The Business Situation:
A financial services company, due to volatile interest rates, needed a data model that could help predict it’s carrying costs and profitability on loans.

Each 1/8th change in interest rate points resulted in significant interest carrying charges it had to pay to its fund providers or left it in the situation that it was not able to meet it’s customers loan needs due to increased demand.

What was done:

A single view of it customer partners was created.
Historical fundings were analyzed for specific behavior
Behavior patterns of its partners was analyzed for the same specific behavior

The analysis was performed to identify good customer partners.

Business Results:
For each change in interest rates, a single input of the new interest rate, the business was able to better predict its money needs.

CALC THIS The impact calculation was:
1.2 billion
1/8 interest
One day  (overnight)

“Good” customer partners were nurtured for retention with additional customer care resources devoted to them.  while customers who “gamed” the system to their advantage were cut off or charged higher interest rates .

Technical Environment:
CRM System:
ERP Billing System:
Reporting Dashboard:
Database Warehouse Platform:
Data Model:
Data Cleansing:
ETL Tools:
Customer Data Integration:
Portal System:
EDI Platform:

Glossary:

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