What Bank Customers Actually Want From Big Data Posted on : Feb 21 - 2019

Say the phrase “big data,” and people tend to picture the TV show Black Mirror. They imagine a creepy dystopian future in which robot overlords control everything. But those fears are overblown. What people should think of when they think of big data is Netflix or Amazon: personalized recommendations and a customized experience that make it easier and faster for the consumer to find what they’re looking for.

In fact, you could say that, when it comes to big data, consumers worry about Black Mirror but hope for more Netflix. A recent study from the Stanford Institute for Economic Policy Research found that consumers say they’re concerned about digital privacy and how their data might be used, but in practice, they consistently choose convenience, enabled by data, over privacy.

For banks, the message is clear: They already have robust regulatory protections in place to safeguard customer data. Now they need to use that data more expertly to improve customer convenience. Big data has the power to make the digital banking experience as seamless as browsing through Netflix or Amazon.

Here are three ways banks and credit unions can put the data they already have to better use for their customers:

1. Smarter Marketing

From the customer’s perspective, financial institutions are marketing to them all the time — but often, that marketing isn’t targeted. A small business customer might get a solicitation for a new credit card the day after they’ve applied for a new card. That unneeded card offer becomes irritating junk mail or inbox-cluttering spam. But that same customer would likely appreciate a targeted offer that arrives at the right moment.

For example, Intuit (my former employer) has recently started making loans to small business customers who use its QuickBooks accounting software. Because Intuit already has access to extensive data about these businesses, the online application process is quick and easy. The company can even proactively market loans to businesses that need them, when they need them, based on their cash flow data. Square, Amazon, Google and others have followed suit, offering loans to customers using their vast troves of data.

Banks and credit unions offering business checking and merchant accounts have similar levels of data about their small business customers and could make timely loan offers based on this intel. My company, Mirador, helps banks and credit unions modernize their small business lending, enabling borrowers to apply easily online and lending institutions to decision loans within 24 hours or less. When a bank or credit union notices a small business customer needs bridge capital right now and offers it on affordable terms, that’s not just more convenient for borrowers — it’s downright useful. View More