the use of ICT has allowed banks and building societies to keep detailed records of purchases tha people make using credit and debit cards. explain one reason why this is a benefit
One reason why keeping detailed records of purchases using credit and debit cards is beneficial for banks and building societies is because it allows them to better understand their customers' spending habits. By having access to this information, banks can analyze patterns and trends in their customers' purchasing behavior. This enables the banks to tailor their marketing and promotional efforts more effectively.
To explain how this works, when a customer uses their credit or debit card to make a purchase, the transaction details are recorded and stored in the bank's database. This data includes information such as the date, time, location, and amount spent. By analyzing this data, banks can gain valuable insights into their customers' preferences, lifestyles, and purchasing preferences.
For example, if a bank notices that a particular customer frequently shops at a certain retail store, they can use this information to offer customized promotions or discounts for products at that store. This targeted approach can enhance the customer's experience by providing them with offers that align with their interests and preferences. It also benefits the bank by increasing customer loyalty and potentially driving more business.
In summary, keeping detailed records of purchases using credit and debit cards through the use of Information and Communication Technology (ICT) allows banks and building societies to analyze customer spending habits and provide more personalized services. This technology-driven approach benefits both the bank and the customer.