There is no doubt that payments data isn’t one of the most important areas for any business to analyse. We make a lot of life choices by initiating payments, eating, drinking, social and living behavior can all be dissected by looking deep into the purchasing habits of customers.
Analyzing large amounts of transaction data to predict product trends; partnering with retailers on promotional campaigns and using tools to try and speed up credit decisions are some of the areas banks have so far considered.
With PSD2 and GDPR both now in affect, banks must tread lightly to what data they want to enrich, however if they’ve received consent from the customer to provide value add services by mining their data, it allows the banks more flexibility.
When it comes to providing more insight to retailer partners, spending data can be leveraged by giving customers reward points at shops they already visit. This allows a truly digital loyalty scheme where those retailers can increase sales due to having a closer understanding of purchase habits. They don’t need to know everything about that customer, not even their name needs to be disclosed. Essentially doing this on an anonymous basis will protect the rights of the customer and won’t lead to privacy concerns.
The main reason holding banks back in truly leveraging this is the quality data they receive from the card schemes. Not having point of sale item data impedes banks in understanding what was purchased at a given retailer. Sending promotional campaigns without this is far less effective. Retailers want to target those who purchased specific items because it sees the best impact. Currently a lot of banks do not have links between the point of sale and the payment service provider. They must first build a strong foundation to provide digital receipts into their services before promotional campaigns can fully take off.
ReceiptHero aims to help banks leverage this data and provide their customers with digital receipts. Already today ReceiptHero has integrated with Verifone and large point of sale vendors such as Kassamagneetti, Solteq and FinnPOS (now OPEN). Data can flow between the different stakeholders within the ecosystem and provide merchants with detailed item level receipt data sent to customers.
Are you ready to implement digital receipts in your bank app?
Contact Chris for more information.