The word “data” resonates with most business professionals, especially those in the finance industry.
Exploding data is valued and provides insight for companies to deliver positive customer engagement.
With the evolution of smartphone technologies and mobility, location data is becoming more prevalent.
That is where location intelligence comes in.
“Location intelligence provides a way to reveal relationships between data sets that might not have otherwise been obvious or easy to ascertain and, through location analytics, arrive at the kind of insights that get reflected in the bottom line.” Forbes reports.
Location intelligence gives businesses a geographic context in relation to data.
The financial industry is using location intelligence in order to put the customers at “the heart of financial services.”
First, let’s look at the three core functions of location intelligence.
- Location discovery – Includes data from different sources that involve customers and business.
- Location Analytics – Incorporates “mapping” which provides a visual of a customer’s whereabouts.
- Location Optimization – The study of location analysis.
Successful banks have integrated these tools to bring value to their business.
Geo-enriching Customer Profiles
The goal of any financial service company is to provide customers with satisfaction and active engagement.
Banks are able to use location based data in order to understand where customers are by understanding transactions which helps locate areas of risk.
“Geo-enriching customer profiles and accounts are increasingly being used in the financial sector, where regulations designed to prevent fraud and money laundering require institutions to properly understand the links between different accounts and identify potentially fraudulent behavior.” Forbes reports.
The process of enriching involves geocoding which is the act of “deriving latitude and longitude from an address.”
Geo-enrichment then holds a large role in providing a clear understanding of the data presented.
The information that geo-enrichment provides can include:
- Global streets
- Points of interest (airports, parking, recreation, transport hubs, natural features, etc.),
- Demographics, income, and purchasing power
- Risk and natural hazard information.
Knowing where your customer as opposed to just who your customer is, can provide insight to further position your business for success.
“Understanding where customers routinely shop and the types of products they routinely buy, enables the financial institution to make targeted offers that create an incentive for the consumer to shop within its network of retailers while utilizing their credit/debit card.” Pitney bowes reports.
Location Derived Decisions
Before location intelligence, creating new bank branches could take months, and was conducted through a guessing game combined with on-site analysis.
With innovative location tools using data, companies have an advantage while deciding where to open new branches.
“LI enables the company to create and measure 10-year revenue and profitability forecasts for each new branch based upon variables such as a community’s mean income, disposable income, home ownership rate, population growth, unemployment trends and innumerable other factors.” PBinsight reports.
Using location intelligence gives banks the opportunity to determine which location will be most beneficial to its business quickly.
Combat Financial Crime
So far, we have learned that location intelligence assists financial services with customer engagement.
This tool also helps expose crime among customers.
With the rise of digital, the fight between financial fraud and crime has become more complex.
Location intelligence helps combat financial crime with the help of data and analytics.
“By combining proprietary data sets with industry benchmarks and government information, financial institutions can use artificial intelligence, machine learning, and analytics in the fight against financial fraud.” mckinsey reports.
With the combination of customer profiling, location intelligence helps identify which transactions are unusual.
The Future of Location Intelligence
Data driven decision making is powerful among the financial sector.
Understanding where your customer is and where their transactions are located positions businesses to be in a place that enables frequent customer engagement.
The future of location intelligence is only going to expand, with the development of new technologies.
Companies are catching onto this fact and are placing huge value in what LI offers.
Real-time Behavior Technology
Experts predict that real time technology will advance with location intelligence.
“Over the next year, all of the technologies at our disposal are bound to come together in order to give businesses the ability to understand real-time customer behavior.” bluedotinnovation reports.
Personalization Will Increase
There is great value in personalization when it comes to customer engagement.
Location intelligence will make personalization even more prevalent and financial businesses will leverage this tool in order to provide specific customer experiences that are unique to the customer.
The Millennium Alliance has put together FSI Transformation Assembly to target business professionals in the financial industry in order to provide relevant, innovative knowledge from experts.
Join keynote Speaker Scott Dillon, EVP, CTO and Head of Technology Infrastructure Services at Wells Fargo and Company in learning about the latest financial trends.
Scott will also provide insight about how his team provides availability, security, and global interconnectivity for the more than 70 million customers who interact 12 billion times a year in person through the company’s 9,000 stores and 12,000 ATMs, on the phone, or online at www.wellsfargo.com.
With the world evolving digitally, it is crucial for business professionals to stay up to date and informed about all trends that occur in the financial industry that companies use, in order to stay ahead of the competition. Location intelligence is one trend among many that have taken the industry by storm. This tool is only going to evolve in order to target the on the go customer and analyze data.
Be informed, gain knowledge and grow in your industry during FSI Transformation Assembly.
Application to attend FSI Transformation Assembly taking place September 14-15, 2017 at Four Seasons Resort in Palm Beach, FL is now open.
For information about the limited sponsorship opportunities remaining, please download the Sponsorship Prospectus >
This is not just another “Financial Services” event. Spaces are reserved for the best in the business. Apply to attend here!