Banks have worked hard to accumulate their vast customer data repositories, and guard them jealously. This created a highly dense network of sensors that captured data on one in six transactions. We are profiling our clients, assigning them attributes based on their lifestyle, and learning from what they do, Bressan said.
Speaking at FST Media’s Future of Banking and Financial Services conference in Melbourne, BBVA’s chief data scientist, Marco Bressan, said his bank had aggregated all client data into a single view, and was combining that with point-of-sale (POS) and ATM data collected from across Spain. This created a highly dense network of sensors that captured data on one in six transactions.
“We are profiling our clients, assigning them attributes based on their lifestyle, and learning from what they do,” Bressan said. “I can learn if they like football from ATM withdrawals surrounding football stadiums on the day of the match. I can also learn what team they support.”
As a result, BBVA could assign thousands of attributes to clients, not based on anonymous zip code data, but individual data sets.
According to Bressan, analysing POS data in this way has given unparalleled insight into how different retailers and retail districts are performing, as it was possible to look at a sequence of transactions and determine patterns of shopper movements. The bank could see what stores generate positive ‘externality’ and shared that wealth with their neighbours.
Rather than keep that data to itself, BBVA also launched an application to share business intelligence with retailers across the country a year ago. Shop owners can compare their performance to others within their same category to determine how well they are performing against the market across different demographic categories. It could also help retailers determine shopper movements.
“From using the data to improve my business from having a better risk scoring, to improving the business of my clients by providing them with this intelligence, we are going into a completely different business which is selling information based on our data,” Bressan said.