March 18, 2022
The Price of Inaccurate Data in Banking: How Enriched Data Saves Costs and Build Trust
Last Updated on November 22, 2024 by Ana Cantero
In the banking industry, data inaccuracy isn’t just a minor inconvenience – it’s a costly issue that can affect both banks and their customers. As financial institutions focus on cutting costs and improving customer service, getting transaction data right has become more important than ever. At Snowdrop Solutions, we focus on delivering precise transaction data enrichment, helping banks avoid costly mistakes and provide a smoother experience for their customers.
Why Inaccurate Data Is So Expensive for Banks
You might be asking, “Do premium match rates really matter?” The short answer is yes – it’s actually a big deal. When transaction data is inaccurate or incomplete, it causes confusion, errors, and piles on unnecessary costs.
Take the UK, for example. Up to 15% of bank call centre inquiries come from customers trying to figure out charges they don’t recognise. With each call costing an average of £12, this adds up quickly and becomes a serious financial burden for banks. While call costs may vary in other regions, the issue of high call volumes remains the same.
But it’s not just call centre costs – data inaccuracy creates a ripple effect. Many banks end up triggering expensive chargeback processes to investigate unclear transactions, or worse, they issue automatic refunds just to avoid upsetting customers. In the UK, some banks refund customers up to £10 per transaction automatically, while in Southeast Asia, one bank sets that threshold at $40 USD. Over time, these practices can cost banks millions in refunds, chargebacks, and extra operations – all due to inaccurate data.
Customer Trust and Hidden Costs of Data Inaccuracy in Banking
However, the real cost of inaccurate data in banking isn’t just about the money – it’s about customer trust. Consumers today expect nothing less than clarity and accuracy when it comes to their financial services. And with digital-first competitors making it so easy to switch banks, that trust is more important than ever. If customers can’t count on their bank for accurate transaction information, they’re likely to take their business elsewhere.
Challenger banks and neobanks are setting the bar high with fast, seamless digital onboarding. This ease of switching puts traditional banks under pressure to hold onto their customers by offering a transparent, reliable experience. When transaction data isn’t accurate, that trust is shaken, and customer loyalty is at risk.
How Advanced Transaction Data Enrichment Solves Data Inaccuracy Issues
Tackling inaccurate data in banking takes more than just a quick fix – it requires smart solutions that can match each transaction to the right merchant, location, and context. At Snowdrop Solutions, we use advanced transaction data enrichment to help banks achieve high levels of accuracy in their transaction records. With a 98%-99% match accuracy and over 1.4 billion transactions processed monthly, we help banks cut down on customer confusion, reduce costly service calls, and avoid unnecessary refunds.
But that’s not all – enriched transaction data means fewer chargeback processes and smoother operations. Banks can access accurate records at the touch of a button, making it easier to handle inquiries and resolve issues. For customers, clear and relevant transaction details mean fewer questions and greater trust in their bank. By partnering with a provider focused on data accuracy, banks can transform how customers interact with their accounts and boost long-term satisfaction.
The Bottom Line: Precision Pays Off
The cost of data inaccuracy in banking isn’t just about operational expenses – it affects your brand, customer loyalty, and how you compete in the market. By investing in advanced transaction data enrichment, banks can save on call centre costs, cut down on unnecessary refunds, and speed up dispute resolution—all while delivering a better experience for their customers.
With over ten years of experience as a Google Cloud Premier Partner, we specialise in solving complex location and data challenges. Our expertise, insights, and cutting-edge technology help banks and payment providers improve efficiency, lower costs, and enhance the customer experience.
Get in touch with us today to learn how enriched, accurate transaction data can make a difference for your business and your customers.
Marketing & Comms Director
Seasoned Marcomms professional with 8+ years of experience in brand management and digital communications. I thrive on creating impactful content and creative strategies, leveraging location-enhanced data enrichment insights for financial and digital technology companies. In my spare time, I nurture my mind and spirit through creative pursuits and immersive reading.