Increasing interchange income with data insights

According to Alkami’s 2024 Telemetry Data Report, credit card usage is up. The average credit card payment has increased since 2020, reaching $2,376 by 2023. Meanwhile, the number of credit card payments has remained relatively flat, suggesting that consumers are paying more towards credit card bills. However, the report finds that consumers are not adding new cards to their wallets, which may impact financial institutions’ revenue from interchange fees. Here’s where data analytics in banking can help bridge the gap. Built from more than 15 years of data modeling and analysis, data insights reveal opportunities for new credit card openings and increased card usage to increase interchange fee profits.

Uncovering credit card opportunities with data analytics in banking

To maximize interchange income, financial institutions should encourage account holders to use their debit and credit cards more frequently. Leveraging data insights from transaction data can help scope ways to improve card utilization.

By analyzing account holders’ daily transactions with data analytics in banking, financial institutions can identify key data insights that help drive card usage, such as:

 

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