Gartner describe Data Monetization as “… using data for quantifiable economic benefit.
This can include indirect methods such as: measurable business performance improvements, beneficial terms or conditions from business partners, information bartering, productizing information (i.e., new information-based offerings), “informationalizing” products (i.e., including information as a value-add component of an existing offering), or selling data outright (via a data broker or independently)…”.
Banks worldwide, struggling to find new sources of revenues, are launching new products that open to their customers the vast amount of valuable data that they have into their legacy systems. Matching these data with public or third-parties (eg. Telco) they become a powerful tool to better understand, for eg., final customers shopping habits or population movements or next best products…and so on.
Below is a list of real cases:
- Unicredit – My Business View
- Nedbank – Market Edge
- Commonwealth Bank of Australia – Daily IQ
- Banc Sabadell – Kelvin Retail
- American Express – Business Insights
These cases clearly demonstrate by one side that Data Monetization is now a reality but on the other that there is plenty of space out there for new and innovative services (eg. geomarketing advertise based on insurer black-boxes installed into cars, microsegmented offering list of potential customers for direct marketing…) that banks can exploit leveraging the vast investments that they are doing into the new IT (Digital, Big Data, AI, Cloud, Security, IoT,…) before new entrants can erode the spaces. One interesting cases of these new comer is Cardlytics that running “…online and mobile banking rewards programs, has the opportunity to leverage the robust view into where and when consumers are spending their money…” “…offering actionable insights and help marketers close the last mile, precisely measuring the impact marketing has on online and in-store purchases…”. We expect others huge data collectors turn their attention on serving businesses and customers with more robust insight, expanding their core business often leveraging financial services data (think for one second, as example, about the valuable insights that a cloud-based company as Salesforce.com could obtain matching CRM data of their customers or company as Intuit with Mint.com that have full access to client accounts!) stealing de facto potential opportunities for Banks.
We state that the window of opportunity for new enriched data services is also still open because big digital players are not yet entered but we foresee a relatively short time-frame before the doors start to close!