It comes as little surprise that customer data is at the heart of industry giants. However, the banking sector, which has troves of data on its customers has been reticent to turn the dormant resource into an active mining opportunity. The article does well, in both drawing how an increasingly commoditized product player was able to both use existing data to create and generate ways to further capture consumer behavioral data that can in turn be demonstrated as a premium asset to the consumer as well as the provider.
Just as the connected running shoe feeds information into the platform and gives valuable insights about the customer right from his fitness levels , GPS data , music choices , friends and personality insights such as competitive streaks etc. making it a great source for data driven innovation within Nike and its partners , banks can use account behavior to tap into the customer’s lifestyle.
The bank as a platform can ultimately stand to hold all financial and non financial data . With a stack of APIs that allow enrichment and consumption of this data for other lifestyle services/apps , it can become a powerhouse of recommendations and services around individual lifestyles .
Mercator Advisory Group anticipates the coming Open Banking and PSD2 regulation enforcement in the U.K. and the European Union will further stimulate the imperative for financial institutions to adopt a more data oriented and individualized consumer orientation. The bank will operate increasingly on its brand, with products and services aligned with its messaging being delivered from its central platform. We delve into this approach in our recent report, Banking as a Platform: API Technology Presents Opportunity to Financial Institutions.
Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group
Read the full story here
