Pngme Vision: Connected Accounts
How To Access Hidden Customer Segments With Connected Financial Data
Introduction.
Pngme gives financial institutions a holistic view of an individual’s financial identity. Our data powers new insights on thin-file and credit invisible customers previously inaccessible or unreadable through standard API technology. We serve up raw data, structured data, visualisations and predictions for payment ratios, duration of balances, directional changes in balances, debt to income ratios, shifts in utilisation levels and more — all in near real-time. The outcome is a detailed customer financial identities which are transforming our customers’ businesses and empowering them to build high value financial products for their customers.
The Power of connected accounts.
Part 1 of our Pngme vision series focuses on our technology’s ability to connect multiple user accounts and USSD (mobile money) channels. On average in Nigeria, individuals have 4 or more accounts, with the bulk of their data hidden or inaccessible in USSD (mobile money) transactions.
Traditional API solutions provide one-dimensional data and a single account view — these APIs are unable to give developers a complete financial picture of an individual.
The following infographics provide a snapshot of how Pngme is able to build a complete picture of an individual’s financial identity.
A view of monthly income for a single FI vs Pngme’s connected account view:
Pngme’s financial identity reveals medium monthly incomes are higher for specific segments.
A view of monthly expenditure for a single FI vs Pngme’s connected account view:
Similar to income, Pngme’s financial identity shows higher expenditure across multiple accounts. A Pngme customer can identify which end users receive regular income and target income based user segments with specific product offers.
A single account view shows much lower liquidity and makes it more risky to offer finance to users who may have data hidden from view. Using Pngme’s holistic data view provides a strong case for higher credit at lower risk for a given user segment.
Proportion of income from a single FI vs total income across all connected accounts:
Pngme allows developers and data scientists to segment users based on how they use their accounts and reveals a high proportion of users use multiple accounts to transact. Often, an account will be inactive for over a month creating a misleading picture of a persons income.
Only 43% of users have a single or primary account. For instance, about 9% of users have Bank X (Bank X is a pseudonym for a real bank in Nigeria) accounts but use their other accounts for transactions (<5% of all transactions are with Bank X). Additionally, about 48% of users regularly use Bank X and at least one other account. Further, 36% of users had at least one month where they only transacted with their non-bank account. This means, when using only the Bank X data you would lose this customer segment or incorrectly assess the risk or behaviour of these customer segments.
That being said, not all users use their multiple accounts in the same way. In particular, users with more total transaction volume, income, and debt, all tend to have more accounts and tend to use those accounts more frequently. For users in the top 25% of income, up to 30% of their income and expenditures is distributed across their accounts. This means for your highest value customers, you need to have access to all of their accounts to have a full picture of their financial activity.
Connect With Pngme Today:
The data presented is just a snapshot of the types of insights Pngme customers use to inform their businesses. We’d love to learn more about your data needs and challenges. Reach out to us at hello@pngme.com or request a consultation here.
