Advance Analytic Game Changer in FSI Industry · Advance Analytic Game Changer in FSI Industry. ... Future plans ¡ Further improve return on marketing with uplift modeling that predicts

Greg Wong, Director AnalyticsCentre of Excellence BI & PA

Advance AnalyticGame Changer in FSI Industry

How mBank used SAP Advance Analytics to drive their business?

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mBank: Delivering a Personalized Banking Experience for4.5 Million Customers with SAP® Predictive Analytics

CompanymBank S.A.

HeadquartersWarsaw, Poland

IndustryBanking

Products and ServicesRetail and corporate bankingproducts and services, wealthmanagement

Employees6,318

Web Sitewww.mbank.pl

Objectives� Respond to customer needs as quickly as possible� Gain insights into customer preferences to support a customer-centric banking experience across all

channels� Optimize the company’s discount program (mDeals) by providing better service to partners and more

targeted offers to customers� Improve the performance of marketing campaigns by better understanding customer behavior and

anticipating future demand

Why SAP� Ability of SAP® Predictive Analytics software to drive a close, personal connection to clients by

providing a data and analytical modeling tool� Pragmatic, user-friendly software, allowing quick user adoption and rollout� Easy integration with the existing IT infrastructure

Resolution� Predictive modeling based on transactional and demographic data� Precise segmentation, advanced reporting, and execution of real-time, multichannel marketing

campaigns� Context-specific offers across all channels based on customer profiles

Benefits� Reduce churn and grow revenue by automating campaigns and offer activation� Increase sales efficiency and reduce the cost of sales� Minimize the effort to train employees and identify targeted customers� Empower mBank’s discount program by personalizing discounts for each customer based on predictive

analytic

RapidIncrease in response ratesto marketing campaigns

400%Higher hit rate fornonmortgage loans

200%Increased hit rate for insuranceproducts

250%Higher hit rate for savingsproducts

“SAP Predictive Analytics has allowed mBank to discover individual customer preferences and identifythe next best activity for our marketing efforts. Now we are able to initiate more direct conversations,resulting in a better understanding of our clients on a personal level.”Bartosz Witorzenc, Strategic Initiatives Manager, Retail Banking Department, mBank S.A.

41826 (15/12) This content is approved by the customer and may not be altered under any circumstances.



Aviva: Building Predictive Models with EaseUsing SAP® Predictive Analytic®

CompanyAviva plc

HeadquartersLondon

IndustryInsurance

Products and ServicesLife and generalinsurance

Customer Base31.4 million customers inover 15 countries

Employees27,700 worldwide

Operating Profit£2.05 billion (€2.5 billion)

Web Sitewww.aviva.co.uk

Objectives¡ Leverage predictive analytics to build propensity models for individual

customer groups rather than build generic models for all customers¡ Avoid contacting customers too frequently, while also improving

campaign response rates¡ Increase return on marketing and campaign response rates by

identifying customers most likely to respond

Why the SAP® Predictive Analytic® solution¡ Charts that help marketing experts visualize the anticipated business

impact of models¡ Significantly better modeling automation that allows many models to be

built with ease¡ Automatic analysis of the individual contributions of hundreds of

variables to a model, rather than manual inspection of a limited numberof variables

Future plans¡ Further improve return on marketing with uplift modeling that predicts the

impact of marketing activities on specific target groups¡ Build predictive models to analyze customer acquisition and win-back

"Modeling made easy – thanks to SAP Predictive Analytic.”Dr. Margaret Robins, Statistical Analyst, Data Analytics and Insight, Aviva plc

PersonalizedFurther improve return onmarketing with uplift modeling thatpredicts the impact of marketingactivities on specific target groups

EfficientSignificant increase in the numberof propensity models used withinthe company, with more than 30models in production

CurrentAbility to use the freshest data tokeep models up-to-date and capturethe latest trends

30599 (14/05) This content is approved by the customer and may not be altered under any circumstances.


Business Value of an Integrated and Fully Evolved BI Solution


Business Value of an Integrated and Fully Evolved BI Solution

Lower BI expenditures

Companies that consolidate multiple BItools into a standardized andenterprise-wide portfolio, have 36%lower BI expenditures

36%More timely information

Companies that have enhancedbusiness user access to information,have 10% more timely information tocreate actionable insights

10%

Companies with flexible informationsystems have 24% higher usage ofbusiness intelligence to manage in theirbusiness processes

24%Higher usage More ROI

10x 1

13.01Greater than


Optimal model selectedautomatically

Automated and simplified by SAP Predictive Analytics

3 Months3 Months

1 Week1 Week

DataConnections

DataManipulation

VariableReduction &

Sampling

Predictivemodel

creationScoring &Validation

ModelInterpreta

-tion

Applicationto business

Simple GUI Automated Automated Simplified Applicationto business

Greatly Improve your Time to Value

https://www.youtube.com/watch?v=sIbUAvrO70A&list=PL4B_3KgKZMUI7hU74LDkJCULP6fF3orR9

What is SAP Predictive Analytics?


Types of Business Problems Solved with Predictive

¡ PredictiveMaintenance

¡ Load Forecasting¡ Inventory/demand

Optimization¡ Product

Recommendation¡ Price Optimization¡ Manufacturing

Process Opt.¡ Quality Management¡ Yield Management

Operations

¡ Fraud and AbuseDetection

¡ Claim Analysis¡ Collection and

Delinquency¡ Credit Scoring¡ Operational Risk

Modeling¡ Crime Threat¡ Revenue and Loss

Analysis

Fraudand Risk

¡ Cash Flow andForecasting

¡ BudgetingSimulation

¡ Profitability andMargin Analysis

¡ Financial RiskModeling

¡ Employee RetentionModeling

¡ Succession Planning

Financeand HR

¡ Life Sciences¡ Health Care¡ Media¡ High Education¡ Public Sector/

Social Sciences¡ Construction and

Mining¡ Travel and

Hospitality¡ Big Data and IoT

Others

¡ Churn Reduction¡ Customer

Acquisition¡ Lead Scoring¡ Product

Recommendation¡ Campaign

Optimization¡ Customer

Segmentation¡ Next Best Offer/

Action

Sales andMarketing

Applying Predictive to Real Business Problems


Compared with the control group,7times increase in response rate

Each year because of fraudcaused lost has decreased USD $

1B

Response Rateincreased 5 times

Customer Churn & Cross-SellModels over 700

Campaign response rateincreased 260%

Monthly Churn Ratedecreased 3%

Campaign Response Rateincreased 220%

Sales PredictabilityIncreased 10%

Retail

Bank

Telco

Sales increased by 8.5%，ROI increased 14%

Integration of more than 5billion raw data from diff.

State agencies

OthersCovering 20,000 different

social communitiesEvery year over 400

incidents, fuel and tiresCosts reduction 3%

Predictive Analytic help corporation bring in high ROI


Financial

Telcom

Retails

e-Comm

CreditInvestigation

Media

PublicSector

Energy &Manufacturing

Success With Over 500 Leaders Around the World


Predictive Future

¡ It will embed into any application to make the application become moreintelligence

¡ Predictive will become more generic and easy to use by anyone

¡ BI + Predictive + Business Domain is the key of success (analytic cycle)

¡ Predictive will make people getting smarter

¡ Whoever can leverage Predictive into their business whoever can graduallyout perform in the market! Just like automation.

¡ No matter what, technology will become useful if it can be manage bybusiness people.

Thank you

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Advance Analytic Game Changer in FSI Industry · Advance Analytic Game Changer in FSI Industry. ... Future plans ¡ Further improve return on marketing with uplift modeling that predicts