January 14, 2015
The payments business is increasingly driven by information. Strategies and execution led by information insights can improve profitability by optimizing revenue and cutting costs. For example, data driven insights generated by analytics solutions help capture as-is costs which can further be compared with bank and industry benchmarks to help drive a cost management program. Other major applications include reduction in payments fraud occurrences and building a body of knowledge from customer data points in order to structure value-added services and bring opportunities for cross selling. Here are some notable organizations in the payments industry generating insights through their analytics solutions:
American Express Business Insights offers a unique view of customer behavior, market activity and industry trends. Based on transaction data from a network of approximately 90 million Cards in circulation in over 125 countries, Amex gathers a wealth of timely information that sheds light on the actual aggregate spending behaviors of consumers and businesses and enables the ability to see trends as they’re developing. Through advanced modeling and analytics, Amex transforms raw data into a suite of powerful business intelligence offerings. The analytics solutions help increase engagement with current customers, find and acquire new ones, benchmark against the competition, improve business planning, and more. From customized engagements to web-based reporting, Amex’s analytics solutions can provide actionable insights that can lead to improved business performance.
Bank of America
Back in July 2013, the bank had launched Dashboard Analytics, a new module on the Global Reporting and Account Management system which is available to commercial card clients in more than 70 countries and in 21 languages. The new dashboard tool helps senior level executives and treasury departments make better educated decisions to improve their working capital, negotiate better terms with key suppliers and facilitate compliance with company policy. Dashboard Analytics harnesses the power of big data to translate millions of transactions from across the globe into a sleek and actionable dashboard view. Dashboard Analytics promises executives the ability to quickly pinpoint negative trends or non-adherence to company policy. The invaluable intelligence – that has a variety of detailed data - can help companies save on expenses and ultimately improve their working capital.
The card-focused banking group pioneered the use of analytics to understand consumer spending patterns to come up with products and offers best suited to the requirements of various consumer groups. Capital One runs algorithms on millions of customer card transactions to determine the most common 'co-occurrences' -- that is where customers who spend money at one retailer are most likely to also spend money elsewhere. Capital One had acquired the company Bundle to leverage its proprietary analytics technology powered by data from more than 20 million Visa and MasterCard branded cards.
The company focuses on next generation fraud prevention software that protects electronic transactions. It credits its rapid success to its early focus on big data analytics applications. Feedzai leverages modern in-memory data processing techniques that are different than older fraud prevention software solutions; its software detects 3 times more fraud at the same level of false positives. This means that Feedzai customers spend 4.5 times less on labor costs to review false positives, a key efficiency metric for fraud and risk departments. Furthermore, in contrast to the traditional approach of updating analytics models every 6 months, Feedzai’s unique machine learning technology – combined with its sub-second analytics engine – allows companies to block new fraud efforts on the first attempt.
The company has directed its efforts to building analytics solutions that unlock the business value in very large and unstructured data sets. The analytics and decision management software company has introduced innovations to support analysts working with Big Data, and also to extend access to its capabilities to a broader community. FICO is perhaps best known for the FICOScore – a standard measure of consumer credit risk in the U.S. – and for solutions that help customers manage credit accounts, identify and minimize the impact of fraud, and customize consumer offers. FICO also works with many of the leading insurers, retailers, pharmaceutical businesses and government agencies. Its offerings fall into three broad categories: decision management tools, including software for business rules management, model development and optimization; decision management applications, or integrated systems that apply analytics, decision logic and industry expertise to strategy and execution across the customer lifecycle; and standard scores and models to manage risk, identify opportunities, and help clients forecast customer behavior.
First Data’s analytics solutions enable evaluation of data from multiple sources to drive decision-making across the customer lifecycle, from customer acquisition to retention to collections. Some major offerings include:
First Data has also been building out an Insightics analytics service in the cloud that aggregates both internal data collected by First Data and external data sources. The latest external data source that First Data is including comes from Factual, provider of a location-based service that helps organizations deliver mobile experiences based on the physical location of a mobile computing device.
In March 2014, the company had announced Elevate Data Services, a comprehensive Business Intelligence solution designed specifically for online payments and chargebacks. With Elevate, GlobalCollect merchants are able to apply advanced data analytics and visualization to their unstructured payments data, transforming it into a rich source of strategic insights that help optimize their online business and drive sales. Elevate combines GlobalCollect’s payments knowledge with strategic guidance from leading international eCommerce companies and the industry-leading data visualization platform by Tableau, to create a payments intelligence solution consisting of highly interactive management dashboards that answer real business questions.
In July 2014, Oversight had launched its Insights On-Demand for Procure-to-Pay cloud-based Web application for detection of fraud in payment transactions. Structured in a Software-as-a-Service format, Insights reviews invoice and payment data stored in enterprise systems like Concur, Oracle, SAP, and Chrome River. Customers receive visualized reports highlighting duplicate payments, ghost vendors, and repeat expense reports. Oversight Insights On Demand delivers analysis that leads to better business decisions. The web based application examines 100% of company transactions by combining complex, predictive analytics, with transaction analysis. Insights On Demand's best practice technology makes it easier than ever for customers to uncover possible misuse, fraud and corruption, and compliance violations.
PXP Solutions’ ANYpay provides multi-channel processing, big data and smart analytics, cross channel tokenization and P2P encryption across multiple sales channels in numerous regions with support for various types of payment devices and value added services. The company’s secure web based reporting tools enable merchants to view all transactions, refund them if necessary and even export the data to reconcile in any existing systems in order to keep track of financial activity. PXP’s real-time analytics solutions enable smarter resourcing and marketing decisions by understanding activity at a country, store and even terminal level as it happens. These tools can reduce costs and streamline business processes by using a single point of access to view entire payment channel’s transactional data, and also turn payment data into big data, providing valuable insights and even cross sell/up sell opportunities across different channels.
The company supplies data analytics, marketing and loyalty services that are built off credit card swipe transactions. This gives merchants valuable tools to break down sales trends, better identify their best customers and reach out to loyal or lapsed customers through email marketing and retention tools. Swipely provides spending data on individual users, so a merchant can see what its top users are doing in real-time and cater to their needs. Swipely also provides a CRM tool complete with customer profiles for merchants.