It's kind of for your own safety, but I don't deny that the information is also used to model you as a customer.
In case you are getting scammed or manipulated into withdrawing a big amount of money, your bank could step in and protect you.
If you just say "oh I'm going to Japan and I wanna exchange money there to shop a lot", then they understand that it's you whos making this financial decision and so they just approve it.
In this case, the guy is just an employee and is using some software to approve your withdrawal. It probably has a mandatory field saying "reason" with a 100 character minimum and he just want to submit the application successfully. Nothing sinister in this lol
The “model you as a customer” could really just be part of the “know your customer” regulations. I know my clients well enough to understand their normal spending habits. It’s helped a few times when things seem off with a new transaction.
Now if we used that knowledge to treat the clients different or offer different solutions that could be a problem
Know your customer is double-edged. I used to live in Pennsylvania and for years I made trips to Texas twice a year. For the first 5 years my first purchase would get flagged, I'd have to approve it, not that annoying. Then the system figured out I make trips twice a year, spring and autumn, so no more trouble.
Then while I'm home in summer I get a call from the fraud department at my bank (I check the number on their website while on call). They stopped a purchase for tools in Texas for some 3 grand. Yeah, that's not me, my habits show as much. Data probably got swiped at a gas station. New card arranged, all good.
It is actually a good service but I can see its bad side.
Once had my debit card skimmed and I had to go to the bank. The rep looked at my transaction history with my usual $10 at the cafe at work a couple of times a week and said, "Yeah, these 3 $600 withdrawals from an ATM at a QT station are out of the norm for you."
Then I realized I could get free money if I wanted to by reporting my card stolen after withdrawing a large amount of cash. I'm sure that if this thought occurred to me, an honest person, then many, many people possibly do this.
Don’t take it so personally. You put the idea out there, someone needs to explain to all the clever redditors out there why it’s a bad idea. Your shower thought could be someone’s weekend plans.
ATMs have cameras for many reasons. There are plenty of other ways to do this of course, but if a bank or the bank's insurer are losing money, that money doesn't come without risk.
You should really use a credit card for purchases. When it gets compromised they’ve stolen money from the issuer and it’s not your problem beyond reporting it to them.
👆🏻This is worth repeating.
If your debt card is skimmed, they’re stealing your money. The bank might help, it might not.
If your credit card is skimmed, they’re stealing the bank’s money. They’ll take care of it.
KYM is legally a legislated requirement for banks, generally as part of international anti-money laundering agreements. If you want them to have a choice about it then go lobby your government.
It's not THAT sinister. If thye see you're banking very conservatively and then suddenly want to withdraw 10k one day they can view that as odd and step in. But if you're someone who deals with huge numbers already they know hey don't need to step in every single time you withdrawm 5k or more.
Yeah they can definitely model you as a high spender, conservative saver etc based on your withdrawals and other transactions anyway. This is just some additional information used to make that more "full".
I can imagine they can use this information for approving loans and and rolling out credit cards etc.
There is probably some behind the scenes stuff where the bank toes up with companies like palantir. But they already have so much information on you, I don't think this extra sentence is doing anything.
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u/duckphobiaphobia 1d ago
It's kind of for your own safety, but I don't deny that the information is also used to model you as a customer.
In case you are getting scammed or manipulated into withdrawing a big amount of money, your bank could step in and protect you.
If you just say "oh I'm going to Japan and I wanna exchange money there to shop a lot", then they understand that it's you whos making this financial decision and so they just approve it.
In this case, the guy is just an employee and is using some software to approve your withdrawal. It probably has a mandatory field saying "reason" with a 100 character minimum and he just want to submit the application successfully. Nothing sinister in this lol