Earlier this week, American Banker described the science that FinTech companies use to learn the spending habits of consumers, the Payments Genome.
- Truaxis uses an algorithm to infer consumer behavior.
- T8 Webware uses a modified version of an algorithm used by gene scientists to create new crop species, Hidden Markov Model
- BillGuard uses its userbase to flag questionable transactions (i.e., crowd sourcing)
- Micronotes performs regression analysis on each customer’s transaction data to cross-sell products.