Payment data enrichment allows companies to better understand their customers without the need to request additional information. This helps reduce risk, improving customer service without slowing down any work processes, in fact, data enrichment streamlines processes and increases the bank’s or financial institution’s sales efficiency.

Moreover, this is especially important for businesses when a company wants to:

– Move into a new market
– Try to keep up with trends
– Start a new business
– Decrease user friction
– Improve targeting
– Reduce fraud rates

The benefits for the financial sector are very clear. Obtaining quality data improves fraud detection by analysing demographic, geographic and behavioural data to facilitate decision-making and provide a more complete view of customers. It also helps to identify opportunities for growth and development by analysing underserved market segments to support regulatory and compliance. Improving security, efficiency, and the ability of financial institutions to better adapt to customer needs is key to achieving a positive outcome.

A recent global market analysis and trajectory study by Research and Markets predicts that the payment data enrichment market could reach 2.5 billion by 2027, growing at a year-on-year rate of 17.4%. The same report indicates that the financial sector is the largest investor in data quality resources. All this demonstrates the great concern of the companies in the segment to ensure that the data obtained is truthful, and that can be enriched.

However, payment data enrichment also poses challenges that need to be adequately addressed. Some of these challenges include:

– Access to quality data: Obtaining high-quality data to enrich payment information can be a challenge. Data may be incomplete, inaccurate, or outdated, making it difficult to use it effectively for enrichment.
– Integrating data from multiple sources: To enrich payment data, it is necessary to collect information from a variety of sources.
– Data privacy and security: Enriching payment data involves dealing with sensitive financial information. This involves taking appropriate measures to protect personal information and comply with data protection regulations.
– Maintaining data accuracy and keeping data up to date: As payment data is enriched, it is critical to ensure that additional aggregated information is accurate and up to date. This requires appropriate mechanisms to maintain data integrity over time.