Earlier this year, Farmers Exchange Bank, a 57-year-old community bank with four branches across Alabama, went live with its new SaaS platform, Temenos Insight. We recently touched base with Blair Osmer, CFO, to learn more about their decision to add this software component, and how the conversion has paid off to date.
How does Farmers Exchange Bank use data to help create better products for customers?
We are still in the beginning stages of our use but we see two main ways in which data can be used.
First, data allows us to understand our customer needs better and define products which are built specifically to meet those needs. Using BI tools we can understand where we have gaps of product ownership in the custom base, for instance a segment of customers which may not own a particular product — like retirement investments.
We can then define a product for those specific segments and then using targeted sales and marketing we should see high adoption rates for that product.
Second, we have the ability to analyze our products from a number of aspects such as growth, profitability. By performing analysis at the product level we can identify products which may require small redesign that can make a large impact overall. An example of this would be looking at service fee plan design and how we can structure products to meet customer needs better while maintaining fee revenue for the bank.
You recently implemented a new analytics solution. How did this change your operations from the previous system?
Previously we relied on manual processes for extracting our data and performing our financial reporting. Now we have this process completely automated on a daily basis and the dashboards, analytics and reports are available through the web interface. Also in the new solution we have drill down capability that was not previously available. This allows users to easily drill down to get more details which before used to mean logging into several systems. This has freed up time from operational users to analyses the data rather than collecting and consolidating it.
What do you see as the next trend in data-driven banking offerings?
I see an extension of what we are doing now but with a deeper focus on customer analytics. This would include the consolidation of multiple bank data sources as well as external data to comprise a more robust 360-degree-view of the customer. With that information we can perform predictive analytics such as predicting customer churn or the next best product which will serve to make us more profitable through retention and greater share of wallet.
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