About
Supplementing traditional Business Intelligence (BI) with powerful Location Intelligence (LI) thereby creating a new way to visualize, analyze and track partnerships, sales, customers and prospects.
Innovation presentation
India, with an area of 3,287,000 square kms and a population of 1.2 billion spread across 29 states presents a lot of opportunities for a retail banker. However, the size and complexity leads to unique challenges:
• Understanding various micro-markets and tailoring strategies accordingly
• Designing the branch/ATM expansion strategies across a diverse geographical region
• To strike a balance between centralized/local decision making
ICICI Bank recognized the importance of geo-spatial analytics in driving a business model that would not only be profitable but would also provide a sustainable expansion in terms of physical reach and growth.
There are three aspects to geospatial analytics detailed below:
• Data Collection: ICICI Bank collects data from multiple sources and puts a heavily analytical governance framework around the quality of data acquired and finally the same is harmoniously merged to form an action oriented data structure
• Data Processing/ Insight Generation: ICICI bank extensively uses data overlaid with a geospatial element in formulating and executing overall bank strategy. Some of the techniques used are:
o Micro-market potential estimation – Creation of potential index
o Predictive analytics – Next likely transaction that the customer will make , based on customer location
o Spatial clustering – To find dense clusters of population
o Network analysis – To understand geographical spread of customer transactions
• Data Dissemination: Complex models are also used to drive micro-market expansion strategy which is risk-return engineered. Local teams are empowered with neatly crafted summaries of catchments to drive strategies
Result
Sales team benefited by getting 360 degree view of the catchment (micro-market) which in turn helped in gaining market share. Application of Geo-Spatial concepts enabled central team to take several strategic decisions.
Uniqueness of the project
Amongst the major banks in India, ICICI Bank has been the first to deploy a full-fledged geospatial data based analytics solution. Way back in 2009 analytics based on location was popularized by ICICI Bank’s use of pincode level data from credit bureau; ICICI Bank saw the importance of geospatial analytics much before the competition.
The Bank believes that there are two key strengths that set ICICI Bank apart in terms leveraging geospatial analytics, not only amongst competition but as a practice within the industry as well:
• Granular micro-market strategy: ICICI Bank caters to over 45 million customers spread across a vast geography. Besides the vast spread of the customers, ICICI bank is able to track and respond to customer location at a granular level of latitude and longitude. Delivering customized solutions and creating mirco-market strategies that are in line with the needs of the customer. ICICI Bank also constantly strives to dive deeper into the more fragmented rural markets by effectively using geo-spatial data.
• Real-time customer relationship management: ICICI Bank recently adopted ‘Big Data’ platform and has focused on geospatial analytics as one of the primary use cases. Further, Setup of Hadoop data lake will allow capture of unstructured and raw spatial data files and will allow ICICI Bank to explore and research new avenues of data, setting examples and benchmarks for the rest of the industry to follow
