You would distribute the few hundred thousand words of a book randomly on its 200 pages, you could start something nobody. So it’s a similar act with the Big Data in the financial industry, says Stefan Roßbach from the TME Institute: “it is Only when one evaluates these disordered amounts of data, structured and intelligent uses, a Use.” From the large collections of data as Smart Data, which will change according to Rossbach, the customer service of credit institutions is fundamental.
“The speech is more efficient, the needs can be more accurately grasp and fulfil,” says Stefan Roßbach from the TME Institute. However, a lot of challenges to cope with, the Digital Profiling, so anything other than a self-runner. The technical term Digital Profiling is the combination of data from different sources and the derivation of a detailed customer image. Although customer information has always been and in any industry a valuable resource. Wise men of old knew not, for instance, a credit institution, whether family, XY likes to travel in the Caribbean or in the near future a house to build. In the institutes existing data supplemented by the findings from the Internet usage of the customers allow this information to derive. Together with the wide range of internal data about the current money system to be so very precise customer profiles – the perfect basis for individual offers. “The strengthened enormously the `Yes` for the company, because the customer feels understood, if it proactively appropriate financial planning recommendations are made,” explains Jan Franz from the TME AG, has co-authored with his colleague Dennis Hossenfelder is a Whitepaper on the Digital Profiling.
An advantage of the Customer Profiling, the element of Surprise, so Franz was. Unlike questionnaires or personal interviews with the customer, this is not directly involved. This is also true for the in-house existing data, the very much the statements and the questions to arise automatically in transactions. The collection of data, the consequences of, for example, from visited Websites, or online purchases. Combining both sources, banks have the opportunity to present solutions for a Problem that is not detected by the customer. “The company provides with such an optimized Customer Experience and a personalized Customer Journey for an emotional bond to the brand,” says Franz. Also, the acquisition of new customers easier for visitors to the site are more likely to to customers. And so Institute of competitive advantages that drive the income up according to the TME.
The Integration proceeds in three steps. First the customers are classified with the help of the existing data into groups – for example, after the sales, the purchasing channel or the preferred products. In order to obtain a holistic view of each customer, supplemented as described in the internal data with those from the use of the Internet. Another Extra to the so-generated Single Customer View are the so-called Third-Party data, so external data on the Online search behavior. At the end of the Profiling process, the customer should have relatively sharp contours, the companies know what’s bothering him and what your life-situation he is in. Rossbach: “to make Him, then, for example, the exactly matched supply of credit, is designed for more experienced bankers with a light Exercise.”
In his white paper, the TME Institute addressed but also the obstacles while Profiling. An important point is the privacy. Banks need to take into account national regulations, as well as from the end of may 2018, the General data protection regulation of the EU. In particular, it involves restrictions on the processing of data and questions the purpose of binding and storage. A further obstacle to exploiting the potential that lies in data, is the technique. Many banks would not even use Standard technologies to the analysis, although these were not sufficient for very large and heterogeneous amounts of data, says Franz. “And often the quality of the data is not true, moreover, be so drawn wrong conclusions, and then to the customer suitable deals done,” says the expert. Very relevant is also the Problem of acceptance. “A lot of people are using information, part of which came from her private life, skeptical,” says Franz. Digital Profiling was therefore not least a difficult task for the communication Department of the banks.
Complex Regulations, with the threat of legal consequences for non-compliance, technical difficulties, and the necessary Belief of the customers: For euphoria in terms of Smart Data, the TME Institute sees in the face of diverse challenges, not a cause. It was certainly a rocky road, the credit institutions would have to go now, says Rossbach. “A Dodge is not an Option. The expectations of the customer at the service quality increase and you can only be with more digitization.“ It is to make a decision between Digital Profiling, Yes or no, but only between different strategies. “And the faster the banks act, the more advantages you have over competitors.”