How PT Bank Danamon Uses Data to Understand and Respond to Customers
PT Bank Danamon is Indonesia’s sixth-largest bank, with four million customers and a network that stretches across the archipelago.
Competition for customers in the Indonesian market is especially fierce, with 115 banks to choose from, according to recent government statistics. Finding a way to stand out is crucial. PT Bank Danamon has ambitious goals to more than double the number of customers making use of mobile and internet banking channels over the next year - up from 30 percent to 80 percent and believes it can achieve that mark by harnessing the power of big data.
Differentiate on customer experience in a crowded marketplace
Though the bank has a lot of data, until recently it was held in around ten siloed data marts. The analysis was often performed in each silo and it could be difficult to understand how particular decisions had been reached.
A shift by Indonesian banks towards real-time customer engagement became a catalyst for the PT Bank Danamon project. That meant overhauling the bank’s existing static digital channels to allow for two-way communication with customers and overhauling the data infrastructure underpinning those channels that allow opportunities for engagement to be recognized so that a personalized ‘next-best action’ can be recommended for each customer.
Talend won the bank over with channel partner, Artha Solutions. PT Bank Danamon liked that Talend could run on-premises or in the cloud. The new big data infrastructure consists of an on-premises Hadoop cluster and Talend, which ingests more than 40+ source systems, including its core banking and credit card systems, and sets governance standards across the bank on how data is to be organized and used.
It now takes half the time it previously did to produce reports, saving PT Bank Danamon additional time and money.
Real-time engagement drives change
The bank is using the big data platform for two initial use cases. Under the first use case, the platform is being used to build a 360-degree profile of customers in a bid to better understand their behavior and recommend products or services they might like based on propensity modeling.
The second use case for big data at the bank is detecting suspected fraudulent incidents faster. The fraud team can now quickly generate a list of customers “who the bank thinks are conducting fraudulent activity” for further investigation. The bank believes it can further improve fraud detection with big data, moving towards more proactive detection.
Further use cases are under development. For now, work is ongoing to bring all data users across the bank onto the new big data governed platform that gives IT administrators control over data, reports, roles and functionality permissions for all users. It will ultimately be a single source of truth for all data held by PT Bank Danamon. “Eventually, all our divisions will be accessing the same data from a single repository. From the data analytics team to finance, risk management, operations, and even our branch network, everyone will be using it,” Setiawan said.