Can Banks Safely Monetize Consumer Data?
It’s one of the main clichés of the early 21st century, but that doesn’t mean it’s wrong: Data is the new oil. The saying reflects the value of payment, commerce and personal information in the growing digital economy, and the fact that those organizations that know how to collect and harness tend to have an edge over competitors and the best prospects for growth.
However, as is the case with any powerful, profitable substance (whether tangible or not), data can be dangerous if not used appropriately. That concern, in fact, serves as one of the main barriers that prevents financial institutions (FIs), payment service providers and other businesses from monetizing their customer data. Those companies that fail in their data-monetization efforts run the risk of falling behind on innovation, and losing customers and revenue.
Those were among the main themes of a recent PYMNTS podcast discussion between Karen Webster and Randy Koch, CEO at ARM Insight, a firm that helps FIs and other organizations to monetize their data. The conversation examined the challenges and opportunities associated with crafting those strategies in the highly regulated payments and financial services space