At a glance
Brilliance Financial Technology (Brilliance) and Thought Machine have partnered to streamline the customer loan repricing and renewal process.
Solution category
Technolgy
Geography
Global
Built by
Brilliance Financial Technology
The challenge
Customer churn for banks is typically driven by competitor pressure, for example, another bank offering a more favourable rate on a loan. Banks need real-time insights into the profile of their customer, such as their repayment history, account balance, rate, risk-rated return and profitability at every touch point when managing retention or repricing. If a customer asks for better rates, bank staff should be able to reassess their repricing options based on the strength of the customer in real time (at both a product and relationship or portfolio level) in order to make an offer quickly.
The solution
Brilliance’s solution, DPX, works to directly address these challenges. DPX’s pricing and profitability optimisation features are integrated with real-time customer, account and balance insights from Vault Core. This enables bank staff repricing an existing client or managing retention to retrieve the latest customer information and recalculate pricing and profitability outcomes with new pricing parameters – on the spot and without guesswork. The bank’s customers get an offer in real time meaning they are less likely to churn.
Benefits
Real-time customer interaction
Thought Machine and Brilliance know that every banking customer is unique. This joint solution allows banks to individualise customer experiences by analysing and interpreting every repricing transaction intelligently and in real time. This gives banks the added benefit of retaining quality customers before it is too late.
Ease of integration
Both Thought Machine and Brilliance have built cloud-based platforms which allow for real-time insights into the true value of a customer for the bank. Using Rest API services offered by both suppliers, the banks have a wide variety of integration patterns available.
Reduced cost
Margin management during a repricing or retention event is often done through spreadsheets or using a rule of thumb. With DPX, banks can re-forecast returns, profitability and impact to their bottom line before a counter offer is made. As a result, banks optimise their margins, retain strong relationships and avoid loss making decisions.
Reduced time-to-market
Banks already running on Vault Core have access to DPX by leveraging the out-of-the-box API linking the two systems. Banks can replace redundant spreadsheet-based retention models and approval workarounds with a digital experience that banks globally have used for over a decade.
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How the solution works
Brilliance has extended their deal pricing and profitability platform to integrate with Vault Core through Rest APIs. DPX’s deal calculation framework and workflow is triggered when a staff member of the bank pulls up a client record in Vault Core and is required to reprice a product or a selection of products for that customer.
Using the UI that sits on top of Vault Core and DPX, designed specifically for managing retention or repricing, the bank can model impacts of a price change on the product and relationship before making an informed decision. If the proposed changes to a product pricing are within the bank’s risk appetite, the new price is pushed to upstream and downstream systems (including Vault Core) via API. If not, the DPX approval workflow is initiated following the bank’s business rules and parameters.
Upon deal approval, the revised customer rates are uploaded in Vault Core via API and the entire transaction can be tracked using the DPX audit process.
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