Interesting article in the SMH, discussing the leverage banks hope to get from the data they hold on customers. The explosion in digital banking has meant the banks’ information about their customers has ballooned. And advances in technology mean they can analyse it in ways that were previously impossible, to ensure they remain relevant.
Here is a snip-it:
… as banks eye the huge potential to enmesh themselves more deeply in consumers’ lives, and fight off lower-cost competitors.
Thanks to advances in computing power and customers’ embrace of digital finance, banks know more than ever about what their customers are up to: whether it’s browsing the web, shopping online, visiting the mall, or interacting on social media.
Already, they are busily harnessing this vast amount of data to sell products to customers before they ask for them: pushing travel insurance to someone who’s just bought airline tickets, or suggesting a home loan to the newlywed couple. But over the coming years, it is set to get much more tailored to the individual, and far more widespread.
As the traditional business of banking faces growing competition from new digital rivals, experts predict banks will increasingly be pushed into targeting customer “experiences” as they seek to remain relevant, and highly profitable.
Inevitably, however, this will involve a tension between what customers regard as the bank being helpful, and when it veers into the territory of ‘Big Brother’.
Follow the link to read the full article.
