Our Client, PT Bank Danamon is Indonesia’s sixth-largest bank, with four million customers and a network that stretches across the archipelago.
Competition for customers in the Indonesian market is especially fierce, with 115 banks to choose from, according to recent government statistics. Finding a way to stand out is crucial. Indonesia’s banks – like many others – are currently focusing their investments on improving the customer experience.
The idea is to increase the customer’s loyalty and ‘stickiness’ to the brand, and to do this in as close to real-time as possible. It’s about providing the ‘right product to the right customer at the right time’, and data is widely recognized as the key to unlocking these kinds of growth possibilities. Banks have long been custodians of large amounts of customer data, and they are increasingly putting it to use to satisfy customers’ needs – before a competitor can.
Using customer experience to stand out in a crowded marketplace
Though the bank has a lot of data, until recently it was held in around ten siloed data marts. In addition, every line of businesses, support function, and branch had its own data store. Analysis was often performed in each silo which made it difficult to record how decisions were made.
That led to a lot of misunderstandings and arguments because everybody had independently developed their own ways of reading and understanding data.This created unacceptable lags in decision-making and did not provide a platform upon which PT Bank Danamon could build the competitive edge it desired.
“Talend is flexible and easy to use. It is also always being upgraded to support the latest technologies and to connect to new source systems. I’m very happy with Talend and have no regrets in choosing it,” – Billie Setiawan, Head of Decision Management for Data & Analytics.
The new big data infrastructure consists of an on-premises Hadoop cluster and Talend, which ingests more than 40+ source systems, including its core banking and credit card systems, and sets governance standards across the bank on how data is to be organised and used.
Reports now take far less time to be created in the new big data environment. What used to take half a day to produce can now be done in under two hours; in other words, it now takes half the time it previously did, saving PT Bank Danamon additional time and money.
Change through real-time engagement
The bank is using the big data platform for two initial use cases – customer behavior and fraud detection – though it has additional use cases in the works.
Under the first use case, the platform is being used to build a 360-degree profile of customers in a bid to better understand their behavior and recommend products or services they might like based on propensity modelling. This converts a customer’s real time activity into real-time marketing opportunities for the bank and is already paying dividends.
“Our take-up rate – that is, the number of customers offered a new product that then decide to use it – is five times higher than under the old system,” Setiawan said.
Bank Danamon worked with us to support the organisation’s compliance with the International Financial Reporting Standard 9, including a monthly requirement for accounting reporting to the company Singapore regional headquarters.
We were selected as the partner of choice for this initiative due to our proven experience in the financial services sector and we have now helped the bank to deploy Talend resulting in functionality that seamlessly transfers data from the source data into the big data platform. The key benefits of this are increased accuracy, system stability and platform scalability. All of these benefits being critical ingredients for complying with the IFRS 9 standards.
iZeno was founded in 2003 to provide enterprises with best-in-class technology solutions they need to keep their business running seamlessly. With a team of 70+ in-house innovators, we have delivered over 500 Enterprise Solutions, implemented and optimized to enable smarter insights. Our team draws on industry experiences in accomplishing a portfolio of mission-critical applications, integrating DevOps, Cloud, CRM, Data Analytics, and other leading technologies with our clients’ existing IT frameworks. With leading presence in the region, headquartered in Singapore and operation in Malaysia, Indonesia, Thailand and Philippines, no project is too complex for us, and our team is always ready for a new challenge.
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