As the banking industry evolves, it is critical for banks and credit unions to leverage transaction and payment data to understand accountholders’ banking behaviors and product utilization, gain competitive intelligence and drive targeted marketing campaigns to grow full financial relationships.
Core data is account-centric, designed to facilitate banking while adhering to legal guidelines and administering the technical logistics of money movement. Many financial institutions still have siloed data, making it difficult to drive relevant messaging to account holders in real-time. A Forrester report found that 72% of firms believe organizational silos represent their greatest sales and marketing challenge in managing data and sharing insights.
According to a Deloitte report, banks and credit unions do not need more data to drive better actions, but they need to generate more insight from the data they already have and leverage the insights for improved customer experiences.
Leveraging a financial institution’s core and transaction data to derive customer insights can activate all functions of an organization, including competitive analysis, risk, marketing, customer experience and product innovation. Banks and credit unions of all sizes should consider partnering with leaders in solutions that specialize in building clean, categorized and contextual databases to create actionable insights.
Activating data to paint a complete picture
Financial institutions already know the products customers hold with them and transactions made within the institution, but that data only provides a sliver of the overall view of a customer’s full financial profile.
To understand each individual situation, financial institutions can gain access to a wealth of data from the transactions and payments customers process on a daily basis. The entirety of a customer’s transactions, including online bill payments, ACH payments, incoming fund transfers and debit/credit card payments offer a more holistic view. These transactions paint an in-depth picture of the consumer as a financial entity, not only with their primary institution but also with other merchants that help manage their lives.
When analyzed properly, transaction data can identify consumer’s activities, depict patterns in spending behavior and predict current life stages, such as having children, purchasing a house, sending kids to college or enjoying retirement. Combining clean and categorized transaction data with marketing automation creates actionable campaigns that personally speak to account holders throughout their financial journey.
Financial institutions hold competitive insights buried deep in their transaction data that can determine who their account holders are banking with and what products are causing them to lose market share. Financial institutions can utilize these competitive insights to drive targeted marketing campaigns and deploy relevant take-away campaigns to gain a market advantage.
Understanding products that your account holders have with the competition and where money is leaving your institution creates an incredible advantage. Deep within this data is where the seeds of relevancy live. These competitive interactions open the door for financial institutions to focus on limiting churn, making strategic decisions around product innovation, and maintaining strong customer relationships that match consumer expectations.
Activating data from accounts held with other financial institutions or third parties, can reveal hidden profit opportunities. For example, an accountholder’s transaction data can show money being moved out of a bank or credit union for a mortgage payment to a competing institution.
A new survey on borrowing and lending by ICE Mortgage Technology found that the pandemic has permanently changed the way consumers utilize technology, and those looking to buy or refinance a home are seeking lenders who offer online tools to complete their mortgage loans from home. With that insight, financial institutions can target an account holder with relevant and personalized refinance marketing messages or communicate the use of an online application process.
With a holistic view of customer data, financial institutions can identify customers with specific needs and build campaign messaging with the most relevant and personalized offers. Activating data to make informed marketing decisions can increase your targeting efficiency, therefore leading to a faster, more successful ROI. When a targeted marketing message hits the right audience to meet a need, an influence occurs to convert that prospect or account holder, adding revenue to the bottom line.
Making core data actionable empowers a financial institution to make informed business decisions holistically and intelligently throughout the entire ecosystem while building a foundation to remain relevant and competitive in the marketplace.
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