On ABC7 this morning, Joan Jensen with Central Credit Union of Illinois offered advice on so-called mining techniques. These new information-gathering tools, and their associated privacy concerns, can be separated into two general categories.
BANK-DEPOSITOR BEHAVIOR SCORES provide banks with a more efficient tool for scrutinizing standard information to determine credit risk, including deposit and withdrawal history, rent payment history, and income.
PREDICTIVE MODELING provide advanced methods for identifying potential customers, targeting them with specific products and services, and establishing individualized rates and service costs based on personal data.
Questions consumers should ask:
What information is used to determine the rates and services available to me?
Can information gathered by one sourced be shared with another without my consent?