After the introduction by our Head Of Marketing, Juan José Gómez, David Conde, CEO and co-founder of Coinscrap Finance, talked about all the possibilities offered by transactional data to improve user experience, engagement and commercial proposals from banks and insurers.
He began presenting COCO: a self-developed AI engine capable of extracting all the power of transactional data.
Principles of a Nobel Prize that can help in your day to day
“Saving is not sexy. That’s the reality, people don’t like to save. What they like is to enjoy the things they get due to savings: send their children to university, go on vacation, pay the down payment on a house…”
David Conde – CEO at Coinscrap Finance
That is why people begin to demand automatic tools that allow them to perform tasks as tedious as these. “The functionalities that we have available in Coinscrap Finance are based on the principles of behavioral finance.”
David explained the importance of the “nudge“ or “push”, coined by the Nobel Prize in Economics Richard Thaler. His theories are based on the fact that people would never choose savings if they can enjoy their money immediately. Therefore, to help them make the best economic decisions, banks must provide those little pushes that improve their financial health.
How Coinscrap Finance’s COCOs do their magic?
COCO{Categorization}
“It is a service capable of understanding the banking transaction just by reading the text that appears in the statement. Thanks to NLP and ML technology, it is possible to know if it is an income or an expense and the type of expense.” The typical use case within this service is to be able to offer banks a financial picture of the user that allows them to better understand their consumption patterns and way of life, in order to hyper-personalize products and services.
“This 360º panoramic is also very useful for the end user, who can recategorize their expenses or income to estimate their future situation. People can also divide their purchases, regaining control of their finances. With the large number of customization possibilities of the tool, the NPS of the service skyrockets and satisfaction increases.”
COCO{Enrichment}
This tool allows them to enrich the payment data, which in many cases is just a simple alphanumeric code, so the user can identify the merchant from whom they have made the purchase. COCO{Enrichment} adds the name, logo, geolocation and other transactional data that we are not able to discover solely with the business name of the merchant.
For banks and neobanks, this means being more competitive, since this type of functionality is being applied by other market players, such as Revolut, for example. In addition, it translates into fewer disputes and chargebacks for not recognizing afterwards a payment made by card. It also offers up-sell and cross-sell opportunities.
COCO{Insights}
After the categorization and enrichment of the transactional data, recurring income and expenses, subscriptions, insurance, investment funds are detected… Due to all this information we can send automated and hyper-personalized recommendations. With this tool we keep banking and insurance customers up to date with what is happening in their account in real time.
“We have more than 120 automated Insights that translate into greater user confidence. Regaining control of your financial situation is a must for customers today. Thus, they are able to anticipate risks of overdraft or fraud, in case of duplicate charges, suspicious transfers, etc. With this tool, we improve engagement.”
COCO{Auto-savings}
This module includes three tools: Micro savings, Automate your account and Splits. The first one helps users set savings goals and achieve them using automatic rules. For example, if I want to save for my next vacation, I can establish rules like: “save €1 every time my favorite team scores a goal”. It’s about putting money to work for you.
In Automate your account, the customer can establish the desired actions to control their financial situation at all times. Some examples of automatic planning would be setting a desired minimum balance, saving a percentage of payroll every month or activating the rounding of purchases, among other simple rules.
“Splits or Group Expenses helps family and friends create groups and takes care of the necessary calculations to be able to divide the payment among everyone. Then notify all the members to pay their part. Each person can see the status of the accounts and make the payment through various platforms, such as bizum or CoDi, here in Mexico.”
COCO {Loyalty}
It is a module that complements Micro savings. We offer cashback 2.0, the rewards are not subject to the user going to a specific website to make a purchase. By understanding the transactional and identifying the merchant, we make this process automatic. COCO{Loyalty} is able to monitor all the purchases that customers make in their Wallet and identify if they make a payment at an associated merchant.
“We identify the commerce, we contact him and the deposit is made instantly. With the use of AI, we detect purchases in the competition and we can tell the user about the advantages of buying in establishments adhered to the program. This module has a lot of traction, surveys say that 82% of consumers are interested in cash back programs that work automatically.”
COCO{CO2}
Offers the calculation of the carbon footprint associated with user transactions related to Scope 1 (direct emissions). This tool is capable of relating each payment to its environmental impact in mass of CO2 equivalent (COeq). This is a functionality highly demanded by consumers and represents an opportunity for banks and insurers, since they may have products to offset this footprint.
“We have agreements with companies that are in charge of neutralizing the footprint through the care of large extensions of forest and with the creation of wooded areas dedicated to this purpose. In addition, there are a multitude of ecological banking products on the market that can offset emissions. This is the case of green bonds or loans for social projects.”
Here is the complete webinar!
These modules work nice separately, but together… They are unbeatable!
All these modules are independent, but they can also be consumed at the same time, which is why many banks end up using several to trigger their results. By having access to the user’s transactional data, the possibilities of improving their financial health skyrocket. We offer these tools in white label, adapting them to the look & feel of the entity.
Any bank or insurer can easily embed them on their website or app through API and achieve these benefits:
- Reduce the cost of acquiring new customers by 50%.
- Increase the savings ratio of users by more than €2,500/year.
- Multiply the return on investment by 3.
- Boost the retention rate.
Three use cases and one success story: Banco Santander’s Digital Piggy Bank
Personal Finance Manager (PFM or expense manager)
Thanks to Open Finance you get a complete financial overview of your income and expenses. Going down to detail, you can know your sources of income and your type of spending. This module allows you to establish budgets, add alerts in case of overdraft risk and much more. It also incorporates an agenda so you can organize your planned transactions, payroll, etc.
Micro-savings
Within COCO{Auto-savings} we have this use case, in which the user can set a goal and achieve it using automatic rules. The first step is to decide on a savings goal, set a name and image to increase engagement. Then the rules are indicated (set aside an amount from the payroll, round up each purchase made, etc.) and the “digital piggy bank” will work to achieve it.
Splits
The management of group expenses has become popular in recent times. Therefore, facilitating this task for your users positions your entity as a leader in the sector. Within your app, payment groups can be established without the need for all of them to be customers of your bank or neobank, which can attract new users at little cost. A group is created, the payment is divided and it is controlled in one place who has paid and how much remains to be paid. Simple!
Santander Bank figures. The success story of their Digital Piggy Bank
Santander needed a tool for its digital platform that would help its customers achieve their savings goals. The Bank is committed to the integration of automated financial solutions for expense control, which is why we offered a very simple white label development with an easy integration. In less than 10 months, the Santander Digital Piggy Bank achieved:
- 40M categorized transactions per day.
- +90% categorization efficiency.
- €161 million saved.
- 80,000 customers adhered to the program.
- 20% increase in the NPS of the service.
“We have been developing new functionalities since 2016 and we are proud to work with great entities around the world; We are present in Spain, France, Portugal, Mexico and Brazil. And we continue to grow as we help banks and insurers apply these principles to make saving sexy, fun and automatic.”
David Conde
