(Finnish version available here)

Early in my career, I was tasked with analyzing the delay in payment of a company's invoice in relation to a payment default entry. A clear correlation was found: at the time, it took an average of two days to transfer payments between banks. In Finland, the trend was typically a four-day payment delay between companies. In the current situation, we have seen how account analysis and its utilization have become more extensive. In this post, we will explore how leveraging account analysis and verification can be a benefit for a company rather than an expenditure. 

Let's look into some areas where account analysis can be used.

1. Streamlining Customer KYC Onboarding
With KYC onboarding, companies may analyze a customer's account information for identification purposes, and also to ensure that the customer is in sufficient financial standing when receiving products or services. For example, in services where money is paid or returned to the customer, it is very important to know that the account genuinely belongs to the customer. In other situations, the customer is given some kind of credit, in which case is important for companies to know how to use the credit.

Traditionally, a form is filled out in which the corresponding information is requested. The company, either manually or, in some cases, automatically checks the data. The collection of all this information can be done in a matter of seconds by utilizing the information obtained from the account. The data retrieved is authentic and not ensured by the client's self-reported details. Oftentimes, humans tend to overstate our income and downplay our spending, so direct account verification ensures a more reliable approach.

2. Tailoring Services to Customer Needs
Companies can use account data analysis to identify changing customer needs and develop new products and services. For instance, knowing a customer's payday allows companies to time invoice due dates based on when they receive their salary. If the due date of an invoice falls a few days before payday, it is common for many to postpone the due date by a few days, especially if there is no penalty for it. However, a delay of a few days every month can cause unnecessary expenses for the company. With account data insights, these issues can be mitigated.

 3. Enhanced Risk Management:
Account data analysis can be used to identify and manage risks, such as payment defaults or fraud.

 4. Improved Customer Service:
Account data analysis can also lead to improved customer service by identifying potential problem areas with customers and provide them with more personalized recommendations and services, based on individual customer behaviour and preferences.

Access to the customer's account information always requires the consent of the end customer. As banking operators are subject to financial supervision, we are all bound by the same rules as large traditional operators.

What thoughts or ideas came up for you from my reflection?
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