ANZ – High 5
Category: Datamining/Analytics; Award: SILVER
Entrant: Datamine Limited
Credits:
Sally Carey, Paul O’Connor, Geoffrey Forbes, John Bolten, Andrew Kershaw
Entry Rationale:
Did you know? The lowest rate may not mean the lowest cost…”
Choosing which interest rate on the day of decision was not necessarily the lowest cost option over a longer period, but they wanted to be able to clearly demonstrate this to the home lending advisors.
They analysis had to be undertaken by a third party for credibility and auditability as the internal and customer communications campaign was hinging on the findings from the analytics.
ANZ supplied nearly 14 years of interest rate data for one, two, three and five year terms.
Datamine had to:
- Identify a period that would enable the different terms to be compared for a period long enough to provide meaningful results but be relatively recent
- A comparative cost had to be scoped, defined and measured so that the different options could be evaluated
- The generally lowest cost option could then be identified
- The interest rate environment had to be described to enable a typical scenarios to be identified
- Lastly this information had to be conveyed clearly and concisely – and this depended in part on choosing a method of analysis that was both sound and uncomplicated.
The complex analytics allowed them to say with confidence “When you choose a home loan, you want to pay the lowest interest rate you can – and sometimes a shorter term fixed rate loan may be the best way to go”, a great use of data mining put into practical use.
And the financial results form the initiative have been outstanding
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