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Data on Demand: The Power of Real-Time Data for Risk Decisioning
Data on Demand: The Power of Real-Time Data for Risk Decisioning
In today’s world, it feels like everything is available on demand. You can stream movies, audio books, music, games, and more. You can join a fitness class being run live in a different time zone. You can watch a concert being performed on the other side of the world. Yet, when it comes to the information you need to power business strategy and customer decisions, your data is either buffering, or even worse, not scheduled for release yet. All financial services organizations use data to make informed decisions across the customer lifecycle. But innovative fintechs and financial institutions are pushing the boundaries of what’s possible by using a much greater variety of data to drive superior customer experiences. And they’re doing it in real-time. This evolution of data consumption is powering disruption from the ground up. It’s also driving the need
for data on demand. Partnerships between data and technology providers have made data more accessible, more useable, and more actionable. It’s now easier than ever to capitalize on the availability of data to power the data science and predictive modeling techniques that create world-class consumer experiences and drive business growth. Data is essential to discover and action new business insights that generate business value. There is certainly no shortage of data, but it isn’t just the volume of data but its velocity, richness, and diversity that has increased. And, while most people know this, they often get stuck trying to figure out how to capture the value. What is truly setting leaders apart from the rest of the industry is their ability to innovate with real- time data. To be ahead of your competition, you want to be an early mover in defining how your industry
uses real-time data alongside advanced analytics. Why? Because early movers generate an ROI that enables the self- funding of new data and analytics initiatives over the long term. It is hard for a follower to ever catch up. Data is disrupting all industries, and those leading are using continuous intelligence and real-time analytics to allow the true value of data to be realized.
“Data, by itself, is not a valuable asset. It’s what you do with it that counts.” JimMarous, The Financial Brand 1
If Your Music (and Everything Else) is on Demand, Shouldn’t Your Data be too? In our digital-first world, your data needs can evolve quickly. You need real-time data to manage new risks, explore new opportunities, and respond to changes faster. It’s essential for delivering better customer experiences and defining new digitized operating models that your competitors will envy. Today’s decisioning needs require a data feed that’s customizable, adaptable, and built to fit your needs. Think of it like compiling your favorite TV shows and music into your ideal on-demand platform, where you only pay for the shows you watch, can add or remove channels whenever you want, can trial new music or genres to see whether you like them, can watch episodes exactly when you want to, all on the device of your choosing. Put simply, the future of risk decisioning isn’t historical or traditional data. The future of risk decisioning is a curated feed of real time and historical data, available on demand.
choose the right technology partner. Simple integration through a single API makes it easy to discover and test new types and sources of data. So, you can easily iterate until you find the perfect combination of data sources to power many different outcomes. The bottom line is to make sure the data enriches your decision making. Innovative fintechs and financial institutions are looking beyond traditional data sources to power industry disruption and better customer experiences. Explore a wide variety of options to achieve your decisioning goals (see next pages for examples). When it comes to curating your on- demand data stream, remember to use alternative data to gain unique insights into your decisioning. Embrace the opportunity to bring together a wide variety of data types. Build your own on-demand channel that isn’t restricted to one data type. Imagine you’re bringing your favorite music, movies, podcasts, audiobooks and tv shows into one on-demand platform. You shouldn’t be restricted by ‘genre’ either. Don’t hesitate to use data from other industries to assess credit risk. Go beyond the traditional credit score to create new low-risk lending opportunities.
Building Your On-Demand Data Channel: Exploring Data Types Many fintechs and financial institutions often struggle with two issues when it comes to creating their ideal data mix: 1. Choosing the right data 2. Integrating that data into their decisioning and analytics processes To solve these challenges, businesses need to take a strategic approach to selecting data sources. Start with what you’re trying to solve. What is your use case? You want the data to be relevant, so link your business need with your data sourcing. Test the impact the data has on your risk decisioning. Does the data source drive a different insight, is it improving accuracy, is it improving the customer experience, is it making you more competitive? Each data source should support a strategic business goal. Conversely, don’t let technology hold you back from adding new data sources to your decisioning and analytics processes. Integrating, accessing, and using data can be as simple as flipping a switch when you
• AML – Screen risks during on-boarding and ongoing to reduce fraud exposure and mitigate risks • Banking Account Verification & Validation – Access bank account data • Collections – Access collections and recoveries data to improve confidence in risk decisioning • Credit Risk – Access commercial and consumer credit data • Document Verification & Validation – Access to verify a wide variety of documents • Employment Verification – Access employment data
• Affordability – Enabled by Open Banking, assess the financial health and calculate affordability for the applicant prior to making a credit risk decision • Age Verification – Access age information • Alternative Credit Risk – Instead of traditional credit
scores, use alternative sources like telco data scoring, social presence scoring, device data scoring, and mobile and web-behavioral data to assess risk
• Facial Biometrics – Verify government documents, video interview recordings and facial biometrics in near real-time • Fraud – Use data to detect fraudulent activities and expedite authorizations to improve the point of transaction service • Identity & Verification – Provide identify authentication and verification through multiple data sources • Income Verification & Validation – Access income information and history
• KYB – Monitor for Know Your Business (KYB) through cross verification • KYC – Monitor for Know Your Customer (KYC) through cross verification • Open Banking – Utilized for gathering a comprehensive view of the applicant’s financial situation across multiple accounts and institutions • Social Media – Use social media presence as a way to assess credit worthiness
The Benefits of Data On-Demand for Enhanced Decisioning While more options on your tv streaming service can often result in decision paralysis, where you endlessly scroll through options until you eventually don’t want to watch tv anymore… more data means smarter, and faster decisioning. Real-time data means having the right data at exactly the right time to power instant decisioning; it means you can use more data to improve decisioning accuracy without slowing down approvals; it means powering a better customer experience. It also means that you can combine the power of historical and real time data. For example, predictive analytics and machine learning models trained exclusively on historical data quickly lose their relevance in a world that changes on a daily basis, but a ML model that evolves using real-time data continuously adapts to stay ahead of decisioning risk. It’s more than data on demand; it’s intelligence on demand. More data that is relevant can actually enrich the decision- making processes and create more confidence. More data should reduce your risk. And when this data is used to train models to become better at predicting outcomes, the impact of the insight drives significant value to the business. To take full advantage of real-time, on-demand data, you don’t have to build an interface from every data source. Innovative financial services businesses don’t aggregate the data themselves; they work with technology partners to power these integrations, so that relevant data is made available in an easy to ingest way. The result: their time is spent on deriving value from data and not building interfaces. Data ecosystems are critical, but you don’t have to create them yourself. Your goal is to shorten the time from data to value.
