Enhance Your Strategy with Data Analytics in Banking

Understanding and catering to account holders’ unique needs is crucial as expectations continue to rise for banks and credit unions to individualize touchpoints and offer tailored products and services. With the help of data analytics in banking, financial institutions can gain a comprehensive view of their account holders’ finances, including those held outside their primary banking system. This insight is made possible through tools like Alkami’s Aggregated Account Key Lifestyle Indicators (KLIs)*, which are transforming financial services marketing by providing a detailed blueprint into users’ financial behaviors.

What Is A KLI?

A KLI, or Key Lifestyle Indicator, is a data tag derived from transaction data, capturing essential aspects of account holders’ financial behaviors. These indicators are vital for financial institutions aiming to refine their marketing campaigns and product strategies. By integrating these KLIs, financial institutions can personalize services and sharpen their competitive edge, ultimately enhancing user engagement and satisfaction.

KLIs offer several strategic benefits:

• Personalization of Marketing for Financial Institutions
  • Customize financial services marketing efforts to match the unique financial habits and needs of account holders.
• Business and Product Strategy Development
  • Use detailed insights to tailor product offerings and business strategies to meet demands better.
• Optimized Artificial Intelligence (AI) Modeling
  • Employ precise data to improve the speed and accuracy of AI-driven processes, such as predictive analytics.

Exploring the Capabilities of Aggregated Account Provider KLIs

Aggregated Account Provider KLIs reveal which external financial institutions your account holders are engaging with so you can gather a complete understanding of their finances. These KLIs provide intel into which specific institutions your account holders have deposit, investment, loan, mortgage, or credit card balances. This insight allows your institution to leverage data analytics in banking to:

• Gain Competitive Insights

• • This information empowers your institution to refine marketing strategies and develop compelling competitive offers that highlight the unique benefits of your services. By emphasizing what sets your institution apart, you can attract more account holders and enhance engagement.

• Engage Through Targeted Campaigns

• • Develop specific marketing campaigns that highlight your competitive differentiators and emphasize your unique offerings, encouraging more engagement with your institution.

Activating Insights from Aggregated Account KLIs

Understanding the diversity and extent of your account holders’ financial relationships across various accounts is vital. The number of aggregated account KLI allows you to understand account holder deposit, loan, mortgage, credit card, and investment accounts. With this data, financial institutions can:

• Showcase Comprehensive Services

• • For those with multiple financial relationships, demonstrate how your complete range of services can simplify their financial management.

• Compete for Primary Financial Institution (PFI) Status

• • Position your institution as the primary choice for all financial needs.

Utilizing Aggregated Account Balances KLIs

This set of KLIs provides insights into the total balances that account holders have in external aggregated accounts for mortgages, loans, deposit accounts, investments, and credit cards. Effective strategies include:

• Recapturing Investment and Deposit Balances

• • Create targeted offers to attract funds back to your institution.

• Cross-Sell Products

• • Use insights from loan and mortgage balances to cross-sell home equity lines of credit (HELOCs) or other relevant products.

• Promoting Credit Card Usage

• • Encourage users with high external credit card spend to switch to your institution’s cards.

• Win-Back PFI Status

• • Compete for primary financial institution status with account holders who have extensive financial relationships elsewhere.

Leveraging Aggregate Deposit Balance Trend KLIs

Identify account holders with a change in their account or loan balances over the last thirty days. Target account holders by selecting from among multiple bands based on the percent change in the account or loan balances. 

By monitoring changes in account and loan balances, financial institutions can:

• Identify Significant Financial Shifts

• • Large balance increases or decreases can indicate major financial events, allowing your institution to provide timely and personalized support.

• Offer Timely Financial Products

• • Propose HELOC or investment opportunities in response to recent balance increases, thereby securing more business within your institution.

• Integrate Multiple KLIs for Strategic Targeting

• • Combine Aggregate Deposit Balance KLIs and the Large Deposit and Withdrawal KLIs. This integration enables targeting of account holders based on the direction of their balance changes, distinguishing between those moving funds to or from your financial institution versus external sources. This strategic approach allows for more precise marketing and service adjustments to meet needs better.

Tapping into Data Analytics in Banking for Effective Financial Services Marketing

Integrating various KLIs allows financial institutions to target account holders more effectively by understanding their full financial picture. This approach not only aids in recapturing funds but also enhances retention through personalized and strategic financial services marketing.

In conclusion, data analytics in banking is more than just a technological advantage—it’s a pivotal part of understanding and responding to the complex financial needs of today’s consumers. By effectively using these tools, financial institutions can not only improve their operational efficiencies but also provide superior service that meets the evolving demands of their account holders.

Learn more about data analytics in banking.