Alkami Technology Inc
09/11/2024 | News release | Distributed by Public on 09/11/2024 08:17
Drive Growth & Revenue with Data Analytics in Banking
Leverage actionable data insights to grow deposits, lending and more
To grow and maintain profitability, banks and credit unions must use every available resource. One of the most powerful tools at their disposal is data-specifically, the ability to leverage first-party data analytics in bankingto create personalized, targeted experiences for account holders. However, studies indicate that data scientists spend about 40% of their time aggregating, standardizing, cleansing and categorizing datato prepare it for analysis, leaving less time for generating valuable insights. Alkami's Data & Marketing Solutionshas the easy button for actionable data insights. The team of data engineers and library scientists at Alkami is dedicated to delivering precise first-party data enrichment results in the form of data tags. More than 50,000 data tags are available to design personalized banking experiences for your account holders. The possibilities are truly unlimited.
Read on to learn how data tags can help your financial institution capture deposits, drive lending, boost interchange income, expand commercial opportunities, and enhance account holder engagement.
Grow Deposits: Capture and Retain Deposits
Financial institutions need durable, low-cost deposits to support liquidity management, financial stability, and profitable lending. Holding the deposit relationship is a key component to primary financial institution status. Data analytics in banking empower you to capture and retain deposits from your account holders by identifying your most engaged account holders, uncovering those with relationships at other institutions, and targeting outreach efforts effectively.
Data Tags for Deposit Growth
- Tax Refunds: An account holder who has received a tax refund from a government entity
- Payroll Deposits Increasing Trend: An account holder who has an increasing payroll deposit with your financial institution
- Competitive Investments: An account holder who has made a payment to an investment account at another financial institution
- Competitive banks and credit unions: An account holder who has made a payment or transferred money to an account at another financial institution
- Trial Deposits: An account holder who receives a trial deposit from another financial institution
- Large Deposit in Last 7 Days: An account holder who deposited a large amount in the last seven days with your financial institution
Drive Lending: Predict Next Best Offers
Maximizing profitability often means prioritizing lending, particularly when excess liquidity is available. By analyzing current product holdings and account holder behavior, financial institutions can predict and recommend the next best lending product for each account holder. This data can reveal where account holders are making loan payments, when loans are due, and where there's potential to encourage greater utilization of products, like home equity lines of credit (HELOCs).
Data Tags for Loan Growth:
- Competitive Mortgages: An account holder who has made a payment to a mortgage at another financial institution
- Competitive Auto Financing: An account holder who has made a payment on an auto loan at another financial institution
- Competitive Personal Loans: An account holder who has made a payment on a personal loan at another financial institution
- Loan Time Until Maturity: An account holder who has a loan with your financial institution and the time until the loan matures
- HELOC Utilization Percentage: An account holder who holds a HELOC with your financial institution and the percentage of funds used
Capture Interchange Income: Diversify Revenue with a Steady Stream of Non-Fee Income
Diversifying revenue streams is crucial for financial institutions, and growing interchange income provides a steady and profitable source of non-fee income. By promoting the use of debit and credit cards, financial institutions can capture more interchange income. Data insights can help identify which cards are top of wallet, highlight key spending categories outside of your institution, and pinpoint recurring payments made via ACH rather than a card.
Data Tags for Non-fee Income
- Competitive Credit Cards: An account holder who has made a payment on a credit card with another financial institution
- Competitive Digital Payments: An account holder who has a transaction with a digital payments provider
- Competitive Buy Now Pay Later: An account holder who has made a payment to a buy now pay later provider
- Making Recurring Payments Via ACH: An account holder who makes recurring payments with your financial institution utilizing ACH
- Target Debit Card: A consumer who uses the Targetstore debit card to make purchases
Expand Commercial Opportunities: Become a Trusted Business Partner
Financial institutions know that commercial banking relationships are an ideal source of durable deposits and income from higher interchange commercial credit cards. Deepening existing commercial relationships is critical to drive greater profitability.
Qualified opportunities to grow commercial and small to midsize (SMB) banking relationships exist in every financial institution's data. With data analytics in banking, you can prepare your commercial relationship managers with data insights about the financial relationships that your commercial and SMB accounts hold. This includes data insights for relevant business purchases, like merchant processing, business financing, payroll, and business insurance.
Data Tags for Commercial Opportunities
- Competitive Merchant Processing: A business user who has received payments via a merchant processing provider
- Competitive Business Financing: A business user who has made payments to a business financing product at another financial institution
- Competitive Payroll Processing: A business user who has payroll transactions through a payroll services provider
- Competitive Business Insurance: A business user who has made payments to a business or commercial insurance provider
- Business Billing Platforms: A business user who uses a business billing platform
- Amount of Competitive Business Loan Payments in Last 30 Days: A business user who makes business loan payments with another financial institution and the amount paid in the last 30 days
Boost Engagement
Retaining account holders is vital to maintain a stable account holder base and drive growth. Cleansed, normalized, and analyzed data hold important indications about an account holder's level of engagement and ultimately, risk of attrition. Equipped with these data insights, financial institutions can contextualize this information with other data tags that describe transaction and financial behavior. Data insights, powered by artificial intelligence (AI) in banking, enable you to pursue deeper relationships with highly engaged account holders and implement retention strategies for those at risk of attrition.
Data Tags for Engagement
- AI High Engagement: An account holder who is predicted to be highly engaged with your financial institution
- AI Low Engagement: An account holder who is predicted to be not engaged with your financial institution
- AI Attrition Risk Positive: An account holder who is disengaged and at risk to leave your financial institution
- Direct Deposits Last 90 Days: An account holder who makes direct deposits with your financial institution and the amount of those direct deposits in the last 90 days
- Aggregate Deposit Balances: An account holder who has a change in their account or loan balances over the last 30 days
Actionable Data Insights, Unlimited Potential
The ability to harness and apply data effectively is a powerful driver of growth and innovation for financial institutions. By leveraging data insights, banks and credit unions can enhance deposits, lending, revenue diversification, commercial relationships, and account holder engagement. See the top 100 most popular data tagsused by our customers to drive growth.