Bank customer analytics start-up issued US Patent: innovator David McNab explains impact

Dec. 9, 2010 - PRLog -- David McNab, a pioneer of customer value measurement in Banking has been issued the US Patent for a new generation of customer analytics in financial institutions: measuring and understanding customer velocity. Startup FlowTracker Analytics Inc., owned by McNab, has developed this analysis method into a software application that reveals previously hidden customer behaviour, potentially increasing the effectiveness of marketing and performance metrics by 30% or more.

According to McNab: "Executives of full-service consumer banks know the difficulty of focusing resources on acquiring new money and curbing attrition of balances. Internal competition for balances among product and geographic silos within a financial institution diverts resources from actions that grow your deposit and loan portfolios. Cannibalization also introduces false positives when targeting growth and attrition prospects. The solution to these problems is performance metrics that separate new and lost money from money moving between business unit, branch and product silos across all financial services products within the bank and its affiliates."

McNab also claims "Internal flows mask key performance results by mixing new money sales with product substitution and lost money with product cannibalization. Distorted analysis of customer behavior results in excess contact cost, inappropriate customer contact, employee frustration, diminished customer satisfaction and ultimately lost business."

The FlowTracker method fixes these problems simply and efficiently. "FlowTracker is a repeatable process that derives and classifies flow of funds information from account balances precisely and efficiently, with a minimum of set up and maintenance cost. We have assembled an optimal business solution consisting of a proprietary analysis method, platform independent software, business rules that are readily customized to work with your data and the banking business expertise to solve the problems of inter-silo competition and false positive targets efficiently." says McNab.

Demo videos showing the new information and how it can be analyzed are available on the company website http://www.flowtrackeranalytics.com .

This represents a significant departure from traditional banking analytics. Think of the relationship between a company's income statement and balance sheet. Which do you measure performance with ? The universal answer is the income statement, of course, because it measures flows of revenue and expense instead of snapshots of assets and liabilities. FlowTracker is to customer portfolios what an income statement is to a business - it reveals what is going on in terms of customer behaviour enabling a bank to understand, manage and act on what it is really managing: customer acquisition, retention and relationship extension.

Hard to anser questions like these are answered with hard numbers that agree to the books:

New business questions:
 How much is coming from new customers ?
 How much is coming from other products ?
 How much is coming from organic growth ?
 How much is coming from existing customers ?
 Which products are being transferred into this one ?
 How much new money did my marketing campaign bring in ?

Lost business (attrition/churn) questions:
 How much business have I lost from ongoing customers ?
 How much have I lost from lost customers ?
 How much is being transferred to other products in the bank ?
 How many customers - and which ones - have paid down debt by liquidating investments ?
 How much of my lost business is lost internally ?

Armed with this new insigtht into customer behaviour, banks are now poised to improve the efficiency and effectiveness of customer communications dramatically.

The FlowTracker analysis method is patented in the USA and is patent pending in Canada.
Much more information is available on company's website is at http://www.flowtrackeranalytics.com . Mr. McNab's professional profile can be viewed at http://ca.linkedin.com/in/davidmcnab

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About FlowTracker Analytics Inc.
FlowTracker Analytics is a private company headquartered in Thornhill, Ontario, Canada. Founded by business measurement innovator David McNab, it is the sole provider of the FlowTracker software product that leverages the patented method developed by McNab.