Priyank Singhal priyank.singhal@siib.ac.in Pavan Bhalavat pavan.bhalavat@siib.ac.in Rahul Halder rahul.halder@siib.ac.

in Symbiosis Institute of International Business, Pune

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Contents
Approach Types of Product Parameters The Proposed Model Some implications Future Improvement

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Approach
Using our analysis, the best suited approach is to tailor the database according to the new product. There can be many parameters that can be used to tailor down the database into the people who should be informed by calling and who should be mailed. For the sake of simplicity the basic parameters have been taken.
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TYPES OF PRODUCT
Generally, the products that is offered by a bank are mostly a mix of these products Deposits Insurance Loans Plastic money Shares Bonds Mutual fund Forex The four basic segments are taken into consideration. The new product can be the mix of these segments.

Deposits, Insurance New Product Plastic Money

Loans

Shares , Bonds & Mutual Funds

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Parameters
Personal Details

Personal detail is a very important parameter. The basic types of personal details are given below.
Segment A B.a B.b C Age Bracket 18-25 25-40 40-60 60 onwards Significance Education period or new jobs Job growth and family growth Job stable and family stable Retirement Marital Status Joint Account Type Locker Usage Type of Profession Educational Qualification

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Salary and Savings

The bank can have someones income account or savings account or both. If it has both, the tendency of savings for the income is used as a parameter. If the bank has either salary or savings account, then they are considered as separate parameters.

A
C
Group A
Group B Group C

B D
High Savings
Medium Savings Low Savings
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ONLY INCOME-WISE
Group A Group B Group C High Income Medium Income Low Income

ONLY SAVINGS-WISE

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Transactions
From the type and frequency of transactions, the financial habits of any person can be known. For determining the high and low in savings, the median of all the data is taken and the bifurcation is fixed. The frequency of transaction is then taken as the average of the frequencies taken for the average savings and the bifurcation is done.
Types of Card Used Frequency of Transactions

A C
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B D
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Card Code A B C

Usage Debit Card Credit Card Debit Card + Credit Card

Location Wise Segregation Location Type of Location Code A1 A2 A3 B C Urban Area of High Cost of Living Urban Area of Medium Cost of Living Urban Area of Low Cost of Living Semi-urban Area Rural Area Loan History Code

Loans Taken Type of Loan

A B
C D

House Loan Personal Loan

Car Loan Education Loan

Defaulting Probability
Cod e A B C Chances of Default Almost nil Medium High

Other important parameters are the persons locality, the loans he has taken and the probability of him defaulting. The factors in location can be determined by using the purchasing power of the locality and its real estate prices. The probability of defaulting can be determined by historical data of that persons financial condition and his present financial condition.
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Portfolio Based Analysis

If the person keeps a demat account with the bank, the bank can use his financial portfolio to determine the investment acumen of the person concerned. His knowledge, intuition, risk taking factors can be determined by analysis his trading. The historical data and the expert opinions can be used to bifurcation the shares into bluechip and risky. The persons trading style( short term, long term, intra-day) and the type of shares he buy can be used to analyze all the above mentioned parameters. This is one of the most parameters by our analysis and it actually helps us know the person better. Other factors are the investment portion in forms of mutual fund, bonds, investment etc
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Mind-Mapping by Analysis of Investment Tendency Types of Bonds, Mutual Fund, Insurance Purchased

The Model
DATABASE

FILTER

SELECTED

MAILING LIST
The person who uses internet banking or those who have provided their official email ids(e.g. @siib.ac.in or @nmims.edu) are favored in mailing.

CALLING LIST
The person who fits the parameter mix completely is called . The work profile of the person can be used to call him at the most suitable time.

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Examples of Filters For Various Products

The filter is the portion where the database gets sorted out into the most efficient calling list and mailing list. The parameter mix is used to filtered. The weightage given to each parameter is determined by statistical correlation. Some normal financial products are taken and the suitable parameter mix is shown.
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DEPOSITS
Fixed Deposits
Age Personal Details Married, Locker Usage, service sector Savings/Salary Transactions Frequency Card Usage Location Loan Taken Default Portfolio

B.a, B.b

C Savings B, A,C

B Salary B,C,A

B,D

A,C,B

A3,A2,B

A,C

B,A

A Other Bond, Insurance

Fixed Deposits With High Interest For Senior Citizens

Age Personal Details Married, Locker Usage, service sector C Savings/Salary Transactions Frequency Card Usage Location Loan Taken Default Portfolio

C Savings

A Salary

B,D

A,C,B

A3,A2,B

A,C

B,A

B, A,C

B,C,A

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A Other Bond, Insurance

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LOANS
House Loans:
Age
B.b, B.a

Personal Details Married, service, business

Savings/Salary
A, C Savings A,B B Salary A,B

Transactions Frequency
B,D

Card Usage
B,C,A

Location
A2,A3,B

Loan Taken
D,C

Default Portfolio
A,B A,B Other Insurance, Bonds

Car Loans:
Age B.a, B.b Personal Details Married, Single B,A

Savings/Salary B A Savings Salary B,A

Transactions Frequency Card Usage A,B,C 3,2,1

Location Loan Taken A2,A3,B D,A,B

Default Portfolio A,B C,A Other Mutual Fund

Educational Loans:
Age A,C Personal Details Single Savings/Salary D,B,A Savings Salary Transactions Frequency B,D,A Card Usage 1,2 Location ALL Loan Taken A,C

C,B,A

B,C,A

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Default Portfolio A A,B Other Bond, Mutual 13 Fund

Plastic Money
Credit Card
Age Personal Details Married,Single, A,B.a,B.b Business,S ervice Transactions Savings/Salary Frequency A Savings A,B B Salary A,B A,C,B Card Usage Location Loan Taken Default Portfolio 1 A1,A2,A3 D,A,B 1 C,D.B Other Mutual Fund

Debit Card
Age Personal Details A,C,B.b Single,Service Savings/Salary C A Savings Salary B B Transactions Frequency C,A,B Card Usage nil Location Loan Taken A2,A3,B A,D,C Default Portfolio all A,B,C Other Insurance, Bond

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Others
Shares
Age Personal Details B.b,B.a,A All Savings/Salary A C Savings Salary A,B A,B Transactions Frequency Card Usage A,C,B 3,1,2 Location Loan Taken Default Portfolio A1,A2,A3 B,A,C 1,2 A,B,C,D Other Mutual Funds,Bonds

Mutual Funds
Age Personal Details B.b, B.a, C All Savings/Salary A C Savings Salary B,A B,A Transactions Frequency B,D Card Usage 3,2 Location All Loan Taken Default Portfolio A,B,C 1,2 A,B Other Bond,Shares

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Further Improvement
The model can be further developed by using Big Data analysis of the customers activity on social media. Efficient Big Data Analysis can even lead to almost 60 %conversion rate.

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THANK YOU

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