Creating a more insightful customer experience requires banks to look beyond their own data, according to Carlos Torres Vila, chairman of BBVA.
“If we move beyond banking data, we could do a lot more,” said Vila speaking at the Money 2020 US conference in Las Vegas this week. “We are seeing that the data revolution is blurring the lines of industries, also because of the data driven business of the data driven economy.
“Imagine if a company, a bank, or non-bank could have access to different types of data – not only the data that the company has gathered, but maybe data that a client has in another platform. That would allow that business to use the data to support other aspects of the life of that customer.”
Vila said there is still a long journey ahead in perfecting the bank’s data solutions.
“We started from the raw data,” he said. “Then we moved on to proactive actionable insights, a lot of which happened in the day to day as customers are living their lives or running their business, the interaction with their money is integrated for those events so that the decision making around money can be very real and avoid common mistakes.
“Then on to personalised recommended actions and onto full innovation. Of course, that has still some way to go, but we are combining pre-set rules with more dynamic personalised decisions which are based on data.”
With increasing levels of data, consumers are beginning to look for privacy and security data services. Vila said banks are well placed to fill those needs.
“We can move from being a money bank to being a data bank,” he said. “I believe that banks are quite well placed to play this game. People have trusted us with their money for centuries and it is quite natural that they might trust us to play this game for them. To manage their consent, to ensure and enforce that their instructions are followed and monitor that that is happening."
But more must be done by regulators to ensure harmonisation of data regulation, according to Vila.
“We even have different rules within the same country,” said Vila. “We need solid regulation worldwide – something that is not easy to do. It is crazy, it is a really messy situation we have highly inconsistent rules across the world.”