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Durbin Fee Change Helped Behind-the-Scenes Data Firm

When the sweeping Dodd-Frank financial reform became law in 2010, it included an amendment reducing the fees that banks could charge retailers for debit transactions. Little did Senator Dick Durbin of Illinois know that when his amendment passed, it would help a startup foster partnerships with many of the country's largest banks, gaining access to nightly feeds of bank data including massive amounts of customer transaction data.

After bank revenues from debit transactions dropped substantially as a result of the so-called Durbin amendment, Cardlytics, a firm founded in 2008 by two former Capital One execs, saw an opportunity. The company manages rewards programs for banks, aiming offers from retailers and other merchant partners to people based on previous credit and debit card purchase transactions and even information in money market portfolios.

"Data security and privacy continues to be a top priority for banks. That hasn't changed and we don't anticipate that changing," said Maria Pallante, VP Loyalty Solutions at Bond Brand Loyalty. "Organizations that work or want to work with a bank need to meet their strict data and privacy requirements."

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