FEBRUARY 2020CIOAPPLICATIONSEUROPE.COM8IN MYOPINIONOPPORTUNITIES WITHIN MACHINE LEARNING & PAYMENTS DATAMJONATHAN ORRITT, DATA SCIENTIST, SANTANDER UKany of us experience the impact of Machine Learning every day, ranging from the recommended posts we receive in our social media feeds to the emails that drop into our inbox. Every one of us is being recommended and classified into certain buckets by potentially hundreds of different machines around the world, most commonly within our Social Media (SM) Profiles. Much of what happens within social media and the successes these systems are experiencing can be applied to Payments Data. In a way, Payments Data is a form of interaction like those interactions we experience on SM; Ultimately, Customers spend money at the merchants they enjoy, much like spending time with the friends you enjoy, for example you can redevelop the recommended friends algorithm you may find on Facebook to recommend different Merchants to you. The same can be applied within Payment Interactions, from here we can build significant Analytical Insights into our Customers, to greatly enhance our business simply by reusing our Payments Data differently.Payments Data harnesses the best possible opportunity within modern day Payment Service Providers (PSPs) to deliver personalised opportunities to our customers. Most of these opportunities can be split into two primary strategies and some examples are shown below.1) Acquisition StrategiesSell more of your products or services to those that need it.i.e. Classify customers most likely to own a Mortgage based off their Payments. This can come from the obvious such as Direct Debits to other Mortgage Providers, Demographic Data etc. or the less noticeable such as Life Insurance Direct Debits, High DIY Spend etc.2) Protective StrategiesManaging any form of risks within Operations & Customer Transactionsi.e. Greater support to credit consumers on managing their finances automatically and setting realistic spending controls to aid with credit repayments.Analysing Consumer Payments Data is something we do all the time to protect our customers, be it in the fraud or financial Jonathan Orritt
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