Companies such as financial institutions, online and brick and mortar retailers, lead generators, and service providers may use big data in the following ways:
- To reward loyal customers with better customer service or shorter wait times.
- To offer different prices or discounts to different consumers. For example, a financial institution may offer a consumer a discounted mortgage rate if that consumer has a checking, savings, credit card, and retirement account with a competitor.
- To tailor advertising for financial products. For example, high-income consumers may receive offers for “gold level” credit cards and low-income consumers may receive offers for subprime credit cards.
- To assess credit risks of particular populations. For example, some commentators have highlighted the use of unregulated “aggregate scoring models” that assess credit risks, not based on the credit characteristics of individual consumers, but on the aggregate credit characteristics of groups of consumers who shop at certain stores.