In the evolving landscape of digital banking, clean, categorized, and enriched data is the key to transforming user experiences and institutional efficiency. Without transaction data enrichment, banks face unnecessary costs and frustrated users. Enriched data lays the foundation for personalized user profiles, enabling banks to tailor their services and offers, leading to higher user satisfaction and retention.
Transaction enrichment consists of several levels:
Transaction Tags add depth to user data by describing specific aspects of a purchase. For instance, a transaction at a thrift store might be tagged as "secondhand shopper," "frugal," and "eco-friendly." These tags help build a detailed user profile, or persona, which provides insights into the user’s values and lifestyle.
User Tags combine multiple transaction tags and categories to form a comprehensive view of a user. For example, a user who frequently shops at thrift stores, uses eco-friendly products, and donates to environmental causes can be identified as eco-conscious. These personas enable financial institutions to tailor their marketing and service offerings to individual users.
With enriched data, financial institutions can offer personalized financial products and services. For example, if a user is identified as eco-friendly, they might receive offers for pre-owned electric vehicles or suggestions for eco-friendly investments. Personalized financial education, such as advice on starting a 529 college savings plan for parents, can also be provided based on user profiles.
Check out for yourself how you can turn transaction data into personalized offers.
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In recent months, financial institutions have been increasingly leveraging enriched transaction data to launch highly targeted marketing campaigns. These campaigns demonstrate the power of personalized banking experiences, driving both customer engagement and product adoption. Here are a few notable examples:
Promoting CDs and High-Yield Savings with Tax Refunds
During tax season, many users receive significant tax refunds. By identifying these transactions through enriched data, banks can launch targeted campaigns to promote Certificates of Deposit (CDs) and high-yield savings accounts. For instance, when a user’s account shows a tax refund deposit, they might receive a personalized message highlighting the benefits of securing their refund in a CD or a high-yield savings account to earn more interest. This approach not only helps users make smarter financial decisions but also increases deposits for the bank.
Offering Auto Loans for Unexpected Car Expenses
Unexpected car expenses can be a financial burden for many users. By tagging transactions related to auto repairs and maintenance, banks can identify users who might benefit from an auto loan. A personalized campaign could include offers for low-interest auto loans, providing a solution for users facing hefty repair bills. This not only alleviates immediate financial stress for users but also helps the bank in promoting their loan products.
Supporting Small Businesses with Business Accounts and Merchant Services
Small business expenses often appear in consumer accounts, indicating potential business activity that could benefit from dedicated business banking services. By analyzing these transactions, banks can identify users who might be running small businesses. Targeted campaigns can then promote business accounts, merchant services, and other financial products tailored for small businesses. For example, a user frequently purchasing office supplies or making transactions at business-oriented retailers might receive an offer for a business account with enhanced features, or for merchant services to better manage their business finances.
Here's an example
Transaction Data tells you more about your members and what is happening in their life. This members has had recent car repairs and is also a dog owner and outdoorsy.
You can segment similar users to target campaigns for new auto loans, and make the creative outdoorsy and pet related to align with those members lifestyles.
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