More aggressive marketing activities planned as a result of better information mining from upgraded EDW
Hong Leong Bank today announced the implementation of one of the largest enterprise data warehouse (EDW) upgrades in Malaysia. The upgrade of its EDWwill provide Hong Leong Bank with a single view of its customers, products and services across Malaysia, Singapore and Hong Kong.
Ms Yvonne Chia, Group Managing Director of Hong Leong Bank explains, "Customer analytics is a journey that begins with the simple acquisition of thecustomer data and then mastering and extracting insights from this data by creating segments based on behavior and then acting on these insights to bestserve the customer's financial needs."
"The financial services needs of one differ from another and our EDW enables us to offer better tailored products. The powerful analytical applicationsallow us to gain valuable insights about our customers. With these insights, we are able to develop products that suit their needs more closely and ensurethat our offerings are designed and refreshed continuously. This further sharpens our competitive advantage and allows us to anchor our growth plan on aloyal customer base."
The EDW stores and processes granular information on hundreds of thousands of events and transactions of Hong Leong Bank's 1.7 million customers everyday.The upgrade provides the bank increased capacity to tailor its offerings and marketing campaigns to serve customers' distinct needs. By mining thisinformation, Hong Leong Bank is able to better understand customer profiles and thus enables it to match offerings against customers' distinct needs.
"The traditional paths of storing and evaluating customer information have served us very well in the past, as evidenced by our market performance. Thenext opportunity for performance is to build on this EDW capability to cultivate customer focus and advocacy. We will need to step up and deliver - enhanceour customer interactions - step up the service and fulfillment capability from end to end," said Ms Chia.
Over the past year alone, the Bank's user base grew six-fold. The Bank's cards business and mortgage business have outpaced industry growth two-fold.
We have people dedicated to harnessing all the information that EDW provides to include a Customer Knowledge Department and an analytics team. Theseinvestments in technology by the bank not only provide an integrated architecture for a consolidated view of customer information, it also updatescustomers' activities that flow through the EDW daily.
Since 2002 when Hong Leong Bank started on building an EDW, we have been doing continuous upgrades. EDW is seen as fundamental to attaining an agilebusiness and customer focus model to support our aggressive sales and marketing activities.
Aside from EDW as an integral business tool in the Hong Leong Bank's marketing campaigns, it is also part of the bank's strategic Basel II implementation.In this respect, the Bank has invested substantially in a Basel II system that will interface with the EDW. This Basel II system comes with capitalcomputation and credit risk modeling capabilities, which will also be used as the foundation for the Bank's Economic Capital. Besides Basel IIcapabilities, the system also caters for Financial Reporting Standard 139 reporting which will enable the Bank to meet the accounting requirements.
The technology behind the Enterprise Data Warehouse
The upgrade of Hong Leong Bank's EDW is based on a scalable data warehousing solution by Teradata, a division of NCR Corporation. Teradata is the globaltechnology leader in enterprise data warehousing, analytic applications and data warehousing services.
Dennis Samuel, Vice President for Southeast Asia and India of Teradata said, "Organizations around the world rely on the power of Teradata's award-winningsolutions to get a single, integrated view of their business to enhance decision-making, customer relationships and profitability."
Active enterprise intelligence enables Hong Leong Bank to generate daily customer insights providing the organization with an overview of its businessoperations as well as help the bank harness new opportunities.
"With a single, integrated source of enterprise-wide data, our customers like Hong Leong Bank, can leverage consistent, accurate data for analysis anddecision-making thereby providing them with the flexibility of looking at their customer insights in different ways," said Mr Samuel.
Hong Leong Bank chose to upgrade its EDW via the co-existence approach thereby protecting its previous investment. The holistic approach allows the bankmore than double its capacity and processing power to cater for its expanded growth. Hong Leong Bank has also invested in a Backup archive and restore(BAR) capability.
Press Release - 23/05/2007