To improve CX
Experts from leading finance companies share their views on data privacy, risks and initiatives to improve customer experience at Finnoviti 2020. Edited excerpts. Part 2:
As much as 64% of customers felt worried about companies using their data for data analytics, a recent study on data privacy concerns showed. And 74% of the customers said they are paranoid about their personal information being sold to third parties and 64% said if they can trust the company then they will share their information.
In these times when customer data is available at dead cheap rates, not all data available may be relevant data. Another aspect in data science is that do analytics for decision support, personal information may not be necessary. Hence data experts aver just collecting data does not make an organization competitive in the market. Besides, the most relevant aspect is the objective of the business for which the data is being collected. Governance and risk practices around data are extremely important for enterprises.
Participating in the discussion on `Data Privacy and Risk Initiatives to Improve CX’, Dharmender Narang, chief customer experience officer at IIFL Securities, said his organization looked at customers in a 360-degree view. “We know their transactions, investment, etc. Therefore, more responsibility is upon us to ensure that the data is secure. We must be more paranoid and careful than the customer. If our relationship manager is handling one customer, he will not be able to access data of that customer when he is not servicing that customer. To that extent, data is very restricted and we as a company take ownership. Our customers can trust us,” says he.
POSSIBLE MISUSE
Anand Bhatia, CMO at Fino Payments Bank stressed that it is important to protect a person’s data and identity because of the misuse that is possible. “For example,” he said, “a chaiwala selling tea in ä village in Durbhanga, Bihar, can become a victim of scams. It is therefore, most critical to protect the identity of the customers. If the customer really believes that his bank or service provider is doing everything to keep the information safe, then he is fine. Privacy and maintaining it is a complicated matter. It is a good thing that the regulator is digitally paranoid.”
Customers are sensitive about how companies make use of their data. While there are essential handshakes with third party systems like SMS gateways, email service providers, etc lot of them are on cloud today and it is important to ensure that companies use the best of technology to secure this information transmitted to their partners. Devendra Sharnagat, senior vice president - Analytics & Customer Engagement at Kotak Mahindra Bank, explained the technology usage to protect customer information: “Customer demands an alert from the bank if a financial transaction occurs in the account, but at the same time customer is expecting that the bank is using an appropriate technology to safeguard the sensitive data flowing through the system by adopting best of technologies like secured protocols and encryption.”
Poonam Vijay Thakkar, head, Analytics & Digital Communications at Aditya Birla Capital, felt that customers have evolved today and they do not think before sharing crucial information like credit card details because they have trust in the bank that it will inform them in case of any data breach.
RM CHALLENGES
Cost-efficiency and effective r i s k management a r e i mportant considerations for the life insurance
companies as they deal with so many proposals and clients. It is very crucial to underwrite and understand the risk that the companies are taking and that is where data and analytics play a big role in their business. Rakesh Wadhwa, chief customer & marketing officer and head of Products at Future Generali India Life Insurance, said over a period, his company is able to risk-profile the customers and give a score, and the underwriting team is able to find out the green channel customers. “There are certain customers who need more investigation. This approach has helped our P&L significantly,” he added.
Dharmender Narang makes the point that the biggest challenge for the company is to create trust among the customers. “We should take care of them and build trust among them. The analytical model helped us i n fraud cases. We have identified 25 scenarios where there could be a possibility of the transactions that are not expected to be,” he said.
IIFL Securities has a large team of sales and relationship managers and they have developed a model based on 25 scenarios. This helps the company to arrive at a risk number for every customer. This model is completely automated. It is done on an everyday basis to monitor day to day trading activity of the customers to ensure safety and build trust.