The Power of Data in Business Decision-Making
To keep customers and attract new ones, businesses must leverage technology and data to guide strategy, Michael Budde, COO and CFO at Banyan, writes in the new PYMNTS eBook, “The Implications of Uncertainty.”
As we embark on the second quarter of 2024, businesses face a sea of uncertainties. From shifting spending patterns and interest rate environments to the evolving role of artificial intelligence (AI) in business operations, the landscape is complex and ever-changing. Amid these uncertainties, one thing remains clear: better choices are made with better data.
Uncertainty: Consumer and Business Spending in 2024
Consumer spending rose in February 2024, the most substantial increase in a year. This surge indicates the resilience of the economy, a sentiment echoed by Fed Chair Jerome Powell. However, much of this spending is fueled by savings rather than rising incomes. In this context, merchants and banks must focus on delivering compelling value propositions to better reward loyal customers and differentiate to win new consumers.
Uncertainty: The Role of AI in Business
Banks and merchants are increasingly experimenting with AI to deliver business priorities. J.P. Morgan Chase recently shared in its shareholder letter that it has over 400 AI use cases in production, spanning marketing, fraud and risk. For any business, the efficacy of AI use cases hinges on a foundation of rich, accurate data. Businesses investing in both AI and high-fidelity data access will be the ones to uncover valuable marketplace and customer insights, and enjoy a competitive advantage.
Navigating Uncertainty
Data and technology must enable timely and relevant reactions to marketplace conditions. Here are three key enablers core to how we serve our platform partners at Banyan:
- Clarity: Banyan’s platform fosters collaboration between merchants and financial institutions, amalgamating diverse customer spending datasets. This brings a clearer understanding of purchase behavior at the receipt level and sales revenue attribution at the product or brand level. When a consumer checks out at the local grocery, that consumer is making one decision that is the culmination of many item-level decisions which bring insights to the merchant, the bank and the consumer in a way that promotes a more personalized experience.
- Versatility: A single data connection to Banyan can power multiple use cases across many partners, enabling easy scale up or down based on shifting marketplace signals and business priorities. That means increased speed and optionality to power a wide variety of solutions ranging from fraud mitigation to enhanced card-linked offers to loyalty rewards engagement and beyond.
- Simplicity: Build once for further low-effort scalability. As a trusted data integration partner, Banyan’s platform does the hard work to power any receipt data use case — whether it’s known today or yet to be identified tomorrow. A single data connection allows your business and technology resources to focus on core growth initiatives instead of being committed to maintenance and building more integrations to power new solutions.
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