Support Financial Wellness Programs

Transaction enrichment involves the detailed analysis of payment and transaction data to paint a comprehensive picture of an account holder’s financial behavior. This data reveals critical insights, such as preferred merchants, spending habits, and even financial products held with other institutions. 

By leveraging these insights, banks and credit unions can create personalized financial wellness programs. These might include savings goals, credit scores, home value monitoring, financial education, retirement planning, and more. Through continuous interaction with customer relationship management (CRM) systems and feedback from product teams, the impact of these wellness programs can be effectively measured and optimized.

Adapt to Financial Technology Trends

Staying up-to-date with financial technology trends is another area where transaction enrichment can significantly benefit banks and credit unions. Consider the rise of digital peer-to-peer (P2P) payments, such as those made via platforms like Venmo or PayPal. These platforms have become a part of daily life, used for splitting bills, gifting, and more. By analyzing transaction data to understand how account holders use these P2P services, FIs can offer competitive products that meet evolving account holder expectations and maintain loyalty.

For example, understanding the specifics of P2P transaction activity can help FIs develop payment solutions that align closely with consumer needs. This can help to reduce the risk of losing fee income or account holder engagement to these emergent technologies.

Understand (And Prevent) Deposit Displacement

The widespread adoption of smartphones and the plethora of financial apps have led to what’s known as deposit displacement. Funds that would traditionally be held in deposit accounts are increasingly being managed through apps like Starbucks for coffee purchases, or savings tools like Acorns for investments. This shift represents both a challenge and an opportunity for FIs.

By embracing transaction enrichment, FIs can understand where, why, and how their account holders choose to store their funds outside of traditional bank accounts. This insight allows institutions to realign their digital banking solutions to better fit modern consumer behaviors and expectations, emphasizing convenience and integration.

In addition, transaction enrichment can support targeted financial services marketing efforts. With accurately cleansed, tagged and categorized transaction data, financial institutions can deliver personalized messaging to the right audience at the right time. These campaigns can support a wide variety of strategic objectives such as: retention, competitive analysis to increase share of wallet, and artificial intelligence in banking. 

With inputs from transaction enrichment, artificial intelligence in banking allows you to make sense of all the data produced by your account holders every day. Alkami’s AI Predictive Models use data to identify daily shifts in spend categories and financial patterns to predict account holders’ financial behaviors and needs. Using artificial intelligence in banking gives financial institutions access to cutting-edge, off-the-shelf or custom models to predict and influence any audience.

Implement Transaction Enrichment

To harness the full potential of transaction enrichment, FIs can turn to platforms that provide analytics capabilities. With Alkami’s Transaction Data Cleansing, transactions stored in a data warehouse can be appended with enriched metadata to enable faster and more meaningful reporting and insights. This helps you get to know your account holders’ lifestyles and preferences, such as whether they have pets, travel internationally or have young children.

Alkami’s transaction data cleansing service cleanses, categorizes, and interprets billions of inconsistently labeled transactions quickly and accurately. It transforms raw data into actionable insights presented through intuitive visualizations or accessible via application programming interfaces (APIs). This integration flexibility ensures that FIs can easily incorporate these insights into their existing frameworks, enhancing their decision-making processes and strategic planning.

By integrating transaction enrichment into their operations, FIs can offer more relevant and responsive services, anticipate account holder needs, and stay competitive in a rapidly evolving digital landscape. Moreover, the strategic use of enriched transaction data helps financial institutions not only to understand their current customer or member base but also to predict future financial trends and behaviors.

In today’s data-driven world, transaction enrichment is not just a tool but a necessity for FIs looking to provide exceptional service and meet the demands of a tech-savvy consumer base. With the right analytical tools and strategies, FIs can leverage this enriched data to create a banking environment that prioritizes personalization, efficiency, and innovation, ensuring they remain at the forefront of the financial services industry.

Contact us to learn more about Alkami’s Transaction Data Cleansing.