Customer journey and sustainability, new approaches to small business: CRIF solutions and experience at the ABI #ILCLIENTE 2018 event

On April 9-11, the latest edition of the ABI conference #ILCLIENTE 2018 was held in Milan. CRIF talked about its experience and took a closer look at topical issues for credit companies relating to customer relations.

In particular, in the session dedicated to “Multi-channels and client paths”, Gaia Cioci, CRIF Marketing Sales Director, gave a presentation on “The customer journey..... First stop: sustainability”.

“The consumer credit market is going through a positive period. Over the course of 2017, the volumes of credit granted continued to strengthen, helped by the return of risk indicators to pre-crisis levels. The first 3 months of the year saw an increase in the number of loan applications registered in the EURISC credit reporting system, while mortgage applications were held back by the return of subrogations. On the other hand, we are seeing a concentration of the reference market due to the effect of a negative demographic transition. Therefore, to continue the growth trend, it is essential to seize the opportunities offered by digital channels and tap into the preferences of Millennials, ‘reeling them in’ as best as possible. For this, a customer journey has been developed which enhances satisfaction, meaning greater simplicity and speed of accessing services, as well as the sustainability to build trust and loyalty”, explained Gaia Cioci.

“In this scenario, the basics of credit obviously don't change, but rather evolve towards new guiding principles and models. For this reason, CRIF has developed new customer relations tools, essential for managing credit in 2020 more innovatively than in the past. Specifically, CRIF provides a solution which enables the construction of a completely digital customer journey: smart onboarding through a simple photograph of an identity document, digital signature of the contract, one-click creditworthiness assessment, and supporting app. What's more, the reading of information assets - both internal and external, and newly available with the implementation of PSD2 - through more innovative metrics than before, allows for new and more powerful propensity and risk indicators, guaranteeing growth in line with the sustainability profile of the customer (and consistent with the credit company's risk appetite), from the point of onboarding. Finally, in order to prevent customer attrition and/or to identify the overall potential, the CRIF solution promptly manages any signs of changes to the customer profile, offering the best level of service to maximize customization of the offer in terms of needs, opportunity and sustainability, improving the customer experience in the C2B era”, added Cioci.

The Small Business session included talks by Pierpaolo Cristaudo, CRIF Big Data & Marketing Analytics Director, on “Using big data to get to know SMEs: production chain analysis in Italy”.

“Chains have always played an important role in the Italian economic landscape, above all in the design of a development and interrelationship model between enterprises which is unique and of great interest, not just to industrial economists, but also to the banking and financial system. The definition of chain (intended as the set of interrelated activities that make up the value chain of a product/service and which comprises all the activities that contribute to the creation, transformation, distribution, marketing and supply of the product/service) requires a particularly complicated and laborious reconstruction and mapping of the interconnections between companies. In this context, big data enable the limits of more traditional industry analysis to be overcome and allow the links in the value chain to be reconstructed from information (structured and unstructured) coming from heterogeneous sources”, explained Pierpaolo Cristaudo.

“The methodology developed by CRIF applies big data analytics techniques to the study of local chains, resulting in the identification of 10 macro-chains on a national level”, added Cristaudo. “Each macro-chain is further divided, giving a total of 39 chains. Furthermore, using clustering and geo-referencing techniques, the chains can also be contextualized on a geographical basis, aggregating companies belonging to the chain in the same geographical area. In this way, it is possible to identify local concentrations of companies that operate in the same value chain. Chain analysis is a key tool for the banking system, in particular with regard to:

  • the development of a product offering by chain, and more in general commercial strategies differentiated on the basis of the chain concerned;
  • the search for key companies that operate across more than one chain, identifying the phases of the chain that generate the most added value and best performance, or vice versa, pinpointing areas of potential fragility in the chain;
  • the creation of credit risk indicators linked to the ‘contagion’ effect of financial stress in the chain”.

“The specific analysis of companies and of the context they operate in (geographical area, customers and suppliers) is a plus point which goes beyond the concept of traditional aggregate analysis, proving particularly useful when combined with forecast scenarios, again by chain. Big data analytics technologies enable an overview to be constructed that represents an innovative investigation tool, but also a source of added-value insights to put into the hands of operational development to support negotiation and relationship actions”, concluded Cristaudo.

Most recent articles
  • CRIF invited to talk at the Gartner CIO Leadership Forum 2019

    Today, banks find themselves in a scenario that is undergoing considerable transformation, and this can be managed through an understanding of exogenous market dynamics while maintaining focus on customer retention. In a strongly competitive market, customer relations and engagement must become absolutely central, in the knowledge that 55% of customers state that they would consider switching banks.

    Read More
  • CRIF speaks at the 12th Annual Banking Credit Risk Management Summit

    The 12th Annual Banking Credit Risk Management Summit, held in Vienna on February 12-14, 2019, brought to the table topics for discussion ranging from the challenges and issues under IFRS 9, to the new regulations for A-IRB, the latest Basel III finalization changes, the stress testing and innovations in digitization in the credit risk management.

    Read More
  • Structured securities and NPLs: Bank of Italy findings and new tools offered by CRIF Group

    European banks are not out of the woods yet. This was the finding of a recent international meeting organized by the Catholic University of Milan, together with CRIF Group and the Credit Risk Club. The speakers focused on the so-called “illiquid assets” held by lenders, and more precisely non-performing loans and structured securities (financial instruments without reliable market prices, and which accounting standards require to be recorded according to internal estimates).

    Read More