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Using Big Data to Develop Customer Savings Products

Explore how big data can drive the development of innovative customer savings products to address financial challenges such as emergency expenses and bill payments. Learn about AI's role in understanding customer behavior and discover case studies of effective financial solutions.

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Using Big Data to Develop Customer Savings Products

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  1. Using Big Data to Develop Customer Savings Products

  2. 40% of adults say they either could not cover an emergency expense costing $400, or would cover it by selling something or borrowing money That’s NOT GOOD but getting better Most common approaches: carrying a balance on credit cards & borrowing from friends/family Over one-fifth of adults are not able to pay all of their current month’s bills in full 95% of Americans are banked The Savings Challenge

  3. Emergency Savings

  4. What do customers worry about?

  5. What do customers worrying about?

  6. What do customers worry about?

  7. What do customers worry about?

  8. Artificial Intelligence (AI) is currently being talked about with examples like telling a speaker to make banking transactions While convenient – it’s not really the opportunity we are looking for here Think about AI in the ways that it can learn things about your customers Can transaction patterns tell you something? How about direct deposit amounts? For today only, let’s ignore Alexa and Chatbots

  9. Case Studies

  10. Small dollar, salary-advance loan by Reading Cooperative Bank $500 emergency safety net Same-day access to funds Repayment: $50 auto-deducted from payroll for 10 pay periods Inspiration In a 2015 Federal Reserve Board survey, 46% of respondents reported that they would have trouble coming up with $400 in an emergency Emergency Employee Loan

  11. Builds credit while saving and earning interest Target audience = consumers with No credit Poor credit Unable to get co-signer $500 to $5,000 collateral loan product 3-36 month CD Inspiration:$400 savings crisis statistic Monson Credit Builder Savings Program

  12. The Promise of Data AI, machine learning, and big data are powerful tools that can be utilized to help people build financial security 3 Core Areas to Focus on Goals: What do you want to achieve for customers using data and AI technology? Operations: How will you access and analyze the data? Risks: How will you predict and manage risks associated with AI and data analysis?

  13. Thank you! Brian Clarke, Senior Business Strategy Manager Regional & Community Outreach, Federal Reserve Bank of Boston brian.clarke@bos.frb.org Nashila Somani-Ladha, Senior Innovation Manager, Commonwealth nsomani@buildcommonwealth.org

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