Digital banking solutions providers Alkami and Backbase made plays to enhance their data analytics last week, with both deals focused in part on making transaction data more meaningful for financial institutions.

Plano, Texas-based Alkami revealed Monday it will acquire Segmint for $135.5 million, with plans to close during the second quarter of 2022. Segmint applies machine learning to transaction data and uses proprietary metrics it calls “key lifestyle indicators” to data, Alkami said. It also automates messaging to support personalization across multiple channels, Alkami CEO Alex Shootman said in Monday’s announcement. The deal is important as financial institutions look for ways to leverage digital banking data, a spokesperson for Alkami told Bank Automation News on Friday.

“Digital banking is an increasingly important venue for marketing and cross-selling to new and existing customers,” the spokesperson said. “Segmint’s functionality is something our clients and prospective clients are seeking from their digital banking provider.”

The deal offers two benefits to the Alkami’s clients, according to a company statement. First, the combined data sets from the two solutions will offer “a more complete view of the account holder while both training Segmint’s current data models for greater precision and expanding them to additional use cases,” the release stated. Second, it will allow FIs to better use data to engage with customers through the digital bank.

Backbase and Envestnet |Yodlee

Meanwhile, digital banking platform Backbase revealed Tuesday it has entered a partnership with data aggregation and analytics platform Envestnet|Yodlee it said would help clients improve customer retention, cut costs and increase wallet share. The deal means the platform now supports account data aggregation, account verification without micro-deposits and data enrichment of transaction data, including categorizing and simplifying that data, according to a company announcement.

Data analytics is key to a faster time to market for FIs, Backbase Chief Product Officer Karan Oberoi told Bank Automation News.

“Banks want to go to market faster,” Oberoi said. “They’ve spent years and small fortunes on transformation projects, so the more of their problems we can solve for them in one go, the faster the bank can transform the way they engage with their customers.”

The partnership also will help banks with integration, he added.

“Banks’ transformation journey is often complex exactly because it involves too many individual integrations with stand-alone point solutions,” Oberoi said. “By partnering with an industry leader like Yodlee, Backbase can offer customers a more complete, pre-integrated solution from day one, which allows banks to invest more of their resources in engaging better with their customers’ daily lives.”

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