Big Data In Banking
Big Data has been credited with the ability for retailers to increase profits by analyzing exactly what customers want. By recording past shopping patterns, businesses can offer clients personalized coupons or promotions, as well as discover which items are most popular at different times and plan accordingly. But, merchants aren’t the only ones that can benefit from Big Data when appealing to particular customers. Banks too are teaming up with retail companies to encourage clients to use their mobile phones at particular stores.
An article for Bank Systems and Technology explained how Big Data is helping banks become more involved in mobile payments. Since merchants control the individual rewards and information on what a customer is interested in—and banks control the mobile wallet—by working together, the two teams can use Big Data to provide offers on a timely basis. For example, they can determine when a customer walks in a store, based on their past purchases.
“We own the data [around the payment] …and we can tell the merchant about the social influence of the individual customer,” Robert Zeigler, the CEO of mobile-app Corduro, told the news source. “We know how much you spend on groceries, but we also have the ability to see how much your network spends on groceries.”
In order to offer these coupons and promotions, banks and merchants must also have strong data integration software to fully use the information. By teaming up with other parties that are involved in the sales process, both financial institutions and retailers can benefit.
