Most banks and credit unions are still on the hunt for the perfect transaction, one that helps gain loyalty, save money, and attract and retain customers and businesses. So, what’s the trick? It all comes down to the amount and quality of data banks and credit unions have at their fingertips. The holy grail of transactions includes contextual details around and insight into not just what was bought, but the intention behind and value of purchases. The diagram below demonstrates how financial institution transaction data stacks up against data from Personal Financial Management (PFM) solutions and receipt management and SKU-level data solutions.

Financial Institution data

The transaction data currently available to most institutions is limited to merchant, total purchase amount and date. With such surface-level information, it’s next to impossible to fully understand who these customers and businesses are and what they need, especially since research shows any two customers shop at 70 percent of the same merchants. It’s time for financial institutions to obtain and leverage the same detailed purchase data that large online retailers like Amazon already have access to, information such as items & SKUs, taxes and tips, off-card spend and return & warranty information.

PFM data

PFM providers can help banks get closer to a perfect transaction.  PFM can provide new details around the merchant data, purchase description, category of the merchant as well as partial information about location data and accurate dates.  While PFM tools are starting to fill gaps, there’s still much more for financial institutions to uncover. 

SKU-level data

SKU-level data providers like Sensibill are able to provide much of this data and more through receipt extraction.  Sensibill can also partner with PFM providers to enable institutions to achieve greater visibility into who the customers are and what they’re spending money on. In addition to creating more satisfied and loyal banking relationships, such detailed information also helps mitigate fraud, enable revenue-generating cross-selling opportunities, and facilitate targeted marketing efforts. 

Access to richer data and detailed insights facilitates strong customer relationships and enables institutions to proactively surface the products and services customers need. As institutions are better able to segment their customers and businesses, they experience added benefits such as reducing call center costs. While banks and credit unions are working toward the perfect transaction (see the full diagram here), leveraging deeper, more contextual data will go a long way. These details prompt a more precise understanding of brand loyalties, life stage events, lifestyles, behavioural data, and psychographics – invaluable information in today’s increasingly competitive environment. 

Looking to get more out of your transaction data? Contact us to see how SKU-level data can help transform your digital experience.

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