Cause and Effect: If you build it, will they come?

July 23, 2014
/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Fast Facts: Student Loans

January 22, 2013
/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

Small Business: Perception vs. Reality

November 21, 2012
/   Insights

In the most recent election cycle, like most others before it, the one sector of the economy that got the most attention was small business.  This is the future, we were told by every...

The Top 10 Trends in the Digital Banking Industry

December 18, 2013
/   Spotlight

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions....

Mobile Banking Engagement: Data from Digital Insight

June 24, 2013
/   Spotlight

Intuit Financial Services has been conducting a comprehensive and ongoing study of financial institution customers. From these studies, the company has been able to provide a deeper view of banking customer behavior across several...

Industry Perception, Optical Delusion

January 14, 2013
/   Insights

In Washington, they talk a lot about ‘optics.’ This has nothing to do with regulatory scrutiny, or government mandates on eyeglasses. It has to do with perception—how something looks, the way a particular story...

Social Banking: Blessing or Curse?

August 1, 2012
/   Insights

While the topic of Facebook and banking has generated plenty of heat (though not necessarily a lot of light), the debate seems mostly focused on two broad issues: The much-maligned IPO, and the notion...

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.

Blair Osmer, Farmers Exchange Bank

Blair Osmer, Farmers Exchange Bank

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.

Think your FI deserves special recognition? Submit your FI here.

(370)

Insights

Banking.com’s perspective on industry news and trends

(220)

Spotlight

Must-read news and insights from financial industry leaders

(91)

Voices

Compelling voices and contributed content from around the web

James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Brad Strothkamp

http://www.forrester.com/rb/analyst/brad_strothkamp

Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.