Utilization of Geolocation Data for Personalizing Financial Services

Аннотация

This article examines the essence and specific SUBMITED 27 February 2025 ACCEPTED 24 March 2025 features of applying geolocation data for personalizing PUBLISHED 25 April 2025 financial services. In the context of the rapid VOLUME Vol.07 Issue04 2025 digitalization of this sector (as well as others), the use CITATION of such data is becoming strategically significant both today and in the future. Banks and financial institutions Sergey Bochkov. (2025). Strategies to increase the profitability of commercial real estate through innovative approaches. The American are actively integrating spatial analytics into their Journal of Management and Economics Innovations, 7(04), 66–73. services to enhance service quality and personalize https://doi.org/10.37547/tajmei/Volume07Issue04-08 offerings. However, along with the beneficial effects, COPYRIGHT several critical challenges and contradictions arise, © 2025 Original content from this work may be used under the terms of the creative commons attributes 4.0 License. including the interpretation of geodata, privacy concerns, and the efficiency of processing algorithms. The objective of this study is to analyze the ways geolocation data is utilized to personalize financial services, identify key advantages, highlight problematic areas, and outline future directions for its application. The article reviews the primary technological approaches and emphasizes that despite the evident benefits, large-scale implementation of geolocation technologies requires careful consideration of personal data protection and transparency of algorithms. The author’s contribution lies in the comprehensive examination of the issue, presenting a classification of geolocation applications and identifying gaps in the academic literature. The findings will be valuable for financial institutions, fintech solution developers, digital marketing specialists, and analysts working with spatial data. Keywords: Banking technologies, geolocation data, geomarketing, personal data protection, machine learning, financial service personalization, fraud prevention, digital transformation. The American Journal of Management and Economics Innovations 74 https://www.theamericanjournals.com/index.php/tajmei The American Journal of Management and Economics Innovations Introduction: the impact of branch accessibility on financial inclusion. The researchers highlight that geolocation data analysis Modern financial institutions actively employ digital is applied to optimize branch locations and improve technologies to enhance customer service quality. To accessibility, particularly in regions with low population attract more clients, marketers in the financial services density. sector optimize SEO and digital advertising, while personalizing customer interactions to increase call Several sources focus on the application of conversion rates. geomarketing in financial services. T. Crisóstomo- Berrocal, F. Sierra-Liñan, and C. Carbonell-Michael [2] One of the most promising directions in this field is the describe digital platforms based on geomarketing and application of geolocation data for personalizing their influence on small and medium-sized enterprises. financial services. However, integrating spatial data into relevant algorithms presents several A similar topic is addressed by A. Madleňák [7], who methodological and ethical challenges. Key concerns analyzes location-based marketing communication in a include the accuracy of location interpretation, data global context. The article presents examples of how privacy compliance, and the effectiveness of machine financial organizations leverage spatial data for learning models utilizing this information. personalized advertising and targeted offers. According to statistical data, 90% of loan consumers Industry reports provide statistical summaries and (including mortgage borrowers), 85% of individuals market forecasts on geomarketing development [4], cashing checks, and 76% of respondents filing tax indicating that financial institutions are actively returns begin their journey with an online search [10]. investing in geolocation analytics technologies to For many, this step serves as the initial phase in enhance the accuracy of strategic decisions. evaluating available options, highlighting the A separate area of literature is dedicated to security significance of mobile queries and geolocation in concerns. D. Komosny [5] examines the method of customer acquisition. retrospective geolocation of IP addresses and its Given these considerations, contemporary researchers application in geographically adapted internet services. focus on examining the key aspects of geolocation data This approach is particularly relevant for fintech utilization in the financial sector, analyzing its impact on companies engaged in cybersecurity and fraud service personalization, and addressing potential risks prevention. associated with its implementation. The study by C.D. Au, Ph. Krahn