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HBYPHILBRin

Social networking,analytics are boon to

financialindustry

Financial services firms areemploying knowledge man-agement solutions to break

down silos within their organiza-tions, provide better analytics ofcustomer feedback and improveprofitability forecasting.

Social networkingenhances internal KM

TD Bank Group (td.com), head-quartered in Toronto, started employ-ing social media for some of itsinternal communications in 2008.The financial institution distributedbasic news and announcements, andenabled employees to comment ondifferent items.

That limited rollout producedunanticipated results. Commentsfrom internal social media usershelped TD Bank identify opportuni-ties more quickly and resolve issuesmore efficiently, according to WendyAmott, TD VP of social media anddigital communications. With tradi-tional group and committee meet-ings, concerns would typically takelonger to rise from the level of some-one noticing an issue, to the stage atwhich someone with authority couldtake action.

To expand its social mediacapabilities further, TD BankGroup undertook an extensivevendor selection process at thebeginning of 2010. Bank officialswanted the application to: handle

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the social media communicationsthe company already had, as wellas scale for growth; provide auser-friendly interface; managethe technical issues of operatingwithin a financial services envi-ronment; and work both in theUnited States and Canada.

More than a millionconnections

TD Bank looked at several dif-ferent solutions, choosing IBM(ibm.com) Connections, which metits needs better than any other appli-cations, Amott says. After choosingthe solution at the end of 2010, thebank and vendor worked together toensure that all aspects of the appli-cation were thoroughly tested forsecurity, reliability and functional-ity. TD Bank launched the solutionenterprisewide in November 2011.

Within the first six months, morethan 85,000 users were participatingin IBM Connections-driven socialnetworking activity, making morethan 1 milhon connections and form-ing 3,000 different communities, aswell as countless blogs and wikis.

By forming separate, smallercommunities, TD employees andexecutives have tightly focusedgroups, enabling solutions and dis-cussions to be on point, accordingto Arnott. Queries and suggestionsare more likely to lead to solutionsthan in a larger group, and there is

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less unrelated information throughwhich to sift.

TD Bank Group is evaluating thenewest version of IBM's applicationthat offers additional social net-working features.

Enhanced customerfeedback analytics

Fidelity Investments (fidelity.com),a large, diversified financial servicescompany headquartered in Boston,was receiving hundreds of thousandsof pieces of good customer feedbackannually from surveys, social mediaand contact center feedback. The con-tent included invaluable suggestionsfor improvements and enhancements,as well as customer sentiment infor-mation (e.g., agree, strongly agree,disagree, strongly disagree) aboutparticular products and services. Butthe sheer volume of the structured andunstructured data was too cumber-some to conduct any meaningfulanalysis, says Parrish Arturi, Fidelitysenior VP, customer experience.

"We wanted to be able to harnessthe voice of the customer andthe voice of the associate," Arturiexplains. So in summer 2010,Fidelity, based on information fromits technology research arm, lookedat a handful of different analytics

providers to see which could bestmeet its needs. After narrowing thesearch to two firms, pilot tests wereconducted using thousands of piecesof actual customer feedback to pro-duce analytics reports.

From the pilot, the company chosethe sentiment analytics platform firomClarabridge (clarabridge.com), based

categorizing all the unstructureddata shifted from data entry/datacategorization duties to true analy-sis work.

Arturi expects to expand the useof the Clarabridge application toFidelity's business-to-business unit,and then to enhance the applicationwith Clarabridge's collaboration

Within the first six months, more than 85,000 users

were participating in IBM Connections-driven

social networking activity, making more than 1 million

connections and forming 3,000 different communities.

on a combination of the vendor's peo-ple, process and technology, Arturisays. Fidelity initially made the deci-sion in the second quarter of 2011, andthen spent a few months outiining pri-orities for rolling out the application,which Fidelity started using at thebeginning of 2012.

"It has helped us to prioritizeimprovements in different cate-gories and different services offer-ings," Arturi says. Additionally, theanalysts who had been manually

capabilities for better teamworkwithin the company.

Improved profitabilityforecasting

PREMIER Bankcard (firstpremier.com) of Sioux Falls, S.D., likeother credit card issuers, saw reducedrevenue potential with the enactmentof the CARD Act in 2009. The newlaw limited some of the fees thatcredit card issues had placed oncardholders.

