We all use data enrichment every day, often without realising it. Google’s autocomplete feature, for instance, relies on data enrichment to provide users with a more intelligent search experience.
But did you know that data enrichment is also at the core of many online businesses? For example, in banking, billions of transactions get enriched every day. We call this payment or transaction data enrichment.
Payment Data enrichment is a process of adding additional information to the transaction data that already exists. The goal is to make the data more valuable and informative, typically by filling in missing values or by providing context that would otherwise be unavailable. In banking, transaction and payment data enrichment is probably the most visible kind of enrichment.
In simple terms, banks take machine-readable payment information and make it human-readable as well. This can be done in several ways. Most often, it is done by adding a merchant logo, proper merchant name, exact location and sometimes even CO2 footprint. This information is then shown to the customer in mobile banking apps or online banking.
Transaction Data Enrichment is essential because it helps the customers know more about their transactions, while banks also learn more about their users without asking them for extra information. For example, it can help track transactions and understand customer behaviour if you run an online bank. Also, with transaction data reconciliation, you can significantly improve the customer experience and make banking more pleasant for the customer.
Banks have access to a large amount of data, but this data is often siloed and difficult to use. Payment Data Enrichment can help to overcome these challenges by providing a more holistic view of the customer. By supplementing customer data with data from external sources, banks can gain a better understanding of who their customers are, what they need, and how they behave. This data can improve customer service, target marketing campaigns, and make better lending decisions.
In addition to improving customer understanding, payment data enrichment can help banks manage risk more effectively. By incorporating data from multiple sources, banks can get a more accurate picture of their borrowers’ spending habits and identify early signs of financial distress. This information can then be used to manage risk and proactively prevent losses.
Finally, payment data enrichment can enable banks to develop more targeted marketing campaigns. By understanding their customers better, banks can identify opportunities for cross-selling and upselling products and services most likely to interest them. This data-driven marketing approach can improve customer satisfaction and higher sales volumes.
Regarding transaction data enrichment, banks have a few options to choose from. One option is to develop the data enrichment capabilities in-house. However, this can be costly and time-consuming. Alternatively, banks can work with transaction data enrichment providers. When choosing a payment data enrichment provider, a few things to remember are their data sources, quality, and pricing.
Data sources are important because they determine the types of data the provider can offer. Banks should make sure that the provider has access to high-quality data sources. Additionally, data quality is crucial because it determines how accurate and reliable the data is. Banks should ask potential providers about their data quality controls. Finally, pricing is important because it will affect the bank’s bottom line.
Choosing a payment data enrichment provider doesn’t have to be complicated. By keeping these factors in mind, banks can find a provider that meets their needs and budget.
Transaction data enrichment services can be valuable for banks and other financial institutions. By providing accurate and up-to-date information about their customers, payment data enrichment services can help banks to assess risk better, identify opportunities for cross-selling, and prevent fraud. However, transaction data enrichment services can also be expensive, and many banks are unsure how to get the most out of them.
1. First, make sure that you have a clear understanding of your data needs. What information do you want to enrich, and why? This will help you to identify the right payment data enrichment service for your needs.
2. Second, don’t be afraid to negotiate. Many transaction data enrichment services offer discounts for volume customers, so it pays to shop around.
3. Try before you buy. This simple principle is extremely popular in B2C. Not so much in B2B. You should, however, test the desired API and your data to see how well it suits your needs. This way, you can determine the usefulness of the integration.
4. Finally, consider using payment data enrichment services with other data sources. By combining data from multiple sources, you can get a more complete picture of your customers and their needs.
Transaction data enrichment is a process that can provide banks with more prosperous, more valuable customer data. Adding additional information to your customer data sets can improve your marketing efforts and increase sales. Many different types of payment data enrichment services are available, so choosing the best provider to meet your needs is essential. When working with a transaction data enrichment provider, take advantage of all the benefits they offer to get the most out of the service. Want to learn more? TapiX offers free intro calls so you can discuss your specific needs with one of our experts and see how we can help you drive sales and grow your business.