banco patagonia - FeaturedCustomers

BUSINESS WHITE PAPER / FINANCIAL SERVICES
BANCO PATAGONIA
We’re Reducing the Time to Market.
BANCO PATAGONIA / We’re Reducing the Time to Market.
TABLE OF CONTENTS
Executive Summary. . . . . 2
Executive Summary
Banco Patagonia believes that he who knows the most about their customer
Background. . . . . . . . . . . . 3
and can take relevant action in the quickest time frame will likely be the winner in the financial services marketplace. A strong commitment to
customer first philosophies requires an even stronger set of disciplines,
Time for a Change . . . . . . 5
processes, and employee dedication that can be greatly enabled by tech-
nologies. Having the right product or the right offer for a particular customer
or segment, and being able to deliver that offer in the right time frame via
Solution Selection
and Implementation. . . . . 6
the customer’s preferred channel is what the team at Banco Patagonia is
most passionate about.
Headquartered in Buenos Aires, Banco Patagonia has rapidly become one
of the top financial services providers in all of Argentina. While customer
Impact on the
Business. . . . . . . . . . . . . . . 8
first philosophies helped drive a significant portion of that growth during
the past 5 decades, growth by acquisition was also a key strategy for the
bank. With each new acquisition the business became more diverse and
the underlying technology infrastructure became increasingly difficult
to harness in fulfillment of their customer centric visions. An enterprise
data warehouse (EDW) project supported by Teradata infrastructure was
deployed in 2003 following a very large acquisition. While the EDW helped
unify many financial and operational data sets to provide a more complete
view of customers, the ability of Banco Patagonia’s marketing team to take
direct control of the campaign management process was severely ham-
pered by the lack of an automated customer relationship software solution.
Following best practices, the marketing and IT teams collaborated on
specifying the exact needs of a new campaign management solution and
what the logical business outcomes would be if they were successful. By
eliminating bottlenecks in the manual process, the collaborators realized
they could reduce the time to market, save money, and likely deliver smarter
response rates through a more differentiated customer experience across
multiple segments and channels. But underneath all of the business out-
comes analysis and the establishment of specific project objectives, there
were distinct tones of frustration, anguish, and underachievement given
both marketing and IT’s inability to fully deliver on the customer relationship
vision. Passion often does that.
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BANCO PATAGONIA / We’re Reducing the Time to Market.
Following a careful and well vetted evaluation process,
Background
Teradata® Relationship Manager as the solution of choice.
Banco Patagonia is an Argentine commercial bank head-
considerable backing from both IT and marketing across
largest bank in Argentina serving more than ¾ of a million
place for implementation, training, and adoption supported
corporate, public, and finance banking segments. Listed
sional services group. The solution went live in August of
Bovespa, Banco Patagonia is a publicly traded company
functional and technical specifications.
the outstanding shares will be held by Banco do Brasil, the
the multi-disciplinary team at Banco Patagonia selected
Teradata’s technical solution and support staff earned
quartered in Buenos Aires. The company is currently the 6th
a diverse set of criteria. An aggressive timeline was put in
customers in the retail, small and medium size business,
at each step by a dedicated team from Teradata’s profes-
on both the Buenos Aires Stock Exchange and Brazil’s
2009, on-time, on-budget, and in accordance with both
and in the near future (regulatory approval pending) 51% of
Within a very short period of time the anticipated process
largest financial institution in Latin America.
improvements began to materialize. Able to control their
Originally established as a brokerage house in 1976, the
ing team was quickly able to reduce time to market by a
late 1980’s through the acquisition of Finagen, the financ-
campaigns executed in a give quarter increased, while the
Mildesa, a commercial banking entity. Following more than
relevance, integrate channels, and drive superior results for
Banco de Rio Negro and was subsequently renamed after
own campaign segmentation and execution, the market-
company entered into the automobile loan business in the
significant, if not staggering, amount of time. The number of
ing arm of Volkswagen in Argentina and became Banco
quality of those campaigns helped reduced waste, improve
a decade of growth, the bank acquired the newly privatized
the entire enterprise.
