Case study

Survey shows 66.7% feel their bank should be doing more to improve online services during the pandemic

Case study

Survey shows 66.7% feel their bank should be doing more to improve online services during the pandemic

The results
A major international bank found gini to be the most efficient data enrichment provider for its digital banking upgrade initiative.

In a pilot project with gini, the bank ran 50,000 transactions through our data enrichment engine.  Within 72 hours, gini had enriched 95.7% credit card transactions and 92.7% EPS transactions. 

“We were surprised just how fast gini’s enrichment capabilities are. What we expected to take 3 weeks took them only 3 days,” said the bank’s Head of Innovation and Strategy. “On top of that, they even enriched EPS transactions, which no other provider has achieved.”
Credit card
transactions enriched
EPS
transactions enriched
The results
gini introduced a successful Savings Goal feature in our PFM app that was adopted by 60% of users within 30 days of launching.
 
Our users engage with the Savings Goal feature an average of 7.4 times a month, which when compared to the once-a-month engagement of most banking apps, is a testament to its value. 

And the reviews were overwhelmingly positive, with comments such as, “Congrats on the release of the saving function, it’s very helpful and motivates me to save more!” and “Makes saving and budgeting a lot easier.”

Makes saving and budgeting a lot easier.
The challenge
Our research showed that users wanted a savings feature that automates their budgeting calculations, and shows how much they have left to spend after putting their savings aside every month.

However, no PFM apps in Hong Kong had a feature like this because it requires complicated algorithms and enriched transaction data. Without merchant names for example, it’s difficult to label recurring transactions accurately, and give the user a clear, comprehensive overview of their finances.

The solution
With data automatically enriched by our machine learning models, gini was able to build a fully functioning Saving Goals feature that resonated with users and increased engagement.

The new feature automatically calculates a monthly OK to Spend amount by subtracting the user’s total monthly expenses (past and upcoming) and Savings Goal from their total monthly income. It also has a traffic light system that warns users when it’s time to reign in their spending.

None of this was possible without first enriching the transaction data with accurate merchant names and categories.
The challenge
A recent digital banking survey showed low levels of satisfaction, with 87% of customers finding it hard to understand their transaction feeds.
My current spending history is confusing. I want to see the ACTUAL shop name.
To address this — and reduce queries — the bank planned to first replace standard transaction codes with clear merchant names and categories throughout its digital banking services. And then to increase loyalty with a personal finance app, built on the foundation of enriched data. 

However, developing the technology to transform such large volumes of transaction data was proving to be a Herculean task — one that would take years. So they looked for an external provider to help clean, structure and enrich the data accurately and quickly.

The solution
Impressed by the quality and speed of gini’s enrichment engine in the pilot project, the bank plans to integrate our scalable software into their own systems to allow for real-time data processing and enrichment. The best part is, gini’s technology is easily accessible as a SaaS solution on AWS Marketplace, avoiding the need for lengthy tech stack integration processes.

Soon, the bank’s entire customer base will have their transaction feeds transformed from confusing codes to recognisable merchant names, logos and categories. This is predicted to have a significantly positive impact on NPS scores.

Equipped with enriched data, the bank’s development team will then be able to build a competitive personal finance app with much richer features than otherwise possible.
Contact us to find out more about our digital banking data solutions
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Open banking in 2020: Are you ready?

Open banking is primed to become the new norm in Asia Pacific. But, as our research report shows, the majority of bankers in the region are not sufficiently prepared for what’s coming.

It’s time to get smart on what open banking is and how it’s expected to impact the market this year. 
gini's original research report on open banking in Asia Pacific for 2020
Download the research report
Download the open Banking 2020 research report by gini
We interviewed more than 300 finance and technology thought leaders across Asia on the industry’s readiness for open banking this year, with surprising results. 
Download our Open Banking 2020 research report to find out: 

The opportunities in store for all participants
The barriers to adoption
Who is expected to benefit most 
How institutions can generate revenue from open APIs
And more
Survey shows 66.7% feel banks should be doing more to improve online services during pandemic | Header image

Survey shows 66.7% feel their bank should be doing more to improve online services during the pandemic

By
on
Sep 9, 2020

Our recent customer survey showed 66.7% of respondents feel their bank should be doing more to improve online services during the pandemic, with one of the major pain points being the lack of clarity in the way basic transaction information is displayed.  

A total of 81.7% of respondents have seen transactions they don't recognise on their statements, and the majority used the words, “worried”, “annoyed” and “frustrated” to describe how this problem makes them feel.

81.7% have seen transactions they don't recognise on their statements

Why are people more anxious about unrecognised transactions this year?

  1. The pandemic has caused a surge in card-not-present transactions, which has increased exposure for digital payments fraud. Our survey showed 23.3% of respondents are more worried than usual about online payment fraud this year.
  1. In this environment of economic uncertainty, people are more careful about tracking their money. When they see a transaction they don’t recognise, they’re more likely to question it. The majority (71.7%) of survey respondents have called or visited the bank to get more information on a transaction this year.
The chargeback process is a headache for customers

The true cost of unrecognised transactions

The problem of unrecognised transactions is nothing new — but this year’s pandemic has exacerbated the cost to both consumers and banks.

In addition to the emotional toll on consumers, confusing transaction descriptions make it more difficult to identify fraud, track spending accurately and make well-informed financial decisions.

For banks, this problem is costing millions of dollars in customer support and chargeback and fraud investigations every year. Globally, chargebacks are expected to cost financial institutions US$16.4 billion this year alone.

Find out how much chargebacks are costing your institution | Calculate it here

It also makes it difficult for banks to analyse consumer spending patterns, which in turn prevents them from capitalising on data-driven marketing strategies that are proven to grow profits between 20% and 40%.

How banks can support customers with better online banking services now

While suggestions for improvement included, “the ability to change address online” and “the ability to reset passwords online”, 100% of survey respondents said they “want the banking app to show the actual shop name for each transaction.”

In fact, 60% of respondents would be likely or very likely to switch to a bank that provided actual merchant names on transactions.

Customers want accurate transaction data from their banks

The reason so few banks do this is because it’s difficult. The information for each transaction is pieced together from multiple sources, so it often ends up as a string of unintelligible numbers and letters

Still, difficult doesn’t mean impossible. Many banks around the world are partnering with fintechs to fill the gaps in technology and provide customers with the clear information they need to better manage their finances. 

Even by making this one change in the way transactions are displayed, some banks have seen transaction queries reduce by up to 60% and chargeback costs reduce by up to 40%.

gini’s software makes it possible for banks to input enriched data directly into online banking portals and display the merchant, category and location behind each transaction, without having to integrate additional infrastructure or share any data.

Find out how banks can harness enriched data to reduce chargeback costs by 40% | Tell me more


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