Optimising Bank Operations
At Target Branches
Opening the Floor to More Customers
In 2015, one of the top five largest banks in Thailand by total assets asked PulseMetrics to apply advanced analytics to better its channel segmentation and operational management strategy. It was in the course of executing event trigger marketing campaigns and anticipated higher traffic its some of its branches. Therefore, the bank realised that it had to streamline its operations at various branches by first understanding what services customers require when they make a branch visit. As a solution, our consultants carried out customer segmentation by the frequency of branch visits and created predictive models for the probability of making next branch visit three months later and for what purpose.
Bridging Services with Branch Visit Frequencies
Starting out by analysing which services were regularly performed by customers who frequented the branches more, we determined the five activities that are most significant for customers and for which the bank should pay attention to—loan; investment; deposit, withdrawal, transfer; time deposit; and passbook update. We then built five predictive models for these services and cross-referenced them with enriched demographic attributes and customer transaction and visitation data. This enabled our client to know which customer segments by age group, occupation, gender, income bracket and branch visit frequency do each of these five activities most often. Conversely, we were also able to tell which branches were most frequently visited for each of the five activities.
Predicting and Providing for the Needs of Customers
These insights proved extremely useful for our client. On one end, the bank could predict the volume of cash that would be withdrawn at specific branches in big cities and tourists areas as compared to industrial areas or neighbourhoods; thereby, knowing how much cash and which denominations should be stocked up in the ATM machines. On the other hand, the bank could also strengthen customer engagement according to their chances of the next branch visit. Our work has enabled our client to predict which services are needed at which branches—facilitating resource allocation and manpower deployment. Ultimately, this contributes to the smoothening of the customer journey, particularly in activation and retention.
Financial Services (Banking)