Most of us have heard the saying, “If you don’t pay for the product, you are the product.” This means that the company providing the service you are using is profiting from your data. But what happens when you pay for the product in full and your data is being used for profit? This is exactly what Chase’s new media solutions business aims for.
Chase announced the launch of Chase Media Solutions earlier this week. The new digital media business aims to connect brands with 80 million customers through customer transaction data. While the move provides consumers with personalized offers and cashback opportunities, it also raises concerns about data privacy and consumer consent.
Chase Media Solutions will provide the bank with a new revenue stream. By leveraging customer transaction history, Chase can provide brands with highly targeted advertising opportunities to drive revenue from both consumers and advertisers. And while some value is promised to consumers, such as cashback or personalized offers (if they find personalized offers valuable), the new launch raises ethical questions about whether banks should be profiting from consumer data in this way. . This is especially problematic when, in many cases, consumers are already paying for banking services.
So what’s missing from Chase Media Solutions? One of the key issues with the launch that was conspicuously left out of the announcement is whether an opt-out option would be available to consumers. Traditional media platforms like Facebook allow users to choose whether or not their data is shared for targeted advertising. Chase, on the other hand, has made no mention of offering consumers the ability to opt out of the use of their data.
This raises questions about privacy and whether consumers are fully aware of how their data is used. As America prepares to enter a new era of open banking, Chase’s position on who owns customer data has become clear. By trying to profit from customer data, banks are asserting the belief that consumer data ultimately belongs to them.
One of the reasons why Chase’s entry into the media business is attracting attention is because it is the first bank to start the media business. This raises a question. Why haven’t other banks launched similar schemes? One reason may be the complexity and sensitivity of consumer data. Chase hasn’t said whether it plans to tokenize customer data, but even if it did, using customer data for advertising purposes could be considered a breach of trust. Banks may also be concerned about attracting the attention of regulators, especially amid increased scrutiny over data privacy and security. When uncertainty about open banking regulations is added to this, starting a media business like this is somewhat risky. The launch of Chase Media Solutions is a bold move.
Photo: Alex Green