Integrated Marketing and Risk Analytics Historically, the focus of credit card firms has been on number of acquisitions, not so much the quality and profitability of the acquisitions. This short term mass-marketing approach leads to lower response rates, higher cost per acquisition, higher default risks, and lower revenue per acquisition. The saturated market place and intensified competition has driven firms to focus on the return on marketing investment. | The fresh thinking and ideas were brought to the life by the team
A top US credit card issuer |  |
EXL’s Integrated Marketing and Risk Analytics is a profitability-centric, highly “targeted” approach for marketing. It uses enhanced “Customer Life Time Value” (CLTV) methodology and proprietary analytics toolkit, MicroAnalytixTM to identify “profitable” customers, and customize marketing channels and product offerings based on customer needs. The key differentiators of this approach are: - Estimating CLTV at customer level
- Evaluating each of the revenue and cost components separately
- Faster, accurate, innovative and comprehensive data usage enabled by proprietary analytics tools to develop a solution that best meets clients’ needs
It empowers Chief Marketing Officers, Chief Risk Officers, and other senior management to develop better customer acquisition, cross sell and retention strategies, which results in higher marketing ROI, customer satisfaction and long term profitability. Integrated Marketing and Risk Analytics is based on EXL’s 15 years of extensive experience leading marketing and risk analytics and working for the Top 3 credit card issuers. It has enabled clients achieve substantial benefits including: - Increased response rate by as much as 50%
- Reduced acquisition cost by as much as 66%
- Improved profitability per acquisition by 20%
- Reduced customer churn by 10%
Case Study EXL successfully deployed Integrated Marketing and Risk Analytics to enhance cross-sell efforts at one of the top European banks. EXL prioritized customers based on product offer NPV. EXL estimated customer-level profitability by developing predictive models for revenue, response and risk for each cross-sell offer. The approach drove 430% increase in NPV from $1.6MM to $8.6MM while bringing down the cost of acquisition by 80%.  Integrated Marketing & Risk Analytics Leaflet
Sustainable Claims Cost Reduction The property and casualty insurance industry is faced with rising claims cost and relatively stagnant revenues over the past few years. Pricing is controlled in the highly regulated industry while intensified competition and economic crisis is mounting additional pressure. Claims costs are surging with rise in adjustment expenses, upsurge in fraud incidents, and increase in sources of revenue leakage. EXL’s Sustainable Claims Cost Reduction is an analytics-driven solution to reduce claims adjustment expenses, identify and prevent claims fraud, and minimize other sources of leakage. The solution uses customized methodology and proprietary analytics toolkit, MicroAnalytixTM to address the key cost drivers across the entire claims life cycle. The key differentiators of this approach are: - Faster, accurate, innovative and comprehensive data usage
- Use of advanced techniques for data management, analytics and reporting, e.g. genetic algorithms, neural networks, etc
- Efficient business intelligence via dashboards that facilitate easy monitoring, decision-making, and process control
The solution not only helps Chief Claims Officer to improve financial performance via effective claims expense management and rigorous process-control enforcement, but also lays the foundation of sustainable growth. It empowers executives to improve process efficiency, reduce claims costs and revenue leakages while enabling timely and accurate risk identification. Sustainable Claims Cost Reduction is based on EXL’s extensive experience working with over 25 leading insurers. It has enabled clients achieve substantial benefits including: - Reduced claims cost by up to 3%
- Increased margin improvement by as much as 50%
- Improved fraud detection rate by 125%
Case Study EXL successfully deployed Sustainable Claims Cost Reduction at one of the leading US property and casualty insurance firm to improve effectiveness of subrogation decisions. EXL analyzed subrogation information for client’s Auto and Property Line of business and used advanced predictive analytics (two-stage heckman model) to identify and prioritize subrogation opportunities. The approach delivered ~$ 8MM in benefits to the client. Sustainable Claims Cost Reduction Leaflet Next Generation Analytics Delivery Generating business insights from analyzing large amount of data has become increasingly important for strategic decision-making across various industries. However, in many organizations decision analytics has mushroomed in an uncoordinated, fragmented manner, resulting in redundancies, contradicting analyses and ultimately high cost. EXL’s Next Generation Analytics Delivery helps revamp the analytics capabilities and delivery process by eliminating redundant activities, consolidating common and shared activities, standardizing the use of tools and platforms, and leveraging EXL’s best-in-class analytics capabilities. The solution addresses entire range of analytics activities including data management, MIS reporting, modeling and analytics, and insight generation across multiple business verticals. It leverages EXL’s proprietary MicroAnalytixTM toolkit to automate data validation, multivariate analysis, and modeling which can result in significant time savings and improvement in performance. The key differentiators of this approach are: - Faster, accurate, innovative and comprehensive data usage enabled by proprietary analytics tools
- Advanced techniques used to achieve better and most optimal model performance
- Extensive business knowledge to identify and integrate processes for higher efficiency and effectiveness
