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Chelsea Building Society

Situation

Chelsea Building Society is the sixth largest building society in the United Kingdom. It has 500,000 saving accounts and more than 80,000 borrowers with a network of 35 branch offices across southern and central England.

As a mutual building society, the company is owned by its members. Because it doesn't have to pay dividends to shareholders, it can return more profit to its members by offering better value products, including higher rates for savers and lower mortgage rates for borrowers.

Challenge

Chelsea Building Society has been using SPSS Inc. software since 1988. In recent years, the retention of mortgage customers has become an important issue, and it was determined that further analytical solutions were needed.

Solution

The company selected SPSS Inc.’s predictive analytics software to improve its borrower retention process. The results have been very encouraging: the number of borrowers retained in the first year increased by 147 percent.

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Results

The borrower retention model enables Chelsea Building Society to formulate appropriate contact strategies for those borrowers with a high propensity to redeem and also those with a high propensity to remain in other accounts. The ensuing cost savings easily outweigh the expenditure on the technology. The solution is viewed as a tremendous success internally and Chelsea Building Society is now looking at extending the use of predictive analytics to other areas, such as retail savings.