How Data Enhancement Helps Financial Institutions

Any data that comes into your business needs to be looked at with a critical eye that organizes and streamlines it in a way that provides clear information to you and your customers about their finances and spending habits.   

Data enhancement is a process that strives to cohesively clean, categorize, and classify your data. It involves merging third-party data with an existing database of customer data. Without this process, you would not be able to know what the data means and what kind of role it plays in your business. Thus, data enhancement maximizes the value of your customers’ information. 

How Data Enhancement Tools Maximize Information Value

Not only are you able to understand your customers more with enhanced data, but you gain insight into how you might want to implement changes and processes to help refine their experience. It creates the opportunity to gain financial and operational benefits for your business and customers. 

Below, we go over how data enhancement benefits banks and other financial institutions along with information on data enhancement tools you can acquire for your business model. 

Improvement In Customer Retention

Data enhancement allows you to understand your customers better. By adding data from a third party, you are able to gain deeper insight into their lives. 

Adding the data involves taking your customer file information and comparing it with records for the same customers in a larger database. This process allows you to pull information from that database that was previously missing in yours to create stronger profiles of your customers.

Probably two of the most common forms of data enhancements are: 

  • Demographic – This involves adding new demographic data (e.g. age, marital status, income level, etc.) to your existing customer profile. 
  • Geographic – This involves adding postal information such as zip codes and/or addresses to your existing customer contact information.  

Having the most up-to-date information on your customers and leads allows you to have complete buyer profiles that minimize the time spent on prospecting. As you get to know your customers more, you are able to get a better sense of who you should be targeting and the kinds of tools you should provide to them. 

As a result, you will solidify trust with customers and enhance the overall reputation of your institution. Having a more customer-centric operation will help boost customer service and retention. With enriched data, you will get to know the kinds of resources to provide your customers to help them better manage their money. 

Simplicity

As mentioned earlier, the data enhancement process entails adding new data elements to an existing database. Information is matched and merged in real-time that builds accurate and efficient reporting. 

This consolidation process of cleaning, categorizing, and classifying develops organized and readable reports that boost business productivity. Having a reliable database is key in not only executing proper financial services but also executing the right marketing campaigns that will enhance the longevity of your business. 

Higher Response Rates

By using data enhancement tools, your business will receive higher response rates. As the tools provide relevant resources such as clear transaction descriptions and financial management support, they carry out a personalized experience to your customers. 

Personalization is vital in increasing user engagement and revenue. It creates a seamless experience for customers that makes them want to stick around. Knowing the kind of data to seek out is essential in producing positive solutions. 

It is important to note that data enhancement should run on a continuous basis. As customer data changes over time, it is vital to keep it going in real-time to continually boost engagement. 

Conclusion

Data enhancement can help you deliver a better overall experience to your customers. You want to select the right tools to help integrate this into your financial institution. Look at the pros and cons of each tool to make an informed decision.