Making data do the heavy lifting for your financial institution
Image credit: Sensibill
Financial institutions are racing to find ways to leverage customers’ data more meaningfully and effectively—but how much data is actually put to work?
FIs have realized that gathering data requires internal resources that might not be available quickly, if at all. And this timeline is important, as outdated data provides little to no value. After all, people are fluid; in three to six months (the average lag between pulling data and deciphering insights), customers may have gotten married, started a family, embarked on a new business venture, purchased or sold a home, etc. When all you have it data from months prior, it delivers little benefit to your institution and customers.
Data shouldn’t create more work for you or your customers; instead, it should do the heavy lifting for you. This is where relying on a fintech partner can provide a significant lift. However, not just any fintech provider will do; institutions should make sure any vendor they partner with is knowledgeable about and compliant with the latest data privacy laws and guidelines.
And institutions must ensure that any potential fintech partner is not just providing another set of overwhelming data points, but the right types of data that can quickly be turned into actionable insights.
Enter: SKU-level data
Tapping into transaction-level data provides a solid baseline, but it’s only when SKU-level data is added to the mix that institutions can effectively differentiate themselves through personalization. Most banks and credit unions today can see where and when a customer purchased an item, but the rest of the details remain in the dark.
Knowing more, such as what was bought, can be the difference between seeing an influx of Amazon purchases versus seeing a customer bought a printer, office chair, and new monitor - purchases that signal a home office setup. The limits of transaction-level data have only been exacerbated this year, considering the sharp increase in online shopping.
Partnering with SKU-level data experts can help institutions better understand their customers and their unique and timely financial needs, revealing opportunities to cross-sell, strengthen customer relationships, boost engagement, and drive revenue if approached correctly.
Data doing the heavy lifting
Customers want to know the data they share will provide value back to them. Banking is in a position where 60% of customers are comfortable sharing personal information with their PFSP without specific assurances around how their data will be protected and kept secure. Customers are looking for ways to make better financial decisions, including which banking services and products are right for them.
With Sensibill, for example, your institution can reward its consumers and businesses for uploading receipts. Customers are able to avoid the hassle and headache associated with keeping up with traditional paper receipts, while your institution simultaneously gains insights that can be used to help you understand that particular consumer or business as well as other customers across the institution.
Data needs to work for your institution and its customers, not create more work or stress. This is where the value of strong fintech partnerships comes into play. By making customers comfortable sharing their information in exchange for a reward or value, institutions can better deliver on their promise to use data to make their everyday lives easier.
Those who are relying on the right fintech partners to meaningfully leverage deeper, contextual data points and insights are strengthening customer loyalty and engagement while positively impacting their bottom lines.