using business intelligence to reduce costs - … · title: sas nafcu webcast using bi to reduce...

Using Business Using Business Intelligence to Intelligence to Reduce CostsDavid Frankil, President, NAFCU Services Corporation

Vince Zwadyk, Manager, Financial Services Business Unit, SAS

Copyright © 2008, SAS Institute Inc. All rights reserved.

What is Business Intelligence?

Business Intelligence is the process of, or applications and technologies for gathering storing analyzing and providingtechnologies for, gathering, storing, analyzing, and providing access to data to help make better business decisions.

Q & R tiQuery & Reporting

Analytics, both Descriptive & Predictive

Data Access & Integration


Predictive Analytics: Optimizing Your FuturePredictive Analytics: Optimizing Your FutureWhat’s the best that can happen?

What will happen next?

What s the best that can happen?

What if these trends continue?

Why is this happening?


Reduce Costs

Streamline marketing processes

Streamline credit scoring process

R d t t i ti bReduce cost to manage existing members

Manage Balance Sheet & Income Statementg


Financial ServicesFinancial Services

CreditCredit Card Servicer

Challenge Solution Results$750 000 d ti i I ROI U i l ti th $750,000 reduction in

marketing costsHigher response rates

Increase ROI on marketing spend

Using analytics, the firm created customer segments and then t t d di t il Higher response rates

Reduced delinquencies among new customers

targeted direct mail campaigns based on highest value prospects


prospects

Financial ServicesFinancial Services

Top 10 CreditTop 10 Credit Card Issuer

Challenge Solution Results$150 000 i t i I d t f U i l ti th fi $150,000 in cost savings

per yearIncreased costs of managing existing customers

Using analytics, the firm was able to reconfigure automated voice system to

i i i t th t l d minimize requests that led to un-necessary live calls, which decreased operating costs


costs.

Financial ServicesFinancial ServicesIndirect Auto

Lender

Challenge Solution ResultsIncreased collections with Increase return on Created models to Increased collections with

30% reduction in collections effort

Increase return on collections spend

Created models to predict which delinquent accounts are most likely to are most likely to respond to collections efforts, and which delinquent accounts


delinquent accounts will pay with no collections efforts

Financial Services

Credit Union

Financial Services

Credit Union

Challenge Solution ResultsS ti f l t F t Th l ti fi Satisfy regulators requirements for improved credit loss forecasting

Forecast accuracy within 1% of actual

Improved balance

Thru analytics, firm was able to create automated forecasts of loan losses i ti i t l d Improved balance

sheet management incorporating internal and external data.


For More Information on This Topic

www.nafcu.org/sasgwww.sas.com/industry/fsi/credit-unions/index.html


using business intelligence to reduce costs - … · title: sas nafcu webcast using bi to reduce...

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