Issue #18 - Where does Financial Data come from?

  1. Intro to Data Rich Payments

  2. Where does Financial Data come from?


We all understand the word ‘data’, and have an intuitive understanding of what the word means. However, a lot of us cannot grasp why it matters so much, particularly in areas that are not related to our day-to-day jobs. 


500+ Categories of Data

To get us started, check out the categories of data that businesses find valuable enough to purchase. And this is only from a single data broker out of hundreds.


Financial Data Types

In this issue, we highlight Financial Data, including Payments Data, Statement Data, and Credit Report Data. 

Upcoming issues will look at other sources of data and key use cases for Data Rich Payments.


Payments Data

Types of information collected through end-user use of payment services include:

- Personal or identity details of the payers such as their names, telephone numbers, and email addresses

- Sort codes and account numbers for the payers and the payees

- Reference information for the payment

- Date and time of the payment 

- Primary Authorization Numbers (PAN) for card transactions

The ISO 20022 standard makes some significant changes in the structure and definition of Payments Data.


Statement Data (i.e. open banking)

As you know from our issue on open banking, the definition of ‘open banking’ still varies from source to source and country to country. For the purpose of this issue, we like this definition to describe where open banking data come from: 

“Open banking and the PSD2 allows banks to share your financial data, such as your account details, regular payments, savings statements and other banking information, with authorised financial service providers, as long as you permit them.”

Here’s how two major financial data aggregators describe what they provide access to:


Credit Profile Data

“Business and consumer credit reports have similar purposes: to inform prospective lenders about your creditworthiness and allow them to assess what risk they are taking should they give you a loan or credit card or extend “buy now, pay later” terms to you or your business. They differ in the types of information they contain and how they are used.”


If you have thoughts or questions to share on this series, please leave a comment.

These musings on the developments in data-rich payments are assembled by the team at 20022 Labs. See more and subscribe to get updates in your inbox.