WHAT ARE THE 'DATA MONETISATION' CHALLENGES FACING TRANSACTION BANKS? by Andre Casterman, Chair of ITFA FinTech Committee, and Chief Marketing Officer at INTIX - the data management FinTech

Whilst transaction data is now firmly established as a new economic asset, financial institutions are facing several challenges to monetise the vast amount of transaction information flowing through their systems. Understanding those challenges before embarking on a “Data” project is essential.

Challenges impeding data monetisation

Following regulatory requirements, most financial institutions (FI's) have taken greater care at organising their transaction data. The archiving, reporting and screening obligations have created many dependencies on their ability to search through and report transactions, whether residing in long-term archives or in production systems. Implementations have usually been completed at department or system level and as part of the pressing regulatory agenda, thereby often missing the bigger picture.

Whether leveraging new "Artificial Intelligence" capabilities or not, financial institutions have realised that monetising the vast amount of transaction data ought to be their next ambition level.

In order to get there, financial institutions need to become aware of four types of "Data" challenges: accessibility, visibility, infrastructure and delivery.

“Financial Institutions have realised that monetising [...] transaction data ought to be their next ambition level.”

Focused approach and specialised technology are required

Data management solutions designed specifically for the financial services industry help financial institutions adopt a focused approach. When assessing available solutions, FI's should revisit them against the four types of challenges as proposed below:

•        Accessibility challenge: the data management technology solution must enable to connect to hundreds of internal systems seamlessly

•        Visibility challenge: the technology needs to be provided jointly with deep expertise in financial messaging in order to handle both industry standards and proprietary formats

•        Infrastructure challenge: the ideal solution must provide a dedicated high-performance data management layer to address all reporting, tracking, measurement and alerting requirements

•        Delivery challenge: upgrades to such data management solution are to be prioritised, developed and rolled out independently from those applied on internal transaction processing systems. FI's must avoid integrating "data" requirements within existing processing systems.

“The specialised data management solution should be  implemented separately from the plethora of existing and future transaction processing systems.”

The INTIX technology makes it happen

By combining advanced big data technology and expertise in financial messaging infrastructures and standards, specialised FinTech players such as INTIX bring the appropriate set of capabilities to deliver comprehensive data management solutions. Business requirements related to transaction reporting, tracking and metrics as well as exception monitoring and alerting can all be addressed in a successful and efficient way.

Acting as an enterprise-wide data management layer, such dedicated technology can be implemented across various business areas and, five in particular, for transaction banks:

Once such technology is in place, the opportunities to put transaction data at the service of your clients are only limited by your imagination and creativity. Monetising transaction data will be achievable.