyWith the solution, the bank gained complete, end-to-end auditability of their pricing decisions. The solution autonomously captures and records every stage of the pricing process. Every pricing decision conducted can be made easily available to their auditors or compliance professionals.
The bank can deliver granular, compliant pricing across all geographies, while enabling full pricing transparency to ensure that their staff (and even their customers) have insights into how a price or benefit was derived.
To learn more about the FICO® Precision Price Execution Solution for Deposits, email us at [email protected], or call 1-888-342-6336.
Monitored performance & visualized resultsWith precise analytics and streamlined decisioning, the bank can maximize portfolio performance and deliver customer-centric strategies. Their business users can modify pricing strategies with integrated what-if analysis, and they can visualize the impact with flexible reporting.
Precision Price Execution gives the bank’s pricing professionals access to dashboards and reports via Tableau for FICO. Every analyzed data element and generated result is available within the FICO® Analytic Data Mart. The bank receives up-to-the-minute results for any batch pricing action, from end-of-cycle processing to real-time pricing transactions.