With regulatory reporting demands becoming more frequent and stringent, how could Obvion Hypotheken facilitate compliance without reducing its ability to deliver high-quality customer services?
Obvion Hypotheken is deploying a data warehouse platform based on IBM Analytics software—helping it to build regulatory reports faster and continue to deliver high-quality customer services.
70 millionrecords per day processed in just 2 hours
50%faster reporting facilitates regulatory compliance
Createsa foundation for enhanced, data-driven customer services
Business challenge story
Keeping pace with a changing environment
The changing financial and consumer environment is bringing fresh challenges across the financial services industry. In addition to meeting tighter banking regulations brought in after the global financial crisis, enterprises face the challenge of satisfying growing consumer demand for always-on digital services.
This was the situation facing Obvion Hypotheken, one of the Netherlands’ leading mortgage providers.
Danielle Brouwers, Chief Financial Officer at Obvion Hypotheken, takes up the story: “National and European regulators are asking increasingly complex questions of financial services providers—and we see that those reporting requirements will become more demanding in the future. At the same time, we are seeing a number of nimble new entrants in the Netherlands’ mortgage market, which means that delivering high-quality customer services has never been more important as a competitive differentiator.”
She continues: “Previously, we relied on manual, spreadsheet-based approaches to reporting and analysis. As regulatory requirements increased in frequency and stringency, it was taking longer to collate and analyze data held in separate source systems across the business. In addition to increasing the risk of erroneous data entering our reports, these manual processes meant that we were unable to devote resources to developing new customer-facing web and mobile services.”
Choosing a fresh approach to analytics
To solve the challenge, Obvion Hypotheken engaged an expert team from IBM Premier Business Partner Inergy Analytical Solutions to help it to build a fresh approach to reporting.
“We use a number of managed service solutions to enable us to focus on our core competencies,” explains Danielle Brouwers.
“For that reason, we wanted a partner that understood our unique reporting requirements. Inergy has many years of experience delivering business intelligence solutions, which gave us confidence that they had the domain expertise we needed to ensure the success of our analytics transformation.”
Obvion Hypotheken worked with Inergy to determine the requirements for its new reporting platform, and design the underlying business logic and data definitions. The aim was to consolidate and standardize data from multiple source systems—including its customer relationship management (CRM) system—to provide an accurate, 360-degree view of every customer.
High-performance reporting platform
To deliver the targeted levels of performance, scalability and flexibility, Inergy developed a solution based on IBM® PureData® System for Analytics—a high-performance data warehouse appliance.
Danielle Brouwers comments: “IBM PureData System for Analytics satisfied all of our technical requirements, and we consider it the optimal solution for our specific business requirements. Better still, our partnership with Inergy enables us to obtain the full benefit of the software-as-a-service [SaaS] model, and avoid the cost and complexity of managing the solution in-house.”
Obvion Hypotheken, working with Inergy, has now migrated its historical data onto the IBM platform. Using IBM InfoSphere® DataStage® software, the company feeds data from source systems across the business into the IBM PureData System for Analytics, helping it to build a comprehensive and accurate system of insight.
The company is currently developing the solution with a select group of superusers, and plans to roll out the platform to support the entire business.
“Working with the Inergy team continues to be an extremely positive and productive experience, and the team is always on hand to provide expert guidance when we need it,” adds Danielle Brouwers. “We knew it would be important to choose a partner with the analytics know-how to complement our deep industry expertise, and Inergy possesses the skills and culture we were looking for.”
Reaping the benefits
By replacing manual, time-consuming reporting processes with a lightning-fast IBM Analytics solution, Obvion Hypotheken is already experiencing the benefits of up to 50 percent faster data analysis.
“Using multiple separate systems for reporting meant that there was always a risk of multiple versions of the truth, which made it very difficult to deliver the level of granularity and accuracy that today’s regulatory climate demands,” says Danielle Brouwers. “Today, our work with Inergy is enabling us to perform analysis at the speed of thought. We now feed 70 million records per day into our single, centralized reporting platform, which are ready for analysis in just two hours.”
She adds: “Regulators today expect businesses to have a flexible dataset in-house—and if there’s a crisis, we need to deliver the right information to them quickly. This sets a very high standard on how data is organized, which our IBM solution will help us achieve. Our journey with IBM PureData System for Analytics is just beginning, but we predict that the solution will ultimately enable us to cut our regulatory reporting cycles—saving valuable time that we can reinvest in developing new customer-facing services.”
Focusing on the customer
With the shift to online banking, Obvion Hypotheken plans to deliver digital solutions to make it easier for customers to make changes in their mortgages. The self-service solution will be complemented by a channel to get advice from mortgage intermediaries where required.
“Our SaaS solution from Inergy is laying the solid foundation we need to launch next-generation services to delight our customers and reduce the threat of losing hard-won business to our competitors,” says Danielle Brouwers. “We plan to create a digital portal to offer each customer complete visibility of their personal data and transactions, as well as self-service capabilities for things like setting interest rates, which currently depend on paper-based processes.”
In the long term, Obvion Hypotheken aims to dig deeper into its customer data to offer the kinds of personalized services that nurture customer loyalty and drive retention, as well as making better-informed decisions about new mortgage applicants.
Brouwers comments: “Currently, our decisions to offer mortgages are based on information such as employment histories, but as increasing numbers of people move to more flexible working arrangements, using this approach to make the right lending decisions will become more difficult.
“In the future, we see that our analytics platform will enable us to transition towards risk models based on predictive analytics based on factors such as a customer’s marital status, age, job role and industry.”
She concludes: “We believe that success in today’s mortgage market depends on continually asking: ‘how can we offer even more personalized services?’ Thanks to our IBM Analytics solution from Inergy, we are free to invest the time we need to deliver high-quality services to our customers.”
Obvion Hypotheken is an established originator and servicer of residential mortgage loans in the Netherlands since 1981. As of 2012, Obvion Hypotheken is a wholly owned subsidiary of Rabobank. Today, the company employs 630 people and works with 1,500 intermediaries in the Netherlands.
- Banking: Risk & Compliance
- Data Integration & Replication
- PureData System for Analytics (powered by Netezza technology)
Take the next step
To learn more about products, solutions and services from Inergy Analytical Solutions, visit www.inergy.nl IBM Analytics offers one of the world’s deepest and broadest analytics platform, domain and industry solutions that deliver new value to businesses, governments and individuals. For more information about how IBM Analytics helps to transform industries and professions with data, visit ibm.com/analytics. Follow us on Twitter at @IBMAnalytics, on our blog at ibmbigdatahub.com and join the conversation #IBMAnalytics.
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