Bud's blog and key insights

5 ways partnering with Bud benefits community banks

Written by Corey Horr | Jun 3, 2024 1:00:00 PM

Community banks are uniquely positioned to find new growth opportunities by partnering with industry specialists like Bud – especially with 33% of larger banks recognizing local institutions as competitive threats.

Despite the vast marketing and tech resources larger banks possess, strategic use of transactional data enrichment makes it possible for community banks to not only level the playing field, but also gain a competitive edge.

Enter Bud.

By enriching and analyzing the treasure troves of transaction data community banks already hold, they can supercharge customer engagement and experience, marketing campaigns, risk management strategies and more. Bud can help community banks to maximize deposits and increase the overall financial health of their customers, resulting in a more qualified customer base to grow share of wallet.

1) Integrate seamlessly and securely

Integrating with Bud is a seamless, three-step process that allows you to rapidly access powerful data enrichment and analytics without overhauling your existing systems and processes.

Step 1: Secure data sharing
Securely port your raw transaction data to Bud.

Step 2: Data enrichment
Bud enriches your raw transaction data with valuable information like merchant identification, categories, locations, recurrence and more.

Step 3: Build your experience
Use Bud’s out-of-the-box features or develop your own hyper-personalization features that enhance customer financial wellbeing and drive deposits.

And because we prioritize the safety and the security of your data, regulation and compliance is at the forefront of our solutions. This means that Bud not only adheres to stringent regulatory standards — we’re SOC2 and ISO27001 certified — but we also employ market-leading encryption protocols like Advanced Encryption Standard (AES 256) and Transport Layer Security (TLS).

This frictionless onboarding enables you to effectively capitalize on rich data-driven capabilities across marketing, risk management, product development and more — quickly and at scale.

2) Accelerate deposit growth and improve share of wallet

With our enriched transaction insights, you can precision-target your bank's growth initiatives to capture more deposits and a greater share of wallet:

  • Personalized financial guidance and cross-sell campaigns based on actual customer behaviors and interests.
  • Identify untapped opportunities to serve unmet needs and increase product holding.
  • Laser-focused upsell campaigns with optimized offers aligned to customers' spending patterns.

Deepen customer relationships with hyper-personalization

Use newly surfaced transactional data insights to tailor customer outreach, encouraging the use of savings options through timely, relevant nudges. This proactive approach enhances trust and digital banking  engagement, leading to more accounts opened.

Stimulate data-driven product development

Identify demand for new products by analyzing transaction data. For instance, noticing customers choosing competitor savings accounts can prompt the creation of competitive products to attract switchers and savers.

Maximize upsell and cross-sell conversions

Engage customers with offers aligned to their usage patterns, boosting satisfaction and deposit growth. Actionable insights enable the creation of targeted marketing segments that increase deposits and wallet share.

3) Build customers’ financial wellbeing with money management tools

Enriched transactional data also enables community banks to provide money management capabilities that promote healthy financial habits and can result in increased savings and improved credit scores:

  • Multi-dimensional spend categorization to provide customers with better visibility and control.
  • Intelligent savings tools and cash flow monitoring to help those in a paycheck-to-paycheck cycle to build emergency funds.
  • Predictive analytics to help customers prepare for future expenses and avoid missed payments.

By analyzing granular transaction data and patterns, Bud helps community banks improve their risk management capabilities and proactively support cash-strapped customers:

  • Predict future customer cash flows and payment obligations.
  • Identify financial distress signals to enable early intervention.
  • Tailor repayment plans to individual financial circumstances.

4) Capitalize on data enrichment opportunities

While transaction data holds rich customer insights, it's often difficult for financial institutions to unlock that value on their own. Bud makes it easy to give customer context to transactional data, transforming it into rich insights.

With over 50 billion transactions processed across global banks, Bud has extensive experience transforming raw data into multidimensional customer understanding designed for success. This proven expertise allows you to rapidly activate robust data analytics capabilities that would be challenging and costly to develop in-house.

5) Drive ROI and sustained revenue growth

By partnering with Bud, community banks can compete more effectively with larger banks, maximizing their return on investment and increasing revenue.

By enabling you to capitalize on powerful data-driven capabilities in a cost-effective manner, Bud allows your community bank to quickly realize ROI and long-term revenue gains, including:

  • higher deposits and greater share-of-wallet per customer
  • more effective marketing campaigns for improved conversion rates
  • increased customer satisfaction, loyalty and retention
  • new revenue streams from personalized money management services.

The future of community banking with Bud

By partnering with Bud, you can deliver next-generation, hyper-personalized financial experiences at scale to better serve your communities – and maximize deposits in the process.

To learn more about how Bud can equip your bank with powerful yet cost-effective data capabilities, register for our upcoming webinar: 'Driving growth in community banks: Improving customer financial health and boosting deposits using transaction data'.

Register now