One of the more inspiring talks we attended was by Bas Geerdink from ING Bank. He demonstrated the power of forecasting and using predictive analysis to not only benefit the customer but also the business. To do this they had to fundamentally change the structure of their business. They invested in people and built teams that worked across multiple disciplines. But the work speaks for itself, and proves them to be a data-driven business.
By looking at trends in customer incomings and outgoings, ING started to give simple nudges to their customers, such as letting them know that they have a bill due in the next week but they may not have enough funds in their account by then to pay it. Their aim is to boost customer credit scores. Indeed by helping customers to manage their money better, ING can improve these credit scores, and in turn get better quality loan applications (as well as more of them). Happy customer, happy bank.
It’s also clear we need to stop simply looking at the past monthly, weekly, daily data for our reporting (although this still needs to happen, and in as real time as possible), but use this historical data to look for trends and foresee possible issues (or opportunities) on the horizon.
However, it’s not just people and infrastructure that needs investment to be able to do this, it’s technology.