Independent Banker - June 2017 - 73

Case study:
" We haven't had one
bank yet that hasn't
been surprised by
[data from] at least
one branch. "
-TED WALTON,
MAIN STREET INC.
customer interactions and their true
value to the bank.
" A lot of organizations have been
late in the game; they tend to rely on
their core banking systems, but those
don't allow clients to slice and dice
and segment to understand not just
an individual account but the overall
relationship, " he says. For example,
core systems may keep checking
accounts and loans in separate systems,
making it difficult for bankers
to get a clear picture of an individual
client, much less a household.
360 View's software can suggest
a sales offer based on the products
a customer does not have, such as a
home equity loan or an IRA.
This type of system, when used
with a community bank's traditional
customer service, can kill two birds
with one stone. " [Customers] want
to be able to bank digitally and also
have the comfort of knowing they can
contact somebody locally-even millennials, "
Acevedo says.
And if there's one thing community
bankers know better than anyone
else, it's that data and technology
are powerful tools, but using them
in conjunction with old-fashioned
customer service is the most effective
way of building lasting customer
relationships.
Tom Groenfeldt is a writer in Wisconsin.
independentbanker.org
ICBA IndependentBanker 73
Seacoast Bank
Seacoast Bank, with assets of nearly $5 billion
and operations in eastern and central
Florida, started using customer analytics from
SAS about three years ago, says Robert Stillwell,
senior vice president and business analytics officer.
" If we had started down this path 10 to 20 years ago, this would not have
been possible, " he says. " But with software prices coming down, you don't
need a big mainframe. It was fairly easy to set up. "
Stillwell says that within six months, the bank was getting some wins
from the system. And within 12 months, it had developed a pretty complete
customer view and could begin to build marketing programs. The bank runs
on the FIS Integrated Banking Services core, so customer data were not
well structured around a number of legacy systems.
Before SAS, Seacoast Bank looked at transactions in silos: how many
Robert Stillwell
teller transactions; how many loan officer transactions. Now, it can take a
strategic view and unifies information to the customer to understand segments,
channel preferences and whether each customer is high value or
low value-using 13,000 variables per customer.
" We can predict the customer's lifetime value using their deposit, loans,
riskiness of loans, debit and teller usage, servicing costs-all integrated
into the model that is available in a user-friendly form to people in the bank
who need it, " Stillwell says.
One surprising finding was that 70 or 80 percent of teller transactions at
Seacoast Bank were simple deposits or withdrawals.
As Stillwell says, " That's a huge opportunity to push customers to other
channels, " which saves the bank money and makes banking more convenient
for its customers. By showing customers alternatives, the bank has
seen a steady movement to ATM and digital.
" Mobile is the game changer, " adds Jeff Lee, Seacoast Bank's EVP/chief
marketing officer. " We tell them there is a better way and show them how
easy it is. When they discover mobile will give them back half an hour in the
day, you have them. Convenience always wins. "
To get the message out, the bank mailed small checks for customers to
experiment with.
" 'Here's a few dollars; take a picture and it goes into your account,' " Lee
says. " It was the perfect opportunity for customers who might be nervous
about depositing a check. "
He's been surprised by the popularity of mobile check deposits with customers
50 and older; they are responsible for 12 percent of all the bank's
mobile phone deposits.
" And we are just getting started, " he says, " because mobile will throw off
more information we can use to understand customers better. "
-Tom Groenfeldt
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Independent Banker - June 2017

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