Data still buffering: Look to Data-as-a-Service
With prebuilt integrations to a wide range of data vendors, and a single API to push data on demand to your decisioning and insights platforms, Data-as-a- Service (Daas) technology will define the future of data consumption. With real- time data moving throughout your decisioning workflows, you can react with instant risk decisions. You can test new hypothesis on the fly. You can get new products to market faster. You can let the data do the work for you. (You can finally pick a tv show to watch in under a minute.) The right DaaS solution can eliminate many of the time sinks that companies normally struggle with when dealing with data choices, access, and use. Imagine having to compile all of the content for your on-demand platform. Instead of having to navigate all of the data possibilities, bring it into your organization, and integrate it into your business processes, your DaaS solution eliminates the leg work. An industry tailored data ecosystem curates the data and completes the integrations for you. So, you see the value from your data in record time. “Only 27% of financial institutions rate their access to data as strong.” JimMarous, Digital Banking Research Report Jan. 2021 2
Meet the Data Cloud: A Fintech Ecosystem Built with Your Data Needs in Mind The Provenir Data Cloud + Marketplace can power your risk decisioning data strategies. Use the Data Cloud’s single-API fintech ecosystem to consume all data at scale. All of the data sources you need are accessed through one centralized location. And with a cohesive digital experience between Provenir’s four cloud products: Decisioning, Data, Insights, and Solutions, you’ll discover actionable business insights that unlock the true value of your data.
Go Shopping with Your Data Wish List in Hand Say hello to data—with Provenir’s Marketplace. Our rapidly expanding marketplace is made up of vendor partnerships that are uniquely positioned to meet the needs of your financial services business. Customize your own ecosystem to create you perfect ‘on-demand’ data source perfect for your business: • The Provenir Marketplace is curated to support both regional and global risk strategies • Your integrations are always
up-to-date. Updates by the data partners are maintained by Provenir requiring no intervention by you
• Try new data. Just drag the tile and go using the single-API, no- code user interface • Reduce your costs. There is no ongoing maintenance. The data comes to you ready to consume • Maximize your innovation with data across an unlimited set of use cases
Step 1: Select any vendor in the Provenir Marketplace; filter by location,data type, and/or use case Step 2: Use your credentials to quickly connect your data sources with the Marketplace
Step 3: Integrate data
into any business process through a single interface
Step 4: Power smarter risk decisioning
Data Marketplace
Use our Global Data Marketplace to find new data partners and test data across decisioning processes.
Global Data Discover credit, fraud, open banking, and alternative data to advance regional and global strategies.
Simple Integration Use the no-code user interface to connect to new data sources in minutes.
Single API Use the fully maintained, single API to easily add new data vendors into your decisioning processes.
Built on a Foundation Inspiring Innovation
Let Provenir’s cloud-native technology drive your innovation. Designed and built to power agility, Provenir’s cloud- native technology puts your team in control. Independence replaces vendor-reliance. Seamless support for business growth replaces unscalable technology. With state-of-the- art data science features on a cloud-agnostic platform, your decisioning is driven by AI and machine learning to improve accuracy. You’ll benefit from the agility, flexibility, and security needed to compete in a digital world. Use the no-code Cloud Suite, with its user-friendly drag and drop interface, to take control of uploading, testing, and deploying models and decisioning workflows. And rely on the Provenir platform-as-a-service model to benefit from developing, QAing, and deploying your risk decisioning environment on constantly advancing technology.
Endnotes 1 https://thefinancialbrand.com/106974/top-data-trends-banks-and-credit- unions-cx-digital-marketing-big-ai-privacy-transparency/ 2 Digital Banking Research Report, The Financial Brand, Jan 2021
About Provenir
Provenir helps fintechs, financial institutions, and payment providers make smarter decisions faster by simplifying the risk decisioning process. With one unified digital experience powering four cloud products — decisioning, data, insights, and solutions — you can create the platform-as-a-service cloud that best fits your needs. Whether you choose one or multiple clouds, making changes is fast and easy. Clients use Provenir’s technology to easily design, build, and deploy solutions to solve complex business challenges such as digital onboarding, retail financing, BNPL approvals, SME lending, insurance, and credit card management plus innovation in areas like eCommerce, eWallet, digital banking, and open banking.
Its no-code, cloud-native SaaS products make it easy to rapidly create sophisticated decisioning workflows. With a global data marketplace for seamless integration, powerful AI & machine learning models, and real-time insights, Provenir has supercharged decisioning speed. Rest assured your data is fully encrypted and SOC compliant. Provenir works with disruptive financial services organizations across 33 countries and processes more than 2 billion transactions annually. Provenir helps fintechs grow from startup to decacorn and empowers banks and payment providers to become leaders in digital transformation.
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