How HTLF Personalizes the Banking Experience with Trusted Customer Profiles

11

MEMBER BANKS ACROSS THE U.S.

20%

LIFT IN CUSTOMER PROFILE MATCHING

100%

OF ADDRESSES CLEANSED USING AI

To drive growth across its portfolio of 11 member banks, regional financial powerhouse HTLF needed a unified view of its customer data—one that spanned across states and business units, and intelligently matched relevant retail and commercial profiles. Using Informatica Customer 360, HTLF built a single, AI-powered view of its customer data, improving risk assessment, recouping sunk marketing costs, and delivering on customer obsession across in-person and mobile channels.

“We’ve flipped the paradigm of being account-centric to being customer-centric. We’re enabling the business to better understand our customers and how our relationships with them impact our business growth.”

Patrick Terry

Director of Enterprise Data Management
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Building a shared foundation of trusted customer data

HTLF is committed to better serving every customer—retail and commercial—and offering relevant products and services to improve their financial security and well-being. That means its employees have to get to know every customer’s household or business relationships, and have a clear picture of all parties, products and services associated with their accounts.

HTLF’s geographically diverse group of member banks are located across the midwest, southwest, and western regions of the United States—each with its own core systems for customer data. HTLF is moving away from being account-centric to being customer-centric which takes time, and it also takes the right technologies. When Patrick Terry became director of enterprise data management at HTLF, he set out to improve the bank’s retail and commercial customer profiling capabilities. He understood that master data management (MDM) was the answer to help HTLF become customer obsessed and bridge the customer data silos that existed within the bank.

“I’m passionate about applying data and technology solutions so we can get a complete view of our customers and provide them with personalized service,” he says. “To understand our customers and be able to view their households and profiles the same way across our member banks and different lines of business, we needed a single source of truth—not only for our retail banking customers, but also for our more complex commercial customers that have multiple relationships within our member banks.”

Because the 11 member banks used different core systems, compiling a single source of truth for customer data was time consuming for the data management team, and the manual processes were challenging to scale. For instance, it was not unusual for customer addresses to become outdated, causing a significant percentage of customer mail to be returned. This resulted in higher costs, limited marketing reach, and missed opportunities to personalize connections with customers.

“Now that we’ve standardized on Informatica as our MDM and data quality engine, there’s a lot more value we can deliver to our customers to personalize their interactions with us.”

Patrick Terry

Director of Enterprise Data Management

Establishing a combined ID to create a full picture of retail and commercial customer profiles

To establish a more accurate view of retail and commercial customers, all supporting data about each customer from various systems had to be tied to a single profile representing either a customer household or banking relationship. Working with Huron Consulting Group, an Informatica Platinum System Integrator, Terry and his team deployed Informatica Customer 360 to master its customer data. 

Architect viewing bar graph on digital tablet office

The team also deployed Informatica Data Quality to improve the quality and completeness of customer information. For instance, HTLF applied Zip+4 codes to identify geographic segments within ZIP code delivery areas before matching and merging addresses.

“We needed an MDM solution we could trust, with householding capabilities built in,” says Terry. “Informatica allowed us to solve our challenges with grouping customers by household quickly. We used Informatica’s flexible party data model to incorporate our more complex customer profiles.”

If a customer has both retail and commercial relationships with the bank, HTLF enhanced the matching to include these different types of customer profiles. For example, instead of just having a separate commercial customer profile and a retail profile, HTLF can now combine these profiles with a unique combined ID that represents the master profile across the entire relationship. It can also assign a different profile ID specific to the commercial or retail relationship, helping credit, risk and sales teams zero in on the information they need to make lending decisions and financial services offers.

“With Informatica, we improved our matching capability for households and commercial customer profiles by approximately 20 percent,” says Terry. “We don’t yet know the full financial impact, but we know it’s going to be substantial.”

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Becoming customer obsessed and bringing new capabilities to the business

With a “golden” record for each customer, employees in different lines of business and within member banks can view customer information whenever they need to, with the confidence that they’re using the same consistent data as other employees across the bank’s ecosystem. And to access that data, employees continue to work with familiar banking applications and systems.

Using Informatica Data Quality to cleanse customer address information—ensuring consistent quality throughout the data's lifecycle—more than 85 percent of customer addresses were corrected, cleansed or updated, and the four percent of addresses that were previously undeliverable were reclaimed. Terry explains, “With that first pass through the data quality engine and using the Informatica tools, we fixed all those addresses, cleansed them. We're still determining the dollar savings in terms of eliminating undeliverable mail, mail being returned to us, the physical handling of it, and having to contact the customers.”

HTLF is already seeing some positive impacts on its business as a result of using Informatica to better segment customer data. The solution saves employee and development time, and also enables the bank to enhance the customer sales experience, acquire new customers, and reduce attrition.

“Informatica gives us a scalable platform to develop a system of record for customer data that we can build upon,” says Terry. “We’ve flipped the paradigm of being account-centric to being customer-centric. We’re enabling the business to better understand our customers and how our relationships with them impact our business growth. We can also make progress toward important operational objectives, like fraud prevention and risk analysis across households.”

Customers will benefit as well, because they’ll see more accurate data as well as more relevant and timely product offers during mobile and in-branch experiences. Terry explains, “We can better serve customers by understanding them as individuals and not just as accounts. As such, we can better protect customers from fraud because we can look at potential threats across a household.”

Terry continues, “In addition, we can offer products or services that we might not have been able to before because we now understand the entire customer relationship with us. Becoming customer centric allows us to really affect the ability to be customer obsessed and leverage those relationships across our ecosystem.”

Mastering additional domains

Having demonstrated what Informatica MDM can do for the business through household data profiles, Terry plans to move quickly into mastering other domains, including finance, location, and reference data, to gain similar efficiencies.

“Mastering our customer data was the first stop on our MDM journey,” says Terry. “Now that we’ve standardized on Informatica as our MDM and data quality engine, there’s a lot more value we can deliver to our customers to personalize their interactions with us.”

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