Rio Negro’s home region of Patagonia in 2000. Additional
The return on investment in Teradata® Relationship Manager
the insolvent Banco Sudameris in 2003, whose portfolio
will meet the cost-savings only standards used by Banco
Patagonia in evaluating technology investments. It will also
continue to have a positive impact on generating revenue
and profitability as the vision of right product, right offer,
acquisitions were made as Patagonia gained control of
included Caja de Ahorro, the nation’s largest savings and
loan, and absorbed the Argentine operations of Lloyds TSB
Bank in the following year.
right segment, and right channel in the most responsive
Today, the company is a diversified financial services firm
tant, the entire business process transformation enabled
ARS as of 12/31/09) and over 2,700 employees. Revenues passion of those dedicated to serving customers the Banco
exceeding US$100 million (ARS 448.8 million), a 68%
time frame delivers real competitive advantage. Most impor-
with more than US$ 2.5 billion in total assets (9.759 billion
by Teradata Relationship Manager will continue to fuel the
in 2009 topped the US$ 375 million mark with net income
Patagonia way.
increase vs. 2008.
The bank has a nationwide network of branches and ATM’s
and is one of the few financial service institutions with physical presence in all Argentine provinces. A strong service
orientation has enabled Patagonia to direct its focus on
the customer and simplify the way a customer does business with a bank. Products and services include savings
accounts; credit and debit cards; consumer, housing and
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BANCO PATAGONIA / We’re Reducing the Time to Market.
student loans; time deposits, mutual funds, foreign currency
trading, safety deposit boxes, bill payments, bank transfer,
and remittance services. It also provides insurance services
related to retirement and pension; automobile and home
property insurance; life and accident insurance and holds
a clear leadership position in payroll services to the public
sector in Argentina plus a relevant and increasing market
share in the private business and corporate sector.
But the path to success was full of challenges created by
the absorption of many entities over the years. Each of
these institutions had their own systems and processes,
Mission To be active participants in offering
financial products and services to our customers
and highly responsive to their needs, by providing an expressed care for the quality of customer
service, in a place where our employees can
access opportunities for personal and professional development, all framed in the search for a
profitable, growing organization.
Vision To become a leading bank in the
transaction banking marketplace, with a strong
presence throughout Argentina.
and the resulting information technology and operational
environments were often in silos. The lack of data management principles across units often led to inefficiencies
Neve’s team quickly adopted the Teradata logical data
Sudameris, it became evident to senior leadership that a
wide range of information sources into a clean, common
and resulting higher expenses. By the 2003 acquisition of
comprehensive data warehouse solution was required.
“Data brings competitive advantage,” notes José Luis Neve,
Chief Information Officer at Banco Patagonia, “and the
development of an enterprise data warehouse (EDW) was
an essential step in achieving our vision of becoming a
leading bank in all transaction categories with a strong presence throughout Argentina.” Harnessing the expertise and
technical prowess of Teradata, Banco Patagonia deployed a
new EDW platform in 2003 and never looked back.
model for financial services (FS-LDM) and integrated a
structure for standardized processing, reporting, analytics,
and accessibility by the business users. “The EDW played
an important role in helping grow our business,” notes Neve,
and the entire organization quickly learned to leverage
information into daily operations, branch level profitability
metrics, performance improvement, and overall customer
service. As the customer view became more complete, and
customer level profitability measures became reality, the
ability to conduct highly segmented campaigns with the right
offer through all available channels was increasingly vital to
the bank’s growth strategy and resulting profitability.
With campaign success came increased utilization.
“Data brings competitive advantage,
and the development of an enterprise
data warehouse was an essential step
in achieving our vision of becoming
a leading bank in all transaction
categories with a strong presence
throughout Argentina.”
José Luis Neve, Chief Information Officer at Banco Patagonia
Marketing users required speed, agility, and increased
independence from IT resources to further refine their
segmentation schemes; yet extending accessibility was
technically challenging and had to abide by the ever
increasing complexities of customer data confidentiality.
Federico Lojo, Banco Patagonia’s Data Warehouse Man-
ager on Neve’s team, clearly felt the concerns of all and he
heard a chorus of “more, more, faster, faster” coupled with
market dynamics that we changing every day.
“It was not a pleasant situation,” noted Lojo, “it was time to
do something.”
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BANCO PATAGONIA / We’re Reducing the Time to Market.
