Benefits of Categorization Engines in Open Banking
What is a categorization engine?
A categorization engine is a vital part of an open banking platform, as it helps ensure that all data within the system is properly identified and organized. By classifying data into specific categories, companies can more quickly find what they are looking for and better understand their customers’ needs and how to satisfy them.
There are many benefits of using a categorization engine in open banking. First, it can provide an easy and fast way of finding the most relevant information about a specific customer or about a large customer base.
With everything neatly sorted into relevant groups, there is no need to waste time digging through piles of information to find what you’re looking for. What’s more, categorizing data can help expose hidden relationships between different financial items – such as spending categories that correlate with particular debt types or asset classes. This insight can be extremely valuable when making informed financial decisions.
Finally, having a good categorization engine can also improve performance by reducing search times in large datasets.
Why are categorization engines important in open banking?
There are several reasons why categorization engines are important in open banking ecosystems. One of the most significant is that they can make it easier for companies to understand their customers’ financial behavior, allowing them to take smart decisions about how to manage their customer base. By providing clear, concise information about where someone’s money is invested, banks can give customers the tailored support they need to feel secure.