Social Media Tweet Chat for Credit Unions

@SM4CU has launched a weekly Tweet chat designed for credit unions to connect and discuss social media. The bi-weekly chat, which is run by @brudaddy and @matthod, takes place on Tuesdays at 12:00 pm ET.

This week, the chat focused on select employee groups (SEGs) and social media, and discussed avenues to expand social media channels. Below are some highlights of the chat:

  • SM encompasses more than Twitter or FB and you may find more value advertising on niche forums for your SEG. #sm4cu
  • Need to make sure we are not focused on just one aspect of SM. As with all mktg it needs to be integrated into something bigger. #sm4cu
  • You must remember that SM is not for every company. You have to make sure you have a strategy before jumping in. #sm4cu
  • Great conversation going on. SM planning is key. A well thought out plan does not require zigging or zagging only execution.  #sm4cu

For a full recap of the conversation, visit TweetDoc.

A recurring theme of the chat was that social media covers an array of services, and should not be limited to Facebook and Twitter. Does your FI break out of the traditional social media channels? What channels are important for banks and credit unions to utilize? Leave us a comment below, Tweet @bankingdotcom or join the next #sm4cu.

 

 

American Bankers Association Survey: Online Banking on the Rise

The American Bankers Association released its annual survey last week, revealing that online banking is on the rise, while mobile banking has slowed in the last year. The most surprising statistic from this year’s survey is rise of online banking amongst baby boomers. For the first time, 57 percent of banking customers 55 and older said they prefer to bank online versus at a bank branch or via an ATM. This is up from 20 percent 2010, a significant gain amongst the baby boomer population.

Other interesting survey statistics include:

  • Among all adults, 62 percent said that they like online banking best, up from 36 percent last year
  • Only 1 percent of adults said that they liked mobile banking best, down from 3 percent last year
  • With younger consumers, ages 16 to 34, only 4 percent said that they preferred mobile banking to other methods
  • Telephone and banking by mail are losing popularity. Only 3 percent said that they prefer telephone banking, and only 6 percent said that they prefer mail banking

Are these statistics in-line with your customer/member base? Do you think the popularity of mobile banking is on the decline? Let us know in the comments section below, or Tweet @Bankingdotcom.

What We’re Reading: Banks & Hurricane Irene, Mobile Security and the ‘She-Conomy’

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.

 

 

  • Amex Expands Digital Payment Product Line

American Banker

American Express Co., which has been developing prepaid and digital payment options to expand its audience, has added yet another product: an online-only gift card. The non-reloadable eGift Card is intended to be used solely online – the New York company does not offer a plastic card to go with it. Amex launched a more flexible digital payment product in March called Serve, which can be paired with a plastic card for point of sale payments. Serve is meant to attract a broader audience than Amex reaches with its credit cards, which are typically marketed as high-end products. In June, Amex began offering a low-fee prepaid card to further broaden its appeal to the masses.

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  • U.S. Bank Expands Mobile Alerts to ATMs, Debit Cards

American Banker

U.S. Bank, which was one of the first banks to offer mobile fraud alerts to credit card customers three years ago, has expanded its alert program to ATM and debit card holders. These alerts are part of a larger effort on the bank’s part to provide customers with near-real-time financial tracking.”This streamlines a number of processes for the consumer,” says Dominic Venturo, chief innovation officer, U.S. Bank, adding that the service can be useful in cases such as expense management and fraud mitigation.”It’s in a broad context of making the mobile device a place to go to get information about an account,” he says.

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  • Silicon Valley Bank Debuts Global Payment Hub

Bank Technology News

Large banks such as Bank of America and Wells Fargo have been working for years to build global payment “hubs”: online banking platforms their corporate customers can use to send and accept payments of different types and in foreign currencies to their customers and partners around the world. It’s an exceedingly difficult task; even offering one online banking interface for the many accounts a corporate customer holds is not simple; having disparate payment pipelines all feed into that online banking interface with the ability to execute transactions is a major IT challenge. Santa Clara-based, $17.5 billion-assets Silicon Valley Bank may be beating such larger competitors to the punch.

