SAS addresses credit, market risk with banking intelligence solution

Today's demands on the banking industry in SA are massive. Apart from having to service customers 24-hours a day, at exceptional service levels, banks also have to comply with strict new reporting laws, such as the Basel II Accord and Anti-Money Laundering legislation.

Addressing these industry and customer requirements, SAS's Banking Intelligent Solution enables banks to effectively implement business strategies, tackle operational risk, maximise profits, retain and grow customer accounts and execute efficient marketing campaigns.

"The new solution's Intelligence Architecture, coupled with the industry's data models, pulls together critical information from across the enterprise to support key business decisions," says Kerry Evans, sales manager: financial services at SAS Institute in SA.

The credit risk model within the solution helps banks predict the probability of default relative to another client's probability and it also helps banks to assess each customer's credit risk portfolio against the entire portfolio of credit exposures.

On the customer-facing side, the solution consolidates all customer data, to provide a single, customer-centric view for the bank.

"From marketing campaign analytics for identifying cross- and up-sell opportunities, to customer retention prediction models and segmentation, the Banking Intelligence Solution effectively integrates campaign planning, management and execution," adds Evans.

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"These additions to the model perfectly support the banking industry's segmentation managers in better defining their customers," she says. "And on the marketing side, the solution's propensity model assists in prediction and marketing of cheque accounts, pensions or online banking services and their likelihood of sale."

The SAS solution has the required domain expertise to optimally implement the entire intelligence creation process needed to solve a major business issue. "This expertise has been gained from our successful projects at over 200 banks worldwide," she says.

"With SAS's Banking Intelligence Solution, banks can maximise their return on intelligence by extending their existing application investment, leveraging existing data warehouse investments and lowering overall project risk by creating a roadmap for successful implementation.

In addition, early 2004 will see the inclusion of SAS's Anti-Money Laundering solution into the Banking Intelligence Solution, which is a packaged solution assisting the banking industry in their new reporting compliance requirements.

"Unlike standalone physical models, this solution is integrated into the most extensible software environment available on the market to date, allowing banks to respond quickly and effectively to their own and their customers' changing business needs," Evans concludes.