In a “Big Data & Analytics for Financial Services Summit” held in London, UK, speakers from many financial industry leaders, including Barclays, Lloyds and UBS, presented concrete cases of successful Data Science applications in financial services. As the summit organizers say, “Becoming data driven will help companies meet the new regulations and remain risk averse, while optimising the use of customer insight.”
Data Science brings enhanced financial services and large savings
Barclays reported a concrete and successful case of applying Data Science to banking by using customer analytics:
- Costs reduction through operational efficiency: Efficient targeting has enabled Barclays to book new accounts at lower cost resulting in 12% cost savings.
- Costs reduction through data insights: insight driven, cross-channel analytics has reduced the number of agent handled calls by 10%.
- Improved customer service: 70% reduction in complaints driven by root cause analysis, insight-driven policy changes and process simplification.
- Higher customer returns: Meanwhile, net customer savings through promotional rate offerings have increased by over 20%, resulting in customer savings of over £400 millions in 2013 through their “market leading Balance Transfer programs”.
Barclays adds, “data enables you to unify the business. It unlocks value from business synergies.”