The Wonderful Big Data Strategy At Royal Bank Of Scotland

   

   Seven years later after being bailed out by UK taxpayers, the Royal Bank of Scotland is

now using data analytics with a “back to the 70s” customer service strategy.The strategy is

trying to bring back trust to the bank’s customer’s back to a time where a bank would “when

bank staff would know a customer by name, understand what their needs were on a personal

level and attempt to offer services that support those needs.”

    One key point that the article brings up is how the Royal Bank of Scotland is trying to change the current relationship that banks has with its customer’s. With banks meeting less and less in terms of face-to-face meetings, it is hard to build a relationship with customers. So to fix that there are trying build a relationship through electronic mediums. For example RBS is “ wishing customers a happy birthday if they visit a branch on the day, and automated text messages to let them know that their cash is safe if they accidentally leave it behind after withdrawing it from an  ATM.” This is something that shows customers that RBS is looking after them.

    Another key point is how RBS is trying to rebuild trust with their customers. For example RBS is helping those with mortgages with them, Mortgage holders will also receive automated messages reminding them when fixed interest deals are coming to an end – rather than allowing them to automatically transfer onto more expensive variable rates – even though this will theoretically, in the short term at least, lead to a fall in revenue for the bank. “ With banks being known for being corporations that are only trying to make money, this new strategy definitely allows customers to look at banks in a new way and is definitely a way to try to regain trust.

Lastly is the point is that these banks have just begun to use their data collection in a new way. RBS head of analytics Christian Nelissen brings this fact up in the article,  .“We’ve traditionally been in the opposite position – we have a huge amount of data about our customer but we’re only just starting to make use of it. There’s a huge richness in what we have and we’re only just starting to get to the potential of it.” While they have all this data they are just beginning to put to good use and build upon customer relations.

One thing that the article I wish the article brought up was the fact that in 2014, RBS blew through all 46 billion they received in taxpayer money[2]. This is something extremely difficult to overcome in building customer service and trust. Also I would have liked to hear if other banks, specifically US banks and if they are trying to follow similar a path since the financial crisis of 2008. Lastly I wish the article brought up future plans for customer service and data.

[1]http://www.forbes.com/sites/bernardmarr/2016/04/13/the-wonderful-big-data-strategy-at-royal-bank-of-scotland/2/#42a324a94ae1

[2]http://www.dailymail.co.uk/news/article-2569787/RBS-squandered-penny-46bn-bailout-continuing-rack-huge-losses-financial-crash.html