Prepaid cards are a hit with consumers, and BFSI Research forecasts the global market for them will reach $3.65 billion by 2022. Accordingly, prepaid card services are an increasingly popular offering for financial institutions, provided they can keep up with the steep data storage and analysis requirements. In the past, these requirements precluded smaller, regional banks from getting into the prepaid card market; the requisite IT staff, hardware setup and software licenses were too expensive for their smaller budgets. But this barrier to entry is lowering, thanks to the rise of integrated big data analysis platforms and open source software.
When we first entered the market, Sutton Bank, a $490 million bank in north central Ohio, was relying on a third-party vendor to provide the data warehousing, formatting and analysis needed to onboard new customers, spot fraudulent transactions and meet the bank’s regulatory requirements. It was a cumbersome, high-touch process that kept our prepaid card business from scaling to meet demand.