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I've always assumed that they make their money through mining customer data and merging it with e.g. Facebook Pixel datasets etc, but I have no evidence for thi
by sixhobbits 6y ago
I've always assumed that they make their money through mining customer data and merging it with e.g. Facebook Pixel datasets etc, but I have no evidence for this. Just seems like the 'obvious' business model for a tech-focussed bank as I assume that traditional banks have more difficulty in adapting their systems for these kind of use cases and I don't see how they could offer so much for free based on small monthly fees from a handful of people.
That said, they're also looking more and more like they might become the Robinhood of Europe, which brings its own revenue models.
- jbob2000 6y agoNormal banks do this too, it’s not that profitable. We mine your credit card history and form partnerships with companies that appear on a lot of people’s statements. We send you our customers, you advertise our credit cards, win-win!
- godzillabrennus 6y agoCompanies buy data on who buys their products if they have a wholesale/retail distribution model. Unlike DTC they don’t know who buys their stuff so they don’t know who to target. Buying our credit card data is a big business.
- vegannet 6y agoI think people like yourself value “data” too much. The value of financial data is that it can be used to target financial products: if you’re a bank why would you cut in a middleman on that? Look to any financial services company trying to make money through “data” and you’ll see they have direct relationships with advertisers that integrate directly into their product through “recommendations”. This is very well established and very very profitable — see nerdwallet, CreditKarma etc.