Financial data is messy, but It doesn't have to be. What is transaction data enrichment and how can it help improve your customer experience?

What is Transaction data enrichment?

Transaction data enrichment, in short, helps financial institution customers have a better user experience. But what does that mean exactly and how is it linked to a better experience? In this article, we will get more into the nitty-gritty of what transaction data enrichment is, why it's needed in the first place and why it will be part of any business with transaction data and will become a core piece of any bank moving forward.

To translate this in layman's terms, enrichment works like this: transaction data is a record of what customers have bought online or in-store. It can tell institutions what their customer's favorite brands are or which products and services consumers purchase most often - basically, it includes everything required to deliver the best experience and curated offerings for their customers.

What's the challenge for most companies?

The challenge with transaction data (especially banks and financial institutions) is that transaction data is unstructured and hence it becomes almost impossible to understand the difference between what the customer actually purchased and what the institution can understand.

For example, how many times have you seen a bank statement that shows you a list of transactions and a value for each transaction, with the correct brand logo & location of this transaction in a simplified design?

Chances are, not often. A simple AED 25 Starbucks coffee purchase might show as "ALSHAYAA GROUPXREE#1890" This can make things difficult for customers, who may have to contact the bank to know what they purchased, or for the bank, who may have to bear chargeback and other operating fees.

What can companies do to improve the customer experience while reducing their operational expenses?

Financial institutions use transaction data enrichment tools to help them tackle the challenge of making sense of raw data, and this is where lunedata.io comes in providing state-of-the-art transaction enrichment API. A plug-and-play solution that helps firms transform raw transaction data into powerful insights.

Imagine a world where you could open up your bank statement, and all of the information would be laid out in a simple, instantly recognizable format - like the logo, brand name, amount, date, and time.

Why is transaction enrichment API so useful?

1. Reduce chargebacks
2. Decrease operation costs
3. Improve customer experience and the journey funnel
4. Simplified account statements
5. Identifying unknown merchants
6. Automated reporting
7. Built-in analytics
8. Retarget & personalize recommendations

The truth is, companies are trying to create a more seamless and natural customer experience with each passing year. To do this, they're relying on a number of different tools, such as intelligent chat-bots and geo-targeted advertising. Think of transaction data enrichment as another tool that can help companies create a better customer experience. In the near future, we'll likely see even more companies using this technology in creative ways to improve their business processes.