It's not at all straightforward for the banks to calculate how much each household has in savings. It's been decades since households had their loans, credit cards, and savings accounts all with the one institution. Banks can only look within their own accounts, they absolutely have zero access to information on savings or debts with other organisations unless the client is in the process of applying for a loan at the time, and divulges that information.
At best they can make an educated guess on financial well being based on the arrears in their loan book, which is information available to us.
Banks can pull in 3rd party data, such as # of bank accounts and credit cards per household based on demographics, which allows them to build probabilistic functions to be able to accurately understand a h'hold profile. That's even easier if the account holder is the primary income earner in a household, which is not difficult to determine based on outgoing payments. Furthermore, they have the ability to understand whether or not the account holder has loans or mortgage facilities based on their spending patterns relative to income (which is usually received via bank accounts). It's "not difficult at all" from a data mining and technology POV. The suburbanites' demographic and income profiles are more uniform than most people think.
Banks can pull in 3rd party data, such as # of bank accounts and credit cards per household based on demographics, which allows them to build probabilistic functions to be able to accurately understand a h'hold profile. That's even easier if the account holder is the primary income earner in a household, which is not difficult to determine based on outgoing payments. Furthermore, they have the ability to understand whether or not the account holder has loans or mortgage facilities based on their spending patterns relative to income (which is usually received via bank accounts). It's "not difficult at all" from a data mining and technology POV. The suburbanites' demographic and income profiles are more uniform than most people think.
Welcome to 2016.
Well there ya go ole mate ... Banks have got their thumbs on tha pulse - They're ALL OVER IT in fact - So everything's obviously sweet eh? ... )
A Professional Demographer to an amateur demographer:"negative natural increase will never outweigh the positive net migration"
Well there ya go ole mate ... Banks have got their thumbs on tha pulse - They're ALL OVER IT in fact - So everything's obviously sweet eh? ... )
We're not talking about possum traps Jethro. Currently, most analysts with data mining capabilities can do better outside banks. Banks don't typically hire the best and the smartest. More money to be made contracting to banks.
Of course Jethro. You're a chip off the old block. Dime a dozen. Salt of the earth.
That's a very generous appraisal of Herbie there. Personally I reckon he's an old-school puritanical wowser with a closet drinking problem.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
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