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  • Over Half of Middle Market Companies Are Willing to Refer Their Primary Bank

Barlow Research

Referrals are an important way to draw in new customers. In Barlow’s Middle Market Banking study, respondents are asked whether or not they would refer their primary bank to another company with similar needs. A satisfying business banking relationship is essential to a bank’s survival in these economic times and winning a customer’s referral can further cement the loyalty of that customer to the bank. It only takes one dissatisfied customer and business will be taken elsewhere.

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  • Here Comes the ‘She-Conomy’

Credit Union Magazine

Over the next decade, women—particularly those in emerging markets—will become a dominant force worldwide, assuming increased leadership responsibilities across business, government, and education. And due to urban migration, improved access to education, mobile technologies, and the availability of micro credit, nearly one billion women will enter the workforce or start new businesses by 2020.This move to the “she-conomy” is one of 20 trends that will shape the next decade, according to the Intuit 2020 Report, prepared by Emergent Research in partnership with Intuit. In addition, women from generation Y, across race and ethnic lines, will dominate both college graduation rates and professional workplace entry, expanding their role in management and in professions such as law, business, and medicine, according to the report.

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  • Banking in a Mobile Society – Less Talk, More Action

Credit Union Times

For credit unions, great member service once depended on the availability of live, empowered and intelligent people who could answer critical questions and nurture personal relationships. But, making time for chit-chat is not a priority for Generation Y, nor even Gen X or the Boomers. Today’s technology-savvy consumers want a little less conversation and a lot more action. For them, speed and self-service through tools like mobile banking are key to achieving satisfaction.

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  • Acting as a Trusted Partner

Javelin Strategy & Research Blog

Helping out in the face of disaster is a natural. Javelin’s  Beth Robertson was glad to hear from one of her banks this week (via e-mail) to see that it was being proactive in reaching out to customers. With all the bad press that banks have had recently, the recent East coast hurricane offered a chance for this bank (and others) to reach out as a partner and friend. The bank in this case was Chase. She uses another bank for online banking and bill pay, but did not hear anything from it.

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  • Banks give victims of Irene a break ; Some are waiving fees and offering low-cost loans

USA Today

As Hurricane Irene has left East Coast residents with rushing water, power outages and mounting bills, some banks are offering financial help. Banks and credit unions are temporarily waiving overdraft fees, letting customers skip payments and offering low-cost loans to relieve some of the financial burden on hurricane victims. “When we went through Hurricane Katrina, we learned a lot,” says Ryan McInerney, CEO for JPMorgan Chase’s consumer banking. “What we created was a playbook that we can use in natural disasters like this.”

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Bank with Brett King in 2012

Brett King, author of BANK 2.0, announced that he plans to launch his own bank in 2012. According to an exclusive in Technology Spectator, Brett secured a major investor and is building a team in preparation for the launch next year.

The bank, MoveNBank, will be an online-only bank that is in a position to compete with US start-up Bank Simple. According to Technology Spectator, MoveNBank will also be paperless, focused on mobile and aims to reinvent the customer experience.

The publication wrote, “The development of companies like MoveNBank and Bank Simple is just the start of an emerging trend towards virtual banks seeking to capitalize on the consumerisation of technology…. With the emergence of companies like MoveNBank, the day is finally coming when banks will have to make a decision. Plod along as a cost heavy, full-service outfit with multiple channels to serve customers, or restructure as a provider of back-office functions, a banking license and the other must-haves nimbler organizations need to successfully take their proposition to market.”

What are your thoughts on organizations like MoveNBank and Bank Simple? Will they disrupt the traditional brick and mortar banks? Let us know your thoughts below, or Tweet @bankingdotcom.

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 or Tweet @bankingdotcom.

