Rules based decisions in banking smarter operations

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Unformatted text preview: y as well as adhering to the required regulations. In fact, whether it is Basel I/II/III, SEPA, Sarbannes-Oxley or the European Payment Services Directive, the rules-based approach provides an ideal basis for ensuring operational execution matches regulatory changes quickly, accurately and effectively. Rules-based decisions in banking – Smarter operations By using business rules and events to support operational decision-making, the bank can bring a much wider range of information to play in each decision. This is because the rules are executed automatically and are therefore faster than asking a person to gather data, and also because the events support enables multiple information sources to be correlated and filtered in near real-time. This added information enables banks to look at smarter ways to operate which would not have been possible before. For example, a customer applying for a loan to purchase a new boat could be a good candidate for a boat insurance package too. A customer suddenly moving out of the markets in his or her personal trading account might be open to some lower-risk types of investment products. In each of these cases, the smart bank will use automated rules and events to help it get to the opportunity before the customer has a chance to consider competitive options. These opportunities for cross-selling and up-selling based on decisions taken that ‘join the dots’ between customer interactions offer a valuable source of additional business and share of wallet. Page 14 Of particular importance to retail banks is detecting the signs of a disgruntled customer early. Once a customer switches accounts to another bank then it is much harder to get them back. By using automated rules and events, aggregated across all the different channels and products, at any customer touch-point the bank gets a clear picture of customer activity history. If this activity is starting to drop well below the norm for that customer over a reasonable period of time, this may be a sign that the customer is starting to consider...
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This note was uploaded on 01/29/2014 for the course ACC 230 taught by Professor Xia during the Winter '13 term at Bloomsburg.

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