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dc.contributor.authorHocalar, Simge
dc.contributor.authorRaymaekers, Nina
dc.date.accessioned2022-04-28T07:16:50Z
dc.date.available2022-04-28T07:16:50Z
dc.date.issued2021
dc.identifier.urihttp://hdl.handle.net/20.500.12127/7046
dc.description.abstractThis thesis discusses the question “Is the bank ING Netherlands in a position to propose a data insight solution to its wholesale clients?”. This subject emerged as external elements push banks to be more data driven and innovative. Market trends such as open banking initiatives, traditional revenues being under threat and increasing clients’ demands create an urgency for ING to adapt to the current market reality. The scope of this paper is narrowed down to look at the validity behind answering this question across three evaluative axes: desirability, feasibility, and viability. This was done by first exploring if the bank’s wholesale clients would be interested in such insights through a primary customer research, then by examining if its internal capabilities were adequate to doing so through analysis, and finally confirming viability of the project via an internal situation analysis. For the purpose of this study, we focused on the bank’s Dutch entity, gathering most of our information from employees in the departments of payments, sales and data analytics via semi-structured interviews. Through our research we were able to establish that all three components were addressable for this proposition. Our analysis of desirability has shown that ING’s wholesale clients want to better understand industry trends and habits of their customers, in order to make strategic decisions regarding store offerings, closures or expansions. In gathering such information, they currently are frustrated by incomplete data sourced internally or embark on a lengthy process to get it externally giving them only a snapshot in time. Therefore, to satisfy their client’s needs, ING has to incorporate information on share of wallet and segment overlaps in a potential product offering. It is clear that clients will be interested in acquiring this product under this form. Regarding the feasibility, we conclude that if ING decides to continue with this project, the bank is capable to develop such a data-driven product. First of all, the clients’ needs are addressable in terms of ethical compliance. This means that ING is able to create a final product which is both desired by clients and feasible for ING to execute. Furthermore, ING is able to offer the data insights in subscription-based bundles, since this is preferred by the clients as well as achievable for ING. The creation of a platform would support the distribution of the bundles and can be easily created as ING has the experience and a data analytics team is available. Lastly, internally the bank has the necessary components that are relevant in constructing the data proposition. The strategic mindset focused on data, the strong positioning and the unique selling point enforce the possibility that ING is able to create data insight solutions for their clients. For the viability of this project, we can conclude that ING should pursue a data proposition. The external market analysis indicates that banks should operate in an innovative way and utilize the data they have in order to keep up with the current market trends. Especially threats regarding traditional revenue streams, open banking initiatives and the changing needs of corporate clients push banks to adapt. Furthermore, within the current competitive environment we believe there is a space for ING to establish itself as one of the main banks, as no other ones were yet detected in the Netherlands who offer this type of data proposition. However, ING should be aware of emerging fintechs as they form a substantial part of the competitors who pose a threat. Additionally, previous initiatives showcase ING is capable of developing such solutions, but two obstacles should be considered when taking this initiative further: addressing the ethical dilemmas and monetizing the solution accordingly. In addressing the viability, we have also looked into the value for ING, where it can be either direct or indirect. Lastly, currently three roll-out options have presented themselves for ING to choose from. The conclusions reached from our research and evaluation of the three components can be illustrated by the following: desirability, feasibility and viability for this proposition are all present. Customer facing, their clients have pain points addressable through share of wallet and segment overlap information. Internally, ING has the data, product overview and capabilities needed to shape this proposition. In regard to the strategic decision, no other bank is currently offering this in the Netherlands but there are competitors, ethical dilemmas and monetization are obstacles to projects succeeding, revenue can be indirect and direct, and roll-out can be stand-alone, incorporate or partner. Our recommendations are based on the urgency and time sensitivity of this project for ING. If less time sensitive, they can incorporate this solution into the Dealwise platform, requiring no technical investment and allowing for pairing with loyalty schemes. If more time sensitive, they can decide to keep ownership as a stand-alone proposition within tribe payments, or partner with Alphalyx efficiently and cautiously. When it comes to monetization, an answer from the ethical board is necessary but if positive we recommend going ahead as this would generate a new revenue stream for the bank. We have also presented some advice to the company with points we deem essential to success. The bank needs to learn from and build upon its past initiatives around data insights in order to correctly address and minimise ethical dilemmas this time around. In taking the next steps recommended, clear communication and structure are needed for information and focus of the project to be directed towards success.
dc.description.sponsorshipING
dc.language.isoen
dc.titleData services: the way forward for the banking industry Simge
dc.source.numberofpages62
vlerick.knowledgedomainAccounting & Finance
vlerick.supervisorCumps, Bjorn
dc.identifier.vperid65268
vlerick.companynameING
vlerick.companysupervisorSalim, Attia
vlerick.programmeMIMS
vlerick.typebusresprojectIn-Company Project


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