It empowers senior management to meet analytics needs at lower cost, higher quality and faster turnaround time. Next Generation Analytics Delivery is based on EXL’s long years of analytics experience, and establishing and running analytics Center of Excellence for clients across insurance, banking and financial services industries. It has enabled clients achieve substantial benefits including: - Lowered FTE requirement by 30%
- Reduced processing time by 30%
- Improved model performance by 20%
- Reduced analytics cost by as much as 50%
Case Study EXL’s Next Generation Analytics Delivery successfully transformed the way analytics is delivered at one of the leading global retail banks. EXL eliminated the redundancy prevalent in the marketing analytics for consumer banking and credit risk analytics for Small and Medium Enterprise banking. The efforts drove 40% reduction in FTE requirement. The analytics solution for cross-sell marketing led to improved targeting models with an expected NPV impact of ~$20 MM. Next Generation Analytics Delivery Leaflet E-Track Reconciliation Solution Many insurance and financial service companies still rely on a manual, non-standard reconciliation process, which results in long processing time, a ballooned FTE base, incomplete reconciliation, and often-times increased compliance risk due to incomplete reconciliation. | EXL Service have helped us to get back on track and reconcile our Balance Sheets to a degree we have not seen during the last years - now enabling us to look forward and further improve our overall situation in 2010 - something we could not have done without EXL
A top US credit card issuer | |
EXL’s proprietary E-Track Reconciliation Solution is a fully automated, standardized, web-based, easily accessible, and customizable solution across several reconciliation business processes. It empowers Chief Finance Officers, Controllers, Treasurers, and other senior management to manage account reconciliation activities effectively. It enables 100% reconciliations and exception management. It allows for pro-active identification and resolution of issues that could result in misstatements in financial accounting and reporting records leading to substantial write-offs. The key differentiators of this solution are: - Full automated
- Easily customizable to meet client’s needs
- Lower development time of ~2 months
E-Track Reconciliation Solution is based on EXL’s deep experience working with 25 large insurance carriers including 8 of the top 10. It has enabled clients achieve substantial benefits including: - Reduced reconciliation time by 50%
- Lowered FTE requirement by over 60%
- Improved reconciliation accuracy to 95%
- Reduced reconciliation cost by more than 70%
Case Study EXL successfully deployed E-Track Reconciliation Solution at one of the top global P&C insurance firm to reconcile booked vs. billed accounts. EXL automated the reconciliation process, which lowered the FTE requirements by 53%. It enabled timely reporting, which reduced exposure from overdue deductible losses by over 70%. E-Track Reconciliation Solution Leaflet Claims Process Optimization The insurance industry is faced with rising claims cost and relatively stagnant revenues over the past few years. In addition to external market factors, the claims process is largely manual and labor-intensive, with disparity in the process methodology across different business units and poor process controls. Even while initiating changes, the process is viewed independently of customer experience and needs, with limited use of industry benchmarks to set the target goals. These process inefficiencies further impact the claims cycle time, handling costs and customer satisfaction. | The team rapidly created process maps and SOPs across a wide spectrum of work in a relatively short period of time.
A top US P&C insurance firm | |
EXL’s Claims Process Optimization leverages process excellence methodology and proprietary tools for claims process improvement. It integrates customer journey map and claims process to create a new process that maximizes both efficiency and customer satisfaction. The key differentiators of this approach are: - Comprehensive customer journey maps to understand customer needs
- Detailed “task decomposition” for thorough understanding of business process
- Proprietary 25-point framework to identify optimal process redesign opportunities
- Proprietary “Project Management Tool” to track and evaluate ongoing performance
- Proprietary mapping tools for improved efficiency and lower error rate
It empowers executives and managers drive lower claims processing cost while reducing claims cycle time, improving customer satisfaction and enabling timely risk identification and mitigation. Claims Process Optimization is based on EXL’s extensive experience working with the top 10 P&C insurers, improving over 500 end-to-end processes. It has enabled clients achieve substantial benefits including: - Increased response rate by as much as 50%
- Reduced acquisition cost by as much as 66%
- Improved profitability per acquisition by 20%
- Reduced customer churn by 10%
Case Study EXL successfully deployed Claims Process Optimization at one of the leading global insurance firm to improve case handling and customer satisfaction. EXL reengineered the customer query resolution from an “Inbound Contact” to a “One Touch Process”, which included proactive status update and customer handling by same person. The approach reduced FTE requirement by ~100, increased customer retention rates by 15% and delivered ~$ 4MM in annualized benefit to the client. Claim Process Optimization Leaflet Rapid Integrated Transformation Execution Large numbers of insurance firms leverage traditional Lean Six Sigma (LSS) methodology for process improvement. However, traditional process transformation methodology is time consuming, disruptive to business processes and requires a large pool of dedicated resources trained in LSS disciplines. In addition, with over-zealous reliance on statistical analysis, the success rate and ROI often get eroded. | The team rapidly created process maps and SOPs across a wide spectrum of work in a relatively short period of time.
