Raddon, has launched a solution to help financial institutions better understand customers’ and members’ banking behaviors.
Predictive Analytics from Raddon allows financial institutions to build deeper relationships with members and customers through sophisticated targeting and segmentation, which helps drive greater customer value, share of wallet and ROI.
“When we heard that Raddon would be bringing predictive marketing capabilities to its suite of solutions, we immediately jumped onboard,” said Karen Church, CEO of ELGA Credit Union, the first institution to implement Predictive Analytics. “Consumers have a lot of options when it comes to financial service providers. If we can get in front of them to provide what they need, when they need it, that’s a big part of how we earn a place as the primary financial institution in their lives.”
ELGA is a long-time user of Integrator Advance and Performance Analytics from Raddon, and will combine Predictive Analytics with these solutions to create more relevant, timely offers for its members and community.
While the technology and algorithms that power Predictive Analytics are complex, the underlying premise and process are not:
- First, the Predictive Analytics system takes in up to two years of first-party data from the financial institution. This includes information from the core system on deposits, loans, mortgages, bill pay, credit card and other transactional data. Data is anonymized to protect personally identifiable information.
- The data is analyzed, and indicators are then attached to each anonymized consumer. Called a Key Lifestyle Indicator (KLI), these tags allow the institution to better understand consumer spending and banking behavior. Third party data is also used in this matching and analysis process, all in a manner designed to maintain consumer privacy.
- The technology then generates recommendations based on customer behavior, moving groups and individuals in and out of campaign audiences based on their habits, in near real time. Not only does the institution have a next-level view of how to plan and project offers and campaigns, the hard work of segmenting and targeting becomes more automatic.
“Institutions are challenged to bring in new deposits and achieve primary financial institution status across the board,” said Edward Wipson, general manager, Raddon. “Predictive Analytics can provide an edge that helps them be more relevant through timelier and better targeted marketing.”
Predictive Analytics from Raddon is available now and can integrate into any core banking system. It is powered by Key Lifestyle Indicators, a patented technology from Segmint, a leading technology provider that allows financial institutions to more easily understand and leverage data, interact with customers, and measure results through advanced data tagging, categorization, and contextualization of billions of transactions.