Understanding Transaction Data

Understanding Transaction Data

Transactional data can include, but isn’t limited to, purchases, payments, debits and credits, hotel reservations, interest paid and much more.

For instance, when a customer walks into a quick service restaurant and orders a burrito, it’s likely that she will pay with a debit or credit card. This information is captured by the bank and recorded as a transaction. Anyone who has ever checked their bank statement online and seen such transactions listed has witnessed transactional data firsthand.

Ways to Use Transactional Data

This data is particularly valuable to retailers, restaurants and financial institutions interested in learning more about consumer behavior as it relates to shopping. Because with enough de-identified user data over enough time, clear patterns begin to emerge. From there, predicting a consumer’s next move becomes less about guesswork and more about science and Big Data.

How Envestnet | Yodlee Handles Transactional Data

Behind each piece of transactional data is a complex web of point-of-sale servers, ATMs, middleware, security software and countless other devices. These multiple touchpoints can often lead to data that’s unintelligible, garbled or that features superfluous letters, numbers and symbols. This makes it extremely difficult for financial institutions and retailers to put this data to any practical use. In addition, it’s often difficult for consumers to decipher their own transactions by looking at a bank statement. This leads to a large volume of expensive customer support calls and research into fraud claims, all of which is preventable.

Envestnet | Yodlee takes this confusing transactional data and makes crystal clear what an individual transaction or group of transactions is all about via Transaction Data Enrichment. After this cleaning and enrichment process, the customer experience is smoother and less confusing because the data then shows the merchant’s full name, the date, location, amount spent, and even the category the transaction falls under. This is particularly helpful for those consumers looking to track their spending by category each month.

With transaction data from millions of customers aggregated and then anonymized and de-identified, financial institutions and retailers can utilize that data and see spending habits, share of wallet, method of payment preference, and more reference data. With this information in hand, marketing and other teams can more successfully promote targeted offers, deliver personalized financial advice, and drive more meaningful customer interactions.

Using Transaction Data for Analytics and Market Insights

Most forward-thinking companies are using some form of transaction data analytics to inform business and marketing decisions. For financial institutions and retailers, Envestnet | Yodlee is a key partner in helping these companies grow, with solutions like:

Transaction Data Enrichment 

Drive meaningful digital insights and interactions with enriched and simplified transaction data.

Credit Risk Modeling

Credit scores are just one data point when considering credit worthiness. Envestnet | Yodlee financial data provides more robust data for making lending decisions.

Envestnet Intelligence

With Envestnet Intelligence, you can leverage de-identified data about clients and competitors to set benchmarks and opportunities for growth.

TXN Shopping Insights

With Envestnet | Yodlee TXN Shopping Insights, merchants can gain an objective, data-driven view into their customer base to uncover shopping patterns, accurately measure ROI of marketing efforts, and identify and act on growth opportunities. Drawing on data from over 10 million de-identified active consumers, an intuitive dashboard not only reveals shopping behavior across competitors, categories and geographies, but also provides immediate feedback on marketing campaigns and market share.