Banco BHD Manages Risk-Performance Relationship Using SAS® Business Analytics
More in-depth customer knowledge helped the bank realize a 40 percent credit card approval success rate and a 40 percent lift in cross-sell revenues.
BHD Bank, a pioneer in multiple banking services in the Dominican Republic, was founded in July 1972 and is still the leader in promoting important historical changes in the financial system. As measured by assets, BHD is the second-largest private bank in the country.
BHD uses SAS® Business Analytics to develop its expanding market strategy. The institution is opening a new business, so SAS will help it remain focused on ensuring a satisfying relationship with its clients, acquiring sustained revenue, and administering risks. To accomplish this, the bank has reinforced its service channels, increased the number of branches – currently totalling more than 80 offices, with plans under way to continue expanding across the territory in the coming years – and developed a specialized team of executives and managers to guarantee personalized service, a long-term business relationship and a solidly established position in the Dominican financial market.
With SAS, the team managed to segment the clients according to the value that each one generates to BHD, and according to its transactional needs, offer specific products, thanks to the direct impact on business decision making.
By setting up a multidisciplinary team oriented to take maximum advantage of the bank's area of business intelligence, Chame managed to modify the communications structure of the SAS solution with the servers and the data repositories, and from there, they were used much more intensively, both SAS® Enterprise Guide® – a manipulation tool – as well as SAS® Enterprise Miner™.
"We created the Business Intelligence Unit for the purpose of learning details about our clients and to be able to approach each one with the best offer in financial services, according to their needs," said Fernando Castro, Planning and Marketing Vice President at BHD. "SAS has internally revolutionized the access to the data, and has facilitated the transformation of this data in information criteria, understanding the needs and taste of our clients, thus turning us into a partner that achieves the objectives."
The CRM unit at BHD receives a list of clients from the UIN every month to analyze why cutback consumption occurred and identify potential satisfaction and product problems. The team works with the customer to encourage more consumption and to identify the most adequate solution to the customer's needs. As a result, 40 percent of clients return to their previous levels of consumption.
"Credit risk management is a fundamental part of our business," said Jorge Besosa, Executive VP, Personal Banking and Electronic. "Through the development of scoring models, SAS has helped us to predict which clients could present a high probability of non-commitment in their obligations, seeking the best way to help them in the improvement of their personal finances."
"Today, I am convinced that we have achieved an in-depth knowledge of our clients that represents the highest standards of the global financial industry," Chame concluded. "This without doubt, represents a competitive advantage. Everybody stores data, but today the difference is in how this data is transformed into information, which allows optimizing business decisions in a timely manner, in an environment where being left behind is not an option. In today's Latin American banking industry, this represents an opportunity. In the future, it will be a need and whoever does not do so will be punished by their clients."
The results illustrated in this article are specific to the particular situations, business models, data input, and computing environments described herein. Each SAS customer’s experience is unique based on business and technical variables and all statements must be considered non-typical. Actual savings, results, and performance characteristics will vary depending on individual customer configurations and conditions. SAS does not guarantee or represent that every customer will achieve similar results. The only warranties for SAS products and services are those that are set forth in the express warranty statements in the written agreement for such products and services. Nothing herein should be construed as constituting an additional warranty. Customers have shared their successes with SAS as part of an agreed-upon contractual exchange or project success summarization following a successful implementation of SAS software. Brand and product names are trademarks of their respective companies.
Copyright © SAS Institute Inc. All Rights Reserved.
Second Vice President of the Business Intelligence Unit, BHD
BHD needed to learn of its clients' changing credit behaviors in order to emphasize improved services and offer customized products.
“Everybody stores data, but today the difference is in how this data is transformed into information, which allows optimizing business decisions in a timely manner, in an environment where being left behind is not an option. In today's Latin American banking industry, this represents an opportunity. In the future, it will be a need, and whoever does not do so will be punished by their clients.”
Second Vice President Business Intelligence Unit, BHD