Credit officers have to approve customer loans based on only the minimal amount of data points while the same customers demonstrate little loyalty, and can switch providers easily - and so the number of products sold to each customer is low, and information on customer behavior is thin.
Banks should strive to cross-sell better, to sell more products to each customer and build a richer set of information about each relationship. Instead of trying to push the boundaries in looking for the high margin loans, they should look to maximize profits through longer relationships, and build a better set of data around those relationships to drive decisions.
When banks get their decision-making systems in order they will be able to stop ‘trouble’ before it walks through the door, and make higher margins while talking less risk.
Longer relationships lead to higher product uptake and lower risk.
See more about what I mean and take a look at some of the solutions banks can deploy here.
Learn how data can help you avoid financial services troubles before they walk in the door at Visualize Your World. Coming to a city near you! Register here: http://go.qlik.com/VYW2016