Three ways banks can use data to Test, Learn and Win in 2023 | The Financial Technologist

The past few years have been particularly disruptive for banks. We've seen one of the most turbulent periods in human history, with several significant events adding complexity and strain on resources. With no clear end in sight and an impossible to predict trading environment, a test-and-learn mentality is the only way banks can keep up with changing conditions and evolving customer needs. In this article, we'll share three ways banks can use data to test, learn, and win in 2023. Make a play for credit beyond cards Credit card usage tends to increase during economic downturns, and Buy Now Pay Later (BNPL) is expected to account for as much as 24% of global ecommerce transactions by 2026. In addition, brands like Affirm, Zilch, and Klarna are targeting younger demographics with their flexible short-term lending offerings. Could traditional credit cards become a thing of the past? Banks looking to compete in this space must revamp their offerings in line with changing customer expectations while taking advantage of the wealth of customer information they already hold. Using this data to test, learn, and quickly adapt based on demand will be crucial to success. Use data streaming to keep customers safe and happy Better fraud detection means fewer false positives and a smoother customer experience. Unfortunately, while most banks can make fraud decisions in real time, they rely on siloed data and base decisions on incomplete data. Let's say a customer is in New York for a shopping weekend. A bank may see higher than normal card usage and put a fraud block in place. Meanwhile, the customer's banking app knows that the customer is in New York, but the geolocation isn't synced with the transactions because they get stored on different systems. With an event-driven core banking platform, data gets streamed to one integration point. So the bank has a single, up-to-the-minute view of all customer activity that will help show if the transactions made in New York were legitimate. Reward customers on more than just savings Higher interest rates have seen banks begin to battle on savings offers. To stand out and offer a more competitive proposition that increases customer loyalty, banks need to reward across all their products, and not just savings. It's easy for customers to keep switching savings accounts to the current market leader. But if moving savings meant losing perks like a mortgage discount, and a reduced annual credit card fee, customers would be happier with their current offer and less likely to move. Banks need real-time visibility across their entire product portfolio to do this, removing the barriers that exist between product lines. Learn more in our blog about becoming the bank that customers love. Pivot based on changing conditions During turbulent times, it's vital that banks can understand what customers need, as people may rely on their banks more than ever. The ability to move quickly, run tests, and make data-driven decisions is key. Cloud-native core banking platforms, like 10x SuperCore®, enable the jump to real-time data, so that banks can embrace the power of data across their entire business. To learn more, get in touch with the team at 10x today. You can read Tom's article and further industry insights in the latest edition of The Financial Technologist. Download your free copy here.