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Chase Bank
Chase Bank Uses Financial History for Targeted Advertisements
Background
"Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading financial services firm based in the United States with assets of $3.9 trillion and operations worldwide. Chase serves nearly 80 million consumers and nearly 6 million small businesses, with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing. Customers can choose how and where they want to bank: More than 4,700 branches in 48 states and the District of Columbia, more than 15,000 ATMs, mobile, online and by phone. For more information, go to chase.com."
As a leading financial services firm, Chase bank needs to be held to the highest standards. However, in this incident Chase Bank has failed to meet those standards, by letting advertisers tap into customers private spending data for targeted advertisements.[1]
Incident
Following the acquisition of Figg on April 3rd, 2024, Chase launched "Chase Media Solutions". This was sold to investors as an a new frontier of advertising based on the claims companies who partner with Chase will have the ability use Chase first-party transaction data to target deals and advertisements on customers based on purchase history.[2] To test the service Chase worked with Air Canada, Solo Stove, Blue Bottle, and Whataburger. Air Canada saw an over $2.3m increase in sales during the first test as a result of this program.[3]
Reception
This decision has came at the cost of consumer backlash, who complain there is no way to opt out of their data being used for these purposes. Many critics also complain that sharing personal purchases is a privacy violation and shows their banks lack of transparency.[4]
Broader Implications
This incident is one of many in the sector in which:
- Large cooperation's mask their data collection agreement in overly large privacy policies.
- Siphon data from their users.
- Provide no way or no easy way to opt out of the data collection.
References
- ↑ https://www.youtube.com/watch?v=VCiXu6S6vEw
- ↑ https://media.chase.com/news/chase-launches-chase-media-solutions
- ↑ https://www.pcmag.com/news/chase-bank-to-let-advertisers-target-customers-based-on-spending-habits
- ↑ https://www.the-sun.com/money/10998718/chase-bank-media-solutions-brand-advertising-purchase-data/
