Transaction enrichment is adding additional information to raw transaction data. Transaction enrichment aims to turn raw data into actionable information to help businesses optimize their operations, improve customer experience, detect fraud, and ultimately increase their bottom line. In this article, you will find an overview of the different types of sources for enriching transaction data and why this process is so critical for businesses seeking to develop effective strategies in the banking sector and for merchants.

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Transaction enrichment data in the banking industry

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How often have you logged into your digital bank account to review your transactions, only to find that some are unfamiliar? Banks are unable to accurately display transaction information at times due to a lack of information..

Transaction enrichment can be helpful in situations where the existing information is insufficient or unclear. Improving the quality of transactional data is crucial because, as previously mentioned, customers may mistake unfamiliar transactions for fraud, leading to several problems for financial institutions, including loss of customer trust, higher fraud risks, and increased amount of chargebacks.

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• Information that you can enrich

Merchant details: Name, location and category.

Geolocation: Latitude and longitude of the transactions.

Payment details: Method used.

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‍Best Practices for collecting transaction enrichment data

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There are different methods of gathering information but is important to understand that transaction processing involves numerous components, including point-of-sale terminals, merchants, trade licenses, payment gateways and other elements. For more information about this, you can read our last article abou t" how does a payment work?".

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Steps to extract information from data after enriching 

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How businesses can use transaction enrichment data to gain insights

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Improve customer understanding: Enriching transaction data allows businesses to gain a more complete picture of their customers.

Increased efficiency and cost savings: Enriching transaction data can help businesses identify inefficiencies and areas for improvement in their operations. This can lead to cost savings and increased efficiency.

Fraud detection: By enriching transaction data, businesses can identify patterns and anomalies that may indicate fraudulent activity. Can help businesses to prevent losses and protect their reputation.

‍Improve risk management: Enriching transaction data can also help businesses to identify potential risks and take appropriate actions to mitigate them.

Transaction enrichment technology can be implemented

Nowadays, developing technologies such as transaction enrichment can be a challenging task. However, the emergence of numerous companies offering services to the banking sector has made it easier for financial institutions to improve their services rapidly. Banks like Owwn and Piana have implemented our transaction enrichment technology, which enriches their card transactions and bank transfers by providing additional information such as clean names and logos.

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Conclusion

The implementation of transaction enrichment is crucial for both banks and merchants as it helps to reduce the occurrence of chargebacks and fosters greater transparency and trust with customers. It's also an effective way to gain insights into customer behaviour.

If you're interested in implementing transaction enrichment to improve your banking services or want to know more about our successful case studies, please do not hesitate to reach out to us. We would be delighted to hear from you.