There are problems and then there are “good” problems. One of those is what to do with the approaching windfall of bank earnings. Take a look at the KBW Bank Index and you’ll know what I am talking about.

It cannot be denied that with net-interest margins comfortably wide and GDP on the rebound bank earnings are on the rise. So what to do with that cash.

The “make more loans” rallying cry from Capitol Hill not withstanding, I vote for a healthy allocation of cap X toward know-thy-customer technologies and capabilities.

I was certainly briefed on the inner workings of a major financial services company from someone who is privileged with unique access not just to the company, but to its most senior management. As he described it, the company thinks about its customer relationships in ways that this person “had not even remotely thought about.” And this person is a banking industry lifer, with years of experience at a Top 5 bank.

It makes sense to focus on know-thy-customer. There is plenty of advances to be made. Whether it is a better understanding of customer segmentation or creating a fresh approach to post-credit-crisis underwriting practice, know-thy-customer investments will pay ample dividends. That, too, is a “good” problem.