Banks Become Advertising Businesses Through Customer Data

Several major banks, including Chase, American Express (Amex), and Citi, have launched initiatives that allow merchants to reach customers through targeted advertising.

Citi's new Commerce Media platform uses data from 6.5 billion annual transactions across over 700 categories to identify emerging purchase intentions and deliver relevant offers to customers.

These platforms are built around the idea of using customer data to influence purchasing decisions, with merchants paying for access to valuable customer segments.

A recent study found that while these platforms can be effective in driving incremental sales, they may not always lead to new revenue streams for merchants.