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Banking, Finance, Location and Business Intelligence

I was just reading an article about some research from Avaya and BT about The Autonomous Customer. It reiterates a lot of inmation you already know but should perhaps be reminded of.

  • 60% of respondents said they change their contact channel with brands based on context, i.e. where they are and what they are doing.
  • 51%, the autonomous customers, cut organisations out of the loop altogether but trust the advice of unknown others on forums, review sites etc.
  • 46% regard customer loyalty as a thing of the past

I found this research through an article at thewherebusiness.com which discussed research about how people are managing their money. Where they bank, how they decide to borrow money and the influence in location on those factors. It makes for interesting reading and whilst New Zealand is a small country and has few banks, one element that shone through with high relevance was the willingness of people to share their location with their bank or credit card company.

The relevance for New Zealand of course is that 4 Canadian people have just been arrested for putting skimmers (devices that copy the information from the magnetic stripe on your credit or EFTPOS card) and subsequently allowing people to draw money from at least 60 people’s accounts over Easter 2012 from ATM machines in Canada. The story says that these skimmers had apparently been installed in Parnell, Ponsonby, Orewa, Takapuna and Howick and allowed the theft of account information from at least 500 people.

If the banks embraced location based technology with Smartphones (before Google Wallet, Paypal or a telco takes over m-commerce) people who allow their banks to know where they are through their mobile could be protected. Effectively if the bank knows I am in New Zealand, then I am unlikely to be in a position to withdraw money from an ATM in Canada with my card.

Of course there is a lot more gold (pardon the pun) in location based intelligence for banks. Banks probably all have a GIS person on board who has the ability to prepare reports for Business Analysts to make decisions about where to put branches, based on where their customers live, work and play. However, the problem with GIS is that unless you have personal access to it in real time and can do modelling with ease (requiring software and skills) and without long delays or having to wait for someone else to run queries on what they think you asked for, it can easily end up in the too hard basket.

In today’s world where a large percentage of people do not carry cash, but want to borrow and spend money, finance houses and banks need tools like BIonaMAP to be able to understand what their customers are doing and where. Tools that are secure, but can be accessed via a web browser within the intranet can allow the modern banker to stay a step ahead of their competitors. If you can’t assume loyalty, you need to understand your clients and their needs and be ready to adapt quickly.

According to this 3 News Story today, Credit Card Fraud Proceeds Surpass the Drug Trade. That must be a good motivator for banks to start talking to location based service companies like GeoSmart.

According to this Australian story from Today Tonight, it takes just 60 seconds for someone to convert a retail EFTPOS terminal to steal information from all of the cards that are swiped through it and the customers would have no idea their identities had been stolen. What does this cost the industry and what stress does this cause to consumers? BAU Business As Usual can’t be the way forward for the finance industry. I’m sure we don’t want to go back to carrying cash. Would you be happy to let the banking system know where you are so that they can confirm that the person using your card is you?

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April 10, 2012 - Posted by | Business Analytics, Business Intelligence, Data Mining, geosmart, GIS, location based services, new zealand, proximity based marketing, Retail, Uncategorized | , , , , , , , , , , , , , , , , , ,

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