Transaction Data Enrichment: Be Adequately Informed About All Your Transactions.
In this article, we will be looking at how we, at Bridgecard can help financial institutions looking to harness the power of transaction data enrichment. We'll also look at what Mastercard has said about Transaction Data Enrichment and how it will affect banks and financial institutions.
WHAT IS DATA ENRICHMENT (TDE) YOU ASK?
Data Enrichment is when we take data in its existing form and build on top of it to extract meaningful insights that signal behaviour patterns.
Think of data, arguably the most precious resource in the world, like crude oil, the second most valuable resource. And like crude oil, data in its raw form is of little use. It needs to be refined and enriched to become a valuable asset. Data enrichment is the process of doing just that.
But, data enrichment does not only access raw customer transaction data, which includes the description, timestamp, amount, and payment type, but also enrich it beyond simple categories. We can further split expenses into different buckets such as Entertainment, Groceries, Bills, Travel, Shopping, etc.,and do the same for income, categorising it further into Salary, Dividends, Pensions, etc.
And that’s just the beginning. It also helps map out a customer’s transactions geographically and even assess the carbon footprint of transactions. The possibilities are just endless.
At Bridgecard, we understand the importance of providing accurate and clear information and have a proven track record of delivering the best services to our clients in the financial services sector.
So now, let's dive in!
What is Mastercard's mandate about Transaction Data Enrichment?
It has been officially announced that starting from 14th October 2023, all Mastercard issuers across Europe will be required to provide enriched payment data to their cardholders upon request. Enriched payment data includes additional transaction details beyond the basic information, such as the merchant name, location, contact details and logo of the merchant. The Issuer must provide this additional merchant data through digital methods, for instance through its banking app, mobile wallet or internet banking interface.
The goal of this mandate is to increase transparency and give cardholders a more complete understanding of their spending habits. With enriched payment data at Bridgecard, cardholders will have access to more detailed information about their transactions, which can help them make more informed financial decisions and manage their money more effectively.
"In today’s rapidly evolving financial landscape, transaction data enrichment has become an essential tool for banks and financial institutions to stay ahead of the competition. Given this, it is crucial for banks to collaborate with a trustworthy and efficient solution provider that can furnish the most advanced data enrichment technology."
There are two basic ways that banks and financial institutions can enrich their payment data?
- By including additional details about a payment transaction beyond the basic information such as the transaction amount and merchant name.
- Include data such as the payment method used, transaction currency, merchant logo, the location of the transaction, merchant contact information, categorisations and more relevant information about a merchant.
How does Bridgecards' Data Enrichment APIs benefit our customers?
Data enrichment enabled by Bridgecard can help individuals and businesses:
- Improve their overall financial health.
- Make sense of their data through extensive categorization and clear visualization.
- Make informed and smart financial decisions about investing, budgeting and financial planning.
- Detect and avoid potential fraud or other financial risks.
How does our TDE API work?
Bridgecards does not provide transaction enrichment as a third party service. When a fintech company performs a transaction we'll show them an enriched data transaction history that carries the name of the merchant, logo, grouping, etc. In essence, we can provide them with a lot of information about their customers' transactions.
Our team of experts is dedicated to constantly updating and improving this technology to meet the ever-evolving needs of the fintech company.
Why is Transaction Data Enrichment a must-have for Banks and Fintech companies?
Transaction data enrichment offers a wealth of benefits that can improve banks’ services and help them stay competitive in today’s marketplace:
Enhanced customer experience: Transaction data enrichment enables banks and fintech companies to deliver a more personalised and informative customer service. By providing enriched data, banks and fintech companies can give their customers a better understanding of their spending habits, helping them make more informed financial decisions.
Customers' Insight: Enriched data helps banks and fintech companies to identify and have more information about which type of users to prioritize according to their spend pattern. This will help banks and fintech companies generate more revenue by giving them information on the number of customers that spends the most. It can also help to filter customers so the companies can know which customer they'll need to assist in improving their spending habits.
Improved fraud prevention: Enriched data can help banks and fintech companies better identify and prevent fraudulent transactions. By providing more detailed information about transactions, banks and fintech companies can more easily identify patterns of suspicious activity and take action to prevent fraud.
Reduction in Customer Service Calls: When customers have access to enhanced transaction data, such as the merchant’s name, location, and contact details, contact to customer service channels for help understanding transactions are greatly reduced. This resulting in substantial cost savings for the financial institution.
What’s the bottom line?
Data Enrichment is a powerful tool that is making financial services inclusive, accessible, and customised to the needs of every individual customer. It takes raw data, cleanses it, refines it, enriches it, and turns it into nuggets of gold that are accurate, informative, and actionable. The customer benefits from a personalised financial experience and feels empowered. Banks, fintechs, and other institutions enjoy higher engagement, retention, and business growth. It’s a win-win for all.
You can try out our TDE API on the link below: