Banking

Retail Banking Overview

Multiple delivery channels. Market specialization. High-profile mergers and acquisitions. Growing compliance requirements. Rising operational costs. For banking institutions worldwide, today’s business climate is increasingly high stakes and complex. Better customer service without compromising profitability is critical.

Retail banks must:

• Maximize profitability by improving channel and product productivity and performance, gaining visibility into the most profitable customers, increasing revenue from new business and via cross-sell, and reducing high delinquency rates, defaults, and losses .
• Be more efficient—See the big picture fast by bringing together the relationships, connections, direction and details needed to make informed decisions and improve operating performance.
• Reduce risk by linking data in disparate systems for a clear, holistic view of profitability tied to consolidated view of risk.

Cognos, an IBM company, provides an integrated, best-practices solution for banking performance management. It integrates and leverages your critical data, and delivers the scorecarding, reporting, and analysis, and planning tools you need to manage and optimize profitability and performance. With integrated plans, business intelligence, and metrics, you can dramatically improve your understanding of the current state of your organization and improve your ability to make timely, informed decisions in all areas—operations, sales and marketing, risk management, customer service, finance, and more.

Increase Profitability

• Monitor and report on sales and margin performance by customer, channel, product line, branch region, or division.
• Develop financial metrics to track costs, losses, and risk-based returns; or customer loyalty and margin metrics (products sold, revenue, customer risk).
• Create a customer-centric view and client-level plans that incorporate the full scope of a customer’s relationship, including retail accounts, investment accounts, life insurance policies, loans, and leases.
• Integrate demographic or customer data into internal sales data to analyze and flag marketing, up-sell, and cross-sell opportunities.

Maximize Efficiency

• Improve efficiency of front, middle, and back-end functions by setting targets and monitoring the processes.
• Develop long-range, financial, cost center, and headcount plans, forecasts, and budgets across the enterprise.
• Create branch profitability models to capture loan and deposit volumes and spreads, net interest income, staffing decisions, and compensation expenses.
• Track financial goals in terms of growth, profitability, and key controllable expenses.
• Monitor straight-through processing initiatives to gain timely, in-context views of operational efficiency.
• Extend extranet capabilities to customers, partners, brokers, and suppliers.

Reduce Risk

• Manage risk across the organization to deliver enterprise risk reporting to support a broad range of reporting requirements from a central, consistent source.
• Undertake “what-if” analysis to identify best use of capital, both on the basis of product and customer profitability and in the wider context of the customer relationship across the business as a whole.
• Implement best practices for fraud identification, asset liability management, rapid depreciation detection, and a host of other risk factors.
• Analyze enterprise risk patterns, model risk events, and proactively alert managers and senior executives to pre-determined risk events or breaches.
• Respond to external key influencers, such as rating agencies and supervisors, to ensure a lower cost of capital.
• Conduct what-if scenarios for different revenue projections or changes in business lines.

Additional Resources:

Enterprise Analystics - Leveraging your Data Warehouse Investment: Risk Cockpit

Online Demo

Demonstration of the IBM-Cognos Banking Risk Management Cockpit Solution.

Planning in the Financial Services Industry

White Paper

Find out the technology and best practices for effective budgeting, forecasting, planning, and reporting.

Cognos and Risk Management: Managing Risk Through Business Intelligence

Online Demo

See how business intelligence can help you analyze and report on risk exposure in your company.

Gartner - Toolkit Case Study: Unicredit Leverages BI to Create a New Business Model

Success Story

Find out how Unicredit integrated 90 data sources to create an award-winning environment for modeling and managing risk.

Rapid Scorecarding for financial services

White Paper

Find out the value of scorecarding and the five key steps to creating an effective one.

Cognos Virtual Finance Forum June 4, 2008

Web Link

Practical advice and proven practices to help you solve financial performance management challenges. Access compelling conference sessions, speakers, partner solutions, customer case studies and a wide range of product and solution exhibits. Plus, get expert advice from Thomas Davenport – the world renowned thought-leader on competing with business analytics, and Bryan Hall, Managing Director and Finance Practice Leader at The Hackett Group.

IBM Cognos 8 BI Reporting

Online Demo

See real-world reporting scenarios for casual business users and professional report authors.

Customer profitability in real-world banking: A large global bank finds simple ways to make customers more profitable

White Paper

Read this paper to understand how large banks are leveraging BI to making their customers more profitable.

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