The Securities and Capital Markets industry is not a newcomer to innovative technology adoption which first debuted around half a century ago. Given the development of emerging markets, the spurt in entrepreneurship, and relentless demand for funding and investment, innovative approaches incorporating intelligent technology that is adaptable, expandable, interconnected and digitally trustworthy are no longer an option. Digital technology footprint is increasingly visible in market trades, customer selection and on-boarding, database management and post trade order execution.
Cross Sell Products
Deploy predictive analyses tools that synthesise marketing and IT creating synergies between industry verticals and channels that will promote selling of differentiated products to customers. Cross-selling is essential for organic business growth.
Analytics will provide critical inputs about overall financial health and resilience to successfully tide over stress scenarios. Unlikely but possible matrices will be used to focus on the impact of liquidity risk, credit risk, and market risk on profitability, liquidity and other critical parameters.
Portfolio Stress Testing
Analytics reports present a holistic picture of loan, investment, consumer credit, real estate and structured finance products portfolios to assess their capacity to withstand and rebound from unexpected, adverse events. Digital programs ask all the essential questions of diverse portfolios and arm management with all the right answers to combat mild recessions, protracted market crashes, oil price spikes and slumps, and a host of alternative ‘what-if’ scenarios.
Customer Lifetime Value
State-of-the-art technology will give a 360 degree understanding of customers and their constantly evolving needs which is essential in a hyper-competitive market. Study existing customer value across the universe of products and get predictive inputs about future funding needs. Statistical techniques and quantitative methods enhance the prospects of customer acquisition and growth with reduced costs and attrition.
Analytical tools help to segment prospective customers into groups with commonality of needs and features. Customers are analysed by transactions, demographically and for life-time value, marketing campaigns become more intelligent, product acceptability improves and customer relationships strengthened.
Get the best inputs on risk management processes and data architecture. Risk analysis tools offer a start to finish solution beginning with loan approval and culminating with account closure, visiting and assessing loan pricing, risk premium, concentration risks, exposures, portfolio return, sector analysis, etc.
For clarity of picture regarding the impact of marketing investment across all channels, the increased use of digital channels opens up a brand new avenue to understand, target, capture, and retain customers, besides growing business. Using marketing analytics, will lead to creation of algorithms that depict the return on investment from a multitude of contact points. Digital technology offers access to analytics tools that have dual functions – pointing industry players in the direction of a prospective customer but also weighing up the probability of delinquency by that prospect. The filtering makes customer selection profit oriented by highlighting optimal customers.
Every financier would like to cherry pick customers and digital technology equips management to target relatively low risk customers, formulate improved packages and improve strike rates.