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Monday, 28 December 2020

How to use data from ISO20022?

 


 

The attraction of ISO20022 messaging data is:

-It is unambiguous: the meaning of each data element is known

-It is credible: the origin point of the data is known.

-It is consistent: all ISO messages follow a standard that is universally understood.

 

These factors lend itself to data analytics at scale. Many banks have data lakes and initiatives to use AI/ML to develop insights. The building blocks are in place.

What is payments data?

Data generated by providing payment services such as card payments, mobile payments, debit and credit transfers, ATM transactions etc. The type of information about the persons doing the transactions collected are PII data, sort and account codes, payment date and time as examples. Enriched data that is not necessary for payment processing such as location, mobile device id, cookie for online store, channel, frequency of use are other features that can be incorporated while developing insight from the payment data.

Use case for these analytics

-Internal

Operational efficiency such as cash loading cycle for ATMs, designing reward programs for encouraging a specific banking channel, loan underwriting feeds, better AML/KYC to start with and these can go deeper as the bank becomes familiar with exploiting the use cases and repurpose for other areas

-External

Developing premium products such as integration to corporate ERP systems for real time cash flow analysis, treasury collateral forecasting, sharing purchasing behaviour with customers is helpful for predicting seasonality in purchase, value or impact of a promotion or sale offers. These offerings build deeper touch points with customer and ring fence the customer from competition by fintechs.

 

 

 

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