December 10, 2024
Enriched transaction data: Insights from BNP Paribas, Kroo, and Snowdrop Solutions
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4 minutes
In a recent FFNews interview, Ken Hart (Snowdrop Solutions), Waleran Guinard (BNP Paribas), and Alexey Gabsatarov (Kroo Bank) discussed how AI-powered transaction enrichment is revolutionising the consumer banking experience.
They highlighted the significant challenges consumers face with unclear or incomplete transaction information on their bank statements and how Snowdrop Solutions is leveraging AI to provide clearer, more accurate transaction details.
The Challenge: Ambiguous Transaction Data
The speakers explained the key issue consumers encounter is the lack of transparency in the banking transaction data. Bank statements often feature cryptic merchant names or misspelled entries that cause confusion. This ambiguity leads to customer frustration, and in some cases, results in unnecessary card freezes or disputes with banks.
The Solution: AI-Powered Transaction Enrichment
Snowdrop Solutions has developed a robust solution to address this problem. By using AI, they clean and enhance transaction data, ensuring that consumers can quickly and easily identify the merchant, logo, category, location, and other important details.
Snowdrop’s transaction enrichment API processes over 1.4 billion transactions monthly with 98% accuracy, providing financial institutions with reliable data insights.
Enriching Data in Digital Banking Beyond the Basics
Waleran Guinard emphasised that merchant enrichment is not just about renaming merchants but about providing deeper insights that enhance the user’s digital experience. It’s about making the customer’s interactions with their banking app more seamless and intuitive.
For me, merchant enrichment is not just about changing the merchant name. When we look at merchant enrichment for BNP Paribas, we, of course, do the name of the merchant, but we also put the Google map, the opinions, the website, the phone number, everything that makes the client much more comfortable in using his digital app.
Waleran Guinard, Group Head of Customer Cards at BNP Paribas
Ken Hart elaborated on Snowdrop’s capabilities, highlighting how their API goes beyond basic corrections. The AI-enriched data includes attributes like business type, sentiment analysis, and detailed location data. Instead of simply listing a ‘restaurant,’ Snowdrop categorises it as ‘romantic,’ ‘Italian,’ or ‘expensive.’ As a result, this approach provides users with a deeper understanding of their spending patterns.
The Impact of Enriched Data: Reduced Disputes and Increased Engagement
Waleran Guinard highlights that clearer, enriched transaction data results in fewer customer service inquiries and disputes. Customers gain confidence in their transaction information, reducing the need for costly support calls and boosting satisfaction in digital banking. This transparency strengthens trust, fostering customer loyalty.
Alexey Gabsatarov shares Kroo’s experience partnering with Snowdrop to enrich transaction data has increased customer engagement by 15% and reduced complaints. He stresses that accurate, bias-free data is crucial for building trust and making reliable decisions in AI models.
We’ve been partnering with Snowdrop to enrich our card transaction merchant data for about a year now, and we’ve already seen a 15% increase in customer engagement. Clearly, customers appreciate accurate data. We’ve also noticed a reduction in complaints and customer support queries related to incorrect information.
Alexey Gabsatarov, Chief Technology Officer at Kroo Bank
AI and the Future of Digital Banking
We’ve briefly discussed what possibilities AI-powered transaction enrichment could offer. These include personalised offers or loyalty programs utilising enriched transaction data. A critical aspect of this evolution is ensuring the accuracy of the information presented to customers. To achieve this, Snowdrop Solutions leverages Google’s Places API to “ground” AI-generated insights in real-world data.
Snowdrop cross-references transaction details with Google’s Places database to validate the merchant, location, and context. This process prevents AI ‘hallucinations’ by validating predictions, ensuring customers receive clear, reliable, and trustworthy information.
Snowdrop’s Vision: A Future of Smarter Banking
Ken Hart wrapped up the interview by emphasising Snowdrop’s commitment to innovation. They are focused on continuously improving their transaction enrichment platform to help financial institutions enhance their services and build stronger, more trustworthy relationships with their customers. As the digital banking landscape continues to evolve, Snowdrop Solutions is positioning itself at the forefront of this transformation.
By solving critical issues around transaction clarity, Snowdrop Solutions is setting the stage for smarter, more personalised banking experiences, powered by AI and data enrichment.
Head of Digital Marketing
Fintech-focused digital marketer with a passion for travel, hiking, and history. Leading digital strategy and social media for a tech company. Always exploring the latest industry trends.