When we write something online or make purchases, we automatically provide information about ourselves. Why do companies need this information and how can it harm us? Says Yorgan Callebaut, Head of Psychology at DataSine, which explores big data and its impact on personality.
Suppose a company or a bank needs to understand who their customers are, who uses their products. Where will you get information?
There are actually a lot of sources that can tell something about a client. Firstly, the texts on the pages of social networks: about two hundred words written by the client are usually enough to determine his psychotype. Secondly, the photos that people post on the social networks Instagram, Facebook and the captions to them speak volumes. For example, extroverts like bright dynamic photos, images of people. Introverts, on the contrary, prefer photographs of objects, and in the design they use a calmer color scheme.
In addition, any bank or large company analyzes the feedback on their message distributions: they carefully observe which messages and how you reacted, and which ones you ignored.
Another source is the so-called transactional behavior of the client. What does he spend money on? And where? Introverts, for example, buy a lot in Garden and Garden stores, in bookstores, they do not skimp on insurance. Extroverts spend more money in bars and restaurants, buy concert tickets.
It is also important whether the client spends all the money to the penny or prefers to make savings. We use any information that can help in any way.
We analyze the client’s income and expenses for about six months – this is enough to create his profile
What if there are no transactions? If a person withdraws all the money immediately after the salary and then pays in cash?
Of course, there are “difficult” clients. But the majority – 75-80% – we can still “calculate”. Nowadays, almost everyone has bank cards. And not everyone, as you say, immediately withdraw cash – most still prefer to keep it on cards and pay with them.
It is more convenient to buy an online plane ticket than to look for an airline representative office in the city. It is more comfortable to buy a dress in an online store than to spend an hour to get to the mall, and then go shopping for another half day to find an outfit that you like. We analyze the income and expenses of the client for about six months – this is enough to create his profile.
And this information also affects whether the bank will give a loan or not, right?
Yes, including this.
But then how can you explain the fact that one of my acquaintances, who has not officially worked for 4 years and receives royalties in cash, is constantly given small loans by the bank, and another acquaintance with an official income of $1000 is denied a loan of $5000 by the bank? What’s the catch here?
I don’t know which banks you’re talking about, so it’s hard for me to say why.
Let’s formulate the question differently. What psychotype of the client is most beneficial for the bank?
It all depends on the bank and the products it offers. Different people need different books, different food. And various banking products. For example, extroverts need travel insurance because they travel frequently. On the other hand, our company uses technologies that will inspire introverts to consider purchasing insurance.
At the conference, you said that big data does not harm people.
No, they can cause serious damage if used incorrectly. But we at DataSine do everything to ensure that the information is used strictly for its intended purpose. If a client company causes us any suspicions, we will not cooperate with it or limit the amount of information provided.
My colleagues and I are working to ensure that people receive only those emails with product offers that they really need.
Actually, why did I come to work for this company? Because I’m tired of receiving non-personalized e-mail messages, I’m tired of all this spam that fell into the box without regard to my personality type, my needs.
My colleagues and I are working to reduce spam so that people receive only those emails with product offers that they really need or can use. We use all the information received only for this purpose – in no case to the detriment of the client.
By the way, the European Union already has a regulation on the protection of personal data. I think other governments should follow our example.
What data, in your opinion, is better not to post on the Internet, not to make it public?
Definitely medical information. They should not be disclosed anywhere. They cannot be published or monetized. People themselves must decide what information should be public and what should not.
About expert
Quilt Klebbaut is a member of the British Psychological Society (BPS), Head of Psychology at DataSine, where he researches big data and its impact on personality. He was at the forefront of using big data to personalize bank marketing campaigns in Europe, the UK and Russia.