You don't want anyone to come between you and your client, and that increasingly means being able to mine customer data better than ever.

In the Durbin Amendment era, cross selling and fee income are critical. And increasingly, success depends on your ability to mine data. The biggest cross-selling or up-selling opportunity nowadays may be online methods, via a site or email, that afford the ability to appropriately offer other services or products.

A recent Financial Planning article takes a look at several vendors that would like to partner with banks to provide this sort of analysis, such as Geezeo and Micronotes. They all work differently and with different data sets, but the goal is to scientifically come up with offers that have a high likelihood of success. Some of this work is being performed by vendors like Cardlytics and Truaxis (formerly BillShrink) and Freemonee (which enables cash rewards from retailers), which have carved out a potentially lucrative niche in the online payment rewards area.

In some ways, these services represent the "Groupon-ization" of the online bank statement. Banks would be crazy not to try to monetize the statement in this way. In many cases, the vendor systems work with anonymized data. Any sort of PII is stripped out. Beyond that, they bring different techniques to the table. The good news for banks is that success is so easily measured. Some may be pressing for deals that calls for payment for successful offers only. This niche is sure to heat up.

For more:
- here's the article

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