Unlocking Actionable Intelligence from Financial Data

Transcript

00:08-00:43

Sachi Osterloh:

Hello everyone, and welcome to the MX Innovation Forum.

We have an exciting line up for you today.

First, you'll hear from MX’s Chief Technology Officer Wes Hummel who is going to share with you insights from our latest commissioned study with Forrester Consulting.

Then, Nandita Gupta is going to join us and talk about the future vision of MX and how we’re powering actionable intelligence.

Last, make sure you stick around for our product updates. Our product marketing team will join us to walk you through all the latest announcements and releases from our product and engineering teams.

Thanks for joining us, I’ll now pass it over to Wes

00:45-07:20

Wes Hummel:

I'm Wes Hummel, Chief Technology Officer at MX, and I'm happy to be here with you today.

Recently, MX commissioned a study with Forrester Consulting that explores how financial providers think about and use consumer-permissioned financial data to gain actionable intelligence and deliver positive consumer and business outcomes.

The study surveyed 150 financial services leaders and data decision-makers from the United States and Canada. The leaders shared their consumer-permissioned data practices, challenges, and opportunities.

I am excited to share key findings from the commissioned Forrester Consulting study with you today.

So let’s jump into the findings.

It may not be surprising with macroeconomic trends — from open banking and intensified competition to proposee regulation and ever-growing consumer demands — the survey found that now more than ever before, consumers expect greater levels of personalization, demand greater control over their financial data, have money in more places, and lack a holistic view of their financial lives.

Today's money experience is broken, and consumer's financial blindness continues to grow significantly.

Technology advancements over the last two decades have actually made the money experience harder for the average person. The average consumer has multiple accounts across numerous financial institutions and fintechs.

This requires remembering several usernames and passwords, reviewing multiple statements and planning budgets and savings across various accounts.

And for many, this still requires using spreadsheets to keep track of multiple financial accounts and budgets. Now me personally, I have made a list for my wife many times of all the accounts that we have and I have to redo that list every couple months just for the new accounts that we open and the accounts we close.

And consumers aren't the only ones who struggle with financial blindness. Institutions do as well.

Interestingly, Forrester Consulting found that financial providers have access to more consumer financial data than ever. However, having the data isn't enough. The ability to effectively use that data and actually know your consumers is becoming more and more difficult, especially with consumers rising number of held away accounts.

This may explain why data decision makers see the increasing importance and impact of consumer-permissioned financial data on their institution’s success and sustainability.

The majority agree that:

• data should be used to provide clear, actionable consumer insights
• it is increasingly important in financial services to be able to make decisions based on real-time data
• personalized experiences based on consumer financial data is a must-have for the future
• effectively utilizing consumer financial data would be a significant competitive advantage and, financial data intelligence is critical to future success

However, while it is easy to recognize the importance and impact of effectively and ethically using permissioned data, it is much more difficult to transform that data into actionable intelligence.

The study revealed that many providers are still at the beginning of their data intelligence journey.

When asked what use cases they leverage consumer-permissioned data for today, no single use case had an adoption greater than 67%.

As this graph illustrates, it is clear the significant value and opportunities remain on the table for providers.

The two use cases with the greatest interest and growth potential are account aggregation and monitoring and managing external third party data sharing.

The study found that 62% of respondents say their organization largely still uses data the same way they always have.

This creates challenges with delivering personalization experiences at scale, wasting data — more than half say they have substantial amounts of data they aren't even using — and using their consumer data to make better products, services, and experiences.

Alarmingly 39% say that the way they use consumer financial data has not been a top priority for their firm.

This is very unfortunate as failing to leverage data can have considerable consequences. Nearly half of decision makers stated they lost consumers due to poor data usage or inadequate personalization.

Forrester Consulting uncovered two main root causes of data challenges.

First, the lack of internal consistency, ownership and expertise. 56% of leaders say different teams across their organizations have drastically different ways in which they access and utilize consumer financial data.

Second, they have had difficulty finding the right data partner or have too many data partners, which further complicates internal challenges related to consistency and ownership. 86% recognize that having the right data partner is critical for success.

The study consistently found that for most organizations, the biggest issue is less about whether data leaders know the right plan of action and more about whether they have the internal structures and trusted partners needed to execute those plans.

Fundamental strategy is not the problem.

Often competing priorities and previous failures or struggles leave top decision makers hesitant to allocate the resources necessary to make significant improvements.

However, according to Forrester Consulting, this is beginning to change.

Nearly 80% of leaders state that they know their organizations need to put a greater priority on maximizing the potential of consumer-permissioned financial data.

In addition, decision makers recognize the need to break down internal silos, invest in technologies, improve automation, and find the right data partner

By transforming financial data into actionable intelligence, a majority of leaders expect to see improved customer experiences, increased retention, targeting and segmentation decision making capabilities and more as they enhance how they leverage consumer-permissioned financial data.

