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Challenge

One of the nation’s largest credit and debit card transaction processing companies saw the industry headed toward commoditization and omnichannel processes. They realized that there was significant value for the merchants they process transactions for, in the dark data of every card transaction they processed, whether for authorization or decline and settlement.

However, this data, together with merchant, financial institution, and consumer information, was highly proprietary. It included PII that could not be used for purposes other than those defined to authorize and settle. The processor was torn, knowing that they needed to update with new processes and technologies, but not wanting to risk the security and efficiency of their services.

They were also looking to expand to other channels and create competitive, new product lines — something that would require data that had previously been unavailable to them.

Company leaders knew they’d have to rethink the very foundation of how they do business, and that included taking a hard look at both their capabilities and gaps. They realized a new data transformation strategy based on credit card data analytics would be the key to moving quickly and keeping ahead of trends. This strategy would allow them to evaluate their existing technologies against newer, more nimble ones and manage risk while maintaining current service levels.

This led them to turn to Fusion for help creating a digital banking strategy roadmap. Fusion would need to build an environment that could process and analyze billions of data transactions, integrate with other internal and external datasets, and make headway in understanding consumer behavior. The environment also needed to preserve the privacy, integrity, and quality of data to ensure any obtained analytics and insights were valid.

 

Solution

As a first step, we identified obstacles that could potentially prevent us from creating an environment for managing and interpreting data. Next, we defined a framework for governance and controls that would ensure all credit card transaction data and resulting analytics are kept confidential. During this discovery process we also evaluated the processor’s current technology landscape, providing recommendations on what could be repurposed and what should be replaced.  

This auditing process set the stage for building a digital banking strategy roadmap, where we identified and prioritized business opportunities and drivers. We defined the roadmap by outlining the steps and initiatives that would need to be executed over the next several years, including: 

  • Defining the architecture
  • Selecting the technology
  • Implementing data governance
  • Obfuscating the data
  • Creating the desired data management platform capabilities

We also identified change agents and thought leaders that would propel the organization to success with their new platform, and implemented processes to create alignment between business leaders and IT. 

Outcomes

The digital banking strategy roadmap resulted in a new data transformation strategy that aligned with the company’s goals.

We worked with the client to execute the roadmap and implement new technologies, integrate and migrate their data, and use their credit card data analytics to get the insights they needed. The result was $300 million of incremental revenue in the first year of deployment.

The organization can now obfuscate and de-identify proprietary data while maintaining the privacy, integrity, and quality of the data. And, with confidence in their data and the right analytics tools in place, the company has the insights to improve their understanding of consumer behavior and empower merchants with improved payment strategies that can lead to better customer service.

$300 million in incremental revenue
$300 million in incremental revenue
Integration of multiple databases for billions of transactions
Integration of multiple databases for billions of transactions
Increased confidence in data quality, security, and analytics
Increased confidence in data quality, security, and analytics

Get help creating your digital banking strategy roadmap

Ready to transform your financial institution's credit card data into usable analytics and strategies? Reach out to a Fusion Alliance expert today. Our expertise in credit card transaction data analytics and digital transformation can help you turn insights into strategies, and strategies into wins.

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