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 or Tweet @bankingdotcom.
- Groupon Integration with Financial Tools May Be a Great Deal for Banks
The Groupon daily-deal craze allows financially savvy consumers to save money with merchants they frequent, but it has so far had little to do with banks. A third-party e-billing provider may change that, setting an example by which banks could become the best value to their most coupon-obsessed customers. Manilla Inc. said Wednesday it would allow consumers to manage their daily deals through online financial management tools, much like many consumers already manage their upcoming bills. Providers like Groupon Inc. and LivingSocial sell coupons that provide deep savings to the consumers that buy them, but which expire without the option for a refund if the coupons go unused.
- Consumer office takes aim at overdraft fees
Raj Date, unofficial chief of the Consumer Financial Protection Bureau, said in a speech in Philadelphia last week that the bureau is going to start looking at overdraft programs with an eye toward clarifying the cost of free checking accounts.”With these free checking accounts, much of the costs to the consumer were buried in overdraft fees,” said Date, special adviser to the Treasury secretary on the consumer bureau. “Going forward, the bureau will carefully assess how we can best ensure that the overall market for short-term credit is fair, transparent and competitive.” Date, who is administering the consumer bureau as it awaits the confirmation of its first director, said that one of the agency’s first big decisions could be setting guidelines for banks to make sure consumers know what they are doing when they rack up overdraft fees.
- First Look at PayPal’s Mobile Strategy
With preparations for SIBOS (see Gareth’s earlier blog), it would have been easy to miss PayPal’s announcement this week amongst all the other pre-SIBOS press releases. And it would have been a mistake, because it is important. PayPal talked about “re-imagining money” and “new normal in retail”. Often such platitudes don’t mean much, but if PayPal can implement what their slick video demonstrates, it might indeed be something special. Details are still scarce, but PayPal showed how it would change the retailing experiencing through mobile, but without changing the retailers’ terminals. No NFC, but code scanning; cards with PayPal logo (but no Visa/ MasterCard and not even a number).
- Credit Union Journal Roundtable On Mobile Banking; Consensus: Solution Is Secure, But Only For The Time Being
Mobile banking is secure, for now, according to credit unions participating in a Credit Union Journal mobile banking security roundtable. “Fraudsters could only inflict a limited amount of damage in mobile banking,” explained Chris Saari, AVP-Internet banking at Worker’s CU here. “Fraudsters want to break in, transfer money, and get out. There’s no fast cash available to fraudsters, because our mobile banking doesn’t allow inter-institution transfers. And you can pay a bill, but you can’t set one up.”
- The Power of Price
Let’s face it, GonzoBankers – we are going to have to learn how to compete with the online monsters. Sadly, in this fight, some of us are shooting blanks. The inconvenient truth is that the price leaders on the Internet are cleaning our clocks, especially when it comes to consumer banking products like checking. Let’s look at the three big online players that are taking consumer market share right now. ING Direct started this whole conversation with a very attractive savings rate on a very plain Jane Web site.
- Money Goes Mobile: Video from Intuit’s Innovation Gallery Walk
Wednesday was Investor Day at the Mountain View, CA, headquarters of Intuit, the 28-year-old consumer and business finance software giant. Most attendees were there to hear about the company’s fiscal strategy for 2012—and if that’s your cup of tea, there’s a recorded webcast of the meeting here. But Xconomy attended for a different reason—to see the 20-plus internal Intuit projects being spotlighted as part of the company’s annual Innovation Gallery Walk. Mobile was the theme of the event—in fact, it’s safe to say that since the acquisition in 2009 of Mint, known in part for its powerful mobile apps, Intuit (NASDAQ: INTU) has gone mobile-mad.