Stem the Tide: How Financial Services Firms Can Predict and Prevent Churn

Posted by Yogesh Sharma on Fri, Jul 07, 2017

For financial services firms, acquiring new customers is more costly than retaining them. Therefore, retaining existing customers is one of the biggest challenges. Customer churn is everywhere. In unsecured lending, customers cancel credit cards or personal loans, or there’s silent attrition in the form of a slow decrease in customer card spend. In secured lending, mortgages face churn in the form of a loan transfer to other lenders, partial or full payment of loans and loan closure. Customers also can close their bank accounts, resulting in the loss of potentially cheap sources of funds, or they cancel their life or general insurance policies, resulting in the loss of potential future premiums.

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