Quick Facts Data Monetization Banking Experts Should Know


Table Of Contents

Data monetization has been utilized as an innovative strategy to earn more income by most companies, including banks and other organizations within the financial industry. Banks understand the benefits of data monetization, including cost reduction, increased data-related opportunities, and revenue growth.

This guide looks at how data monetization works in banking and why financial institutions should use it as an advantageous yet simple strategy to increase revenue, efficiency, and overall data management.

What is Data Monetization?

Data monetization is the process of producing, preparing, and transforming data to distribute or sell for economic benefit. Companies choose whether to sell raw data or structured data, typically analysis or insights.

Data monetization is achieved through two types of methods: internal and external.. The below table gives a breakdown of these two types of data monetization and how they’re different.

Internal External
Utilizes data and analytics in making more informed business decisions for the company’s improvement and creating new products or services Internal data assets are prepared, packaged, and sold to a third party

Why Do Banks Monetize Data?

Banks always have to be one step ahead in the financial industry to keep their competitive advantages, which can help widen their profit margins. Banks face multiple hurdles every day, including:

Mitigating Lending Risks and Risk Management

One of the greatest benefits of data monetization in banking is mitigating lending risks for better risk management. Banks can leverage data so that better lending decisions can be made. And they can achieve this by plotting all possible risks that come with lending in various economic climates.

Because banks can understand these lending risks better, they can come up with a more accurate plan for growing their market share and achieving better revenue. And at the same time, lower costs and risks are expected, which is a win-win for both the bank and the customers.

Personalization and Customized Offerings

Data allows automation of targeting of segmented financial services in banks. And through this, financial companies are able to identify the behavior of a customer to match his needs. This allows banks to make product recommendations easier and more personalized, depending on the differences in customers with their preferences and decisions.

When banks can utilize data monetization wisely, they can get a clearer picture of what their customers want. This can help banks create a more personalized approach to launching their new products, which can reduce risks and silos.

Increasing Revenue & Customer Lifetime Value

Data monetization also increases a customer’s lifetime value and overall profitability. Banks are able to facilitate easy data integration in various product silos. And through this, employees can generate successful strategies to improve the services for all the customers. This can also potentially increase the business’s potential review.

Monetizing Payments Data

Monetization also allows banks to utilize payment data for better revenue generation, increasing the chance of clients returning and staying loyal to your company. This helps banks use models with data-driven revenue for leveraging enriched payment data.

Prediction & New Digital Products & Services

Data monetization also allows the emergence of more opportunities that can help banks flourish. It can help develop new businesses and build new relationships with other businesses. Among these, the following are the most common developments in the creation of new digital products and services:

  1. Develop new analytics per product
  2. Partner with other business players in the financial industry
  3. Identify possible sources of new data
  4. Infrastructure commercialization for selling services in a platform
  5. Enhance ROI in marketing campaigns

How Banks Monetize Data


Data monetization promises to become a key differentiator in generating strategies for better income and revenue. But to be able to ensure that it’s a success, there are certain aspects banks should follow.

To get a better understanding of what these strategies look like, it’s important to know about a few of the ways that banks monetize data. While we all know that each bank differs in its nature, regulatory environment, management, and client base, it still helps to explore various ways banks can consider.

Creating Digital Annual Reports

A digital annual report helps provide a visual overview of a potential client’s financial life for a period of one year. According to the annual report generated, banks can give suggestions to their customers about how they can improve their financial lives, saving more for their future.

Payment Data

Banks can monetize cardholder data as well as data from the merchant side of the transaction in order to build an end-to-end view on different transactions. This can help provide a number of benefits, such as pairing consumers with merchants they’re interested in, matching payment channels to customers, recommending products, and getting a better read on the market at a more minute level.

Value Chain Extension

Banks can also monetize data by extending value chains into a customer’s long-term life plan, like planning for a wedding, buying an estate property, or choosing a college to study in. This allows banks to better position products like long-term investment packages, savings accounts, and more.



Data monetization in banking is key because it allows lets banks leverage the data they have available to them as a competitive asset. As a result, these financial institutions are able to create a competitive advantage as well as continue to provide better value to customers.

With the financial services sector at a current CGR of 8.8%, the need for banks to stay competitive and continue utilizing data wisely is growing.

Whether you’re a bank or another type of business, monetizing data is one way for you to drive new analytics and open up profitable revenue streams for your business. Book a demo with Revelate to learn more about our integrated data systems that make these kinds of data monetization moves possible.

Simplify Data Fulfillment with Revelate

Revelate provides a suite of capabilities for data sharing and data commercialization for our customers to fully realize the value of their data. Harness the power of your data today!

Get Started