What is Relationship Awareness?
The PrecisionLender Relationship Awareness module allows you to feed relevant account data for loans, deposits and other fee-based business directly into PrecisionLender from your core system or other systems. PrecisionLender computes the current profitability (we call it Strategic Value) of each account and of the entire relationship. This allows your lenders to then price new opportunities within the context of this Strategic Value so that you will know:
- Where you stand today with a particular client
- What things will look like if you win the business in front of you
- What things will look like if you lose
How does our data get into PrecisionLender?
Our team handles most of the heavy-lifting during the setup phase for the Relationship Awareness module. We will work with your team using your existing, in-house reporting tools, to develop a few reports that will be used to generate simple delimited text files as output. These files are then used to feed your relationship data into PrecisionLender using our secure data upload tool on a scheduled basis (usually weekly).
Who, on our side, will be working with the PrecisionLender team to create our data files?
Who is your go-to person when your Board requires a new report and it must be correct? That is usually the individual best suited to create the data files for PrecisionLender. In our experience, this individual is familiar with both your report writing tools and your core system, and can readily extract the specific fields we require.
How long does it take to set up the Relationship Awareness module?
Generally, with 4 - 8 hours of effort (possibly across different days, if more than one custom report/data file extract iteration is required), an experienced report writer can create data extracts that are ready for PrecisionLender to begin the testing process. We will also need an hour or two of assistance from someone on the lending side to help us “match up” the numerous product types in your core system to the more general products set up in your PrecisionLender account. Most clients are live with their data in PrecisionLender within 4 weeks of our receiving data extracts that meet the requirements outlined in our Data Request document.
What core systems do you work with?
The data fields that we require are very common and are found in every core system. As a result, we have successfully implemented Relationship Awareness across a variety of core systems for every customer who has desired it.
Does PrecisionLender store sensitive PII data about our customers?
No. Sensitive data such as account numbers, CIF numbers, or Tax ID numbers are never transmitted to PrecisionLender. The PrecisionLender Relationship Awareness functionality does not require such information.
What PrecisionLender DOES require is ability to link an incoming relationship to its accounts and the ability to reliably update relationships and accounts from week to week as you upload data. To do this, PrecisionLender uses database 'keys' (simple data fields) which are unique identifiers that exist in our system that allow us to make these connections from relationships to accounts, and from data one week to data the next week. Your internal core systems may use sensitive information to represent these database keys. However, PrecisionLender simply requires that these keys have the following two properties:
- The keys must be unique for both relationships and accounts. No two accounts may have the same key. Likewise, no two relationships may have the same key.
- The keys must be persistent over time. We must be able to know that an account (or relationship) you are sending us already exists in our system so that we can track it over time.
Regardless of what you provide as the key, our secure data upload tool will perform a salted, one-way cryptographic hash on these key fields rendering them unreadable and unusable for any other purpose outside of PrecisionLender. Once hashed, there is no way to work backwards to extract the original value. Only this hashed value is uploaded to PrecisionLender.
Examples of key fields in use within our client base:
- Real Identifier - Our upload tool hashes these values before they leave your network.
- Pre-Hashed Identifier - Client hashes the identifier before they are placed into the data files (related article).
- Synthetic Identifier - Client supplies a non-sensitive identification field from core system or data warehouse that maps directly to the Relationship or Account in question.
What is the recommended practice for providing key identifier fields for Accounts and Relationships?
Since PrecisionLender does not require real account or relationship identifiers, our recommended best practice is to provide a Synthetic Identifier to allow us to track and link these entities. See the section above detailing the requirements of uniqueness and persistence.
As more banks adopt systems that track accounts and relationships using Synthetic Ids (e.g. data warehouses), this is becoming more commonplace with PrecisionLender Clients.
How do we know our data is secure?
PrecisionLender has implemented extensive controls designed to ensure the highest level of Security and Confidentiality for our client's data during setup, testing, and production phases of Relationship Awareness.
- SSAE 16, ISO 27001 and ISO 27018 Compliant Microsoft Data Centers
- AT101 & SOC2 Type II Reports available for PrecisionLender
- Sensitive data such as account numbers never transmitted beyond your own network.
Azure was selected as PrecisionLender's Platform as a Service (PaaS) because Microsoft is a leader in creating robust online solutions that are designed to protect customer privacy. Azure meets a broad set of international, industry-specific, and country-specific compliance standards, including:
Australia CCSL, APRA
SOC 1, and SOC 2, and SOC 3
For more information on the type of data stored within PrecisionLender see the following article:
How does PrecisionLender use the data?
PrecisionLender uses the data to calculate both a Strategic Value and an Accounting/FTP Value. Strategic Value is what your customer banking relationships would be worth if all of their active accounts were to be re-priced today. This is what that business is worth to your competition. This context helps your lenders in pricing the opportunities that are in front of them, because they can see in real-time the value an existing customer relationship has, and how that relationship will be impacted by the new business being priced.
How frequently does our data get updated?
Your institution sets the frequency of the data push to PrecisionLender, but most of our clients find that a weekly data refresh is sufficient for their needs. It’s all included as part of licensing the Relationship Awareness module, so there are no extra charges no matter how frequently you update your information. We monitor each data refresh and contact you if we ever see anything that needs additional attention.
Need more information?
Have a question not addressed here? Ready to move forward with Relationship Awareness?
Chris Herrera and Steven Jedael are your primary contacts for Relationship Awareness. Either of them will be happy to talk with you in more detail about what it takes to see your own core relationship data within PrecisionLender.