As the bank expanded by acquiring other institutions, integrating a new institution took 12 months. Data was stored in many databases, and the different institutions used different approaches.
Many decisions were account-level, not customer-centered, and as a result they were manual and inconsistent. Competing products within the bank often were sold to the same customer, and many customers were customers of both the main bank and an acquired one. The bank needed to increase its share of its customers' wallets, so approval rates needed to increase. However, collections and risk management remained issues that the bank couldn't ignore.
A Customer Data Integration (CDI) initiative brought customer data together, and this single coherent customer view was the basis of decisions. Business rules and predictive analytics aligned product offers around both predicted customer needs and ability to pay.
Figure 1. The accumulated reduction in provision for loss, thanks to a risk management EDM solution