User profiling applications help banks to serve customers effectively and efficiently.

With the rapid growth in online banking, it is predicted that banks will increasingly turn towards user profiling systems by the end of this decade. User profiling also helps banks to identify customers with similar investment patterns, cater to specific segments with new products and services and manage customer value. It can also be used for user identification and shared-secret authentication.According to an October 2005 Gartner report, about 65% of US banks will use transaction anomaly detection and user profiling systems by the end of 2010.

The banking and financial services sector has undergone rapid transformation and progress and the process is still continuing at a steady pace. The demands of the e-economy call for a customer-oriented approach and empathy with customer needs. Only those organizations that move fast and keep pace with the changing demands and take initiatives to expand their services and product offerings are able to survive and thrive in the new and challenging environment. Success in such an environment is all about maintaining relentless focus on the customer, by imparting efficient, affordable, personalized services through multiple channels.

In any customer-oriented business, technology plays an important role in supporting business operations. User profiling is one such solution that complements marketing expertise in understanding customer needs better and targeting the right products to the customers through effective channels.

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