The Intelligent Digital Mesh: An Illustration of an Event-Driven model for Banks

An Emerging New Channel for Banks

The   Intelligent Digital mesh is an emerging trend and refers to exploiting connections between an people and businesses. The Digital Mesh represents events, that drives customers to spend more time acting on insights. The action by customers on insights leads to new business opportunities for banks. This article looks at how banking products can be embedded within an Assisted Online Advisory Service.

An Assisted Online Advisory Service is a 360° customer-centric, online, assisted robo advisory platform, that is capable of addressing the complete financial needs of a customer across his or her human life cycle. So how can a bank leverage this model to sell, up-sell and / or cross-sell its products?

1. The Input Drivers

A Bank can leverage two important Customer Inputs that form part of an Assisted Online Advisory Service, namely: Customer’s Risk Profile and Customer’s Financial Plan.

In the context of an Assisted Online Advisory Service, the question “Do you Intend to take a Loan to meet any of your Goals?” is an example of “Digitally Noted Business Event”. A well designed definition of Consumer’s Goals is a simple starting point for an engagement with the Consumer. Intend to purchase a home is thus an event that can be tracked. The fact that the consumer cannot purchase a home from his or her savings is another important insight that can be leveraged by a Bank.

2. Monitoring Event Sources

Events will become more important in the Intelligent Digital Mesh. In the example described above, the Assisted Online Advisory Service needs to respond to the customer’s need in two ways: By linking the event to the defined period, notifications can serve a useful purpose of engagement for the loan. However an even better model is to monitor the customer’s social and online event streams to determine if the customer has actually started looking for a home. A bank can server a customer better if it is aware of the current situation  and thereby make better intelligent decisions. In a competitive market, more intelligent decisions translate into greater success for banks.

3. Prepare, Integrate and Analyze

A bank need to monitor event streams in order to be alert to the presence of business opportunities. Sensing business opportunities and responding to them in "business real time" is central to a bank’s commitment to its customers. In the above example, a large withdrawal of a portfolio by the customer could actually mean that the customer is planning or is in the process of finalizing a home purchase. Should the Assisted Online Advisory Service or the bank respond to this situation? Hence analysis of both In-Memory Data and Contextual data needs to be analyzed and responded in real time.

4. Detect business opportunities

Human handling of real-world business moments is natural and ubiquitous. But human responsiveness is relatively slow and prone to error. With the use of in-memory data management and artificial intelligence, more business events can be detected faster and analyzed with greater intelligence. Increasingly, banks depend on an ability to detect business moments quickly and to respond intelligently, as they are detected. In the above example, detection of an event in the form of “Customer is searching online for a home” certainly would call for a business action from the bank. A Real time response in this case could be a Customer Profile Docket being shared by the Assisted Online Advisory Service with the bank. The Docket can form the basis of a Home Loan Assessment by the bank.

Alternatively, the Assisted Online Advisory Service can trigger a Self-Assessment Process where the Customer can better understand the home loan process, understand his or her eligibility criteria and seek a balanced assessment of what would work.

5. Publish alerts to relationship agents

To make decisions and operate in context, the bank must always collect and analyze past transactions and other historical data for relevant entities. However, the most impactful contextual data is often that indicates real-time conditions. For example, although it makes sense to direct a home loan opportunity on the basis of Customer Goal Setting, if the Assisted Online Advisory Service or Bank also take account of the current status of Property Purchase by the Customer, the decision by the Bank will be more-informed. As a result, the customer will be better-served and the bank’s  business will benefit. 

 Event-sensitive context discovery provides the strategic advantage of real-time situational awareness.

According to “Gartner” Events will become more important in the Intelligent Digital Mesh. There are two types of models that drive events - Request driven and Event Driven. Gartner suggests that both these models are complementary as can be seen from the Figure shown below.

An Assisted Online Advisory Service is a very good example of an emerging new channel for growth for banks (and indeed other Financial Products). The implement of the Intelligent Mesh can have far reaching potential for growth.