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Transaction data holds the key to unlock new value from automated processes. Is your data house in order?

By André Casterman, CMO at INTIX

August 5th 2019

Long considered a pure technical function, archiving transaction data was a topic for the IT people to take care of. The need to access those archives was fairly limited and mostly linked to ad-hoc operational needs. Over the last decade though, regulatory requirements increased the importance of this function, and accessing transaction archives suddenly got on the compliance officers’ priority list. Subsequently, the need for on-line access to transaction data – whether archived or in production – emerged.

This ability is now raising even more interest within financial institutions as it holds the key to unlock the power of automated processes such as those enabled by predictive analytics and machine learning. Are your transaction data sources accessible? Are you ready to feed upcoming automated processes with all expected transaction details?

“Accessing transaction data is critical for client service and compliance teams, and it is becoming strategic as more automated processes rely on transaction details to support both operational and market-level decision making”, André Casterman, INTIX

Accessing transaction data is critical for operational efficiency

Accessing transaction data has historically been a requirement expressed by front-office operations people to help them handle client requests. More recently, as a consequence of regulatory requirements, compliance teams have voiced similar needs as they carry out ad-hoc investigations on past and on-going transactions. The regulatory mandates (e.g., BCBS 239) have indeed made effective information management no longer optional. Accessing transactions quickly got flagged by compliance teams as critical.

“Many banks continue to face technical issues related to data visibility that full compliance requires. Also, a silo-ed approach to data management raises non-compliance risks to f.i. BCBS 239“, André Casterman, INTIX

At this stage, access to transaction data is sustaining operational efficiency goals but there is more on the data horizon.

Accessing transaction data is becoming strategic for competitive advantage

The emergence of advanced analytics and machine learning have further increased the importance of transaction data. Emerging use cases include API-based access to transaction details for e.g., payment pattern analysis, transaction-level credit scoring, what-if market analysis, … Access to data is becoming strategic here as use cases underpin competitive differentiators.

Big data and advanced analytics represent a new frontier for competitive differentiation. McKinsey & Company

As reported by Mc Kinsey & Company, “For most [non-financial and financial] companies, using data for competitive advantage requires a significant data management overhaul. That includes identifying and assessing the value of existing data, designing a scalable data platform, and developing a long-term data strategy to help the organization achieve impact at scale. It also takes sustained commitment on the part of management, a willingness to make the up-front investment needed, as well as skilled advisers with the experience and technical resources to help organisations design and implement their programs.”

The evolution of transaction data related needs is depicted below:

“Forget about further automating and differentiating your [banking] services if you can’t access transaction details”, André Casterman, INTIX

INTIX makes your transaction data accessible and actionable

Whether transaction data is spread in dozens of internal systems or centralised, INTIX makes it accessible and actionable. Acting as a fintech dedicated to making financial transaction data accessible and actionable for any financial institution, INTIX plugs onto existing transaction processing systems in a non-intrusive way, so as to minimise technical impact. Transaction data can then be actioned by INTIX for e.g., business activity morning and transaction-level monitoring as well as for searching, reporting, measuring; or data can be shared via API to 3rd party processes that the financial institution has selected to address very specific functions (e.g., transaction-level credit scoring, transaction compliance).

Whatever one’s business, the realities of today’s marketplace mean that those with the best data systems and capabilities will win — and by an increasingly outsize margin. McKinsey & Company

Contact us

Contact us at info@intix.eu for more information. Or visit www.intix.eu.