Solving the cost-of-living crisis with data driven real-time Financial Services

Financial Institutions (FIs) have found themselves in the spotlight once again as inflation continues to rise and many global economies are on the brink of recession. Central banks are doing what they can to tackle inflation through interest rate rises, but it's retail banks and fintech service providers that are on the front line of this cost-of-living crisis.  

However, in contrast to any previous large-scale financial crisis, data is now available in huge volumes and, thanks to cloud-native platforms, FIs can mine this data for insights that can underpin valuable new services. Data-driven real-time services are the important new tools at FIs disposal that will help their customers better manage their finances, in turn supporting them through these turbulent times. 

Personalised and localised financial management   

Armed with data-driven services, FIs are now in the best position they have ever been in to provide assistance. And more importantly, give customers the tools and insights they need to help themselves. For example, personalisation through data-driven services enables FIs to market relevant opportunities to the right audiences and channel financial advice and support to those most in need. Over time, banks can analyse spending data to build 360-degree profiles of their customers who are then provided with relevant products and offers that reflect their previous spending behaviours. 

Data-driven personalisation can become more advanced by utilising real-time payment data in combination with a powerful analytics rule’s engine, enabling FIs to identify sophisticated behavioural patterns as they happen and respond with appropriate support.  

An understanding of local market needs is essential in provisioning for the right type of support. In some cases, buy-now-pay-later or loans to hard-up customers may be culturally or socially inappropriate, but it doesn’t mean that data-driven services are obsolete.  

Customer data informs the creation of financial management products and services that are specifically tailored to local market needs.  

A prime example is Saudi Arabia, which is looking to digitalise its payments infrastructure as part of its Vision 2030, including a drive to create a cashless, digitally enabled and financially literate population. We have recently partnered with the Saudi British Joint Business Council (SBJBC) as a pledge of our support.  

As a way of providing customers in Saudi Arabia with products and services catered to Shariah Law and Islamic Banking practices, we have supported with facilitating Murabaha credit solutions, a Shariah-compliant form of financing in place of traditional loans. 

Data-centric approaches are key enablers in achieving the 2030 goal, while remaining compliant with the country’s data residency considerations.  

Empowering customers to take control of their finances  

Data-driven customer-centric services allow customers to feel empowered. By breaking down spending data, banks can enable customers to be aware of their greatest expenses and potentially how these can be reduced.   

In addition to personalised and localised support, access to such valuable data also enables banks and fintechs to improve their fraud modelling, and reduce false negatives, false positives, declined and fraudulent transactions. Preventing or combatting fraud is vital, with fraud becoming increasingly rife during the cost-of-living crisis.  

Access to vast amounts of data and cloud-native platforms that give FIs the ability to mine data ultimately enables customers to take greater control of their finances with greater peace of mind.