The distinctiveness of the banking sector makes it especially demanding as far as the quality of the employed system-wide solutions is concerned. Many different types of risk combined with narrow margins and high requirements of supervisory authorities compel banking institutions to use solutions of the highest quality, capable of delivering certified and well documented knowledge.

This year banks have a new challenge to meet. The introduction of the New Basel Capital Accord and the amendment of the banking law enforce an entirely new way of determining capital requirements and documenting various types of risk.

To help banks face this challenge we have created a package of risk management solutions. Our tools not only satisfy the external requirements of managing credit, operational and market risk, but also support risk management in a way which guarantees that the risk falls within the limits accepted by the bank executives.

Banks are exposed to risks which are not present in other lines of business. Among them one can identify banking frauds in the form of illicit operations done by customers. StatConsulting offers Fraud Detection solutions based on predictive models. Detection of internal and external frauds and abuses based on these solutions is a tried and effective method for financial institutions to lower costs while maintaining good relations with their customers.

The competition in the market of banking services is growing. At the same time more and more banks function as members of groups of financial institutions. Because of this, banks face tougher competition when acquiring customers. On the other hand, new opportunities of using customer data from other institutions within the same group are now possible.

Our sales support tools facilitate analytical support of CRM systems, increasing the effectiveness of Cross Selling and Up Selling within companies from the same group. Our software and data analysis services let companies segment and profile their customers, as well as create models which predict customers' responses to offered products. This translates into improved effectiveness of sales and better adjustment of supplementary products to the expectations of the customers, which in turn reduces the costs of marketing campaigns.

We also offer other solutions which support marketing, as well as actions which increase customer profitability.

Banks process enormous volumes of data. Our experience gives us ground to claim that usually the amount of data can be reduced by cleaning the database from incomplete or noisy records. This lowers the costs of storing, securing and processing information. Most importantly however, it also increases the reliability of the analyses and the credibility of the obtained results. StatConsulting has the necessary experience in Data Quality projects.

Financial sector support

StatConsulting specializes in providing analytical services for the financial sector. Our offer comprises predictive analyses for risk management support and analyses modeling customer behavior for the purposes of marketing operations and CRM.

Predictive analyses offered by StatConsulting facilitate risk management in financial institutions through

Credit Scoring and the evaluation of market and operational risk,
Fraud Detection,
Collection Scoring,
analytical support with regard to the New Basel Capital Accord (Basel II).

Besides the above listed analytical services, we also offer the following services aimed at marketing and CRM support:

customer segmentation and profiling,
analyses for the purpose of Cross Selling / Up selling - supporting the sales of additional or complementary products and services,
Churn/Retention analysis - estimating the probability that a customer will stop using our services,
optimization of marketing operations: the targeting of direct mailing campaigns and evaluation of advertising campaigns,
Customer Survival Time Analysis,
Customer Lifetime Value Analysis, based on the estimated profit a customer is likely to generate.

Fraud Detection

StatConsulting builds Fraud Detection models by relying on historical data available to the bank. Proper attention is paid to the special features of the products at hand. The form of the constructed model allows for easy and clear identification of business rules which determine with high probability that an illegal operation will take place. Our solutions can be implemented to automatically monitor loan applications and credit card transactions.

We also offer a supplementary risk estimation system: an adaptive Fraud Detection system, which supplements the conventional routines. The main purpose of this self-trainable system is the detection of fraudulent operations which fall outside the scope of business rules obtained by the conventional Fraud Detection methods.

Our Fraud Detection services cover:

preparation of the predictive variables and construction of the predicting model,
tailoring and adjusting the model to the bank's business procedures and its existing monitoring system,
statistical validation of the model,
updating of the model,
consultancy in managing Fraud Detection models and during the implementation of the on-line monitoring system.

Analytical support in regards to the New Basel Capital Accord (Basel II)

StatConsulting offers analytical support in regard to the New Basel Capital Accord (Basel II). We employ highly qualified consultants and use software tools which can model risk in accordance with the requirements of the Basel Committee.

We also provide support for the modeling of credit risk and operational risk and the calculation of these risks in accordance with the required level of security. In particular, this process covers data pre-processing, variable extraction and report creation. We also offer risk calculation methods employing various approaches recommended in the New Basel Capital Accord.