Today, financial institutions are data-bound and have anchored analytics centrally in their culture. Data is at the heart of every business to increase efficiency and create value for customers. Delivering the right data at the right time enables businesses to proactively make smart and informed decisions. At the same time, it gives businesses a competitive edge in improving the customer experience.
Tata Capital, the flagship financial services company of the Tata Group, has successfully unlocked the value of its data and made it easily accessible, displayed and used across multiple businesses and functions. Thanks to its robust data ecosystem, TCL has been able to leverage the value of its data to improve its product offerings, improve customer service, increase operational efficiency and fuel developments.
Investing in the right infrastructure is key to building an agile ecosystem and establishing a data-friendly culture. Therefore, TCL upgraded its infrastructure to become a data driven company by investing in a data lake and migrating to a 100% hybrid cloud platform.
Bhavin Purohit, CTO at TCL, explained, “The first step in joining the data-driven journey was to establish TCL’s Data Lake, which streamlines structured data available into a single interface for users to use them meaningfully. We started with 25-30 base systems and expanded those base systems. Now, if we see through the 25 to 30 central systems, we have over 5,000 fields from different systems, which have been streamlined. Once the data is streamlined, you can begin your analytics journey.
For a much more detailed data rationalization approach, a close working relationship with the Sales, Risk & Credit and Data Science team is maintained to create a data dictionary, because the interpretation of data from the same domain may differ considerably. Collaboration with user teams distinguishes data from one system to another and simplifies the process of data analysis.
Product development and sales opportunities
With the sorted data architecture in place, it becomes easier for TCL to optimize its data analytics to develop innovative products and generate new sales opportunities. Data accessibility allows product and marketing teams to have a more in-depth and precise understanding of their target customers.
“These data points include important customer demographics and characteristics, market information, credit bureau data and other target customer micro-segments. The team accesses information from this data through interactive and user-friendly dashboards, which help produce products according to consumer requirements and expectations, ”added Purohit.
For example, TCL’s new digital auto-renewal model is designed only for channel finance customers. This auto-renewing loan will provide this service through the proprietary rules engine that consumes over 100 data points, including conventional and alternative data, to provide instant sanction. Due to the lack of pre-sanction documentation, client eligibility is determined based on their payment history and current market behavior. The goal is to enable faster credit decisions, improve the efficiency of the entire sign-in process to sanction, and deliver higher value to an eligible consumer.
Additionally, the NBFC uses the data to develop new cross-selling opportunities, which is an organic way to grow. TCL’s enhanced data and analytical base enables them to generate new sales and marketing campaigns while growing their business through current channels. The integration of advanced analytics and predictive models helps sales teams cross-sell effectively and efficiently.
Efficiency in the collection process
Another important area is TCL’s collection process, where the company uses machine learning algorithms combined with advanced analysis tools. Along with this, a comprehensive customer profile is provided to help understand the customer’s willingness or ability to pay. Additionally, the use of alternative data is becoming an important tool to effectively manage collections throughout the asset lifecycle.
Improve the customer experience
TCL customers can choose to be served through many channels, both online and offline, depending on their preference and convenience. On the online platform, customers can currently be served by logging into Tata Capital’s website, mobile apps, TIA (the chat and voice bot) on Alexa and now on Google Assistant as well.
Purohit says, “Data derived from TCL’s self-service options – for example chatbot conversations, email analysis to separate email hierarchy is very helpful in understanding the nature of customer queries or if they are faced with new obstacles. In addition, the company is able to personalize engagement with customers, expand the range of offerings according to their expectations and create a pleasant service experience.