While a broad macroeconomic view can help financial institutions understand the full scope of potential market activity, they need a more targeted view of consumer spending trends to help evaluate the risks of a downturn at the national, state, and city levels. Detailed insights that can be filtered by location and market segment can help inform strategic planning, as impacts on consumer spending may vary by region.
The Visa Spending Momentum Index (SMI) from Visa Business and Economic Insights provides a granular view of consumer spending trends by analyzing aggregated and deidentified spend behavior data from millions of consumers. SMI provides a number of reporting solutions, such as the new Recession Probability Index, that can help financial institutions with a detailed recession analysis to identify the risks they might face across different regions down to the local level.
In this brief video, Visa senior global economist Dulguun Batbold explains the Visa Spending Momentum Index in more detail as a guide to navigate business through economic cycles. He explains how SMI can provide an advance warning of emerging economic weakness at both the national and local levels, helping businesses plan ahead, adjust acquisition plans, reallocate marketing budgets or refocus areas for more risk monitoring.