JPMorgan Chase & Co., the largest commercial bank in the U.S., generates a vast amount of credit card information and other transactional data about U.S. consumers. Several months ago, it began to combine that database, which includes 1.5 billion pieces of information, with publicly available economic statistics from the U.S. government. Then it used new analytic capabilities to develop proprietary insights into consumer trends, and sell those reports to the bank’s clients. The technology allows the bank to break down the consumer market into smaller and more narrowly identified groups of people, perhaps even single individuals. And those new reports can be generated in seconds, instead of weeks or months, JPMorgan Chase CIO Guy Chiarello told CIO Journal.
Citi, for its part, is experimenting with new ways of offering commercial customers transactional data aggregated from its global customer base, which clients can use to identify new trade patterns. “New silk roads are being created, and we think this information could show signs for which might be the next big cities in emerging markets,” says Don Callahan, who manages internal operations and technology at Citi. According to Mr. Callahan, the bank shared such information with a large Spanish clothing company which it was able to use to determine where to open a new manufacturing facility and several new stores.