The industry challenge
The relationship a customer has with a retail bank, where that individual has multiple accounts across a range of products, can be the most complex in the credit industry. In the increasingly competitive and consumer-driven retail banking market, margins are being eroded by competition from new entrants and banks no longer command the loyalty they previously enjoyed.
As the trend for consolidation continues in the sector, retail banks are under greater pressure to create growth whilst reducing the cost base. Products and growth targets are becoming increasingly complex, focusing efforts on the existing customer base, thereby reducing acquisition costs whilst managing the risk profile of exposure. In addition, pressures from increasing regulation, including responsible lending and Basel II, means that a stronger risk management process is required.
The answer
Experian's proposition for retail banking centralises and automates decision making, creating meaningful and relevant data across the customer life-cycle, enabling the management of customers as individuals rather than a number of separate accounts.
Experian also helps meet regulatory issues, offering integrated products and services that tackle money laundering and fraud and help achieve profitable compliance for Basel II.