Time for a Change
changing dynamics of the Argentine market and Patagonia
Banco Patagonia’s EDW was maturing and by 2008
uncovered because of a lack of speed in getting to market.
had been active for more than 5 years. Using Teradata
was not able to fully capitalize on all the opportunities
infrastructure and the FS-LDM, the EDW was capable of
Instead of applying action plans and insights from the IT
products, channels, profitability, transactions, campaign
operating tasks. Once they received the segmentation ness units across the bank.
segmentation criteria before delivering targeted customer
The campaign management process had always been a
defined credit limits, first had to assess the individuals
providing a wide range of information about customers,
produced data sets, marketing analysts were focused on
performance, credit, and operational risk to different busi-
files from IT they had to manipulate the datasets to apply
challenge at the bank. Marketing wanted flexibility and speed
of execution. Their ideal state was defined by a system
whereby they could conduct their own market segmentation
in advance of a specific offer or campaign. But the campaign
management process was not supported by a software
solution and marketing was reliant on Lojo’s EDW team for segmentation and all campaign preparation functions.
Lojo explains, “since marketing analysts didn’t have direct
access to exploit the data warehouse, they had full dependency on IT to make customer segmentations. We had
one fulltime IT human resource responding to all marketing
dataset requirements. Depending on the workload, the
analysis complexity, the changing needs, the rework due
to inaccurate counts, and the response time requested by
marketing users, sometimes that dependency generated a
bottleneck, so we had to apply more IT human resources datasets to operational touch points. Credit Risk, which
included in the segmentation to confirm that each customer
met the bank’s standards for lending risk. The approved file passed to the operational office, where the actual
campaign tactics were deployed and offers finalized,
including any production coordination with outside mailing
houses or credit partners. Finally, the information had to be
deployed across all channels of potential response and the
operational systems used by each channel to process
customer requests. The entire process could take as long
as two weeks.
Given the lack of integration and traceability, it was difficult
to control the workflow process. Moreover, the need for
human intervention in customer data manipulation and
delivery was resulting in time lost, low efficiency, weak
control, high risk, and low confidentiality.
to accomplish marketing requirements.”
Neve and Lojo knew that an automated Customer Relation-
The bottleneck was starting to impact business perfor-
users with the flexibility and independence to conduct their
mance. The quantity of campaigns, and their overall
effectiveness, were strongly correlated to the analysis
and segmentation of customer and product information
contained within the EDW. The longer it took to perform the
segmentation, and prepare the file for marketing purposes
across any one of the available channels used by Patagonia,
the worse it became. New products, services, and matching
customer segments were appearing rapidly given the
ship Management (CRM) platform could provide marketing
own customer segmentations while eliminating the risks
associated with the lack of confidentiality due to manual
data manipulation across each of the touch points in the
campaign management process. Working with the CMO
and his team, a plan to automate the process was developed in early 2008 with the following objectives:
1) The integration of all customer and prospect campaign
activities, including multi-channel campaigns, in a unique
CRM solution.
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2) Reducing time to market from up to two weeks to a few days.
3) Improving the traceability and work flow process from
origination to campaign response tracking and analysis.
The business users wanted agility and independence,
so the platform needed to be accessible and easy to use
from their perspective. Process integration needs and
response analysis requirements were also identified as
key priorities. Most important, marketing needed to ensure
that any technical solution allowed the analysts to re-focus
on the strategic elements of market segments, offers, and
communications.
Solution Selection and
Implementation
With alignment between the CMO and CIO, and a healthy
on-going dialogue among their respective teams, Banco
Patagonia began a search for the ideal CRM software solution in May, 2008.
Third party analyst reviews of the major software systems
were studied in-depth. Gartner’s evaluation methodology
was preferred by Patagonia and the “magic quadrant” tool
identified five (5) potential partners regarding campaign
management systems. IT led the first phase of the evaluation and one vendor was eliminated given the lack of a
The IT team needed to ensure that the CRM software defined presence in Argentina. After a preliminary round of
fied the type of functionality that would enable marketing to
make presentations and demonstrate full proof of concept.
process automation that would reduce the time to market.
final evaluation process.
solution would integrate easily with the EDW. They speci-
solution evaluations, three (3) providers were invited in to
conduct their own campaign segmentation and enable the
Marketing joined the presentations and collaborated on the
Finally, IT was looking for a short implementation and adoption timeline.
“The sooner we could select a partner, implement the solu-
tion, and provide the training and support needed to rapidly
adopt the tool throughout Banco Patagonia,” noted Neve,
“the better off we would be from a business perspective.” Teradata Relationship Manager emerged as the clear choice.
