Ever-increasing customer expectations and a highly competitive market, set against a backdrop of economic uncertainty resulting from the pandemic, mean that the loyalty of low-risk, financially resilient customers simply cannot be taken for granted.
At the same time, an increasing proportion of customers are, or may be at risk of, experiencing financial stress or hardship. Ensuring your organisation is able to effectively engage with customers by providing customer-centric decisions - relevant offers, rewards, incentives, help, support and advice, given their specific and complex circumstances and needs - has never been so important.
But in many organisations, poor understanding and customer insight may lead to inconsistent, inappropriate, and sometimes incoherent experiences.
These issues typically include an incomplete customer view, as well as misaligned and sometimes contradictory customer decisions made across differing areas of the business. There can also be a reliance on batch-based processing leading to out-of-date and potentially inaccurate customer data being used. Compounding these are the complex nature of data processing, analytics, decisioning and operational execution in a variety of business processes, which can make change complex, costly and slow, hindering innovation and eroding competitive advantage.
Future State
FICO is working with organisations and global strategic partners across a range of industries, including banking and financial services, which are seeking to drive greater value from data with a view to improving customer satisfaction, loyalty, increased operational efficiency and better-managed risk.
As a market leader in digital decisioning, we are helping our clients to more effectively use data, to operationalise AI and machine learning models, to centralise customer analytics and business rules, empowering business users and encouraging innovation and greater collaboration. The capabilities we provide allow organisations to provide rich and meaningful customer experiences and to rationalise and simplify the technological landscape. At the same time, they can take major steps in their ability to innovate and deliver change.
Three Success Stories
One global digital bank and payment services provider turned to FICO know-how to drive faster growth and win greater market share.
It opted for FICO® Centralized Decisioning to help improve customer experience and future-proof its business, underpinned by a wholesale digital transformation project. Results were immediate. They included:
- Accelerated loan applications, which were delivered up to ten times faster
- Automated decision management, achieving a 20:1 return-on-investment
- Reduced time to change strategies
- Greater collaboration across the business
- A consistent and comprehensive customer view
Elsewhere, lender Cred-System’s adoption of FICO® Blaze Advisor® decision rules management system saw it achieve 96% faster credit decision-making and a 300% faster strategy implementation. The wins in cost efficiencies were near-instant, with 97% of its subsequent customer decisions made via automated means, yielding a 30% reduction in origination overheads.
In South Africa, fleet financier SA Taxi selected cloud-based solution FICO® Decision Modeler to help improve and automate its offering to a sizeable portfolio of commercial customers. As a result, it has automated 70% of all credit decisions, increased lending growth by 25% and reduced decision times on customer applications from two hours down to 10 minutes. It also improved the accuracy of decision-making and now dedicates more time to strategy, analytics and further enhancing the customer experience.
Customer Experience Is Always Worth the Investment
Agile, top-performing businesses have moved quickly to remove slow, legacy systems in favour of more flexible, lean and efficient customer experiences. It’s an investment that will always help deliver profitable customer relationships. To find out more, contact us.
