Using customer data to reach credit decisions. Reliance on machine learning to spot underwriting fraud. Consolidation of transaction data to identify cross-selling opportunities. The explosion in customer data alongside technological innovations has improved financial services providers’ ability to tailor products and create better efficiencies.
But the use of data also poses urgent questions around ethics, fairness and accessibility. In this regard, social media companies such as Facebook provide a cautionary tale. Ultimately, the customer data questions must be answered in full, or they could erode customers’ trust in financial institutions. Conversely, a cautious and diligent approach may offer financial firms a chance to redeem themselves, and give other sectors a blueprint to act towards, too.