The main takeaway? Financial services leaders all agree on the value of data, but the majority of organizations struggle to effectively leverage that data to drive value for both consumers and their business.

As Forrester Consulting summarizes, consumer financial data programs are vital to continued success, but all too often organizations are limited by their inability to turn data into actionable intelligence.

MX can help you unlock the value of consumer-permissioned data to deliver positive consumer and business outcomes.

And with that, I'll turn it over to Nandita to talk about MX’s future vision and how we can help you transform financial data into actionable intelligence.

07:23-13:48

Nandita Gupta:

Hello everyone. I'm Nandita Gupta, Chief Product Officer at MX. I'm excited to share with you the future vision of MX and what we believe will shape the future landscape of financial services.

Today we're introducing the MX Intelligence Platform. We've been working with banks, credit unions, and fintechs for over a decade, and while the landscape has shifted and evolved, one theme has remained top of mind — how to grow and retain customers.

But why is this so difficult?

As you know, the average consumer has seven financial accounts across numerous institutions

and more than two banking and three to four fintech applications loaded on their smartphone.

With multiple financial accounts spread across different financial institutions and platform, consumers lack a holistic 360-degree view of their finances. And for the financial service provider, they only get to see a fragment of their consumer's life.

Your view of your customers is extremely limited. Yet with the rise of Open Finance, you've never had more data available.

But despite all this data, it's harder than ever to understand your customers. That's because:

• it starts with data being inaccessible and when you get access to data, it's unstructured data
• and with this unstructured data, you're unable to derive any insights or intelligence. Basically, there's a lack, lack of data insight
• and with no insights, you don't have any recommendation on the next best action and therefore no path to make it actionable.

This is what we call the actionable intelligence gap.

The data is there, but a path to action has yet to be taken.

Does it take you weeks and multiple meetings to answer questions like,

• Which credit cards are we currently losing business to?
• Which of our checking account products is churning the highest?

If you are like most organizations, accessing customer data requires working with multiple departments, and when you do get the data, it is many weeks, months out where the data is outdated or too late in making use of it.

And more importantly, are you able to trust its accuracy and timeliness?

Intelligence locked away is intelligence wasted. Too many institutions are trapped in this paradox of owning raw information but not getting any value from it.

It's like using a physical printed map to reach your destination instead of entering it into Google Maps and getting turn by turn assistance updates and avoiding delays along the way.

This is why we're so excited to share the vision of MXI, the MX Intelligence Platform with you.

MXI combines all our solution into a holistic end-to-end platform that helps you acquire new customers, build engagement and loyalty, identify opportunities, and take action.

It starts with connectivity — to access data. First, with our MX connectivity products like instant account verification, account owner identification and aggregation — that is all our data in products, you have the ability to securely link accounts and verify customers, financial data for account opening, money movement and loan processing, as well as provide the necessary financial wellness personalization.

Second, with our MX Data Access, for data out solution, powering open banking. With 1033 on the horizon, is your institution prepared?

MX's Data Access is a fully-featured and FDX-compliant open banking API that can be implemented in weeks.

Third, your data is only as good as your ability to understand it. MX’s industry leading data enhancement makes financial data actionable with context, cleansing, categorization, and enrichment, which helps deliver proactive insights.

Those messy strings of characters of numbers are transformed into clear descriptions and categories that can be easily understood and analyzed for action.

With our MX Insights, MX PFM, and MX Mobile for your end consumers, we bring it all together to help you drive engagement and growth with configurable financial wellness to give consumers a 360-degree view of their finances with recommendations and a path to action, as well as a mobile banking experience that centers around personalization, usability, and a connected experience for your users.

And lastly, with our Customer Analytics, we can help you, the financial service provider, understand which of your customers have say direct deposit, credit cards, investments elsewhere. You can segment in multiple ways and then you can feed the targeted opportunities into your marketing CRM or our own Insights product to drive better conversion.

With your ad and marketing spend, it gives you more visibility into your customer's, other financial relationships from their consumer-permissioned data, creating more revenue opportunities with improved segmentation and personalization efforts.

The use cases that MXI will power are endless and we're excited to show you how it'll all work.

Let's jump into a use case.

So let's say one of your business objectives this year is to grow a new checking account product and increase customer loyalty and engagement. Within the Customer Analytics account attrition dashboard, you can see where you're experiencing churn over the past 12 months. By looking at the products with the most churn, you can easily see where this new product has potential to cover the gap. Customer Analytics makes it easy to export the list to your marketing CRM and launch a new product campaign and begin testing the new checking account product with customers.

Then let's say you're using our MX Insights, you can now push that same offer to that segment of consumers within your mobile app or in MX Mobile. This is just a small view into the use cases MXI can help you power and we're so excited for what's to come this year.

Now I'm gonna pass it over to our product marketing team to walk you through some of the latest innovations from MX.

