4 Principles for Payments Data Monetization

Data monetization is a key theme for the payments and cards business. Players would like to draw value from the enormous and ever-increasing volume of data. Beyond the 101, here are 4 principles that can push this pursuit to the next level. The 4 principles are interconnected and draw upon each other.

1.     Know the ‘points of value’ (Eyes of the beholder) - The value from data is a continuum that plays along direction Vs. details. The ability to monetize, typically, rises as granularity increases. The most granular/refined insight need not be the sole pursuit. For example, industrial produce have ‘by-products’ that are valuable to payers that are realized along the continuum. (see point 4)

2.     Address point of privacy (Ask me out(in)) - While driven by regulation, granularity of data also results in seeing privacy as a continuum. Identifying me as a person vs levels of abstraction e.g. demographics. Such abstractions have been in use for segmentation for years now. Be sure to ask the customer out(in). ‘Consent on File’ is the new Card on file.

3.     Use Open Banking for full picture (Draw and Discard) - Open is the Bahn of value. In the digital rummy, players have to take the data they need while being prepared to give what others want (see point 1). With a pursuit of sequence/insight, players can seek to play on new tables i.e. ‘eco-system’. (see point 4)

4.     The payer is not obvious (Far side of the Moon) - The user need not be the payer. Some banks have struggled to get the current users to pay. More often than not, the users ‘expect’ the insight to be free and a value add to existing commercial construct. Players need to pivot to ‘2-sided market’ thinking and to see more prospective payers. Developing payer personas' help. The elusive payer may also be an internal department/unit. 

What do you think?