How the tech behind actionable insights is changing financial advice

Actionable insights is changing the way people interact with their finances, by making it possible for financial institutions to deliver hyper relevant and targeted digital advice - and it won’t be long before this type of service is considered the norm by consumers, as banks and third parties bring new and innovative services to market. But how does it actually work? What’s really going on behind the scenes to make it happen?

TL;DR – Quick summary

  • Our actionable insights solution is rooted in two of our technology products: data enrichment and personal finance management.

  •  Data enrichment refines raw transaction data so you can understand the patterns in people’s finances.

  • Through PFM, the (enriched) data is turned into different insights that can be used to guide your customers towards greater financial happiness.

Actionable insights #3

Actionable insights is changing the face of digital financial management, but it’s only possible to deliver when you have a detailed picture of your customers’ financial situation. Having access to quality data sits at the heart of the solution. It’s what helps you drive customer engagement, build trust and boost sales - because it lets you truly understand your customers and helps them manage their money in a smarter way.

This might mean supporting them to start a savings habit and reach their goals, giving them hyper personalised offers at the right moment in time that meet their needs perfectly, and helping them manage their day-to-day expenditure, payments and bills, making sure they are making the most of their money.

The magic of actionable insights is rooted in data enrichment and personal finance management (PFM) technology. This is what allows you to deeply analyse customer data and give informed and relevant advice that’s unique to every person. It works like this.

Enriching raw data

Data enrichment takes the raw account data that a customer gives you access to - gathered through a single API - and refines and enriches it so you can understand the patterns in people’s finances. First the data is categorised, by filtering it so you can clearly see your customers spending behaviour, who they spend money with and how much.

This is powered by Tink’s scalable self-learning machine that accurately classifies and cleans up account data in an instant. Each data point it receives makes it smarter and more accurate in telling the story of your customers’ finances – and it has enriched over 5 billion transactions so far.

Generating insights

Next up, our PFM technology jumps in to turn the information you’ve gathered into insights that can be used to guide your customers towards greater financial happiness.  

The actionable insights module within PFM exists to increase customer engagement. It does this through generating advice and offers that the customer can instantly act upon.

To generate activity, the system looks at real-time data. This is an important part of the solution because it ensures that the recommendations are highly relevant, but also individual to each customer because they are based solely on their own financial data.

This could be helping customers budget so they can cover their regular outgoings and also save a little, helping to ensure bills are paid on time, and that the customer is getting a good deal on their products and services. 

The system can spot regular activity and behaviour, analyse it, and advise the customer on a good course of action.

Timely advice

Each insight is live for a limited time, depending on how long the action would be relevant for the customer. After that, it gets deleted or regenerated if no action is taken.

This avoids people receiving irrelevant and outdated insights, instead focusing on timely activity that drives engagement, enabling people to move their money to better deals in an instant, and make financial decisions in just one click.

The result

When data enrichment and PFM come together, you end up with a highly relevant way of serving every customer as an individual, through a digital platform. It opens up the world of financial advice to more customers, by effectively giving people a personal finance coach that lives in their pocket, without the time consuming nature and high costs associated with traditional financial advice.

Actionable insights helps your customers achieve their financial goals while driving engagement and increasing trust in your brand, which in turn, increases sales and loyalty. The technology to truly help change people’s financial behaviour for the better is here, and it’s never been more accessible, for both businesses and their customers.

Interested in learning more? Check parts one and two of this series, where we discussed what actionable insights can help you build and how it will benefit your business.

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