Leveraging Transaction Data for Greater Customer Insights

Transaction data can carry a lot of information, but much of it gets lost in its current difficult-to-read, garbled state. If you’ve ever tried to decipher your credit card bill, you know how hard it is to decipher what you’ve actually purchased.

Recently we hosted the webinar: Leveraging Transaction Data for Greater Customer Insights, to share how Envestnet® | Yodlee® Transaction Data Enrichment (TDE) capabilities can help financial institutions, fintech innovators, and their customers all benefit from easy to understand transactions.

By cleaning up transaction data, financial service providers can benefit in several ways.

  • Transactions are easy to read and understand, and the user experience is improved.
  • Transactions are identified and classified in a contextualized and personalized manner, achieving a higher level of accuracy.
  • Transactions become a building block for data analysis. This enables financial service providers to better understand their customers, and provide more meaningful insights to help customers achieve financial wellness.

Envestnet | Yodlee has an extensive network of transaction data, as millions and millions of transactions pass through our system daily. We use machine learning to deliver the merchant name, a simple description of the purchase, geo-location, and even contextual categories.

According to Factual, there are over 21 million merchants in the U.S. We leverage machine learning technology because creating a program to match everything up is nearly impossible. We need the system to learn what the transactions mean and do its own deciphering.

Transaction data can also be used as an alternative data set for making decisions about credit risk and loans. Lenders have also found this information to be useful for the 26 million “credit invisibles” in this country, those Americans who don’t have a FICO score.

The transaction data can also be used to augment a FICO score, and give lenders a better idea of what kind of spending and repayment habits the borrower actually has. This can help lenders better understand the borrower’s incoming and outgoing cash flow, and their ability to pay back a loan.

Ultimately, we believe that transaction data enrichment can be used as the building block for artificial intelligence. We’re seeing an increased use of chatbots in the financial industry, and TDE can lead to more human-like interactions with AI chatbots. They also enable financial service providers to offer more personalized service with better customer-level information.

Envestnet | Yodlee offers transaction data enrichment to all customers. But even if you have disparate data that’s not integrated into our platform, we can still process your data and give you back an enriched and cleaned up version. We can even add additional information, like the web address, the phone number, or even the email address of the merchants.

Ultimately, TDE will help financial institutions and fintech companies gain actionable insight into spending trends, promote targeted offers, and drive more targeted customer interactions. To learn how to leverage transaction data for greater customer insights, register for the on-demand webinar here.