Alfa-Bank sums up the results of cooperation with Double Data and gives investments

Alfa-Bank signed in June, 2017 the framework agreement on strategic partnership with the resident Skolkovo – Double Data for scaling of process of digital transformation and implementation of technologies of processing and the analysis of data bulks.

This agreement will allow Alfa-Bank to increase number of the implemented projects on extraction from arrays of information of valuable knowledge for new product development and approaches to customer service, and a startup to reach monetizations of own developments new level: in June within the agreement signed to Skolkovo between Alfa-Bank and Double Data, the company will receive about $0.5 million.

Alfa-Bank was one of the first in the Russian financial market who began to build an ecosystem of work with startups and to raise examination of work with data. In 2013 the Alpha Laboratory for development of new electronic products of bank was started and forward work on building of the relations with startups began. Cooperation of Double Data and Alfa-Bank began in the same 2013 and in 2014 the companies signed the first contract.

From the moment of the beginning of a company performance implemented more than 10 projects and executed a number of researches in different areas, having learned:

• It is better to predict outflow of clients.
• It is better to understand customer needs and to offer them the necessary product of bank with significant increase in efficiency.
• Increased quality of verification of credit requests

According to the companies in four years of the company broke a number of critical barriers on the way to cooperation of the large company with a startup in processing and the analysis of data bulks.

Barrier 1. Prohibition on transfer of client data out of the large company.

Double Data developed the software which works completely at the party of bank, does not require data transmission outside and allows to carry out work with the depersonalized information in internal perimeter. In return, Alfa-Bank created necessary IT infrastructure for providing a full-fledged work of the resident Skolkovo.

Barrier 2. Unwillingness of the large companies to pay for pilot projects with startups.

At the very beginning of cooperation of the Company agreed to fix parameters of success of projects and at their achievement Double Data earned a reward. It also allowed to discuss nuances of the project before its start, not to have the overestimated expectations, to consider and make use of the accumulated experience of a startup.

Barrier 3. Unavailability of the large companies to unsuccessful projects.

Alfa-Bank and Double Data had unsuccessful projects, but they did not lead to a cooperation stop. The parties discussed in advance it as it is impossible to implement projects in the field of "big" data (often unique in Russia and the world) and always to achieve success.

The companies agreed after each unsuccessful project to hold meetings with discussion of the reasons not of achievement of target indicators and to take knowledge – where technologies of Big Data do not give significant effect and that was made within the project not optimum.

Barrier 4. The low level of knowledge of startups about specifics of the industry.

Alfa-Bank suggested to begin Double Data with small and simpler projects which framework the company got experience and increased examination in banking business. Such approach allowed to increase gradually both complexity of projects, and their potential, reducing at the same time failure probability.

Barrier 5. "We have big data a command - we will make".

This issue was not discussed by the companies as Alfa-Bank began to build an ecosystem of startups including as large business cannot cover the increasing range of tasks, technologies and competences independently and the problem of the accelerated growth in new digital economy is solved only in partnership.

Joint work allowed the companies to increase in parallel efficiency of interaction and trust to each other. The attentive relation to successful and unsuccessful projects allowed to find the most perspective directions for cooperation. After scheduling of joint work for 2017 and 2018 it became clear that the current format of interaction will not allow to implement it as:

• Despite all efforts of the parties, the existing bank processes do not allow to start projects less than in a month.
• Without gain of horizontal communication of business divisions, the bank receives less effect of the implemented projects which is applicable in each of them.
• For the solution of strategic tasks it is necessary to pass from point projects to work in a number of the directions at the same time.

Therefore the decision to transfer the relations to the level of strategic was made:

• Create in Alfa-Bank the separate working group on work with Double Data which will become "single window" for the company on implementation of all projects and will undertake communication in Bank.
• Double Data in return too will select a separate command for work with bank, will increase investments into new solutions and into search of prospective applications of technologies.
• The companies signed the framework agreement which will allow to reduce terms of approval of projects to days.