Denmark based Danske Bank introduced MobilePay in 2013, and it is now the leading method of money transfer in Denmark. Now, Danske Bank’s Advanced Analytics is focusing on customer behavior and analytics, using Artificial Intelligence (AI) and Machine Learning (ML), to better assess data available from its customers.
Machine Learning (ML) uses AI to allow the computer to learn, without additional programming. “Basically, we got the mandate to tear everything apart in order to understand our customers better.
Today, we are 24 people in the team, and we have completed more than 30 projects,” says Bjørn Büchmann-Slorup, 35, the head of Advanced Analytics at Danske Bank. Two years ago, the unit was established as a start-up to connect predictive behavior to the communications, campaign and marketing units.
Using AI and ML provides better customer data analysis. “By analyzing customer data, we were able to identify the customer’s preferred means of communication, such as phone, letter or email. [This sort of valuable info] has helped improve our marketing campaign hit rate by a factor of four,” Büchmann-Slorup says.
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Advanced Analytics is also able to better assess customer’s needs with ML. When a customer changes jobs or opens new accounts, Danske Bank can use that data to rapidly determine the customer needs and has improved their campaign by 62%, using data to get the right information to the right customer, when they need or want it.
They introduced peer models, similar to TripAdvisor, which also help the customer choose the products best for their situation. “We introduced a concept called ‘Others Like You’, which enables us to show a customer the choice of people with a similar profile, [for instance when choosing] pension plans,” Büchmann-Slorup says.
Overcoming resistance within the company required education and persuasion to understand ML. “A lot of people […] expect instant ROI (Return on Investment) which is not realistic. You need resources to develop the right ML tools and [you need to] work with the users in the organization. That is why we in some ways consider ourselves a start-up within Danske Bank.”
“We got some initial funding, and we succeeded with proof of concept. Now we can invest further in new tools and skills.”Büchmann-Slorup says.
Over the past 2 years, Advanced Analytics has grown its research and products using AI and ML, to improve marketing campaigns by 62%, improve marketing hit rate 4 times, and continue to provide quality experiences for their customers who are choosing products.