NEW YORK–In a development that could come to credit unions at some point as they seek new revenue streams, JPMorgan Chase said it has created a new unit called Chase Media Solutions that will allow companies to target its cardholders with deals and discounts related to based on their spending history.
Credit unions are often told they have untapped riches in their member spending data that should be leveraged.
In the case of Chase, it is now joining a variety of businesses from Best Buy to Uber that have begun selling ad space on their apps, websites and other properties, often targeting messages by using their shopper and user data to generate revenue outside of their core businesses, according to the Wall Street Journal.
The new unit is born out of the company’s 2022 acquisition of card-linked marketing platform Figg.
Expansion of Current Program
As the Journal noted, Chase was already offering customers less-targeted deals through a program called Chase Offers, which will continue to house the more-relevant offers brokered by the new media unit.
“Chase’s entry in the ‘everything is an ad network’ ecosystem doesn’t involve selling advertising space in the traditional sense, like on TV screens around its branches,” the Journal reported.
According to the report, advertisers in the Chase Offers section online and in its app will be able to target different subsets of consumers such as new, lapsed or loyal shoppers, and only those the bank’s spending data predicts will be interested.
How Deals Will Work
“Deals for a pet care company, for example, wouldn’t be shown to people whose Chase transaction history suggests they aren’t pet owners,” the Journal stated. “Chase will automatically apply merchants’ deals to customers’ cards, rather than generating discount codes.”
The report further noted that unlike most retail media networks, Chase’s will only charge merchants a fee when a customer uses a deal to make a purchase.
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