ITAU Credit Cards Project um 26th World Continuous Auditing and Reporting Symposium Rutgers University January 2013

Overview Scenario: Clients call the bank asking for a reduction of their card fees. Bank representatives offer discounts to clients to retain their accounts. Data: Retention Database: Each record represents a customer call Include information related to calls: call time, discount, clients, agents… 195,694 records Time frame: January, 2012 VBA Database: Each record represents an account Include various information related to clients, accounts 60,309,524 records Time frame: July, 1980 to March, 2012

Summary of tasks we have done Calculate and examine the amount of discount Examine the call time， its relationship with bank representatives, its distribution in different Polos, and its relationship with discounts Analyze the frequency of bank representatives Investigate the relationship between Polos and discounts Test the relationship between card type and discounts Merge the retention dataset with VBA dataset to analyze the successful retention rate and its relationship with other factors (discount, call time, card age…) Investigate what factors affect whether clients call in or not

Accomplished Objectives Find cases when representative offers the greatest discount possible. Analyze successful customer retentions Generate descriptive statistics for representatives, polo, product, etc Analyze duration of calls and their effects on retention

Audit analytics in the future We plan to estimate the most suitable discounts for customers in order to help the bank optimize its profit and retain as many customers as possible We plan to detect customers bringing low or negative profits, and build a model to predict whether a new customer will bring low profit or not Some customers tend to ask high discounts. These customers may decrease the profit of the bank. We plan to predict customers who are likely to ask for high discounts by analyzing customers’ profiles and financial status