Data sharing is a niche business and commercial models are primarily found in the United States. Most FIs are hesitant to monetize data to avoid privacy issues or customer perception. Other barriers are poor data quality, data silos, proprietary data formats, lack of business models to sell data, security, and data masking.
Goals and Objectives
Banks are struggling with shrinking transactional revenue and margin compression. Data monetization opens a completely new revenue stream, as long as this happens within the spirit of privacy regulations and customers’ consent. Obtaining customer consent is an alternative approach to also monetize personal data.
API, data masking, data analytics, data management
Use Case Summary
Data monetization opens new revenue streams for FIs. While there are limitations to the monetization of personal data, there is value in aggregated, anonymized data. Other industries may use data to optimize distribution, understand customer behaviors, and fine tune segmentation. Banks will seek to monetize data themselves through external APIs.