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Big data for debit: Marketing tool or money pit?

A new research note answers questions asked by retail bankers and debit issuers who wonder whether - and how - they can benefit from big data analytics.

July 18, 2014

A new research note from Mercator Advisory Group, "Big Data and Debit: Now or Later?," answers questions asked by retail bankers and debit issuers wondering whether they can benefit from big data analytics — or whether it's just a big “money pit.”

The note offers definitions and use cases and practical advice on getting started with big data analysis.

"Big data and debit are a natural combination," said Ron Mazursky, director of the debit advisory service at Mercator and author of the research note. "Extraordinarily large volumes of data are created and available related to the debit card and its core demand deposit account. ... [I]t is accumulating at ever increasing rates (velocity), and the variety of data is increasing.

"However, the significance of big data derives from more than just these three V's. To make use of it effectively, it is most important to understand the value of the data — and the actionable outcomes accomplished — by using predictive analytics."

Highlights of the nine-page research note, "Big Data and Debit: Now or Later?":

• a definition of big data and lean big data;
• use cases, mostly from large FIs;
• solutions for small FIs and a case study;
• tips for getting started; and
• an example of using social media for sentiment analysis.