Banks are teaming-up with retailers to target customers by analysing the customer data they collect more closely, according to Andrew Jennings, chief analytics officer at fraudulent data specialist FICO.
The company provides predictive analytics to financial institutions such as Metro Bank and retailers such as Wal-Mart, to help them prevent fraud and better evaluate risk.
Jennings told Computing that financial institutions are starting to behave more like retailers.
"In a mature market, such as the US, UK or Canada, where credit is a mature industry and people have a wallet full of credit cards, it is naïve for a bank to believe that the way it is going to grow revenues is simply by issuing more credit cards.
"The issue for a bank is not to increase the amount of credit cards, but to ask, ‘How do we get the user to use our card?'. This is analogous to a retailer that asks, ‘How do I get [my customer] into my store to buy that TV?'," he said.
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