Online Banking Satisfaction on the Rise

A recent survey conducted by ForSee Results highlights that customer satisfaction with online banking is on the rise. Due to the rebounding economy, the study found that satisfaction with online banking has regained last year’s loss. The study measured seven quantifiers of satisfaction with online banking services including ease of navigation, making online transactions, privacy and website look and feel. The survey also broke down results by bank size or type of bank institution. While each category rose in online banking satisfaction, large banks saw the biggest spike in customer satisfaction with online banking tools.

Survey respondents were also asked which banking channel they are most satisfied with. Below is a breakdown of the results:

Are your members satisfied with their online banking experience? How can you better serve your customers through online banking? Leave us a comment below.

Google Wallet: How will it affect banks and merchants?

The Google Wallet announcement made a few weeks ago continues to spur discussion of its implications. Banks and merchants wonder how this service will affect their customer interactions, specifically how it will change merchant funded rewards.

Once Google Wallet launches to a wider audience, the company will be able to see purchases customers are making in real-time, and be able to record spending history. The company, who already has come under scrutiny for keeping users search data, will have an upper hand with concrete insight into customers’ spending habits. On the flip-side, banks continue to market this data to vendors, giving them access to customers’ spending habits via merchant-funded rewards cards and incentives.

Daniel Thomas, a Mindful Insights analyst and contributor to NetBanker poses the question, “So, merchants are going to need to decide: should they allow Google to make the reward offer or the banks?  Surely, they won’t compensate both for bringing in the same purchase. That leaves the decision in the hands of the consumers. Do they want to receive points and cash back from Google or from their bank?”

Outside of privacy concerns, what are your thoughts on how the Google Wallet will affect financial institutions and merchants?  Let us know your thoughts by tweeting at @bankingdotcom or responding in the comments section below.

Social Media Statistics: By-the-Numbers, June 2011

Below are interesting statistics on social media usage. Feel free to share your favorite social media statistics in the comments section.

  • 300,000,000 Twitter users as of May 2011, up from 200 million in February (Source: Twopcharts)
  • 79,000,000 users for professional social network LinkedIn as of March 2011 (Source: comScore)
  • 1,000,000 Facebook Fans bring in an average of 826 Likes and 309 comments per post (Source: Simplify360)
  • 40% of companies measure social media performance on a quarterly or annual basis, while 13% don’t measure social media ROI at all (Source: Hypatia Research)
  • 13% of online adults use Twitter, an increase from 8% in November 2010 (Source: Pew Research)
  • 3 billion views per day on YouTube, a 50% increase over last year (Source: YouTube)
  • $120,000 to purchase a Promoted Trend on Twitter for a single day, up from $25,000 in April 2010 (Source: Twitter)
  • 56% of all shared content on the Web is shared via Facebook, an 11% increase from August 2010 (Source: ShareThis)
  • $31.3 billion is expected to be spent on online advertising in the US in 2011, a 20% increase over 2010 (Source: eMarketer)
  • 5.2 hours per month on average spent by US visitors to social networking sites (Source: comScore)
  • 4.9 is the average number of clicks on a link shared via Twitter, ranking it ahead of Facebook (4.3 clicks) and email (1.7 clicks) (Source: ShareThis)

Want the 101 on Twitter? Check out this infographic on the who, why and how of Twitter.

What We’re Reading

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below.

  • When Email’s in Doubt, Banks Turn to Twitter to Alert Customers

American Banker

When online scammers recently targeted Westpac Banking Corp., the Australian bank used another online venue, Twitter, to warn consumers not to trust email. The alert was in keeping with a trend of using social media to publicly expose online fraud attacks in real time. Dave Jevans, chairman of the Anti-Phishing Workgroup, said Twitter Inc.’s microblogging service can be an effective way to spread security warnings. “There’s 500 million people on Facebook, and a lot of people don’t even read their email anymore,” said Jevans, who is also the chairman of IronKey Inc., a security firm.

Read more

  • Mobile Payment Integration Isn’t All About Systems

American Banker

Banks intent on bringing mobile payments to a wide swath of customers will soon have to make difficult decisions about devices, partnerships, vendor management and employee training. “It’s never been more important to have an integrated view across the enterprise,” said Titi Cole, payments and solutions executive at Bank of America Corp. Cole was part of a diverse roster of bank executives here at the Mobile Banking and Emerging Applications Summit, hosted by SourceMedia Inc., the publisher of American Banker. Bank of America is pursuing mobile payments on a number of fronts, including clearXchange, a cooperative person-to-person payments venture that is recruiting bank partners.

