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The role of data validation in the relationship of banks and customers

The role of data validation in the relationship of banks and customers

May 28, 2020

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Photo by Patrick Tomasso on Unsplash

The experience across the financial journey is one of the drivers of customer loyalty to banks, since receiving invoices and other financial communications is the main - and most frequent - touchpoint between them. That is why the quality of these documents and of the information contained in them are so relevant.

There is probably a smartphone brand that you feel works better for you; also a streaming service or car-ride app that is always your first choice. And when it comes to banks, what makes customers loyal?

One of the main deciding factors is the experience across the financial journey. The new digital banks are disrupting the industry thanks to technology, and it also means an impact on the relationship with customers. Since many of them take advantage of online banking and visit physical bank branches less often, receiving invoices and other financial or transactional communications is the main - and most frequent - touchpoint to interact with their banks. That is why the quality of these documents and of the information contained in them are so relevant.

Learn why financial data validation is the starting point to build loyalty between banks and their customers, and how organizations could benefit from tools and applications that fit business needs.

The experience at Banco Carrefour

Banco Carrefour, in Brazil, was facing a challenge with data validation, whether due to volume of invoices or range of complex items to be verified. On a monthly basis, the team worked to manually validate all billing statements, by sampling - in addition to operating in compliance with the regulations from Brazil’s central bank, credit card issuers have to validate a variety of items, such as payment due date, list of purchases, interest rate and other fees.

With an increasing number of customers, the manual process became inefficient, and the turning point for the company was selecting a technology tool to optimize data validation. The transformation - as well as the partnership between :hiperstream and Banco Carrefour - has started with the choice of DVA (Data Validation Automation) as the ideal platform for the bank's operation.

Now, all data and each of the 3.5 million invoices issued monthly are validated with agility and security, according to custom rules. The platform also allows taking a broader view of the process, helping to identify inconsistencies in it and to solve them.

As we often mention to our clients, data validation automation impacts three key dimensions of the business: consumers, employees and the company itself. For the team, turning a manual process to an automated one saves time and improves analytical skills; for the organization, the process is more efficient, assertive and less vulnerable to errors that impact costs. And for the customers?

Considering investing in a tool like DVA to strengthen the business operation also reduces errors that lead to friction in consumers' experience and in their relationship with a brand. In retail banks, customer success also relies on transparency and trust in financial communications.

Customer relationship: cost vs. value

Besides the institutions' own measurement systems, Brazil's central bank also tracks customer satisfaction across the banking sector - the numbers are disclosed in quarterly reports that consider complaints against small and large banks or financial companies across the country. When it comes to brand reputation, the value of investing in customer relationships is priceless. But what about the costs?

Considering as an example a company that issues 50 million invoices per year, a success rate above 99% still means 360,000 billing errors. If 25% of the customers call customer service to fix the mistake (a call of 6 minutes costs approximately $7 BRL), the cost reaches $1,080,000.00 BRL in a scenario where half of the customers receive digital invoices and the other half receives physical ones.

Have you ever done this calculation? Our clients have. That's why :hiperstream has already helped to validate nine billion items of data automatically, transforming the experience of about 50 million consumers and reducing expenses while improving the financial journey.

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