The vendor selection was based on a blend of attributes
scored by both IT and marketing. The skills and capabilities
of the potential partner were closely examined. Teradata was
a known factor inside of Patagonia given the positive EDW
experiences over the past 5 years. The flexibility and scal-
ability of the solution were key performance attributes scored
by the teams. Teradata Relationship Manager demonstrated
“The sooner we could select a partner,
implement the solution, and provide
the training and support needed to
rapidly adopt the tool throughout Banco
Patagonia, the better off we would be
from a business perspective.”
José Luis Neve, Chief Information Officer at Banco Patagonia
a wide variety of campaign management and segmentation
approaches which satisfied both business and technical
audiences. Additionally, Teradata Relationship Manager’s
installed base included many other large financial services
providers and clearly indicated it could scale to serve much
larger organizations with massive customer database and
campaign management needs. The knowledge of the bank-
ing and insurance industries was especially important criteria
to Patagonia and the Teradata team consistently demon-
strated their insights and past experiences with respect to the
business challenges Patagonia was facing. Teradata Rela-
tionship Manager also passed the user friendly test imposed
by marketing. It was obvious that the Teradata Relationship
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Manager user interface had been engineered and developed
“We could not have gotten the solution up and running
focus. The last evaluation criteria – the ability to integrate with
Neve, “and their knowledge-base, tools, and experience
with the needs and attitudes of marketing personnel in sharp
the EDW and be deployed quickly – left Teradata Relationship Manager as the uncontested choice for both technical
and business team members. Banco Patagonia and Teradata
reached an agreement in March, 2009.
4½ month timeline involving two data warehouse analysts from
the bank with solid EDW expertise and two Teradata professional services consultants. Project leaders from both sides
past experience with other Teradata Relationship Manager
implementations to avoid the unexpected.
Business
Units
Channels
implementation.”
As the implementation process unfolded, and training/ IT and marketing personnel met and decided to move one
data warehouse team member to marketing on a permanent
basis. The underlying knowledge of the data structure
contained within the Teradata system allowed this resource
consultants were instrumental in helping Patagonia throughout the implementation period and consistently applied their
allowed us to focus on the data warehouse side of the
adoption needs came into the overall project plan, Patagonia
The implementation project plan specified an aggressive were also involved. The Teradata professional services
in the time frame specified without their help,” comments
to provide an exceptional level of hands on support for the
on-going utilization of the solution inside the marketing team.
Teradata Relationship Manager went live on time on August 7, 2009.
Credit Risk
Operational
Office
Marketing
• Letter Mailing
• Credit Card
Pre-issuing
• Credit Card
Limit Upgrade
Alert to
make credit
qualification
MicroStrategy
Teradata
Relationship
Manager
Analytic
Applications
BI
Monitor
• Customer understanding
across the business
• Complex analysis upon demand
• Campaign Effectiveness tracking
Loan
Pre-issuing
Lead
Republication
Teradata
EDW
{
Propensity to Buy
Predictive Models
Lead
Responsive
Transactional
Systems
External
Systems/
Companies
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SGC
Contact Manager
System
Call
Centers
Bantotal
Product
Logistics
Credit Card
Companies
Mailing
Company
BANCO PATAGONIA / We’re Reducing the Time to Market.
Solution’s Components
Database
Teradata V2R6
Platform
Teradata 5450E 2-Node System
Cabinet
Users
Teradata Relationship Manager:
10 (5 concurrent)
Operating
System
UNIX MP-RAS
Storage
1TB
Teradata
Utilities
Teradata Tools & Utilities:
MultiLoad, BTEQ, FastExport,
ODBC Driver, JDBC Driver,
Administrator, Teradata Manager
Tools/
Applications
Teradata Relationship Manager,
MicroStrategy, PASW 13 (Clementine),
DTS Microsoft SQL Server 2000
Teradata Database:
35 (10 concurrent)
DBAs
3
Data Model
Logical: FS-LDM
Physical: 3rd Normal Form
Impact on the Business
“We went from 2 weeks lead time to execute certain cam-
As expected, the initial impact felt by Banco Patagonia
has gotten a lot better since Teradata Relationship Manager.”
was on the process and work flow side of the equation.
