Charyn Faenza, Manager of Corporate Business Intelligence Systems, FIRST NATIONAL BANK
Peter L. Cherpack, Senior Vice President, Director, ARDMORE BANKING ADVISORS, INC
The impact of increased regulatory burden on all banks resulting from the recent economic crisis has been severe. In response to the pressure for improved risk management community banks have turned to new proactive risk management technology and data management techniques to prove anf improve their risk control.
These new processes include: proactive capital planning, concentration management and portfolio stress testing. Larger community banks are also preparing for or addressing Dodd Frank Stress Testing (DFAST).
What is expected by the regulators and how should community banks of different sizes approach such proactive approaches and models? While some expectations from the regulators for smaller banks are considered more modest, the modeling, validation and governance processes are essentially the same. The discussion includes an exploration of the DFAST requirements aimed towards middle market community banks and other simpler models for smaller banks.
Banks aren’t fully utilizing customer analytics. Worse, many banks aren’t utilizing customer analytics at all. This underdeveloped usage is a result of at least two factors: an overall immature state of data analytics at most banks as well as a lack of leadership at the top. This session will examine the state of customer analytics adoption in banking based on a recent Celent survey of North American banks and credit unions and explore how financial institutions can make progress even when management doesn’t lead.
Price optimization, elasticity modeling, and forecasting are all analytical terms that bankers have heard of. But what do they really mean? What are the nuanced differences behind each analytical methodology? Before your bank invests big bucks to beef up its in-house pricing analytical capability, we will explain to you, in laymen's terms, what pricing analytics for banks should be about as well as some of the cautionary tales you should be aware of.
Here are some of the key questions we will address:
Why is it that we typically apply aggregate (classic) elasticity models to deposits but choice-based models to loans?
Which pricing analytical methodologies are suitable / pragmatic for a smaller vs. larger bank?
How to define business rules and constraints in a pricing optimization algorithm?
What kind of pricing algorithms are sold by pricing software vendors? How are they different from each other?
In the past, when branch density was king, banks had developed a set of analytics to ensure dominance in the market. Over the past decade, however, significant changes to customer preferences and behaviors coupled with increased financial pressures have altered the foundation of network planning. Today, density has been replaced by visibility, and customers expect the convenience of communication and transactions across multiple channels. For Rabobank, a special distribution strategy adds another layer of challenges. The bank is foreign-based and mutually owned with a very specific agricultural and mid-sized city focus. In this session, you will hear from a seasoned Distribution Banker and Strategist about how new types of analytics, based on innovative views of segment potential aligned with visibility, are helping to design the network of the future.
Topics covered will include:
• Key innovations to marketing analytics, including Micro-Market segment potential and Multi-Line business logic
• How Rabobank used Nodal analyses to maximize perceived presence in their markets
• New developments, like Multi-channel behavior forecasting, that continue to enhance Rabobank’s capabilities