APIs and the Power of Data: New Ways to Know the Customer

 In Consumer Spending, Financial APIs

Starting a business is easier today than ever before. And despite the challenges COVID-19 created for companies and the economy in the past few years, business has continued to boom. In fact, in Q2 of 2021, over 1.4 million new businesses emerged in the American business sector. With these new businesses has come a shift to keeping financial data in the consumer’s control rather than financial institutions. To that point, Pentadata is a secure data API platform that enables companies to access consumer financial data and financial signals in one place, and that information is available quickly and efficiently. 

Because of the changes in consent language in recent years, consumers are becoming increasingly aware of the data they’re sharing with apps and businesses that store their usernames and passwords. The language makes it much more clear what information is being stored and shared when the consumer gives permission. For example, imagine you’re a small business owner applying electronically for a loan. At some point in that process, you will need to link your bank account to the institution providing the loan. As you get to that screen where you verify the account numbers for transferring funds, you most likely would see a statement that indicates the loan provider will be able to see your statements and transactions moving forward in order to verify your identity and the account numbers provided.

For those who are willing to stop and read it, this language makes it very clear what data the third party can now access (as well as what they’re doing with it) because of the consent you just gave them. This kind of transparency helps consumers to understand and trust the companies they’re sharing their information with.

In an era where people are increasingly concerned with protecting their privacy, trust is extremely important. Pentadata started in 2018 at the same time the European Union was switching over to mandatory open banking. Open banking in Europe follows strict protocols and security measures, and Pentadata uses those same standards in its API processes. Because of this as well as the openness with consumers, clients and consumers trust Pentadata with their secure information.

There are many benefits of working with Pentadata, maybe the biggest being our existing relationship with a wide array of financial institutions and their data. If you decide to work with Pentadata, you can have access to that data within a week of signing. Apps also benefit greatly from partnering with us. When you connect with us, you can gain up to two years of historical transaction data customized to your app, so you immediately can understand and use it. Pentadata’s consistency and breadth of coverage will benefit you. 

What does this kind of data sharing do for the customer? One major benefit arrives in the form of loyalty and cash-back programs. When companies know your transaction history in real time, they can tailor offers specifically to you and your habits, getting you what you need and saving you money at the same time. This data has also made personal financial management tools not only possible but also hugely relevant and helpful for consumers. 

As we consider the future and where the world is headed, it’s clear that data drives industry. Having access to consumer data allows companies to make their services more relevant and also help people where they are right now. Whether you’re a consumer or a business, Pentadata’s API services can help you make a difference. 

*To hear more on this topic, click here to listen to Episode #83 of the podcast Commerce Code.

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