2014 ABN-AMRO Bank: characteristics/criteria Customer Affordability
The Dutch ABN-AMRO wanted answers to the question of which indicators and criteria could be used to obtain an ‘early warning picture’ of private clients who had borrowed money and of the possibility of supporting the client preventively. At the same time, an insight was needed into the validity of the use of Big Data for the support of customers.
The ‘scan’ developed (see next page) was filled in by ABN-AMRO employees about their own personal situation during the test phase, so with data that was as reliable as possible. The ‘scan’ proved to be reliable and used the latest set of techniques. The ‘scan’ has two ‘Objectives’. The first concerns subjects which are given an estimate of between 0 and 10. In the 2nd Objective, monetary values are entered ( in Euro etc.,)
1. My qualitative financial circumstances (estimates)
1.1. My personal living conditions (8 items/Drivers)
1.2. How do I handle my money (4 items/Drivers)?
1.3. My financial buffers now (5 items/Drivers)
2. My (quantitative) financial circumstances/spending pattern (in Euro etc.) at the moment and in 5 years.
In the first Objective (see next page) an estimate is given of ”My financial situation in 5 years”. In the second Objective (in monetary values) the current financial situation is recorded and also the estimated situation in 5 years’ time.
On the next page, Realization shows ‘the estimate in 5 years’. Along the Priority axis, the current percentage cost items are shown (related to the total income, etc.). The Realization axis shows the calculated increase of each cost item compared to the size of that item at the time of filling in a questionnaire.
This technique makes it possible to gain insight into the ‘strategic’ situation of a customer on the basis that if the bank and the customer were to communicate about this, timely action could prevent a disaster. Such customer data can also be compared to Big Data in order to analyse whether Big Data is valid and vice versa (does Big Data reflect the situation of that bank’s customers).
The intended insight into the validity and reliability of preventive indicators has been obtained.
