How Real-Time Data Saved Citizens Bank $1M Annually With Data Streaming

Citizens Bank, with over $215 billion in assets, modernized its legacy systems using Confluent’s data streaming platform to meet the needs of digital-first customers. By transitioning from batch processing to real-time data processing, Citizens Bank transformed its operations and customer experience. With Confluent, they enabled real-time data insights across financial transactions, customer interactions, and business intelligence, achieving a 20% increase in customer engagement. The bank also saw a 15% reduction in false positives for fraud detection, saving $1.2 million annually. Confluent Cloud adoption led to a 30% reduction in IT costs and a 50% improvement in data processing speeds. Confluent’s integration of AI and machine learning further accelerated their digital transformation, resulting in 40% faster loan processing times, a 10-point boost in net promoter score (NPS), and a 25% reduction in processing times with a 10% decrease in operational costs.

“For us to be in business, stream data processing and real-time analytics on data in motion is going to be very foundational.” — Sudhakar Gopal, Executive VP & Head of Engineering

Citizens Bank, a financial services company with over $215 billion in assets, faced the challenge of transforming its legacy systems to meet the demands of digital-first customers. With a history of providing banking services since 1828, the company recognized the need to modernize its handling of data. The shift to real-time data processing was essential in order to improve operational efficiency, enhance customer experiences, and support future innovation.

The bank’s traditional data systems were rooted in batch processing. In search of a scalable solution to enhance its data architecture and shift towards real-time data processing, Citizens Bank adopted Confluent’s fully managed data streaming platform. 

Technical Solution

With Confluent, Citizens Bank can manage high-throughput data streams with low latency to process large volumes of financial transactions, account updates, and customer interactions in real time. 

Streaming actionable insights in real time has been a strategic goal for Citizens Bank for three years, explained Sudakar Gopal, Executive VP and Head of Engineering. During this three-year period, his team has prioritized modernizing its infrastructure system to accommodate machine learning and AI initiatives. Now, the company streams data in real time across multiple sources, including financial transactions, customer data, and business intelligence.

“When we came to the point where we had to stand up an enterprise-grade data streaming platform, we looked at multiple options and Confluent was a clear winner here,” Gopal said.

Confluent’s full-service solution has allowed Citizens Bank to integrate its disparate legacy systems from the mainframe into a unified, event-driven architecture via the cloud. Gopal shared that Confluent has made it easy for the bank to exchange data across platforms. 

Business Results

One of the most immediate outcomes was the improvement in customer experience. Citizens Bank saw a 20% increase in customer engagement due to real-time data insights. Customers experienced faster transaction processing, more accurate account information, and improved digital banking services. 

The bank also saw a ten-point increase in net promoter score (NPS) from enhanced customer interactions.

Confluent also helped boost Citizens Bank’s operational efficiency. Processes that previously relied on batch data processing, which could cause delays and inaccuracies, were replaced by real-time streaming, reducing latency and errors. 

The efficiency translated into a 30% reduction of IT costs and 50% improvement in data processing speeds from cloud adoption. 

Additionally, the bank's ability to respond to regulatory requirements improved. Real-time data access allowed for quicker compliance reporting and more accurate tracking of financial activities. The company saw a 15% reduction in false positives in fraud detection, saving approximately $1.2 million annually. This ensured that Citizens Bank could meet both internal and external compliance standards, reducing the risk of costly penalties.

The scalable architecture provided by Confluent catapulted Citizens Bank’s digital transformation initiatives, resulting in 40% faster loan processing times. 

Since the bank has widely implemented AI across the company, it has achieved a 25% reduction in processing times and 10% decrease in operational costs. Citizens Bank can now explore advanced analytics, AI-driven customer service solutions, and other data-driven initiatives without being constrained by outdated systems.

Learn more about Citizens Bank