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Although banks today collect a lot of personal data from their customers, many are frustrated at getting advertisements that are not relevant to them. Banks meanwhile have the delicate balancing act of safeguarding customer data and serving up relevant ads.

After traveling around Southeast Asia and filling up credit card applications at some six bank websites in the region, Laura Quigley was rather annoyed one morning when she got a bank advertisement that was more suitable for someone outside of her age group.

«It’s now been three weeks, and I’ve only been re-targeted once on Instagram... as someone who’s in their 80s, and I’m not there yet! So that was really disappointing, » said the managing director of Southeast Asia at Integral Ad Science, who was also a speaker at Mumbrella Asia Finance Marketing held in Singapore on Thursday. 

Ads Could Be Better Managed

Quigley, who was speaking at the session: «Banks have more personal data than anybody, so why don’t they use it», is not alone in her frustrations of being served ads she cannot use. 

«Every time, I get Tung Lok coupons (from my bank). And you know I don’t even go to Tung Lok; I have never even stepped inside that restaurant,» echoed fellow panelist Hari Ramanathan, Chief Strategy and Transformation Officer, Asia, VMLY&R.

Pretending Not to Have My Data?

«As a banking consumer, I ‘m not worried about you knowing my data. I’m more annoyed that you know, but pretend you don’t have it,» said Ramanathan, triggering much laughter from the audience. 

«Most people that I speak to, are more annoyed the bank doesn’t seem to understand them, than the fact that you do understand them and then sell our information away,» he added.

Transaction Data Insufficient
Although banks have access to customers' personal financial data via their monthly statements, what they can access are mostly transaction-related data, explains Nicholas Chee, Head of Group Digital Engagement in UOB Group Channels and Digitalisation, a fellow panelist. These are insufficient to piece together holistic profiles of customers.

In order to provide more personalized advertisements and services, banks had to invest massively in new architecture and ways of thinking. «Traditionally, banks never tracked behavioral data, only financial transaction data,» he said.

Getting Unstuck From Legacy Systems

Unfortunately for many banks, just as the amount of customer data on various digital apps and channels exploded, legacy banking architecture - not designed to collect behavioral data - have more or less been built. As a result, banks are engaging or investing heavily in various digital channels.

«Banks are starting to track, for example, every app (what) they are getting back - what is the cost per lead, cost per acquisition, cost per revenue generated per customer over the one year period. Those have only come up more recently,» said Chee.

Banks Are Only Starting 

Chee, who has been operating in the digital space for over two decades, said that the unknown return-on-investment (ROI) for new digital channels was what hindered adoption by bank marketing officers or product managers previously.