PREMIER had relied on highfees to protect itself from theincreased risk it took compared totypical card issuers. While mostcard issuers build their businessaround consumers with good creditwho were likely to pay their creditcard bills, PREMIER caters to peo-ple with poor credit histories. Thepotential for default is greater andcredit lines are lower, so potentialearnings from card usage are lower.

PREMIER had built its businessaround charging high upfront feesfor card usage. The issuer had to bemuch more exacting about whom itextended credit to, the size of thecredit line and other factors to con-tinue to be profitable, explains RexPruitt, manager of MIS, profitabilityand risk requirements.

"Our model is different; weprovide credit to individuals whohave been through hard times,"Pruitt says. "We work with peoplewho have damaged credit scoresand who are trying to re-establishtheir credit."

More time to analyzeThe issuer had been using a predic-

tive modeling tool, SAS (sas.com)

FINANCIAL continues on page 26

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IndexCorporate Index451 Research 13Accusoft 3Adaptive GmbH 20

Air Products 10

Appian 8

Applied Knowledge Sciences 17

Attensity 6

Autonomy 16

Box 12

atrix 12

Clarabridge 19

Cognocare System for Oncology . . . . 20

Cognos 22

Computas AS 21

CUNY Ventures 6

DLT Solutions 24

Dropbox 12

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EMC 6, 16, 20

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Fidelity Investments 19

Generali Hellas Insurance 20

Google 22

Greenplum 16

Hadoop 22

Harvard's Berkman Center

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HiSoftware 3

HSBC Bank 20

Huddle 12

lActive USA 20

IBM 6, 14, 18, 22

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Institute of Medicine 17

Jaspersoft 22

K2 24

KANA 3

KAPS Group 15

KIE Square 15

KnowledgeLake 24

Linkedin 16

Lucid Imagination 3,16

Microsoft 3, 12, 22

Newgen Software Technologies 20

Norwegian Food Safety Authority . . . 21

Novell 3

OpenText 20. 21

Palantir 22

Paneon GmbH 20

Pentaho 22

Perceptive Software 20

PREMIER Bankcard 19

QSuper Superannuation Fund 21

SAP 10. 22

SAS 19

Seton Healthcare Family 14

SkyDox 12

Special Court for Sierra Leone 6

SPSS 22

SRA International 21

Summify 16

Tableau Software 22

TD Bank Group 18

Telework Exchange 10

The George Washington University Institute

for Knowledge and Innovation 17

Tiie New Yori< Times 16

Twitter 16

U.S. Agency for Health

Research Quality 17

U.S. Department of Health

and Human Services 17

UWV 20

Vision Service Plan 20

Vivisimo 22

Workflow Management

Coalition (WfMC) 20

Zentek Corporation 1 0. 1 6

ZyLAB 6

Calendar

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Business performance ana/ys/s/teyperformance indicators

Soiutions for fédérai government

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Soiutions for digitai asset management

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November/December 12KM Promise and Reaiity Awards

Focus on global business coliaboration tools

KM in practice: soiutions in Web andinformation anaiytics

FINANCIAL continues from page 19

Enterprise Miner, since 2003. But thenew law required that PREMIER bemore exacting and look longer term atpredicting a customer's expected prof-itability. Pruitt explains, "We needed tobe able to automate the process, not justenter macro codes."

So in summer 2011, the issuerstarted looking for a solution thatwould provide more detailed forecast-ing capability. SAS again had whatPREMIER officials considered to bethe best solution, SAS Forecast Server.The application provides forecastsfrom a GUI, using variables suppliedto the system in the modeling process.

PREMIER selected the SAS solu-tion in October, started installation in

November and was on track to go livewith the application in mid-June of2012, according to Pruitt. When theapplication is fully operational, Pruittexpects PREMIER analysts to be ableto spend more time with actual analy-sis rather than simply writing andadjusting code to develop forecasts.

"We wanted our analysts, whowere spending 80 percent of theirtime writing macro code and only 20percent of their time in actual analy-sis to be able to change that aroundto only 20 percent of their time writ-ing code and 80 percent in actualanalysis," Pruitt says. I

Phil Britt is a freelance writer who focuses

on high-tech, financiai services and other

industries, e-mail spenterprises@wcwway.com.

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