China CITIC Bank implements data-driven strategy to drive future growth
The joint stock bank redefines its credit card centre strategy to create more successful marketing communications, whilst also improving risk management capabilities. August 13, 2012 | Carol WheatcroftBackground China CITIC Bank, a joint stock bank, is one of China’s top ten lenders by asset size. The bank identified the credit card market as one of the key markets with the potential to generate substantial growth. This is a business area where joint stock banks including China CITIC Bank have been leveraging the skills of their international partners to develop their footprint and build scale, competing both with other joint stock banks and the big four state owned banks in China. However, China CITIC Bank’s credit card centre faces ferocious competition, with China’s regulatory authorities strengthening regulation and monitoring requirements to avoid massive increases in non-performing loans (NPLs) within bank lending portfolios. In order to compete within this environment, China CITIC Bank’s credit card centre redefined its business strategy from an experience-dependent retail customer service model to a data-driven business development model. The challenge Doubling the number of credit cards issued to consumers over a two-year period, China CITIC Bank generated enormous amounts of data from this customer base. However, the data was siloed and isolated within multiple systems, making competitive data analysis limited and reducing the bank’s ability to deliver business value from its data storage. As the data was difficult to access and analyse, marketing campaigns took up to three weeks to complete and were not finely targeted to customer needs. The bank was unable to effectively customise product marketing material to specific customer profiles. In addition, the bank was only reviewing customers spending on a monthly or quarterly basis and this impacted the bank’s NPL ratio. The bank’s credit card centre realised that it needed a cost effective solution that would help it become more successful in creating targeted marketing communications by offering greater insight ... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
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