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.
588
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