paigns to 1 day,” confirms a smiling Federico Lojo. “My life
Segmentation and campaign planning were 100% controlled
The streamlined work flow and the speed to market allowed
and channels gave them access to a single view of work
of absolute time. Within 6 months of solution adoption,
had the almost immediate impact of putting the market-
than 20% providing both an opportunity for more customer
campaign timelines while providing the ability to monitor
ated with the communications.
by marketing and direct interactions with credit, operations,
Patagonia to execute more campaigns in the same period
flow across the enterprise. Teradata Relationship Manager
the number of marketing campaigns increased by more
ing analysts in control of all customer information and
and understand what was occurring from both a process
and outcomes perspective. Speed in campaign execution
improved significantly.
touches and a more consistent cadence and pattern associ-
But it wasn’t just the quantity of campaigns, it was quality.
Teradata Relationship Manager gave the analysts more
precision in defining segmentation criteria. Complex analysis
could now be done on demand. The strategic side of marketing flowed out of the combination of better insight and
“We went from 2 weeks lead time to
execute certain campaigns to 1 day.
My life has gotten a lot better since
Teradata Relationship Manager.”
Federico Lojo, Banco Patagonia’s Data Warehouse Manager
more time away from operational tasks. Since campaign
results were being fed back to the EDW through the busi-
ness intelligence tools, a rapid learning/recalibration cycle
began which allowed Patagonia to improve precision, lower
outbound quantities per campaign, improve both channel
and offer relevance. Contact optimization had significant
business impact both from a cost reduction perspective and
increased customer response.
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TERADATA.COM
Within 6 months of the Teradata Relationship Manager
And, given marketing’s independence, fewer resources were
deployment, sales per campaign increased an average of
needed in IT during campaign crunch times. Bottlenecks
versus the previous year. Less waste in campaign man-
environment were significantly reduced.
10%, a significant contribution to the bank’s 2009 results
agement meant additional savings versus pre- Teradata
Relationship Manager time frames.
While Teradata Relationship Manager was generating the
expected impact, if not more, on the marketing functions
at Banco Patagonia, the impact on IT was also significant.
Campaign information was being fed back to the EDW
and improved decision making capabilities (near real
time) were now available to the data warehouse teams.
Enhanced flexibility gave IT improved responsiveness to
internal customers and allowed EDW analysts to devise new
approaches to unexpected problems on the fly. The data
warehouse team implemented daily execution of propensity
to buy predictive models within the EDW, further refining
marketing effectiveness.
The result was to extend data warehousing capabilities
to support many operational business processes and
improve organizational agility, all from the perspective of the
customer. Additionally, the Teradata Relationship Manager
deployment had eliminated many concerns over data
security and customer privacy by removing the manual file
adjustments across several internal departments.
were avoided and the costs associated with the previous
Lojo estimates that “cost savings alone will produce a return
on investment within 36 months” of Teradata Relationship
Manager’s initial deployment. He bases his estimate on
known cost reductions from process automation, improved
efficiencies, and less head count applied to manual proce-
dures. Additionally, his ROI calculations include reductions
in marketing spend due to the elimination of waste and
certain external fees from third party service providers no
longer needed.
While this approach is conservative, and the sales generating impact of Teradata Relationship Manager has already
proved to be significant, the true ROI is undeniable to CIO
Neve. “It is a matter of organizational agility,” he describes,
“the ability to think in terms of customers, understand
behaviors, build processes, analyze segments, and trans-
late that focus into action. That’s what gives us competitive
advantage. Teradata Relationship Manager has enabled us
to move quickly from talking about customer relationships
to applying a customer centric philosophy across each and
every aspect of our business.”
And future enhancements are being planned which will
enable continued contact optimization, including the ability
to send customized emails to customers along with their
“Teradata Relationship Manager has
enabled us to move quickly from talking
about customer relationships to applying
a customer centric philosophy across
each and every aspect of our business.”
José Luis Neve, Chief Information Officer at Banco Patagonia
credit card and account statements. The team also seeks to
add web analytics capabilities to the system for tracking and
analysis of customer interactions in the on-line channel.
“Our willingness to share ideas about customers, products,
and programs has increased dramatically since Teradata
Relationship Manager,” concluded Lojo, “and now everybody can participate in the process of doing what Banco
Patagonia does best – serving customers.”
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Copyright © 2010 by Teradata Corporation All Rights Reserved. Produced in U.S.A.
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