The Economics of Online Banking (1,040 words)
Using Data for Web Offers
Site usage is an untapped goldmine for banks. With the innate trust that exists between customers and their financial institutions, banks have nearly limitless access to customer data. Demographic information, personal income, investment portfolios, records of individual transactions—nothing is held back from the bank. The opportunity for banks then is to analyze this financial and demographic data in light of recent activity on the Web and deliver appropriate offers based on the results of this analysis. It's personalization in the small-town sense, only this time it's being delivered to the global village.
A hypothetical, but perfectly plausible example, will bring the value of this type of analysis to light. Say , a customer changes her individual checking account to a joint account. Two months later, her automated payroll deposits jump 20 percent. Three months after that, she spends a few hours browsing through the bank's Web site for information on mortgage rates.
Intelligent analysis of her data would suggest that she has just gotten married, landed a nice raise and is right now in the market for a home. A prudent bank would push mortgage content to the front of her Web visits, and might sign her to a mortgage before any other institution knows she's in the market.
While this example may be a tad pat, it does cut right to the center of what is needed to drive intelligent, personalized content via the Web: reconciliation of customer data from all points, including the Web, to form a complete perspective of the customer, and prompt, deep analysis of the complete profile. With these two capabilities working hand-in-hand to deliver targeted and appropriate Web content to individuals, financial institutions can capture the cost savings of doing business via the Internet and still maintain the intimate service customers have come to expect. It's a one-two heave-ho that starts the competitive snowball rolling the right way.