BLOG
Mo’ Data, Mo’ Problems:
Choosing the Right Data
Why the right data, not more data, is key to optimizing your data strategy
Make Your Data Work Smarter, Not Harder
In our increasingly digital society, it seems like everyone is focused on more. More data, more choice, more speed, more competition, more options (how many different entertainment streaming services are there now??). More, more, more. So, our rebel yell is that when it comes to your data strategy, it’s not about more data, it’s about the right data, at the right time. According to IDC, “this year alone, over one hundred thousand exabytes of data will be generated, crossing the 100k threshold for the first time.” Yet 74% of decision-makers we surveyed said they struggle with their organization’s credit risk strategy because data is not easily accessible. The data is there, but it’s an incredible amount of wasted effort if you don’t know which data sources to use when.
74% of decision-makers struggle with their organization’s credit risk strategy because data is not easily accessible.
When developing a data strategy for your financial services offerings, you need to look for ways to minimize costs and maximize innovation. And that means being able to select only the data you need, exactly when you need it, in order to make more accurate decisions across credit, identity, and fraud. According to McKinsey, “industry leaders tap multiple internal and external data sources to improve the predictive power of credit signals… both the internal and external data sources used in a credit-decisioning model will affect the decision quality.”
As McKinsey put it, “Data marketplaces enable the exchange, sharing, and supplementation of data, ultimately empowering companies to build truly unique and proprietary data products and gain insights from them.” When it comes to risk decisioning specifically, that translates into several key benefits – and competitive advantages:
- Improved customer experience: Ensure a frictionless digital experience for low-risk customers and enable data-driven actions on potential risk in real-time
- Improved accuracy in your decisioning: The right data at the right steps in your decisioning processes across the customer lifecycle means more efficient, accurate risk decisions
- Minimized data costs: Reduce the time/effort/resources necessary to source, build and maintain data integrations if all the data you need is right at your fingertips
- Scalability: With the right data sources on both a local and global level, you can get new products to market in new regions faster by duplicating and iterating your data strategy
- Identity Data: Verify identities and documents for better onboarding compliance, prevent identity fraud, and be sure that you are protected with ongoing due diligence data.
- Includes: KYC/KYB, PEPs/sanctions, document verification, synthetic ID fraud
- Fraud Data: Identify potential first-party and application fraud in real-time to proactively detect/prevent fraud and reduce losses; reduce false positives by leveraging signals from mobile, email, behavior, device, IP, social and other fraud data sources.
- Includes: Email and mobile data, global fraud intelligence, social validation, device data, IP, and geolocation
- Credit Data: Minimize credit exposure and loss by leveraging credit bureau, open banking, and alternative data sources. Ensure optimized credit onboarding and add value throughout the entire customer lifecycle with dynamic customer risk profiling, mitigate collections and optimize customer lifetime value.
- Includes: Credit bureau data, business data, open banking and alternative data including social media, rental payments, travel info, utilities and more
- Identifying relevant local data sources
- Negotiating multiple contracts
- Complying with varying regulations
- Ensuring data privacy for different regional requirements
- Normalizing data formats
- Building and maintaining integrations
- Supporting global strategies
- One data contract that provides access to multiple data sources
- A single API to replace numerous integrations
- A wide variety of data types and sources, including alternative data
- Expert data source curation customized to your needs, that can be easily modified as your needs evolve
- Simplified, no-code data supply chains that non-technical users can understand and control
- Global data access, as well as local sources, to ensure success of both regional tactics and the ability to iterate and expand to new markets
- Seamless integration into your decisioning technology to ensure accurate, smarter decisions
For further reading, check out these articles that may be of interest:
Ready to unleash the power of data?
Digital Banking All-...
The Role of Advanced...
Lending Affordabilit...
