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Opportunities Within Machine Learning & Payments Data
Jonathan Orritt, Data Scientist, Santander UK
Payments Data harnesses the best possible opportunity within modern day Payment Service Providers (PSPs) to deliver personalised opportunities to our customers. Most of these opportunities can be split into two primary strategies and some examples are shown below.
Sell more of your products or services to those that need it.
i.e. Classify customers most likely to own a Mortgage based off their Payments. This can come from the obvious such as Direct Debits to other Mortgage Providers, Demographic Data etc. or the less noticeable such as Life Insurance Direct Debits, High DIY Spend etc.
Managing any form of risks within Operations & Customer Transactions i.e. Greater support to credit consumers on managing their finances automatically and setting realistic spending controls to aid with credit repayments.
Analysing Consumer Payments Data is something we do all the time to protect our customers, be it in the fraud or financial crime, or in helping the vulnerable, but it can also be used to drive analytical insights for our customers.
Providing a more personalised service or product to our customers through recommendations requires a level of trust between consumer and PSP to ensure those recommendations are relevant and achievable
1) Data Consent – do you have the approvals from your customers to analyse their data? Things don’t get much more sensitive than Payments Data. Run focused pilots on different consumer groups to test their responses to these payment insights.
2) Data Availability – Do you have the data available in a standard format? Payments Data is managed in many different standards and systems, so getting that single unified view can be difficult, but ultimately there is great value in a common layer.
3) Data Scalability – Payments Data is probably the biggest repository PSPs manage, so running
predictive modelling on these datasets can take quite some time. Having access to Data Warehouses and Data Science Solutions sitting on the edges of those warehouses are crucial, ultimately allowing you to analyse Payments Data & release models at scale.
For UK Retail Banks, we must look to enhance the quality of service and products we provide to our consumers with data, whether we give them greater insights into their spending, deploy machines to track or recommend new products to consumers or even help them manage changes in their own personal life. Consumers are increasingly becoming more data & digital savvy, our ability to give them greater insights into their spending and others around them is greatly increased. This increase has driven consumers resistance to traditional engagement channels, our ability to influence the consumer is determined by the digital channel we can advise them through. Ultimately, data has become the most valuable asset to PSPs and is currently fuelling competitive advantage for many who chose to use it. The value of Payments Data within UK Retail Banks will only increase further as consumers move towards the data-rich channels of Cards & Faster Payments, giving us greater opportunity to personalise the product being offered to our customers. This increased opportunity to predict what a consumer will do next will help us protect the customers better and, ultimately determine PSPs successes within the field and test their true ability to process vastly more payments data in substantially less time.