A top US P&C insurance firm | |
EXL’s proprietary Rapid Integrated Transformation Execution (RITE) methodology accelerates process improvement and maximizes ROI. The methodology innovates new techniques leveraging the principles of the Lean Six Sigma and deploying EXL’s extensive transformation experience. The key differentiators of this approach are: - Hypothesis-driven problem solving approach based on extensive insight on industry process improvement
- Focused data collection only for relevant processes and steps with smaller sample sizes and fewer data slices
- Informed goal setting with industry benchmarks to set achievable yet optimal goals
- Validation-based process mapping leveraging process map repository
- Accelerated change management using simulation techniques and large scale change implementation
It empowers management to drive faster process improvement and higher ROI, all while achieving long-term sustainability. RITE is based on years of extensive experience of EXL’s Lean Six Sigma practitioners, in leading operations and process excellence at firms across insurance and financial services industries. It has enabled clients achieve significant benefits including: - Reduced implementation cost by 40%
- Reduced wait time before benefit realization by 30%
- Increased ROI by incremental 100+%
Case Study EXL successfully deployed RITE to streamline the book-of-business transferring process at one of the top US insurance firms. EXL used comprehensive “Voice of Stakeholder”, detailed “as is” process mapping, and root-cause analysis to understand the key issues. EXL developed a work allocation model based on complexity of the agencies, and simplified the reference guide and hosting process, which resulted in sustained improvement across all performance metrics including 15% higher accuracy (to up to 99%), 30% reduction in onshore escalations, faster quote generation and higher conversion rates. Rapid Integrated Transformation Execution Leaflet Application Fraud Detection Fraud losses witnessed by the credit card companies are on rise. The existing fraud control measures are costly, time consuming and yet not as effective. In particular, the timeliness and accuracy of instant credit decision gets impacted because of the use of limited data inputs and dated algorithms. EXL’s proprietary Application Fraud Detection methodology enables higher and timely fraud detection in instant credit environment. The approach leverages in-house domain expertise in “comprehensive data harvesting”, “innovative data use” and “advanced fraud modeling”. The fraud solution also enables cost-effective investigation through EXL’s multi-shore delivery. The key differentiators of this approach are: - Tapping into right sources of data providers for the right data elements
- Drawing data for selective applications which is cost-effective and customer friendly
- Creation of additional innovative fraud detection flags
- Using proprietary MicroAnalytixTM toolkit for faster data evaluation and advanced modeling to identify the right fraud checks
It equips management with analytical tools to maximize fraud detection and drive loss prevention, all while optimizing the referral rates. Application Fraud Detection is based on EXL’s long years of analytics experience advising top US financial firms on effective fraud control measures. It has enabled clients achieve substantial benefits including: - Increased fraud detection by 27%
- Capturing 3X higher fraud rate amongst referred cases
- 40-50% incremental cost savings from off-shored fraud investigation
Case Study EXL successfully deployed Application Fraud Detection at one of the top US card issuers. EXL developed analytical decision process to detect application fraud in instant credit and point of sale environment. The solution having low referral rate of 1.5% and 9.4% fraud rate enabled 58% higher fraud detection and generated ~$12 MM gross fraud savings. Application Fraud Detection Leaflet Compliance Testing Optimization Over the past few years compliance activity has increased exponentially and is on a continual rise. There has been unprecedented increase in regulations while enforcing stricter compliance of the existing ones. Additionally, customers, partners and stakeholders are also putting pressure for greater security, higher visibility and transparency of risk control measures and performance. EXL’s comprehensive Compliance Testing Optimization methodology improves compliance operations and testing process driving higher test accuracy and compliance, while lowering cost. For testing, the methodology rationalizes total number of controls, improves testing efficiency and effectiveness and reduces FTE cost. The compliance operations optimization improves the underlying controls, people productivity, and enables ongoing performance tracking. The key differentiators of this approach are: - Proprietary analytics methodology, MicroAnalytixTM for Computer Aided Automated Techniques (CAATs)
- Proprietary risk-based methodology to prioritize controls and spend testing efforts commensurate with risk impact
- Easily customizable dashboards for timely, accurate and reliable reporting and performance tracking
- Suite of redesign levers to choose the most optimal testing and operations solution
It equips compliance and risk officers with proprietary and comprehensive methodology, advanced data analytics and process management capabilities to reduce cost of compliance while enforcing robust and effective compliance measures. Compliance Testing Optimization is based on EXL’s extensive experience of optimizing compliance process at firms across insurance and financial services industries. It has enabled clients achieve substantial benefits including: - Reduced number of testing controls by 20%
- Reduced compliance testing cost by 40%
- Improved compliance reliability by reducing external audit review efforts by 47%
Case Study EXL successfully deployed Compliance Testing Optimization at one of the top global insurance firms to optimize SOX compliance testing process. EXL eliminated duplicate and redundant controls for testing, increased reliance on entity level controls, and standardized SOX test processing. The efforts resulted in reducing testing cost by as much as 40%. Compliance Testing Optimization Leaflet |