The recently published Gartner report titled ‘Gartner Build Advanced Analytics and Data Science Capabilities: Lessons from the Gartner Excellence Awards, Kurt Schlegel, 28th November 2017’, has carried out YES BANK’s case study on successful deployment of data analytics for enhancing its business impact. India’s fifth largest private bank was among the three finalists shortlisted for the award.
The cross-industry report focuses on how businesses are integrating data science in their core business model with an aim to showcase the need for data and analytics leaders to create advanced analytics and data science teams that directly support operational activities.
“Over the past few years, YES BANK has made significant investments in building a strong data & analytics architecture, with comprehensive business use-cases. The case evaluations focused on introducing futuristic initiatives for real-time business impact through data science”, said Neeraj Dhawan, Group President & National Head Credit Risk Management Retail & Business Banking, YES BANK.
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“This global recognition encourages us in the Bank’s endeavour to be future ready, and in institutionalizing organization wide culture of promoting data-driven decisioning and client servicing”, he added.
YES BANK has made significant progress over the years and has expanded its retail baking franchise across all products and has set-up a central data sciences team to drive its decision-making culture. It extensively uses advanced analytics and data science techniques to gain insights into customer behaviour throughout their life cycle — from acquisition, Onboarding, servicing, cross-sell and portfolio management, to retention and delinquency management.
YES BANK’s case studies that got a mention:
The case studies featured have brought significant improvements in YES BANK’s revenues and bottom line. Some of them are:
Recency, a frequency and monetary (RFM) analysis for debit card usage for truly personalizing customer experience through nano targeted merchant offers. It resulted in average spend per customer to increase by 29%, while spend for the targeted customer base increased by 44%, which contributed 27% growth to overall portfolio spend. Notably, YES BANK’s data science team’s efforts towards building a predictive model using different types of customer transactional and behavioural data to reduce value attrition in Savings Value resulted in 23% net increase in value.
YES Insta, a first-of-its kind innovation in the BFSI industry has also been featured in the case studies published by Gartner. The algorithm derived by data scientists at the bank has not only improved sales productivity but also increased efficiencies for channel partners and most importantly operational gains for YES BANK.
Some of the other case studies mentioned are the bank’s efforts in improving MSME customer churn rate through predictive modelling and a savings value attrition predictive model for customer engagement which eventually resulted in a 23% increase in overall value.