13:50-14:57

Ethan Prete:

Hello everyone. As Nandita explained, we've never been more excited about the possibility of actionable financial intelligence.

Historically, finding, cleansing, and acting on financial data has taken a village. But in this day and age, a single marketer digital banker, growth, or deposit manager should be able to see and track all aspects of the customer journey in just one place.

From onboarding and verification to increasing user engagement and loyalty, you need access to the data and analytics that power the intelligence needed to provide an exceptional experience for your consumers.

MX Intelligence is more than aggregation. It's more than PFM, and it's more than checking the boxes to be open banking compliant.

Today we're excited to walk through the updates, making this stream of actionable intelligence more of a reality.

We'll be digging into how you can improve the following.

• Improving the account opening experience
• Increasing engagement and revenue
• Powering open finance
• Improving customer financial wellness
• And, Delivering a 5-star mobile experience

14:57-15:49

Jasmine Chen:

When we think about the entire user journey, the first step is connectivity.

We're excited with the progress we've seen in improving end-to-end session performance with a new process that we've called Simplified Connectivity.

With this process, we continuously monitor performance between different aggregators and data sources to optimize traffic based on real-time performance data.

This means that your end users are always routed to the best performing connection.

Another milestone we're excited to announce makes it easier for end users to have reliable access to their data regardless of where they choose to bank.

Through expanding connections, we've partnered with companies like Jack Henry and others to create OAuth connections to financial providers of all sizes.

In addition, we've added 1800 institutions that support our identification calls, making account owner information more accessible than ever.

15:50-18:01

Ethan Prete:

Now, when it comes to consuming and analyzing data, we have exciting news for the marketers and digital experience teams.

Within Customer Analytics, we have new integrations with enhanced marketing features that we feel will make your jobs quite a bit easier, such as identifying and exporting specific audiences or segments, creating marketing campaigns for these specific audiences, using our pre-built templates to identify and target a specific group, and lastly, easily reviewing all reach and click-through metrics to understand your campaign's effectiveness.

With the ability to leverage customer data to build smarter segments and surface insights, you and your team can create more engaging and relevant content for your marketing campaigns all within a single platform.

As part of MXI, we're bringing more of MXs solutions together to help you maximize value.

With our next update, we're excited to announce the launch of unified navigation and login for our Customer Analytics and Data Access products.

We're making it easier for you to move between products and use them side by side to uncover more about your customers.

We're excited about the use cases this will unlock and we'll share more in the coming months.

As we continue momentum across open banking, we know how important it is to find the information you need when you need it.

Customer service and supporting each other has been and always will be a key focus here at MX.

Today, we're also excited to announce a new self-serve support feature for Customer Analytics and Data Access. This update will streamline the process of creating tickets in Zendesk and working between the tools.

With this update, all tickets and instances will be submitted within the product interface.

Now, top of mind for everyone right now is 1033 and what this means for the industry. If you're still trying to make sense of what it means for you, you'll want to check out our latest update of API overviews and test users.

This update helps data providers and recipients test the APIs before they go live, ensuring that all required data is there with strict guidelines around the data flows.

This test environment is a critical tool for your institutions.

While we're on the topic of 1033, we're also announcing a new enhanced intermediary onboarding for Data Access. This makes our already easy process even easier. With new checklists and templates, you can now view which intermediaries are in testing, monitor the process, and stay in lockstep with each partner.

18:02-19:13

Jasmine Chen:

To stay on theme for a more seamless intelligent solution, I'd like to highlight the new embedded experience within MX Mobile.

We've brought together more features into the mobile experience, including PFM widgets, consumer data access controls and Insights via the micro widget.

We've seen engagement skyrocket by providing a complete money experience with MX Mobile

By using our micro widget, one client saw the number of Insights viewed increased by 43 times. They also saw a 300% increase in click-through rate.

These embedded experiences, however, don't start and stop with mobile. The insights showcased on the mobile dashboard will also be presented as part of the next PFM enhancements.

With the new Insights micro widget, this smaller widget takes up less real estate in the digital banking experience, allowing it to be placed in whatever white space is most practical or natural for your users.

By meeting them where they are or where they wanna be, you're seeing both engagement and financial wellness increase.

With every extra effort of personalization, helping end users engage and understand their finances is now more effortless with MX Experience Products.

19:14-19:50

Ethan Prete:

We're excited about the progress we're making in creating true and relevant financial intelligence.

We value the feedback we received from so many of you joining us today, and we're excited to hear your thoughts and reactions to the rollouts that we've announced.

Anyone looking to add solutions to your suite can visit mx.com today and schedule a demo.

If you'd like to discuss how additional financial intelligence at your organization can help with one of the five key growth indicators that I mentioned earlier, please reach out.

We have experts that are eager to map out what this growth plan will look like for you and your team, and also how quickly you can start to see some of those results.

Thank you for joining us today. We hope to see you again soon.