After all, we all need guidance when choosing insurance or deciding where to invest our savings. Integrating alerts, recommendations, and a 360º view of financial situations is fundamental for 21st-century digital banking.
Juan Carlos López
Co-founder & CPO of Coinscrap Finance
Transactional data analysis opens the door to personalization in banking
Of course, banks and insurers must obtain customer consent to access transactional data. The strict data protection laws and the safeguarding of personal information that financial entities are obligated to comply with are fundamental aspects of this industry.
That said, this explicit authorization allows them to gain deep insights into their customers’ spending habits. By analyzing cash transfers, recurring income, regular expenses, or direct debits (among other things), they can gather valuable insights to shape their business strategy.
These movements are a 100% reliable source of data for banks and insurers. Insurance companies access banking transactions via open banking, and as we like to say at Coinscrap Finance, it’s a true gold mine!
To make the most of it, financial entities need to enrich this transactional data. Only then will they uncover their customers’ financial habits and fine-tune their offerings.
Understanding what customers need to design tailored banking products
Sending the same message to the entire database is no longer an option, and traditional segmentation isn’t delivering the desired results either. Successful financial products have three characteristics: they’re data-driven, disruptive, and… 100% digital!
A Mastercard study* reveals that 72% of customers believe “financial product offers are more valuable when they are personalized,” and 65% insist that “banks should help us discover the right products.”
Every banking transaction generated by a customer is an opportunity to hyper-personalize the offering. These data provide a clear, real-time view of their financial habits, allowing us to uncover their needs at every stage of life.
“The truth is out there,” as Mulder said in The X-Files, and I want you to believe (in the power of data), so here are a few use cases:
Financial insights strengthen relationships between banks and customers
By analyzing a customer’s spending patterns, a bank can predict when they might need a loan or benefit from a savings product. Additionally, transactional information enables banks to better acknowledge their customers’ lives, changes, and most significant moments.
The goal is to offer the ideal product at the right time, adding real value and making it easier for customers to choose solutions tailored to their needs at every stage. Life doesn’t follow a fixed path—it changes with every step. Entities that comprehend this will retain their customers for longer (and cross-sell additional products).
Data analysis and innovation are revolutionizing the financial industry
To grasp how this theory translates into real-world situations (and benefits for financial entities), here are some standout examples of banking product personalization based on predictive moments. Pay attention—this is the path many companies will follow!
🔎 Juan Carlos said…
“Understanding these vital milestones enables us to
offer solutions aligned with each customer’s reality“.
How financial insights are transforming banking: Six use cases
Birth of a baby:
When someone starts shopping regularly at stores specializing in newborn products, it signals a life change. By leveraging this data, banks can offer life insurance options, investment funds for the future, or education savings plans to help customers protect what matters most.
Travel and vacation purchases:
Spending on foreign car rentals, airline tickets, cruises, or hotel reservations can indicate a good moment to offer financial products. Travel insurance, health insurance, or financing plans for vacations would be ideal. Additionally, an alert encouraging the user to start saving with an automated micro-savings tool could be beneficial.
Pets as part of the family:
When a customer starts spending on veterinary clinics or pet stores, it likely means a new family member has arrived. This is a great moment to offer pet insurance or financing for veterinary emergencies, showing customers that the bank embrace their needs and interests.
Preparing for retirement:
If a customer begins withdrawing savings or changing investment patterns, they may be considering retirement. Banks can offer retirement funds and low-risk investment products to maximize returns and help them plan for this new stage of life.
Education and professional development:
If a customer is paying for a child’s university abroad or private school tuition, they may be interested in an educational savings plan or financing options. Similarly, if they invest in learning platforms or courses, it indicates interest in personal growth. Tailored products can support their development goals.
Marriage and long-term plans:
Unusual or non-recurring income (especially marked as “gifts”) can signal an upcoming wedding. These funds, often received from multiple sources in a short period, could be directed toward life insurance, savings, or investment products. A joint account or a home loan might also interest them.
Personalization as a long-term value strategy in banking
For those of us working on creating digital products, understanding these vital milestones enables us to offer solutions aligned with each customer’s reality. This requires not only powerful data analysis but also the ability to use technology transparently and ethically.
The advantage of personalization is that it transforms relationships with customers, turning banks and insurers into true life partners who anticipate and respond to needs at every step. Over time, this strengthens the relationship and builds unshakable trust.
If you’d like to learn more about this topic, follow me on LinkedIn or get in touch with us.
* “The State of Personalization Maturity in Financial Services 2023”, Dynamic Yield by Mastercard, XP2 talks.
About the Autor
Juan Carlos López Díaz is Chief Product Officer and co-founder of Coinscrap Finance. In 2016, together with David Conde and Óscar Barba, he created Txstockdata and Coinscrap Finance. After the tremendous success achieved, the business pivoted towards B2B, in partnership with EVO Banco and its “Smart Piggy Bank.” As a developer, he has over 8 years of experience leading major projects.
Along with his team, he is capable of creating the best tools for the financial world. From the product department, Juan Carlos has delivered projects for major companies in the sector: Evo Banco, Santander, Caser, Mapfre, and Bankia. He holds a degree in Electrical Engineering from the Central University of Venezuela and an iOS App Development certification from U.N.E.D and U.C.A.M.
