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AI for insights and analytics

AI analytics for retail banking

Income can rise on more balances at a thinner margin, and a flat month can hide one product growing and another running off. AI analytics reads the balance, rate and fee files, splits every movement into balance, rate and mix, and answers product finance: where did income come from, and which branches open accounts that never fund.

Ask it in your own words

These are the questions retail banks ask. Each one maps to a measure our tools compute from your files. The AI model chooses the measure and explains the result; the arithmetic is done by our code, and every total is checked.

The questionThe measure behind itWhat comes back
Explain where my income came from this month.Net interest income bridgeThe change split into balance, rate and mix by product and segment, summing to the ledger exactly.
Where is margin compressing?Margin by productInterest margin by product and segment against the prior period, with the balances behind it.
Which segments hold the fees?Fee income by segmentFees by product and segment against plan and prior year.
Which branches open accounts that never fund?Opened and never fundedUnfunded openings over openings by branch and channel, with the accounts.
Where are deposits quietly leaving?Balance attritionBalances leaving against each customer's own baseline, by product and segment.
Are we missing plan, and where?Income against planActual against plan by product, segment and region, with the largest misses.

A conversation, with the figures

Every figure below was computed by a tool from the rows and checked before it was shown. The lines sum; the percentages match; each line opens to the rows that make it.

What is driving the change in net interest income?

Net interest income is up £9.0m on the prior year, split across 3 effects that sum to the change. Balance effect contributes £6.2m, 69% of the movement, while the rate effect is negative on mortgages.

Balance effect£6.2m69% of the total
Mix effect£1.9m21% of the total
Rate effect£900k10% of the total
The 3 lines sum to£9.0m0 unexplained

Which products are behind the balance effect?

3 products account for £6.0m of the £6.2m Balance effect, 97% of it. Mortgage balances grew fastest and gave margin away: the rate effect on mortgages alone is minus 2.1 million.

Mortgages£3.4mbalances up 9%; margin down 14 basis points
Savings accounts£1.6mbalances up 6%; margin held
Current accounts£1.0mbalances up 3%
These 3 are£6.0m97% of Balance effect

What should product finance take to the pricing committee?

The mortgage margin: balances grew because the rate was cut, and the bridge shows how much of the growth the cut cost. The committee decides the trade; the figures make it explicit.

Product finance, mortgagesTake the balance and rate split to the pricing committeeThis month
Regional directorsReview unfunded openings by branchWeekly
Head of product financePut the income bridge in the monthly packMonthly
Explain where my income came from this month.Where is margin compressing?Which segments hold the fees?Which branches open accounts that never fund?

The measures behind the answers

Each measure has one formula, one source and one meaning. They are computed per product and branch and in total, and every one carries an identity that must hold before it is shown.

MeasureFormulaFromWhat it tells you
Net interest income bridgeChange = balance effect + rate effect + mix effect, summing exactlyBalances and rates by product and monthWhether income moved on volume, on margin, or on the mix of products
Margin by productInterest income − cost of funds ÷ average balance, by product and segmentBalances; interest; funding ratesWhich products grew and gave the margin away
Fee income by segmentFees by product and segment against plan and prior yearFees fileWhich segments hold the fees
Opened and never fundedAccounts opened with no funding within 90 days ÷ accounts opened, by branch and channelAccount openings; balancesWhich branches open accounts that never become customers
Balance attritionBalances leaving against each customer's own baseline, by product and segmentBalances by customer and monthWhere deposits are quietly leaving
Products per customer against normProducts held ÷ customers, against the segment medianProduct holdings; customer masterWhere the relationship is one product deep
Income against planActual income − plan, by product, segment and regionIncome; plan fileWhere the plan is being missed, and by how much
Branch and channel productivityFunded openings and income per branch and per channelOpenings; income; branch masterWhich branches and channels earn

What the AI model does, and what our tools do

The AI model chooses the measure

From your question and the measures declared for retail banking, the model picks the one that answers it, and the period and comparison the question implies.

Our tools do the arithmetic

Deterministic code reads the rows, computes the measure, and checks the identities below. The same question on the same data gives the same answer, every time.

The AI model explains, and cites

The AI model writes the sentence around the result, naming the product or account behind it. It states no figure that is not in the result, and every figure links to its rows.

The identities that must hold

BridgeIncome end − income start − (balance + rate + mix) = 0
OpeningsOpened = funded + unfunded + closed within 90 days
BalancesClosing balance = opening + inflows − outflows, by product

What it reads

The exports retail banks already produce. Column names are mapped once and the mapping is reused. A file is the way in; scheduled delivery and connections to your systems come with the plan, and every source is listed here.

  • Balances and rates by product and month
  • Interest
  • Funding rates
  • Fees file
  • Account openings
  • Balances by customer and month
  • Product holdings
  • Customer master
  • Income
  • Plan file
  • Openings
  • Branch master

Who owns each answer

An answer is a list with an owner and a cadence, or it is a chart nobody works.

MeasuresOwnerCadence
Income bridge and marginProduct financeMonthly
Unfunded openings; attritionRegional directors; branch managersWeekly
Fees by segmentSegment headsMonthly

Questions retail banks ask about AI analytics

How does the balance, rate and mix split work?

The change in interest income between two periods is split into the part explained by balances moving at the old rates, the part explained by rates moving on the old balances, and the part explained by the mix of products shifting. The three sum exactly to the change in the ledger; a residual is shown, never hidden.

What data does a retail bank need?

Average balances and interest by product, segment and month, funding rates, fees by product and segment, and account openings by branch and channel with the first funding date. Customer identifiers can be replaced with codes before upload on Enterprise.

Can it see an unfunded account?

An account opened with no funding within the window you set is listed by branch and channel, with the opening date. The figure is a fact from the openings and balance files; whether the branch counted it as a sale is a question for the network.

Does it reconcile to the general ledger?

Interest income by product sums to the ledger's total for the period, and the bridge lines sum to the change. Where the product file and the ledger disagree, the difference is reported with the products involved, not absorbed into a line.

See it on your data

Bring a few thousand rows. The data map opens next, every column mapped once, and the first question is answered in minutes. Free, in your browser, no account.