We all know it; marketers are akin to alchemists in the digital world, and data is our gold.
We mine the internet, the social media sphere, the online nooks and crannies, all in the quest for this golden treasure.
We seek to understand consumers better, predict their needs and tailor our messages for maximum impact.
But here’s the catch – the information we gather often reveals more about a consumer’s intent than their actions.
That’s where open banking comes to the rescue. It offers us a treasure trove of actionable data – direct insights into consumer spending behaviour – a marketer’s dream.
For marketers, open banking isn’t just another trend; it’s a paradigm shift.
Imagine having access to a customer’s precise spending habits. Want to know if they frequent high-end restaurants or prefer organic products?
Open banking data can tell you. This enables marketers to craft highly targeted and effective campaigns.
But, with great power comes great responsibility. In the age of open banking and data privacy, we must respect the privacy of our consumers, uphold their trust and innovate responsibly.
So, how can marketers overcome these challenges?
Paying for data: A new normal
Consider this – what if we compensated our consumers for sharing their banking data with us? Here are three potential ways this could unfold:
Straightforward fee: Simply pay a fee for access to consumer banking data. For instance, a tech company may pay users to access their spending data to improve AI algorithms, as seen with some data-aggregating platforms.
Rewards programme: Consumers join a digital club, sharing their banking data in exchange for rewards that align with their spending habits.
Imagine receiving discounts at your favourite local restaurants or early access to a highly-awaited fashion collection.
A few credit card companies have already been tinkering with similar reward models, leveraging customer data to tailor promotions.
Competitor offers: Bringing a twist into the rewards programme, companies could offer deals from competing brands to woo the consumers.
Picture being offered a free cup of coffee from a cafe you’ve never tried, simply because your transaction history shows you’re a coffee enthusiast.
This is where the strategic alliance between open banking and marketing analytics can help brands acquire new customers.
The impact of open banking on marketing is transformative. It’s reshaping the marketing landscape, where consumers have greater control over their data, strategies are more personalised, and customer education and cutting-edge tech take centre stage.
By Wassim Ghabali, Marketing Director at Fintech Galaxy