Use the Power of Machine Learning to
Thrive Under Market Disruption
Banking and insurance companies are experiencing rapid digital transformation as new mobile-first and customer-centric upstarts flood the market. The industry is responding quickly with new products, processes, and technologies to compete. Additionally, new technology companies are emerging with packaged-applications to automate banking and insurance business processes.
Even though the applications of ML in financial services is well-known, many companies struggle to operationalize them into the fabric of the enterprise operations.
Industry challenges
Data Lake Challenges
Creation of an enterprise data lake is a lengthy and expensive process that requires unique skill set.
Disjointed Systems
Duct-taping compute engines together results in a complex architecture that requires excessive data movement.
Time-Consuming
Rewriting
Incompatibility between existing applications and the underlying architecture forces companies to rewrite applications.
These challenges ultimately lead to poor predictions on stale data caused by the data movement between the duct-taped compute engines. As a result, banks’ churn rates have risen, insurers are forced to pay out claims that should have been flagged for further investigation, banks are losing share among consumers who were unable to get loans with no or poor credit scores or insurers underwrite policies for risky clients at the wrong prices and fail to take action to retain customers before they attrit.
The Benefits of Modernized Applications
Improve
Customer Service
Leverage petabytes of data to resolve disputes and provide a response in milliseconds.
Leverage Data
to Prevent Fraud
Use all available data to optimize payouts without adversely affecting customer satisfaction.
Offer Customers
Personalized Services
Present customers with offers, rates, and product configurations in real-time, based on data from many sources.
Splice Machine Use Cases: Financial Services
Splice Machine leverages the power of scale-out architecture and machine learning in financial services across a variety of use cases.
Dynamic Product Configuration
Once your customer is in a buying motion, how can you get them to complete an application for a loan or an insurance policy? Financial services products are complex with a number of available options and choices that can be used to customize the base product.
Using machine learning, you can present the most likely packages that are pre-configured to the client need leading to higher conversion rates.
Optimize Marketing for Customer Acquisition And Retention
Putting the right message, offer, or service in front of the right customer at the right time. Communicate with a personalized and consistent message to customers with different motivations in order to convert them into a buying motion.
Computing Risk and Optimal Pricing
Once you get the customer engaged in the underwriting process, how can you accurately assess the risk of underwriting a policy and how do you price the policy properly to reflect that risk? Machine learning can use data from many sources in addition to your own underwriting history to augment traditional statistical and actuarial methods with experience of how customers turned out.
Detecting Fraud and Money Laundering
One of the most significant challenges every bank and insurance company faces is to fight fraud. Using exogenous data at scale and predictive methods enable you to uncover missing or erroneous underwriting information in the loan approval or underwriting process to detect fraud or AML.
Detecting fraudulent applications, transactions and claims is a constant battle where data scientists must continuously experiment to evolve and improve models.
Predict Litigation
Another area where ML has been successfully applied is in predicting litigation. Litigation exponentially increases losses and companies must be financially prepared. With predictive methods companies can determine what is the likelihood claims will go to litigation and then determine how to reserve funds and assemble legal teams.
The Solution:
Modernize Financial Services Applications
Splice Machine can take you on a journey of scaling your application on a new scale-out SQL architecture, unifying analytics into one platform and injecting machine learning directly onto this app platform. Our process can also get you there faster – in months – without needing to hire infrastructure experts.