Three Ways Financial Institutions Can Leverage Big Data to Boost Revenue
The drive to increase revenue is a quest for every financial institution and with non-interest revenue becoming more and more strained in response to increased regulations and shifting member expectations, many institutions are looking to big data for the solution. Classic strategies for increasing revenue like enhancing customer loyalty and engagement, generating portfolio growth, and reducing fraud reveals a common denominator; all become more effective with the help of big data.
By using big data, financial institutions can more effectively eliminate waste and generate revenue at the same time. Let’s take a quick look at three ways a comprehensive data analytics engine can help identify and maximize revenue growth.
Benchmarking your portfolio performance
When it comes to increasing revenue, it can be a helpful exercise to look at the performance of other players in the financial industry. Benchmarking can help you see a more complete picture of how your portfolio is performing and how it compares to others in the industry. Seeing the strengths and weaknesses of other institutions similar to yours can help you see larger trends and opportunities within your own. Static trends in a particular area across hundreds of institutions can reassure you that your institution isn’t missing the boat. Conversely, if some institutions are demonstrating growth in an area that is not growing in your institution, that data can give insight into possible growth areas for investment.
Targeted marketing and campaign management
Marketing without analytics can feel like throwing spaghetti at the wall to see what sticks. But targeted marketing that leverages advanced segmentation and comprehensive insights can inject rocket fuel into your marketing efforts. With access to an analytics engine capable of segmenting cardholders by card type, demographic, or transactional details, you can accurately calculate the impact and ROI of marketing campaigns. Big data makes it possible to analyze profitability at the cardholder level, giving financial institutions invaluable insight to create driven and focused marketing campaigns that target the right cardholders with the right offers.
Identifying new or untapped sources of revenue is a given in the search for greater profits. But the importance of a solid loss prevention strategy can’t be overstated. Fraud management isn’t a new concept. Every financial institution is having conversations, implementing policies, and adopting new technologies to address the ever increasing problem of cybersecurity. Injecting big data into those conversations and policies will garner the biggest return. With the right analytic insights it’s possible to prevent fraud before it occurs. In addition to being more effective, a fraud solution backed by big data can reduce the cost of fighting fraud as well by streamlining the entire process.
Worldpay has multiple big data aggregators that can make it easy to manage fraud as well as benchmark your institution’s performance and support targeted marketing campaigns. When you partner with Worldpay, you don’t have to be an analytics expert to use data to target the right cardholders, nurture the most profitable relationships, and grow your revenue. Learn more here.