GAS Event Session 3: A Customer-level Value Framework for Banks

Session 3 of the event by the Gulf Actuarial Society and the Financial Academy.
In commercial banking, as in most industries, not all customers are created equal. Typically, the 20-80 principle applies with a small portion of the customer base contributing the lion’s share of the enterprise value. It is therefore essential to know who these are. This usually means consolidating data across multiple business units to create a single view of each customer, and then quantifying the value of the customer by some metric. In this discussion, we will consider a framework that banks could use to identify measures of customer value as well as some of the practical challenges faced in deriving these. Finally, we will look at a number of use cases/case studies.