How Financial Institutions Can Get The Most Out Of Their Data

Leveraging merchant payment cleansing to derive actionable insights

Committed to elevating the online banking user experience (UX) and unlocking actionable data insights for financial institutions (FIs), Alkami acquired Segmint, a leader in making transaction data usable and meaningful for FIs to deepen account holder relationships, uncover hidden profit opportunities, and grow revenues. This strategic acquisition elevates the user’s digital journey by combining Segmint’s rich data set and unique insights with Alkami’s digital banking platform. 

In a recent Data Jam Session, the Segmint team, including Zee Gauba, Director, Client Success and Kent Blacksher, Sr. Business Development Executive, hosted a panel to discuss ways that FIs can access relevant data insights, keep data secure, and use data to be adaptable and efficient. They were joined by clients, Cheryl Dutton of Altra Federal Credit Union, and Ben Udell of Monona Bank.

Here are a number of key takeaways from their discussion:

Transactional Data is Proving to be Most Valuable for FIs

“The best indicator of who people are is reflected in the transactions that they make,” said Zee. He continued with making it clear that an FI can start to tell the story of every account holder by analyzing the data set.

Cheryl Dutton spoke about the importance of Altra FCU not only gathering transactional data on their account holders, but also being able to properly analyze it. She said they focus on how financially healthy members are, and where they are dispersing their money. This knowledge helps her team serve their members better every day.

Ben Udell also made a great point on how Monona Bank utilizes transactional data to validate what they hear day-to-day in their branches. They use this data to determine if these trends are happening companywide or just in an isolated number of branches.

Knowing how, why, and where account holders are spending their money is extremely valuable information for FIs because it allows them to tailor their messaging to each individual account holder to best meet their unique financial needs. Harnessing this data also leads to stronger strategies throughout the institution.

Building an Account Holder Database is a Marathon, not a Sprint 

While an FI that is introduced to the concept of gathering transactional data may want to jump in head first, the group all agreed it’s very important to start slow, and build a trusted database. Altra FCU started gathering their transactional data roughly four years ago, and they are now starting to piece together a complete picture. Dutton noted that, in the early days, there were plenty of roadblocks while wading through immense sets of account holder behavior trends, not only confirming if the data was correct, but also determining if the data was even relevant.

For those just getting started building their database, she advocated starting with a narrow focus, measuring the results, and expanding from there.

However, it’s not an easy process. Udell’s response to being asked how FIs can start getting to a point of one single source of data was: “Good luck.” While he was being a bit tongue-and-cheek, he also stressed the sheer amount of data that is out there and the importance of starting slow, validating along the way, and building up from there.

He added, “Our Segmint client success manager adds value every month in our meetings. She constantly challenges us, bringing thoughts for new audiences, and providing insight on what other clients are executing.”

The key here is starting slow, setting clear goals, and working with your dedicated client success manager to achieve the best results.

Staying On Top of Trends is Crucial 

Analyzing consumer trends also necessitates the ability to act quickly when new behaviors arise in account holders.

For example, the group discussed the increasing adoption of “buy now pay later” programs which offer instant purchasing ability with extremely high interest rates. Dutton referenced Altra FCU’s ability through Segmint to identify those account holders who utilized these programs and contact them directly, offering help via low interest rate loans and other debt consolidation strategies.

Staying on top of account holders’ financial wellbeing, by regularly monitoring Financial Health Key Lifestyle Indicators (KLIs), isn’t the only important aspect of uncovering insights in transaction data. It’s also about knowing how to properly market to individuals with relevant messaging, at the right point in time, on the right channels.

Udell referenced how Monona Bank previously relied on mass direct mail campaigns of different offers and debt-consolidation strategies to their customers. That process used to take up to a month, and it could often be hit or miss if the offer was actually relevant to the end user. Now, by leveraging Segmint’s data analytics & engagement solution, they are able to quickly and efficiently target account holders that data and modeling indicate would directly benefit from an offer, cutting their contact time from a month to roughly two days.

Accessing Relevant Insights and Consumer Behaviors is Key for FIs

Building an informational database and being able to identify opportunities within is crucial for FIs desiring to be competitive in a marketplace full of disruptors. Altra FCU and Monona Bank are just two examples of the many FIs that harness the power of Segmint to turn an overwhelming amount of data into strategic focuses and meaningful interactions which fuel institutional loyalty and revenue growth.

To learn more about introducing an innovative Merchant Payment Cleansing solution connect with our team and learn how Alkami and Segmint drive outstanding results for FIs.

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