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3 easy ways to turn financial data into value

6 min read|Published July 27, 2022
Man on a sidewalk looking at his phone

The democratisation of financial data is helping to open up a wealth of opportunities. With unique data insights, businesses can make better commercial decisions based on their customers' behaviour. Here are three easy ways to harness the power of financial data to add value to your business.

TL;DR – Quick summary
  • The democratisation of financial data is helping to open up a wealth of opportunities for businesses.

  • Convenience and speed can help increase conversions by up to 20%. Those who engage and give personalised services or products will win loyal customers.

  • Tink products such as Account Check, Payment Initiation, and Money Manager can help businesses turn financial data into value.

TL;DR – Quick summary
  • The democratisation of financial data is helping to open up a wealth of opportunities for businesses.

  • Convenience and speed can help increase conversions by up to 20%. Those who engage and give personalised services or products will win loyal customers.

  • Tink products such as Account Check, Payment Initiation, and Money Manager can help businesses turn financial data into value.

In years gone by, goods and services led the way for globalisation. But as those industries plateaued, data carried on growing and became an essential part of how every company does business. The great thing about democratising financial data is that customers can share it with any business and both can reap the benefits.

1. Bring convenience and reap the benefits

Streamlining experiences for customers has been an ongoing challenge for many for years, and rightly so. Specific customer experiences such as checking out or getting advice about a product or service are now being prioritised by businesses. It’s proven that slow and cumbersome experiences have a higher drop-off rate, leaving money on the table. Those who take up the challenge of saving customers time or hassle are often rewarded for their efforts. Take Amazon’s 1-click payments for example. In an online shopping environment where cart abandonment sits staggeringly high, they saw a chance to streamline their checkout and remove unnecessary frictions. You can bet your house that this streamlining paid dividends.

With open banking, every business has the opportunity to remove similar hurdles from onboarding customers or checking out. For example, our product Account Check slashes the time it takes customers to verify their account from days down to less than one minute on average.In essence, it lets businesses instantly verify account ownership by leveraging open banking to get the user’s account information straight from their banks – from account number, IBAN or routing number to account holder name, and (in some markets) identity data. Of course, this is a benefit for end-users as they save time, but it also gives great reward to businesses that need to onboard customers – as by automating the verification process you save both time and money.

It’s hard to argue with the numbers. Tink customers using Account Check see drop-off rates as low as 10%, with conversation rates increasing by up to 20% – which makes it a conclusive piece of evidence in favour of removing burdens from the customer.

2. Improve customer engagement and receive loyalty

The trend toward digital services taking over more and more of our daily lives has been around for years, but the pandemic took it to a whole new level. And it’s here to stay: a 2020 McKinsey report found that more than 70% of European consumers plan to use digital services as much or more after the pandemic subsides.

As digital becomes predominant, the user experience is becoming all-important. Increasingly tech-savvy consumers won’t settle for a clunky, below-par experience. Many businesses are cutting back on marketing budgets and instead investing to improve customer engagement, encourage self-service transactions, and boost conversion rates. This means giving customers fewer reasons to drop out of the digital environment, and reducing payment friction as far as possible.

In an age where competition is this tough, providing users with an intuitive, frictionless payment experience can help turn them into loyal customers, or even ambassadors. Open banking payments can be embedded in any digital journey, giving you more control over the end-user experience. And with no need for users to manually enter their card details,  there’s less risk of them dropping off. This means you keep users engaged in your service for longer.

Tink’s Payment Initiation allows you to build a user journey with your brand’s look and feel, making the payment process feel more natural – with no need to dip in and out of an app or website to authenticate payments. The data shows that it works. On average, Tink customers see that an average open banking payment takes less than 45 seconds, and conversion rates for returning users exceed 90%.

3. Give personalised offerings

One of the biggest opportunities open banking brings is the ability to offer customers more personalised deals. This is done by more closely meeting their individual needs and targeting them accordingly with a personalised offer. When they receive a more tailored experience, they’re much more likely to dive in and commit to your product or service and engage with it for longer. In short, better, more relevant deals equals more money.

A shining example to make this happen is using our Money Manager. By turning financial data into usable insight, it gives customers a deeper understanding of their money and ultimately, they spend more time in your app or service. Giving customers the opportunity to set and meet savings goals can not only increase their actions and engagement but improve their spending habits.

Discover more open banking insights from Tink

Tink is at the forefront of open banking, offering a platform that prioritises transparency and ease of use. Curious about what you could build with Tink? Check out more of our products.

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