Citibank is a leader in this area. It has built a data-profile of its customers for a decade and over. But with the roll-out of Internet banking, especially mobile banking, Citibank is now doing the same in association with Hutchison Max in Mumbai and Airtel in Delhi. Likewise, HDFC Bank with all of its mobile service providers - Hutchison Max, BPL Mobile, Tata Cellular, RPG, Airtel, Aircell, Cellphone and Command. ICICI Bank has followed suit with Hutchison Max, Airtel and Command in Calcutta.

Says HDFC Bank's vice-president (retail marketing), Mudit Saxena: ``datamining helps to increase sales by targetting the right customers and to make the right offers to customers. Banks, who have their ears to the ground regarding their customer's tastes and preferences, gather a lot of data...what datamining does is that it sifts through all the voluminous data and ekes out a pattern, which enables the bank to personalise its communication towards the customer as much as possible. With datamining, banks can get a better understanding what drives the customer relationship.

Worldwide, datamining is big business. The Red Cross uses it. So do big retailers like JC Penny, Wal-Mart, KMart. A study by NCR Corporation puts the data-warehousing market growing by 50 per cent to Rs 113 billion by 2002. In the Asia-Pacific region, it is seen growing by 100 per cent. But locally, it is just opening up. NCR puts it at 350 per cent, but then, the base is also low.

Observes Citibank's vice president for Internet and e-commerce, Sriraman Jagannathan: ``datamining is really about understanding consumer behaviour.

Based on the information captured, one can find the consumer's transacting behaviour and make necessary conclusions. Datamining is about collecting information about consumers through various sources - one of the sources being mobile operators and then have tailor-made products for specific consumers''.

So why this uptick in data-mining all of a sudden? In recent times, Citibank, HDFC Bank and ICICI Bank have announced tailor-made mobile banking offerings under their various schemes like `Suvidha', `Freedom' and `Infinity'. Others like Centurion Bank and IndusInd Bank have similar plans.

HDFC Bank offers under its `Freedom - the e-age savings' account, customers who are BPL Mobile users, a discount while settling mobile-bills.

The Calcutta-based Spice Telecom has just announced a tie-up with Citibank, HDFC Bank and ICICI Bank for mobile-bill settlements. This facility will be made available to all Spice Telecom customers who have an account with any of these banks. In addition, Spice customers can also log on to billjunction.com and settle their bills online. A wireless Internet portal called `Planet Spice' will offer nearly 150 information services, which can be accessed through any mobile handsets. Add on the fact that mobile-phone users in the country is expected to rise to 11.7 million by 2005 from 2.4 million as of now, according to the Cellular Operators Association of India (COAI).

Says ICICI Bank's deputy manager, TK Sabapathy: ``The basic objective is to ensure that there is cross-selling of our banking products to the mobile phone subscribers. Banks have a joint promotion with the mobile service providers to tap their customer base and vice-versa. Leaflets and brochures of the banks are sent that goes with the bills of mobile service providers.''

Notes Citibank's Mr Jagannathan: ``It seems easy to mine data because the payment instrument used by a consumer is a Citibank credit-card while settling mobile bills''.

There is also the commonality-factor. Says Mr Saxena: ``If for example, there are 100 customers of the bank and about 100 of the mobile-service provider, between this, 30 per cent are common,'' adding: ``Our data revealed that self-employed persons are more likely to take loans or open a demat account. We, therefore, offer special rates on loans and demat to self-employed persons or we give special offers on debit-cards for the salaried individuals''.

Mobile-telephony operators also profit. In cases wherein a customer has a bank account, but not a mobile phone, mobile operators can mine the customer-profile of the banks to offer special offers like waiving-off of the security deposit, payments for voice-mail and the like. For banks, it is the other what around. Says Mr Saxena at HDFC Bank: ``We are interested in people who have a mobile phone, but no account with us''. And it is not just banks who are doing this. GE Countrywide does it. A few other non-banking financial companies are also getting their datamining act together. Software majors like IBM, i-flex and NCR Corporation are some who provide the necessary tools for datamining.