Changing Risk and Customer Service With BI

BI (BUSINESS INTELLIGENCE WWW.KAUTILYABI.COM ) transforms raw data into meaningful and useful information. Its purpose is to enable users to put more effective strategies in place, to benefit from better tactical and operational insights and to inform effective decision-making.

BI and analytics is set to grow in the coming years, so this now proven technology has the makings of a very solid proposition for banks either as purpose
built or generic technology or via vertically oriented reporting tools that leverage analytics.

Its Importance in ATM fraud detection

Banks face an array of threats including traditional fraud, ATM skimming and cash harvesting not to mention more sophisticated cyber threats and online
hacking. The challenge for banks is to minimise the cost of these losses and one of the most effective methods is by harnessing the power of big data, BI
and video analytics.

Imagine that a branch suspects that a skimming device has been installed in one of the ATMs. Just using the video feed from the camera could take many
hours to review and identify the appropriate evidence from the moment the skimmer was installed. But by using analytics, criteria can be set that helps to
narrow down the options beyond just time and date. Transaction records, for example, a credit card being used, or a person detected at the ATM when no
transaction was made can help to pinpoint the crime being committed.

Fraudsters have become very sophisticated – a skimming device can take as little as 30 seconds to install – so whilst video cannot possibly help to prevent
physical attacks, what it can do very effectively is identify the moment of the crime, reduce investigation times and help banks to locate ATMs that are
more at risk in order to prevent additional frauds from happening.

The longer a bank waits to take action the more likely it is that it will become liable for any losses that a customer incurs. BI can be used to analyse
the history of fraudulent situations and develop useful fraud prevention business rules. These will include models for predicting a credit or cash card
holder's behaviour, and alerts that can be set up if the average number of daily transactions suddenly increase.

From a customer’s perspective security is paramount, but they also want hassle free access to their money. So whilst fighting fraud is the primary use of
BI and video analytics it can also provide meaningful insights that will assist in increasing customer satisfaction. These include an overview of branch
and staff performance, observations that will help to reduce waiting times, and analysis of the influence and effectiveness of in-branch marketing

For banks business performance analytics translate into the means to measure employee performance, to automate marketing and sales and innovate products;
analytics can assess customer profitability and regulatory compliance whilst providing feedback on risk management.

Many banks try to maximise marketing ROI by exploiting cross-sell and up-sell opportunities. But prior to attempting to sell an additional product to an
existing customer it is advisable to estimate the probability of being able to ‘close the sale’. The advantage of correctly estimating that probability,
facilitated by BI, is that a high response rate will lower marketing campaign costs and the quality of customer relations will be improved.

Analysis of average daily withdrawals from an ATM will help banks to decide how much money to load into the machine. There is often little point loading
the maximum amount if it is rarely needed, and will only prove to be a risk, given the high incidence of ATM physical attacks. Equally, BI algorithms can
optimise cash management by anticipating time, place, and amounts of cash to be loaded, taking into account weekly, monthly and seasonal oscillations and
trends. A good reporting tool can help operators predict branch by branch, ATM by ATM, what the trends will be during the week and, in time, during the

To do all of this banks need to transform daily transactional data into complex analysis involving customer and risk management, customer relationships,
customer profitability, product and channel profitability, level of customer loyalty, evaluation of marketing campaigns, efficiency of operations, and
market trends. The best way to do this is by implementing a structured strategy based on the insight that can be delivered by BI (BUSINESS INTELLIGENCE
WWW.KAUTILYABI.COM )and analytics tools.

Kautilya is a BI (BUSINESS INTELLIGENCE WWW.KAUTILYABI.COM )software that helps organizations mine and analyse big data and small and help the company
improve its bottom line. Kautilya can pull up vital information from customer interactions and present it in a manner that is easy to understand,
communicate and execute. Kautilya can ensure that detailed reports are provided to companies ensuring that all the crucial information is presented in a
well-documented and presentable manner so that information can be used to efficiently manage the business.

WANT TO KNOW MORE ABOUT KAUTILYA BI? Contact us today for free consultation
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