Why Spain’s BBVA is opening up customer data analytics for all

Spanish Bank details how its decision to share business intelligence with retailers, partners and local communities is opening up customer engagement opportunities never thought of before

Marco Bressan
Marco Bressan

Banks have worked hard to accumulate their vast customer data repositories, and guard them jealously. But Spanish bank, BBVA, has determined the best way to profit from its data is to give it away for free.

Speaking at FST Media’s Future of Banking and Financial Services conference in Melbourne, BBVA’s chief data scientist, Marco Bressan, said his bank had aggregated all client data into a single view, and was combining that with point-of-sale (POS) and ATM data collected from across Spain. This created a highly dense network of sensors that captured data on one in six transactions.

“We are profiling our clients, assigning them attributes based on their lifestyle, and learning from what they do,” Bressan said. “I can learn if they like football from ATM withdrawals surrounding football stadiums on the day of the match. I can also learn what team they support.”

As a result, BBVA could assign thousands of attributes to clients, not based on anonymous zip code data, but individual data sets.

“I can really understand payment behaviour at a Spanish level thanks to what these sensors are measuring,” Bressan said.

According to Bressan, analysing POS data in this way has given unparalleled insight into how different retailers and retail districts are performing, as it was possible to look at a sequence of transactions and determine patterns of shopper movements. The bank could see what stores generate positive ‘externality’ and shared that wealth with their neighbours.

“Thanks to considerations like that one, we are currently giving 4 per cent more credit to small and medium business in Spain with zero per cent increased default rate, looking at evidence-based payment data,” Bressan said.

Rather than keep that data to itself, BBVA also launched an application to share business intelligence with retailers across the country a year ago. Shop owners can compare their performance to others within their same category to determine how well they are performing against the market across different demographic categories. It could also help retailers determine shopper movements.

“As an example, we know that a certain percentage of women between 25 and 35 have a coffee ‘here’ before going to your store, so maybe you should do a promotion there,” Bressan said.

In one study for Madrid’s Gay Pride Week parade, BBVA examined POS data and compared it to regular activity in that neighbourhood. The bank then worked with municipal authorities to determine a more optimal route for the parade to maximise its commercial impact.

Two months ago, BBVA opened its anonymised and aggregated payment data pools up to third-party developers. More than 800 developers signed up for access, and 150 mobile applications have since been created.

Bressan said many of these apps were ideas BBVA would never have thought of itself, such as a personal organisation app that advised people of the best time to join queues for tourist attractions based on POS data collected from those locations. Another application could analyse multiple data points to determine the best place for retailers to open new stores.

“From using the data to improve my business from having a better risk scoring, to improving the business of my clients by providing them with this intelligence, we are going into a completely different business which is selling information based on our data,” Bressan said.

More customer data stories from the frontline

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Why you can’t afford to fail at CX in 2019

In 1976 Apple launched. The business would go on to change the game, setting the bar for customer experience (CX). Seamless customer experience and intuitive designs gave customers exactly what they wanted, making other service experiences pale in comparison.

Damian Kernahan

Founder and CEO, Proto Partners

Natural born leaders

Many business and marketing managers progressing to leadership positions face evolving their focus from operational matters to strategic decision making and planning.

Jean-Luc Ambrosi

Author, marketer

Using artificial intelligence to surprise your customers

​We have expected artificial intelligence (AI) will become part of our everyday lives for quite some time.

Katja Forbes

Founder and chief, sfyte

Just printed out this Brad Howarth screed to read tomorrow. I need a good laugh once in a while. Or maybe shed some manly-man tears at th...

Larry A Singleton

What a diversity agenda has done for Kellogg's staff and innovation engagement

Read more

Morons. PC Nazis infiltrating and subverting every level in our lives.These scum have destroyed our education system.Read FrontPage Magaz...

Larry A Singleton

What a diversity agenda has done for Kellogg's staff and innovation engagement

Read more

It is an accepted fact that in the present times the mass makes use of digital marketing more often and are more and more enlightened wit...

Digital Marketing Course in Ja

Why RMIT is partnering with Adobe for digital marketing learning

Read more

If men were really the dominating brutes that feminist make them out to be ,then women really would be second class citizens. Without th...

aaron

Analysis: Gillette's latest ad only proves why brands standing for positive change is vital

Read more

In 2019 Augmented Reality plays a vital role in marketing campaign its new way to engaged user with digital content. Try Augmented Realit...

hill william

Predictions: 9 digital marketing trends for 2019

Read more

Latest Podcast

More podcasts

Sign in