news: Chase's The new media solutions team will monetize the bank's customer data by enabling retailers to offer tailored deals to users of their banking apps, according to a press release from the bank.
How to use: Chase does not sell customer data to retailers. Instead, we allow you to purchase targeted advertising space. 80 million customers, It's based on what the bank knows about their spending habits.
- Retailers work with media solutions teams to develop relevant deals that drive customer acquisition and sales.
- Customers logged on to the Chase banking app will see targeted offers from retailers. Chase only charges retailers when a customer completes a transaction.
Why Chase wants to become a retail media network: This is a huge opportunity for issuers to get involved.
Chase Media Solutions will likely drive billions of dollars in revenue over the long term. And Chase not only leverages ad revenue, but personalized transactions increase card spending, leading to more transaction volume and exchange revenue.
Will this approach work for Chase's competitors? Customer reaction to the new user experience will show whether Chase is striking the right balance between finding new revenue and maintaining customer trust.
The bank's huge footprint has allowed it to be a pioneer in this type of service.
- Targeted discounts can expand further Banking super app ambitionsThis could eventually allow customers to access non-financial services on a single platform.
- By driving more customers to the same location, you can expose them to targeted advertising, creating even more value for your media solutions customers.
Chase's move reveals a potential revenue stream that financial institutions have not previously found a way to monetize.
- However, the value of this type of partnership for retailers depends on the quality of the financial institution's data and the number of customers. This means that smaller financial institutions and banks are not moving forward. super app I might not be able to beat the chase.
- And transparency is key, including a “like cookie” disclaimer about how data influences ad choices. With seamless execution, Chase customers never have to wonder how their data is being used.
Overall picture: More payment providers Drive data monetization opportunities to diversify revenue.
In the future, payment networks and issuers will lean into it even more in the future. Value-added services are becoming more important This is impacting diversification efforts, especially as swipe fee battles and other competitive factors threaten other revenue streams.