Steps Ahead

Case study: turning a global bank’s big FX data into smart FX data

CASE STUDY: TURNING A GLOBAL BANK’S BIG FX DATA INTO SMART FX DATA

STEPS AHEAD

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IMPROVE ALL YOUR

FX KPIs

The customer

The customer is one of the world’s leading financial groups, with a global network spread across more than 50 countries. It has almost 200,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing.

It engaged Mosaic Smart Data on a pilot for its global FX business, in order to:

  • Carry out FX data analysis, normalisation and enrichment on its client transaction and market data
  • Deploy the MSX platform and enable users to view and interact with client transaction data
  • Evaluate agreed AI/machine learning insights, delivered as 360+ reports and alerts in the UI
  • Gather feedback from users to inform future enhancements for a production delivery

PAIN POINTS

  • Isolated and fragmented FX data sources – unstandardised data across the organisation
  • RFQ response rate – missed business due to inconsistent quoting
  • Speed of reporting – client reports slow to generate and often out of date
  • Inability to analyse FX data effectively – no tools to extract productivity-enhancing insight
  • No global view – teams all maintained their own data and did not share across the organisation

STATE OF DATA

  • Fragmented across 8-10 different data sources
  • Electronic & voice transaction data, client static data, sales coverage data, instrument static data, market data stored in separate, unconnected systems
  • Little consistency in format and structure of data sets

  

SCOPE OF DATA

  • Historic data was provided from January 2018 to December 2020
  • Covered electronic and voice FX cash transactions
  • Data was delivered via .csv files
  • 11 transaction and market data files were provided daily, along with 6 static reference data files

“Banks that fail to make data analytics and AI central to their core strategy and operations will risk being overtaken by competition and deserted by their customers in the coming years.”

Matthew Hodgson, Mosaic Smart Data

By combining the bank’s disparate data sources into one comprehensive view, Mosaic was able to deploy its interactive dashboard with a fully customised overview of client activity, created by users. This gave the bank actionable intelligence at their fingertips.

THE REMEDY

Mosaic led the company through four key stages in its analytics journey:

  • Normalise: aggregating and normalising data sources to maximise value
  • Analyse: turning unstructured big data into smart data
  • Optimise: providing unique and personalised insights
  • Capitalise: navigating users to opportunity and action

“Mosaic reflect correct and reliable data.”

eFX Sales

REPORTING 

The following reports were made available via a downloads page:

  • Morning Briefing
  • FX Client Seasonality
  • FX Swaps Rollover Report
  • Client Anomaly Report
  • Market Anomaly Report
  • Initial Edge & Client Defection Report
  • New Client Activity Report

“We are now able to ring the clients at the right time. I now have much better information to help me plan my day, especially around timing and calling clients early enough.”

Head of UK FX Sales

ALERTS

Alerting capability was delivered by Mosaic, providing the bank’s sales teams with the following alerts:

  • FX Client Seasonality
  • Client Defection
  • Client Anomaly Detection
  • Upcoming FX Swap Rollovers
  • New Client Activity
  • Profitability

“I’m excited about the alerts, as I look at this on a daily basis. Nothing comes close to this type of analysis. It’s in front of my screen everyday now.”

Head of Financial Institution FX Sales

Outcome

By combining transaction data and market data with machine learning and AI, Mosaic enabled the bank to identify trends and anomalies in the market.

Each of the bank’s salespeople now has world-class market intelligence at the click of a button, enabling them to operate with a 360-degree view of market activity in order to zero in on specific opportunities and take advantage immediately.

Mosaic has given the bank access to insights such as:

  • Identifying market and client inquiry anomalies
  • Delivering morning briefings on FX market movements through natural language generation
  • Understanding their clients’ seasonal trading patterns, including the time of day they are likely to inquire
  • Identifying positions the client is likely to roll, providing an opportunity to capture more business
  • A single view of historic voice and electronic client activity, across sales teams and locations, which can be fully customised by each salesperson
  • Track key execution KPIs, such as Hit Rate and No Quotes %, and generate reports on demand
  • And many more…

“Useful for looking at individual client. I’ve already had some good calls by just going over details and understanding why they are not trading when they normally do.”

UK FX Sales

Following completion of the pilot, the customer reported:

All pilot users requested that Mosaic was put into production.

Increased the number of calls
(more customer interaction leads to more business)

Increased call times
(better quality interaction leads to more business)

Increased volumes
(seasonally adjusted, excluding block trades)

Feedback

On the corporate side, because the flow is not as strong, it is helpful to understand how much flow we are capturing. The potential is tremendous.

The most helpful part is getting to know the client better.
I am impressed about the possibilities.

Mosaic provides me with key analysis and talking points to call my clients everyday.

Talk to us to find out about Mosaic Smart Data.