April 22 nd , 2015 Portfolio Management & Analytics Services The Value of Data & Analytics Driven Intelligence in Operating Socially Viable Lending Portfolios EEDE 20 th Banking Forum
April 22nd, 2015
Portfolio Management & Analytics Services
The Value of Data & Analytics Driven Intelligence in Operating Socially Viable Lending Portfolios
EEDE
20th
Banking Forum
Effective Data Capturing
We Capture Data from: 1. The Challenging
Greek Macroeconomic Environment
3Source: http://ec.europa.eu/economy_finance/publications/european_economy/2015/pdf/ee1_en.pdf
Signs of growth appear in the 2nd
Quarter of 2014
mainly due to an increase in customer spending
and tourism income.
This is reflected on real GDP growth and
Unemployment.
Forecast
ForecastForecast
Forecasts illustrated in these graphs are challenged as domestic
demand and private consumption are
immobilized until agreement with its partner institutions is reached.
We Capture Data from: 2. The Volatile
Corporate Environment
4Source: http://www.imegsevee.gr/images/ereunes/febr_2015/parousiasi_ereuna_febr_2015.pdf
37% of Companies had losses in 2014. More than 60% had significant reductions in their Financials.
Over 50% of Companies saw a negative impact in their Turnover and Demand in 2014.
Around 39% had decreased their investments.
We Capture Data from: 3. The “Shocked”
Household Environment
5Source: http://www.gsevee.gr/meletes‐2/484‐eisodima‐dekembrios2014#επισυναπτόμενα
75% of households saw their income decrease
We Capture Data from: 4. The Daily
Banking Transactions
6Source: Piraeus Bank, Alpha Bank, Eurobank, National Bank of Greece
In 4Q14, there is a significant drop of Deposits
90€
billion in 4Q14 are more than 90 dpds
16.5€
billion in 4Q14 are Forborne
Loans
The Analytics Intelligence Value
Advance Analytics Promote Business Decision Making
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Simulation
Modeling
Multivariate
Regression &Segmentation
Modeling
Data Analysis& Dashboard
Reporting
PredictWhat will be my customer’s/portfolio value if I switch strategies?
ForecastWhat parameters affect my Customer/ portfolio performanceToday? What is likely to be my Future customer/ portfolio Performance?
UnderstandWhat is my customer/ portfolio value?How does my customer/ portfolio perform?What is its best performing aspect?Why does my customer/ portfolio perform in this way?
HIGH
LOW
Complexity
Return on Investment
What is the most effective action to maximize gains?
What mightAnd it is likely to happen
Monitor what is currently happening
Understand the business problem
Investigate the reasonof past performance
Data Driven Analytics Fuel change in Portfolio Management
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We Secure Socially Viable Offerings
Restructuring effort
Profita
bility
Marketing Promotions
“must incentivize and reward” customers
Recoveries
“must not lose” customers
Typical Bank’s Retail Portfolio Delinquency Profile
“must help” customers
Profitable: Reward, Up Sale and RefinanceForgotten: Improve offeringNot take ups : Skip from Offering
Somehow Paying: Encourage payments, Reward, Allow
customized offeringsWilling but Unable: Allow customized seasonal or sector related
offeringUnwilling ‐
Strategic Defaulters: accelerate actions – let go
Delinquent CustomersPerforming & very Early Delinquent Customers
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Advanced Analytics Experts and Machines Work Together: Τhis is Qualco’s Philosophy –
Augmented Intelligence
Our Augmented Intelligence Offering in Banking Operations
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ADVANCED ANALYTICS METODOLOGIES, UTILISING CUSTOMERS’ PAST CREDIT
BEHAVIOR AND WILLINGNESS OF PAYMENT PREDICT FUTURE
CUSTOMER BEHAVIORS
AdvancedPrediction Tools
Dynamic Operational Segments
ANALYTICS DRIVEN SEGMENTATION TOOLS ALLOW
FOR EFFECTIVE TARGETING AND OPTIMISED OUTCOMES.
Tailor Made Solutions
APPLY THE APPROPRIATE SOLUTION TO EACH CUSTOMER
SEGMENT BY OPTIMISING PORTFOLIO MANAGEMENT
OPERATIONAL MODELS THAT TAKE INTO ACCOUNT
INDIVIDUAL CUSTOMER NEEDS.
Real Time Monitoring and Recalibration
ASSESS AND ANALYSE PORTFOLIO PERFORMANCE TO MAKE THE NECESSARY
ADJUSTMENTS AND CORRECTIONS THAT WILL
FURTHER IMPROVE RESULTS.