Management Information System

Case Study Analysis

“HDFC Banking on Business Intelligence and
Analytics Technology”

“Post Graduate Diploma in Management

(Term- III ; Batch 2019-2021)”

“Under the supervision of-“

Prof. S Ramaswamy

“Submitted by”
SHUBHANGI AGRAWAL
PGFA1951
PGDM GENERAL (A)
1- What are the benefits of integrating the SAS analytics suite with the HDFC
Bank’s CRM?

HDFC partnered with the Statistical Analysis System (SAS) Institute to apply business
intelligence analytics technology in order to take vital decisions in the diverse areas of
banking.
 SAS helped in generating the CRM solutions.
 Helped HDFC in understanding the customer behaviour and encouraged bank to
cross-sell. Ex helped in determining if the customer used HDFC account as a primary
account.
 Offered bank a consolidated, 360-degree view of its customers.
 Allowed the segmentation of customers and the identification of ‘imperia customer’.
 SAS also provided suggestions for the kind of products that should be sold to specific
customers.
 Using SAS HDFC can identify the debt exposure of each customer.
 Helped in customer acquisition, customer retention, and value management. This
reduced the turnaround time and decreased the response rate of each marketing
campaign.

2- How does SAS analytics ensure that HDFC Bank is complaint with the Anti-
Money Laundering (AML) regulations?

 SAS tool also enabled the bank to identify suspicious activities in banking
transactions such as large credit deposit, sudden withdrawals in otherwise dormant
accounts, movement of money into multiple accounts (called “layering”), or opening
several accounts within a short period of time.
 Bank is also KYC-complaint. The SAS application cleanses customer data and
classifies each profile into good or bad. This way when a customer opens an account
with the bank, the SAS analytics tool can identify the bad profiles with ease.

3- Discuss the use of SAS analytics in loan processing at the HDFC Bank?

HDFC has implemented fast- track retail loan (home, car or personal) processing for amounts
of less than five lakhs rupees. Customers can track the status of their loan applications online
within minutes of applying.
 HDFC processes eight to ten thousand loan applications in a span of eight hours, a speedy
credit approval has proved to be a blessing and has made possible due to the robust and
dependable technology offered by SAS. When a customer supplies for a loan online, the SAS
analytics tool verifies the customer’s eligibility. The customer can also determine the loan
amount and tenure of repayment that they are eligible for based on their current income,
among other factors.

4- What do you understand by debt exposure and role of analysis in determining it?
Using SAS application, HDFC can identify the debt exposure of each customer. Each month
HDFC rejects up to 2% of the loan applications because of the applicant’s record of
defaulting repayments. This way the bank has been able to reduce the losses by nearly 1%.

5- What is the future of analytics at the HDFC bank?

If we talk about business analytics, HDFC bank had made great plans to achieve success. “We
want to take our business intelligence to the next level.” said by Mittal. “It was said that
HDFC bank wants to analyse the behaviour of the customer so that they can be more accurate
and in understanding and fulfilling the needs and reducing the defaults. This will not only
help them in reducing losses and defaults, they can also predict propensity to buy or
propensity to convert. They said that next 6 – 18 months they will come up with more
solutions that will help them in getting better results and will take their initiatives to higher
level. At the end, it was said that the bank is planning to include these analytical decisions in
its future also. This will improve the strategic decisions, help them in expansion and will also
improve channel efficiency measurement and resource allocation.