Location services presents numerous opportunities for banks. By looking ahead and investigating and implanting technology like location services in support of an experience-driven approach, banks can differentiate themselves, provide value to their customers and stay ahead in today’s increasingly competitive marketplace.
1. Engage customers where they are
The combination of data analytics and location services gives banks the opportunity to leverage mobile technologies to grow their customer base and drive loyalty. Identifying and analyzing consumer behavior patterns will allow bankers to reach out to their customers at the right time, in the right place, and with the right service or information to assist them. For example, if the customer has been visiting car dealerships almost every weekend, the bank should be prepared to offer them a line of credit when they walk into a dealership. The bank will know when that customer is in the dealership by incorporating location services into its mobile apps. Mobile marketing based on location also provides financial institutions the opportunity to cross-sell and up-sell.
2. Collaborate with merchants
Banks can also deploy location technology in their vendor relationships. Retailers can push relevant offers to consumers at an opportune time, and banks can assist them in accelerating the purchase decision with specialized offers such as discounts for using specific payment methods. This can increase wallet share and benefits the bank’s bottom line. This will assist with driving sales for the retailer and provide discounted pricing to the customer.
Capital One bank has done good job with collaborating with the merchants. Here’s a link to their wallet app.
3. Reduce transaction fraud
More than 15.4 million U.S consumers fell victim to fraud in 2016 costing them $16 billion, according to Javelin Strategy & Research’s 2017 Identity Fraud Study. Despite substantial efforts to improve bank card security, hackers have continued to outpace regulators and security officers.
Location services can help reduce card Fraud. With location service banks can monitor where a customer is based on the location of their mobile devices. If the transaction is made outside the customer’s standard geofence the technology platform should raise a red flag and the bank can send a push notification — text or email the customer, provided the account holder opted into the service — to verify the purchase and ensure there hasn’t been any fraudulent activity.
For customers who travel frequently, location service can eliminate the need to constantly alert their banks that they are on the move. For banks, it provides another way to verify that the account holder is not the victim of financial crime.
Automate the authentication process through the location of the account holder’s mobile device will be much more cost effective than manual calls with bank about suspicious purchases. The deft use of location service can also help prevent customer furling embarrassed and frustrated when their cards unnecessarily rejected by retailers.
Get started with location on GeoSpark.