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  • Montgomery County Employees FCU Offers Mobile ‘Triple Play’

Credit Union Times

The $81 million Montgomery County Employees Federal Credit Union in Germantown, Md., is now offering its 14,600 members the “triple play” of mobile banking options. Those are SMS text messaging, mobile Web browsing and downloadable applications, in this case for iPhones. Functionality includes balances, transfers, histories and bill pay. MC EFCU is using Intuit Financial Services technology to offer mobile banking and based its decision to offer the channel on focus groups and member surveys.

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  • The Future of Personal Finance

Kiplinger.com

Thanks to the potent combination of an aging population, the competitive pressures of globalization and advances in IT, individuals have been forced to take greater responsibility for everything in recent decades — from saving for retirement to paying for college. The future will be all about simplification. The financial-services industry has created a dizzying set of products and services for dealing with household risk and responsibilities. From now on, the innovation mantra will be managing these risks comprehensively, from hedging against a drop in income to making sure you’ll never run out of money to monitoring household finances with a tap of a finger.

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  • Court: Passwords + Secret Questions = ‘Reasonable’ eBanking Security

Krebs on Security

A closely-watched court battle over how far commercial banks need to go to protect their customers from cyber theft is nearing an end. Experts said the decision recommended by a magistrate last week — if adopted by a U.S. district court in Maine — will make it more difficult for other victim businesses to challenge the effectiveness of security measures employed by their banks. In May 2009, Sanford, Maine based Patco Construction Co. filed suit against Ocean Bank, a division of Bridgeport, Conn. based People’s United Bank. Pacto used online banking primarily to make weekly payroll payments. Patco sued to recover its losses, arguing in part that Ocean Bank failed to live up to the terms of its contract when it allowed customers to log in to accounts using little more than a user name and password.

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  • What is the ROI of banking innovation?

Net Banker

An executive on the front lines of product development at a major financial institution recently asked Jim Bruene this question: How can I prove that innovation really matters to the bottom line? Banks are both retailers (branch and online) and manufacturers (checking accounts, loans). But today, the P&L from banks’ digital efforts is more like the Gap than Apple. They have to sell a lot of extra checking accounts and car loans to justify even a modest website investment.

Read more

Going Mobile: Brett King Speaks at TEDxConejo

Brett King, bestselling author, strategic consultant and long time senior industry analyst in the finance sector, recently spoke at TEDxConejo about the modality shift in banking towards increased mobility. Brett spoke about how to reach the highly educated, underbanked population in America through increased mobility. After all, it’s important not to focus on what the bank of the future might look like, but what the current and future bank customer will look like, and how an FI can help them.

Brett demonstrated a variety of mobile applications from NFC payments to mobile banking apps that are successfully targeting this shifting modality. Mobile options are a large opportunity for financial service organizations to reach customers who would otherwise be uninterested in banking services.

You can watch Brett’s full presentation here, or view it below.

What are you doing to reach new members? How do you tap into the underbanked population?

Tweet at us or let us know in the comments section below.

Fueling Innovation and Growth in the Cloud

How does a company transition from strictly desktop software to one that today generates about 60 percent of its revenue in connected services?

Delivering a keynote at All About the Cloud, Intuit CIO Ginny Lee talked about Intuit’s journey from desktop to anytime, anywhere access on any device and how the company is fueling innovation and growth in the cloud.

Whether you’re running a cloud business or transitioning to one, Lee stressed the importance of:

Mindset – IT plays a critical role in enabling growth and a great customer experience. Therefore, put customers at the heart of everything you do. Think business first, tech second.  Be explicit about roles and hold everyone accountable.

Innovation – Break down the barriers to innovation by creating tools that foster rapid prototyping and innovation both inside and outside of your company. Tap into the vast ecosystem of external developers at the ready to help create great offerings.

Data – The nature of data is maturing and how you use it can be a competitive advantage. Intuit embraces data driven innovation and looks beyond basic reporting to data driven actions and insights.

Check out her presentation below.

*originally posted on the Intuit Network

About Holly Perez:

Holly loves sharing stories about Intuit’s connected services and growth. When she’s not tweeting from @IntuitInc, you can find her chasing after good bargains and her two boys.

What We’re Reading

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below.

  • The Crisis’ Effect on the Banking Business Model

American Banker

More than two years have passed since the eye of the financial storm hit, and banks are not yet done picking through the debris, trying to determine what about their business models is salvageable and what needs to be replaced. A muddled outlook on the economy and extraordinary intervention by the federal government in the capital markets have made the task of figuring out “the new normal” all the more difficult, according to three analysts who participated in an American Banker roundtable in May in New York. Banks have the political capital to fight for incentives to bring private investors back into the housing market, the analysts said. The problem is banks are too busy dealing with all the foreclosed properties on their books to consider how to get private investors involved.

