It is the perfect time for banks to position themselves as strategic allies and offer highly personalized recommendations and services that meet the real needs of its customers. It has never been more important for financial institutions to fully understand their users and guide them through the inflation crisis.
Entities need to attract new customers and retain current ones by offering them tools to manage the domestic economy. The main challenge is being able to offer information about transactions in real time. To get started, it is essential to collect as much information as possible about recurring expenses, consumption patterns, risk behaviors, expected income and more.
Can analyzing transactional data transform your bank?
All this data is already in the hands of banks, the problem is that users generate millions per day and, without processing, they can become impossible to understand and analyze. With the processing and enrichment of transactions, as well as with their categorization, behavior patterns can be identified and help establish an effective business strategy.
Knowing the customer in depth allows us to discover what their needs are at all times, to adapt the offer and launch hyper-personalized messages and products. FinTech companies have the necessary technology to help in this task. With their tools it is possible to navigate the ocean of data and generate precise categories to create as many types of customers as users of the bank. In this way, communications become automatic and banking services and products emerge as hyper-personalized.
Bank transactional offers the tools that generate greater engagement and financial well-being
One of the biggest challenges for entities when launching new products is the large investment of time and money that carrying out an innovative development internally can entail. For this reason, in recent times we have seen alliances with technology startups that provide the necessary experience in this area.
One aspect that we must take special care of is the user experience – you can learn more about improving that in this article-. It is essential to guarantee the accessibility, usability and customization of the interface in order to strengthen the entity-client relationship. In this sense, it is possible to adapt the look and feel of the solution while maintaining its functionality in a very agile way.
Returning to the analysis of the banking transaction, at Coinscrap Finance we have a categorization engine that analyzes and classifies it with 90% accuracy in 17 financial categories and more than 120 subcategories. Thanks to that, banks and insurers can have a 360º overview of their customers’ financial situation, detecting areas of improvement and new sales opportunities.
Our system combines Natural Language Processing (NLP) techniques with machine learning algorithms to classify bank transactions. With this categorization it is possible to help users manage their personal finances, improve their credit scoring, or provide recommendations at key moments.
The potential of Personal Finance Manager (Expense Manager)
Helping users with adequate financial education and providing them with practical tools to plan their domestic economy is our goal. We want to help people make conscious and responsible decisions about their finances. To achieve this, we offer different modules to banks and insurance companies.
The one that generates the most interest among users is the Expense Manager or PFM. The Personal Finance Manager allows them to control income and expenses, assign budgets, receive recommendations in real time and see all the information they need to make better financial decisions.
These are some of the features of the Expense Manager
- Improve user engagement and trust, especially Generation Z and Millennials.
- Offers a global, clear and simple vision of the financial situation in real time.
- Allows them to make budgets and manage them.
- Shows the investments and offers full control over them.
Allows them to control spendings and schedule alerts to avoid overdrafts.
There are some of the benefits of Expense Manager for entities
- Attracts clients from other entities that do not help them manage their money.
- Increases the time of use of digital platforms.
- Generates up-selling and cross-selling, due to recommendations.
- Builds customer loyalty and create brand evangelists.
Positions your bank as a leader in innovation.
There are already many entities that are taking advantage of transactional technology to improve the day-to-day life of their users. On the one hand, users get a true picture of their financial health and on the other, institutions get to know their customers better, opening up a wide range of opportunities for the development of personalized and innovative products and services.