Provider of Personal Finance Tools Tracks Bank Cards, Sells Data to Investors

[mahatmakanejeeves]

Source: The Wall Street Journal.

Yodlee’s side business shows escalation in race among investors trying to turn data into profits

By Bradley Hope
[e-mail]
@bradleyhope

Aug. 6, 2015 10:30 p.m. ET

Yodlee Inc. ’s main business is providing online personal-finance tools to 11 of the 20 largest U.S. banks in assets.

But when bank customers use those tools, Yodlee has another way of making money: The company sells some of the data it gathers from credit- and debit-card transactions to investors and research firms, which mine the information for clues about trends that can move stock prices.

“Yodlee can tell you down to the day how much the water bill was across 25,000 citizens of San Francisco” or the daily spending at McDonald’s throughout the country, says Peter Hazlehurst, Yodlee’s former chief product officer.

The details are so valuable that some investment firms have paid more than $2 million apiece for an annual subscription to Yodlee’s service, according to people familiar with the matter. Buyers include Point72 Asset Management LLP and Tiger Global Management LLC.



Read more: http://www.wsj.com/articles/provider-of-personal-finance-tools-tracks-bank-cards-sells-data-to-investors-1438914620

[leveymg]

1. It's pretty much how credit card issuers work, as well. Google, too, come to think of it.

They all traffic in data about their customers spending and credit habits.

[mahatmakanejeeves]

2. I think it was said of Facebook, that

if you can't figure out what the product is that is being sold, it's you.

[daredtowork]

3. I'm much more worried about Facebook's credit score patent

Facebook already has a nearly universal captive audience and a strong need to monetize. They are looking for back end ways to sell that data. The data they sell will come back to track and control society: and since we are ruled by financial interests that data will work on behalf of their interests and against the interests of the poor.

[Bluenorthwest]

4. It's not a captive audience, it is by choice users, I don't use it unless I'm promoting something

The entire thing exists to monetize data, that's not the back end, that's the entire point.

[daredtowork]

5. Yes, I guess the users choose to hide that from themselves

I do the same: I don't use Facebook personally, but I will help other people use social media to promote something.

[turbinetree]

6. And this is what happens when you............................

agree to the terms when you sign either electronically or otherwise