Read more

  • PNC Rolls Out Check Capture to Main Base

American Banker

PNC Financial Services Group Inc. is rolling out mobile check capture to its main customer base after a successful initial rollout with customers of its online-centric Virtual Wallet account. PNC formally announced the expansion Tuesday, though the update to its iPhone app went live last week. The technology allows customers to deposit endorsed checks by photographing them with a mobile phone’s camera. The app, developed by mFoundry Inc., also works on Apple Inc.’s iPod Touch and iPad 2 devices, which have built-in cameras. Its Virtual Wallet account, launched in 2008, was designed for consumers who conduct most of their banking interactions online and thus have less reliance on branches.

Read more

  • New P2P Payments Network clearXchange Receives A Warm Welcome From Would-Be Competitors

Bank Systems & Technology

Early response to clearXchange, announced this week by Bank of America, JPMorgan Chase and Wells Fargo, indicates vendors in the space see the bank-owned person-to-person electronic payments network as validation of a growing market.  “It is not only an endorsement for the personal payments category as a whole, but it also validates the financial institution-centric approach that Fiserv believes is best for these types of payments,” says Tony Catalfano, division president, Electronic Payments, Fiserv.  Fiserv’s ZashPay payment service is used by more than 700 financial institutions.

Read more

  • Consumers need to learn ways to curb fees as new debit card swipe fees loom ; The savings game

Boston Globe

As part of the financial reform package passed last year, Congress agreed to limit the “swipe fees” that merchants must pay to banks when you use your debit card. The new rules, which are scheduled to go into effect July 21, would cap debit fees to the actual cost of the transaction, about 12 cents. There’s a lot of money on the table here: $16 billion a year in extra revenue for banks. Even if some of the savings are passed on to consumers, businesses stand to take home billions in extra profits.

Read more

  • Future of Mobile Banking: Paying with Your Cell Phone

CBS MoneyWatch

Clerks will soon need to offer you a third choice in addition to “credit or debit”: cell phone. Google on Thursday is expected to roll out a trial program to allow shoppers to use phones as electronic wallets, taking us closer to a future in which you can leave your plastic and cash at home and instead pick up milk at the grocery, get on the subway, or buy baseball tickets through a simple tap of your BlackBerry or Android. Your PC could be tied to your phone, too, so buying items online could be accomplished with another simple tap, with no need to remember countless site log-ins and passwords. And merchants could use the system to communicate with you as well, sending receipts and custom offers based on your shopping history directly to your phone.

Read more

  • Associated Credit Union Offers Integrated Web Presence

Credit Union Times

Amy Baker was a little alarmed recently when she logged onto her familiar online banking website, and it didn’t look so familiar anymore.”I panicked for a moment, actually,” the Atlanta attorney said. But the panic turned to pleasure when she realized her recent transactions weren’t missing but instead were now on the new site she was directed to by Associated Credit Union. The $1.2 billion suburban Norcross CU is an early adopter of the revamped online presence just rolled out by Intuit Financial Services, which has been providing Internet banking services to Associated beginning in 2000 as Digital Insight. “Our members have just embraced this new page phenomenally,” Anderson said.

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  • Google Wallet Won`t Succeed: 10 Reasons Why

eWEEK

Google has finally unveiled the long-awaited Google Wallet, a service that allows users to pay for purchases with an Android-based smartphone. The offering effectively turns the smartphone into a wallet, thanks to near-field communication technology. With the launch, Google ostensibly believes that the days of swiping credit cards are coming to an end. Going forward, wirelessly connected people around the globe will rely upon their smartphones and nothing else to quickly and efficiently pay for products.

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  • Fees, Gen Y’s and Cynics: What Makes People Choose Large Banks, Community Banks and Credit Unions.

Javelin Strategy & Research Blog

A recent Javelin study of 5,494 consumers found one-third of Chase or Wells Fargo customers paying a debit card overdraft fee in the last year, while under one quarter of PNC customers reported the same. Compare that to just under one in five for CB customers or one in six credit union members. Hold on before you conclude that upper mid-market banks are somewhere between a large and small FI in their overdraft fee collections though. Gen Y’s have profoundly different technology desires than their older counterparts. With credit cards giving way to debit and other channels going mobile, young people are leading the way to the future of financial services.

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