Raiffeisen Bank International AG – RBI Adopts IBM SPSS Modeler Software Solution

Enterprise Background

Raiffeisen Bank International is Austria's leading international corporate and investment bank. It operates in 17 markets in central and eastern Europe, with affiliated banks, leasing companies and various types of professional financial service providers, taking Austria and central and eastern Europe as its home markets. Raiffeisen Bank International is the only Austrian bank with a presence in both Asian and world financial centers and a further focus on expanding its operations in Asia. It currently has more than 59,000 employees and serves 14.2 million customers worldwide, particularly in Central and Eastern Europe, through more than 3,000 locations.

Raiffeisen Bank International is one of the first banks to sign deposit insurance agreements. In addition, in the history of the transfer of the payment service from the government-run payment service authority to the commercial bank, Raiffeisen Bank International has also successfully transformed itself into the most active bank. The bank led the introduction of payment cards, including online banking services and small and medium-sized enterprise schemes, and took the lead in negotiating the establishment of credit foreign banks in the country.

Many international comparisons and awards testify to the success of Raiffeisen Bank International. For example: the "best bank" from the European currency and EMEA Finance; rated as "Bank of the Year" by bankers; national awards "Zlatni BAM" and "Kristalna prizma".


Challenges

Raiffeisen Bank International has always maintained a competitive edge in the market because of its investment in new technologies and a professional and experienced team. The bank also focuses on customized service for every customer, introducing new sales channels and innovative products and regularly mailing campaign messages. In the past, Raiffeisen Bank International relied on basic business data only to develop different activity letters for different customer groups.

Over time, Raiffeisen Bank International began to look forward to the benefits of mailing campaign messages. In order to improve the response rate, Raiffeisen Bank International not only provides appropriate services, but also tries to analyze and forecast the data from many sources through integration, to achieve better results. In order to provide a more real-time and effective marketing plan to design different marketing strategies based on customer characteristics, the bank chose the IBM SPSS Modeler software. Raiffeisen Bank International launched a pilot campaign to test the new solution and decided to focus on the campaign to send credit cards directly to customers. Because of strict business rules, the bank needed to minimize the number of credit cards issued to prevent excessive use of customer information, but they also wanted customers to respond to promotional activities with a high rate of response. The bank aimed to increase activity responsiveness by analyzing a range of customer data, including past purchases, demographics, activity channels, and product holdings from a variety of sources.


Solution

Analysts of Raiffeisen Bank International were impressed with the ease of use of the IBM SPSS Modeler software solution. In the first stage, different types of data combinations from multiple locations and formats can be analyzed. In the second phase, the IBM SPSS Modeler software was able to establish a predictive model to study the probability of each customer responding to direct mail. Different methods, including decision tree, discriminant analysis and neural network, were used to find the most accurate prediction model. Finally, according to the characteristics of each customer, the customer association rules were established, and the results of each model were combined with the actual effects of marketing activities to improve the current model. Throughout the various phases of the project, Raiffeisen Bank International solved a number of problems using IBM SPSS Modeler software.


Benefits

  • IBM SPSS Modeler software identifies six factors that affect the activity response rate, to reduce the average cost of the activity and increase profitability.
  • The prediction model established by IBM SPSS Modeler software can improve the accuracy of prediction by 20% compared with the past.
  • The IBM SPSS Modeler software is used to better understand customer needs and preferences in order to improve customer responsiveness, satisfaction and loyalty.


Relevant Cases:

  1. Insurance Company Builds the Telemarketing Response Prediction Model Based on SPSS Modeler
  2. OTP Bank Serbia Builds Prediction Model Based on IBM SPSS Modeler
  3. InSites Consulting Corp. Establishes the Sentiment Dictionary Based on IBM SPSS Modeler
  4. Direct Wine Conducts Differentiated Marketing Based on IBM SPSS Modeler

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