  • Mobile On/Off Switch for Debit Cards Now in Testing

American Banker

A new system lets consumers deactivate debit and ATM cards from a mobile device, reactivating them only as needed. The security system, which one bank is testing, has the potential to make stolen card data less valuable, since a card would work for payments or cash withdrawals only when the legitimate customer permits it to. The technology, called card lock, is part of Diebold Inc.’s MobiTransact mobile banking platform. Consumers would have the flexibility to keep a card switched off at almost all times – or to lock it only in high-risk situations, such as when it has been misplaced, says Thomas Swidarski, the company’s chief executive.

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  • In Mobile Payments, Card Companies Trusted More than Facebook

American Banker

Even though consumers increasingly trust nonbanks such as Google Inc. and Facebook Inc. with their personal information, they trust credit card providers more. In fact, the popular social media phenomenon Facebook ranked last among companies consumers would trust to support mobile payments in an Ogilvy & Mather’s online mobile-shopper survey of 500 U.S. consumers, says Gareth Evan, director of digital at its Ogilvy Action unit. The marketing communications firm conducted the survey in June. “When we talked to consumers as well as brand manufacturers, vendors and retailers, we started to see themes come out, and one of them was trust in new services being offered,” says Evan.

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  • Intuit GoPayment Partners with Verizon Wireless

Credit Union Times

In a move that may enable large numbers of very small merchants to begin accepting credit cards, Intuit announced that its GoPayment merchant tools will be sold at 2,300 Verizon Wireless stores. Sharna Brockett, an Intuit spokesperson, said the importance of the deal is that it will put the tools in front of many more small businesses. “This is the first time many smaller businesses can easily and affordably accept credit cards on their phone,” Brockett said Thursday.

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  • Customer Experience Lessons From Steve Jobs

Customer Experience Matters Blog

Steve Jobs is stepping down as CEO of Apple. That’s a big loss for Apple. Jobs transformed Apple from a niche computer maker to one of the most influential technology/consumer product companies on earth. Under his leadership, Apple developed iPods, iPads, iTunes, iPhones, Apple Stores, etc. That’s an incredible portfolio.

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  • Citibank customers are gadget-freaks. Wells Fargo customers? Not so much.

Javelin Strategy & Research Blog

Citibank has the highest concentration of gadget-loving consumers in the US, with nearly four in ten of their account-holders saying they are “the first to try” new technology when it becomes available. Citi’s customers are more than twice as likely as the average US online citizen to crave and brave new gizmos and gadgets. Citibank is in entirely different position from which to market and launch the likes of mobile, social, online and other channel-based payments and financial services, as our Bank Benchmarking data show in spades. Bank of America and Chase have significantly more early-adopters than other larger US institutions, but they still trail Citi in this regard by a combined ratio of about 1.5x!

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  • Fewer Banks In the U.S. Considered To Be at Risk

New York Times

The number of banks on the government’s list of institutions most at risk for failure fell in the second quarter, the first drop since before the financial crisis began. Twenty-three lenders came off the list of so-called problem banks during the second quarter, bringing the total to 865, according to data released Tuesday by the Federal Deposit Insurance Corporation. Not all the troubled lenders will inevitably fail, but the F.D.I.C. considers them most at risk, making the quarterly update one of the clearest measures of the banking industry’s health. It was the first decrease in the number of problem banks since the third quarter of 2006.

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  • Banks start offering payday loans ; Financial institutions target most-strapped customers for revenue

The Tennessean

As regional banks ready for new federal regulations expected to cut into profits, some of them are zeroing in on the down-and-out customer to turn a buck. More banks are doling out short-term, high-interest loans to customers in dire straits. Observers worry that the loans signify an industry wide shift toward making money on desperate consumers and — more broadly — slapping more fees on services for everyone. “If the banks want to maintain their revenue growth, they’re going to have to come up with new profits and new approaches,” said Richard Bove, banking analyst at Rochdale Securities.

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