South Africa based Discovery Bank is launching in a few months as the first behavioral bank, though the trend in behavioral banking is one that is becoming more widespread across the globe; banks are now using behaviors of their customers to offer better products for better prices, and to learn more about the lifestyle of each customer; auto insurers have been using driving based data to better serve their customers for many years, banking is beginning to move in this direction; Jesse McWaters, who leads the study of financial innovation at the World Economic Forum, tells American Banker, “Fundamentally, it’s about ability to turn customer data into customer engagement. When that data is used to train machine-learning models they improve, creating a virtuous loop of more data and more engagement that can be very rewarding to first movers.” Source.
