Using Data to Drive Consumer Financial Wellness
May 17, 2023 | 2 min read
NOTE: This article was originally published Aug. 7, 2018 by MX partner FIS, here: https://www.risewithfis.com/keeping-it-clean-the-power-of-clean-data
By Peter Chapman, Vice President – Partnerships, MX (an FIS partner)
Today’s tech-savvy consumers expect highly engaging experiences across all platforms and at every touchpoint. And delivering on their growing demands starts with clean data. It’s at the foundation of everything —from chatbots and analytical reports to targeted marketing and alerts. If the data isn’t clean, chatbots can’t answer even the most basic of questions, analytics dashboards aren’t useful, digital marketing isn’t personalized, and alerts are inaccurate.
When your customers purchase items, their transactions usually show up in a cryptic format. This unintelligible information can leave them frustrated. Consumers can’t distinguish if what they’re seeing is their transaction or a fraudulent charge. Moreover, it makes it nearly impossible for them to create budgets, track spending, and plan ahead. It also makes it hard for you to understand their transaction types, preventing you from offering products that align with customers’ needs. Below are the three steps to clean and actionable data:
The first step to clean data is cleansing. That means taking transactions like this: “COSTCxx 04ROCHESTER XXX726 XXX-XXX-1189 XXX027” and turning them into this: “Costco | Shopping | Point of Sale.” When your customers can easily understand their financial information, they’re less likely to call in, which reduces call center volumes.
Check out our video reenactment of a customer’s experience trying to decipher their data transaction.
Making transactions easy to understand is critical to proper data categorization. Once customers can easily understand where their transactions are taking place, they can effectively take control of their finances. Adding the categorization capability to your transaction feeds makes it easy for customers to manage their money, understand spending habits, and set financial goals. And making customers’ transaction and account data actionable reduces friction to budgeting and planning. Customers will begin to actively use your money management tool to proactively stay on top of their finances, ultimately increasing brand satisfaction and loyalty.
Classifying your customers’ data gives you insight into their transaction types: POS, bill pay, or direct deposit. With a clear picture of your customers’ financial world, you can create messaging with compelling offers, enabling you to gain a larger share of wallet, and compete more effectively in the market.
Cleansing, categorizing, and classifying data is the foundation of artificial intelligence. It helps you provide extremely personalized marketing experiences, offer solutions to specific problems, and get to know your customers on a much deeper level. It also helps your customers proactively manage their finances and reduce the stress of understanding transactional information.
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