Banks, Transactions and Big Data

I used to worry about what my bank was doing with my money. Now I am getting nervous about what they are doing with my data. Consider this (from BI)

Big data is an industry that’s barely in its infancy, but is growing thanks to the pickup in the speed at which data can be processed, and the realization that companies can use information to predict consumer behavior (like how weather affects spending patterns.)

Like it or not, collecting and using big data will be a big new industry. And banks — including my bank  — collect a lot of data about their customers transactions. Consider as well that when paying by credit card gives way to paying via chip waved before a reader, there will be even more firms getting data about what you buy. This puts Apple’s experiment with “Apple pay” in perspective.

If you are still not on board with this, remember that a business is only worth what customers will buy from it tomorrow (Drucker”. Predicting what they are likely to do better than competitors can predict gives competitive advantage. And it will make markets more efficient.

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