SINGAPORE /PRNewswire/
--
SURVEY
HIGHLIGHTS:
Banks
in Asia
Pacific may be losing 20 percent or more of potential
revenue from deposits, because they have not used analytics to
optimize their strategies for their deposits business. Nearly half
of the respondents to a survey conducted by analytic software
company FICO (NYSE: FICO) put the lost revenue at more than 10
percent, and one in five respondents said it is more than 20
percent.
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Banks
can optimize their deposit strategies using solutions such
as FICO® Optimization Solution for Deposit
Pricing, which allows lenders to offer optimal
deposit rates that balance customer satisfaction with profitability
and portfolio growth.
For
more information: http://www.fico.com/en/products/fico-optimization-solution-deposit-pricing
The
survey was conducted at the 2015 FICO Asia Pacific CRO
Forum, held earlier this year in Bangkok,
Thailand. A total of 34 senior risk officers and banking
executives representing 23 financial institutions across the region
participated in the survey.
The
new findings come at a time of slowdown in growth of deposits in
the region. According to
HSBC's research in 2014, year-on-year growth in Asian bank deposits
has decelerated from above 12 percent to 10
percent. Among the reasons cited for this slowdown is a
tendency for Asians to invest their money in speculative vehicles
like property, equities, or in some cases, shadow banking products.
Deposits are often seen as performing at or below inflation,
and tend to attract more dollars only when other markets look
volatile.
In
FICO's survey of chief risk officers:
Increasingly, there is a need to manage newly optimized deposit
strategies in much the same way that banks have handled credit card
accounts. FICO®
TRIAD® Customer Manager allows deposit risk managers to
measure customer risk with predictive analytics, set up targeted
risk-based strategies, automate a host of decisions using these
strategies, and test new "challenger" strategies against their
current "champions" to continually improve results.
Dan
McConaghy, President, FICO Asia Pacific, said,
"Banks need a speedy and precise strategy around rate-setting that
is individual to the customer. This type of segmentation and
offer-making is only possible with advanced analytics. This will
help ensure profitability, while maintaining customer satisfaction
and make deposit products more attractive to Asian customers."
Phil
Norman, Head of Analytic Services, FICO Asia
Pacific, said, "We help banks strike the right
balance in pricing their deposits. Our approach to pricing uses a
sophisticated modeling approach which incorporates optimization to
provide lenders an individual rate for each customer so they are
attracted to invest while maintaining more margin for the
lender.
"Many
banks across the region also need to increase their capital due to
new regulations, and deposit funding is one of the least expensive
forms of capital available to banks, so it is becoming a greater
focus for many CROs."
About FICO
FICO
(NYSE: FICO) is a leading analytics software company, helping
businesses in 90+ countries make better decisions that drive higher
levels of growth, profitability and customer satisfaction. The
company's groundbreaking use of Big Data and mathematical
algorithms to predict consumer behavior has transformed entire
industries. FICO provides analytics software and tools used across
multiple industries to manage risk, fight fraud, build more
profitable customer relationships, optimize operations and meet
strict government regulations. Many of our products reach
industry-wide adoption. These include the FICO® Score,
the standard measure of consumer credit risk
in the United
States. FICO solutions leverage open-source standards and
cloud computing to maximize flexibility, speed deployment and
reduce costs. The company also helps millions of people manage
their personal credit health. FICO: Make every decision count™.
Learn more at www.fico.com.
For
FICO news and media resources, visit www.fico.com/news.
Join
the conversation on twitter at: @FICOnews_APAC.
FICO
and "Make every decision count" are trademarks or registered
trademarks of Fair Isaac Corporation in the United
States and in other countries.