The Evolution of Bank Transaction Data [Whitepaper]

Download GDS Link’s latest whitepaper to explore how implementing bank transaction data can improve processes, reduce exposure, and create value.

Bank transaction data customers, primarily fintech companies, have steadily exploited bank transaction data and have embraced the inherent friction in asking customers to supply bank credentials. Furthermore, the use of bank transaction data adds a new dimension to
credit underwriting, facilitating lenders to offer credit to long-underserved segments.

Despite the great promise of the data, bank transaction (BT) applications have generally been limited in scope and depth. BT data is used for identity verification, which involves tying an applicant’s name to the underlying bank account and confirming account ownership. Other users have integrated BT data as a node in manual review processes, a practice that limits scale and improved decisions. Some users have gone a step further and have used BT data to create summary statistics on spend types, transaction amounts, debt ratio, and cash flow trends for enhanced underwriting.

The uniqueness of the variables in BT data analysis is based on the ability to capture trends versus snapshots through improved categorization and classification. The power of the information once fed into models enhances the credit and internal Masterfile customer
data. More importantly, it captures specific behaviors and insights into customers’ ability to use, pay, and consume loan products. This data is unique in that it can feed personal finance management tools to help consumers manage spending and track where cash comes in and goes out in real time. Using the data to communicate debt to income, spend categories, and cash frequency can be a valuable feedback loop to engage customers. GDS Link has built a scalable, configurable data solution which offers bank transaction insights end-to-end across customer lifecycles. These tools can be applied to address account verification, fraud assessments, credit risk, and affordability. The GDS Link solution is accompanied by a robust, tested decisioning engine and available consulting services to enhance underwriting, digital marketing, and sophisticated acquisition workflows.

In our latest Whitepaper “The Evolution of Bank Transaction Data,” we explore the benefits of the evolved state of bank transaction data, bank transaction data in consumer service and commercial banking, and solutions to implement.

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