Banks know a lot about how you spend. Cardlytics wants to use that data to market to you.
Few people can get inside your head—or at least the part of your brain that makes spending decisions—quite like Scott Grimes and Lynne Laube. The co-founders of Cardlytics Inc. deal in some of the most valuable and revealing personal data on the planet: how people use their debit and credit cards. They’re quietly helping some of the largest banks in the U.S. to mine what’s known in the trade as purchase data and use it to encourage customers to buy more things with their plastic.
Conventional banks are trying to raise their data game to fend off fast-growing financial technology startups and hold on to customers. “This is the bank’s secret weapon in the digital wars,” Silvio Tavares, chief executive officer of the trade group CardLinx Association, says of purchase data. But it’s a weapon they have to be extremely careful about using.
Although consumers are constantly being asked to trade some privacy for convenience and service, banks hold a particular position of trust. In early August the Wall Street Journal reported that Facebook Inc. had approached banks and asked them to share data about their customers, to help it create services such as a way to check balances inside a Facebook app. Facebook said it wasn’t using purchase data to push advertising. Several major banks quickly put out statements saying they weren’t sharing data with the social media company.
Continue reading your story on the app
Continue reading your story in the magazine
Test All of Minnesota? You Betcha
Minnesota is setting an example for other states and the federal government. If anyone is interested
The Cult of Positivity
WHY BLIND OPTIMISM IS DRIVING US NUTS
SPOTIFY'S PODCAST POWER PLAY
The company is staking its future on converting music listeners to podcast fans and has become the favorite to own the industry—for better or worse
Why the U.S. Senate Is Broken
Adam Jentleson argues that toxic partisanship rose when the filibuster became a cudgel
The Electric Truck That Couldn't
In the past six months, Nikola has faced an SEC probe, lost partners, and seen its shares tank
WALL STREET SOUTH
Florida braces for a gold-plated makeover as finance rethinks its attachment to New York
Yet Another Winning Year For Hindsight Capital
With the miserable year of 2020 over, it’s time to return to the offices of Hindsight Capital LLC.
Social Media Hits Mute After the Capitol Riot
Facebook and Twitter can block the president, but his supporters will move on
America's Missing Workers
Near-record levels of absenteeism could be hampering the recovery
Where to Go in 2021
THE GLOBAL ECONOMY NEEDS A TRAVEL REBOUND. YOU COULD USE ONE, TOO. AS SOON AS IT’S SAFE, MAKE YOUR PLANS COUNT WITH 24 IDEAS TO HELP HEAL THE WORLD ONE SMALL STEP AT A TIME
For Banks, Data On Your Spending Habits Could Be A Gold Mine
There’s a powerful new player watching what you buy so it can tailor product offerings for you: the bank behind your credit or debit card.