Inspired by bank 2.0, basically how I see banking in the near future

1. You might also want to read this…..
You already have the data
If you work in a bank, chances are, you know that your bank will produce a report for central bank. As
one of highly regulated industry, this has been a mandatory.
If you work in an international bank, chances are, your bank already have data warehouse. You know,
where you store all those data extracted from your core-banking.
What if I told you, with the magic of computer and statistic, you can predict your next customer’s
needs?
What if I told you, you could also set different price for different customer profile within the same
product range?
What if I told you, you could also be warned, if certain customer deviate from their profile? It’s not
always a bad thing, if your customer needs product different than the product usually needs/used by
similar customer within their profile. No system could decide whether this is a good or bad thing, but it’s
nice to have an early warning system.
What if I told you, you could make an educated guess, cross selling and offer other products than what’s
your customer asked? Again by looking at your existing customer within the same profile.
You already have the data, at least your bank has it. You just don’t make it work harder for you, yet.
Typically it’s ‘only’ been used for ad-hoc query or reports.
With all those intelligence in the system, do we still needs sales force?
What if I told you, you could leave all those soft selling to your front liners? And leave the hard selling to
your sales force.
If you ever been to Amazon.com site you’ll be familiar with these
Where the site would intelligently offer similar title based on what you currently looking at.

2. Let’s see another example at imdb.com
based on what movie you currently looking, it will make an educated guess what you would also like.
If you are an IT or MIS guy then you know that this is just a simple query using predefined categories
which accessed large database and comes up with most relevant result.
Why it could be useful in banking?
Working in a bank with many branches spread around the area would make us forget to think about our
presence, because everybody already knows we’re here. Having your presence is not enough in this fast
paced economy driven by mobile devices connected to the internet. You got to grab the opportunities,
that’s why the word monetizing becomes the buzzword at the business in general. If you have large
database of active clients, wouldn’t you want to serve them better by giving them what they MIGHT
need before they could think of? The word is cross-selling, by offering relevant possible products based
on the behavior of the similar client profile in your database.
Okay, you’re not so lucky, you work in a foreign bank with not-so-many branch scattered around the
area. Wouldn’t it be nice to increase your presence? Opening a new branch is a hassle (not to mention
serious dent in your budget). Why not just open a branchless banking, where people could open an
account as easy as opening new email account? Of course a lot of preparations needs to be done here
with legal, compliance and risk management issue that may rise doing so. Just remember to tell your
prospective client to have their softcopy identification ready at the time they wish to open an account
(maybe just put them in the pipeline until they submit their identification at the branch if you prefer, but
that would lessen the impact).
No matter what bank you are currently work, wouldn’t it be nice to set up your bank’s website to
include this friendly query? Or in a standalone machine, atm-like, where people could open an account,
browsing for (any) service or simply do a banking transaction with their existing account.
Now that I’ve got your attention

3. What if you could set up different price for different client within the same product? Nah, we already
done that with our corporate clients. That’s exactly true! Why not doing the same with your thousands
of saving account clients, credit card holders? Are you crazy? The benefit is not big enough to justify the
effort of even thinking it! Allow me to explain, your existing database contains individual clients, which
could contribute to scoring model (risk management has done this for a while now, to determine
whether to grant or deny request of new credit card) to determine the risk level of your new client,
based on your existing database, and offer the price accordingly.
In theory, it goes like this, you have two personal loan clients (both are good clients, we’re not talking
about bad ones here, yet) they receive same 2% monthly interest. What if client A actually willing to
accept up to 2.4% while client B is not happy with 2% and currently shopping for 1.9% interest. What if
you missed the opportunity from client A, and loose client B, by giving them one price fits all?
Another example, you have a walk in client, who simply want to open saving account, as soon as your
frontliner enter the data, as soon as he/she enter the data query result pops up, showing what other
products enjoyed by existing clients with similar profiles. Could this also work with investment banking
products? Well, yes, but just like corporate clients’ case, the profit is too big to be ‘handled’ by system, I
guess. Now, at least you could leave those cross-selling to your frontliners assisted by the system, and
let your sales force chase the big deal.