CHALLENGE 5/8: CLIENT SEGMENTATION - WHAT IS THE BEST APPROACH FOR YOUR ORGANISATION?
Client segmentation, onboarding, offboarding, and re-papering can be a resource-intensive and time consuming process due to the fact that most banks have fragmented systems on-boarding, off-boarding across businesses & regions with data quality issues.
Fragmented systems across businesses and regions will make client segmentation a resource-intensive and time consuming process.
Data quality issues in client data require manual cleansing and rationalisation to avoid duplicating or missing any clients. Each organisation ought to further consider the migration plans for clients who may not be profitable.
Manual effort in these activities is time consuming, expensive and inaccurate. Given the tight budgets, hard deadlines and client pressure for quality service, it is critical that more efficient / effective approaches are considered.
WHAT CAN CAPCO OFFER?
CLIENT SEGMENTATION MODELLING
Capco can work with the Business / Client Strategy to develop client profitability criteria, and model the client cost to serve (through onboarding and the client lifecycle) that identifies client tiers or segments that may require different client service propositions.
ROBOTIC PROCESS AUTOMATION (RPA)
Capco can implement an RPA solution to automate client segmentation, on-boarding, off-boarding and re-papering activities, thus reducing time, cost and the reliance on contingent resources.
Our digital practice helps configure machine learning to iterate and evolve client segmentation logic.
Blockchain applications can be used to develop smart contract capability for the new EU entity (a ‘day 2’ activity)..
THE CAPCO ADVANTAGE
Capco’s Digital practice is at the cutting edge of innovation and disruption. We help banks across the industry to further their digital agenda. We have enhanced our Digital offering by partnering with a market leading RPA vendor, Blue Prism. As an advisory and global implementation partner, Capco has access to all collaboration efforts of Blue Prism currently underway with other innovators in the industry to provide intelligent automation solutions.
We have implemented RPA into a major client offboarding initiative. This automation included client portfolio segmentation and automated control checks, off-boarding in lower resource costs (offshore team reduced from >100 to <20) and fewer manual errors, while reducing the expected duration of the project by half.
We have also developed a model to help organisations optimise their client base, ultimately driving revenue, improving service proposition and reducing cost. Capco has delivered this to a large UK client and helped the client realise significant in-year and ongoing cost savings.
To support lower resource costs and fewer manual errors, our teams create client segmentation profitability models, then provide an innovative approach to automating on-boarding, off-boarding and re-papering activities.