What We’re Reading: New Year’s Edition

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.

  • What Lies Ahead in 2012 for Community Banks?

American Banker

American Banker recently gathered four panelists — Fred Cannon at KBW Inc., Scott Siefers at Sandler O’Neill & Partners LP, Joe Stilwell at Stilwell Group and Brad Whitman at Barclays Capital — to discuss the year ahead for community banks. This is an excerpt of the wide-ranging discussion. How are community banks positioned headed into 2012? SCOTT SIEFERS: I’m afraid it’s not getting any easier. On the plus side there’s the systemic recapitalization we’ve seen over the last couple of years, and credit trends continue to improve.

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  • FFIEC Guidance: Are Banks Ready?

Bank Info Security

As 2012 nears and federal regulators prepare to examine financial institutions for conformance with the FFIEC Authentication Guidance, just how prepared are U.S. banks and credit unions? The answer, industry observers say, depends in part on the asset size of the institution.  The nation’s largest institutions are working to stay ahead of the updated guidance issued this past June, but smaller institutions are facing stiff challenges to improving online banking security, says Gartner analyst Avivah Litan. “Mid-tier and regional banks are confused about how far to go to meet FFIEC compliance requirements, especially with regard to payment batch-file processing, which can be expensive to re-engineer,” she says.

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  • Western Union Targets Small Businesses with Payments Portal

Bank Technology News

A smattering of banks have been rolling out technology to automate interactions with small businesses, ranging from RDC to social media. Western Union recently joined this trend by launching Small Business Payments, an online acceptance and accounts receivable service. Western Union is providing automated invoicing, recurring billing, customer management and reporting. “Small businesses are either sending paper invoices or are going directly to consumers for face-to-face collection,” says David Shapiro, senior vice president of payments for Western Union.

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  • Banks Should Reveal ‘Full’ Details of Capital, Basel Group Says

Bloomberg

Banks should be forced to reveal more data about their financial reserves so that they can’t conceal poor management decisions and excessive risk-taking, global regulators said. Lenders should “disclose the full list” of instruments that they are counting toward meeting their required minimum capital levels, the Basel Committee on Banking Supervision said in an e-mailed statement today.  “Insufficiently detailed disclosure and a lack of consistency in reporting” may have “hampered” regulators and contributed to the financial crisis that followed the collapse of Lehman Brothers Holdings Inc. in 2008, the group said. Banks (SX7P) should also show how they have applied rules forcing them to write down the value of some securities they count as capital.

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  • Interest rate cuts irk online banking customers

Reuters

When the online banking site SmartyPig.com dropped its savings interest rates yet again recently, many of the institution’s goal-oriented savers – who joined up to get better interest rates on their cash deposits – watched in dismay. As one of the bigger names in that space, SmartyPig was taking a big step to drop its yield below a line with symbolic meaning: 1 percent. It was the third time since August 2010, when the website (which places savings accounts at BBVA Compass, an FDIC-insured bank) was offering 2.15 percent on savings, that it has cut rates. Interest rates these days are puny, but the latest decline – from a leading position at 1.1 percent to 0.7 percent – rubbed SmartyPig customers the wrong way.

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  • 12 Great Money Apps That Save Time and Cash

U.S. News & World Report

Chances are, you spent a lot of money on your smartphone and you spend (waste?) hours playing games on it. You can recoup some of your losses with our pick of the most helpful mobile financial applications, all of which can save you time and cash and make managing your money fun.

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What We’re Reading: Holiday Edition

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.

 

  • The CFPB’s First Year and Future Challenges: A Conversation with Raj Date

American Banker

Raj Date has had a busy year. After joining the Consumer Financial Protection Bureau near the end of 2010, Date spent months helping Elizabeth Warren prepare the new agency to open on July 21. But in August he was tapped to takeover Warren’s role, temporarily serving as CFPB’s de-facto leader in addition to being the agency’s associate director for research, markets and regulations. In a recent sit-down interview with American Banker, Date said the agency is further along than he initially expected and has made great strides reaching out to the industry.

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  • Large Banks Are Becoming Serious About Mobile Payments

American Banker

A year ago, banks expressed an interest in mobile banking and payments during discussions with Fiserv Inc. This year, those that have not already made a real play to support the technology appear ready to do so, Fiserv says. Fiserv in September worked with Forrester Research to talk with 10 major financial institutions about their plans for mobile banking and payments for 2012, according to Calvin Grimes, mobile solutions manager at Fiserv. Last year, the firms spoke with 15 financial institutions about their mobile plans for this year.

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  • BECU’s Wu Creates “Actionable” Mobile Alerts

American Banker

A slew of tech and banking analysts have identified mobile banking as one of the hottest spots for new and expanded IT investment, with Ovum and Celent, for example, both placing mobile high on their list of bank IT priorities for the next year. As the channel matures, the new development will expand the apps beyond their early role as an information disseminator. “We’re moving toward a ubiquitous experience across a variety of channels and devices,” says Wayne Busch, a partner at Accenture, who says that for mobile, that means expanding the device’s use to meld with other touchpoints. That expansion in mobile function can be seen at institutions such as BECU, the former Boeing Employees Credit Union. Howie Wu, vice president of virtual banking for BECU, says the next step for the credit union as it expands its digital banking reach is to move more functions such as person-to-person payments and “actionable alerts” to the mobile channel. The credit union, which just finished an upgrade of its iPhone app, is scheduled to finish a similar upgrade to its native Android app by March.

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  • Chase simplifies checking account disclosures

Associated Press

Chase is making its checking accounts easier to understand. The bank said Thursday it will start providing a three-page disclosure that help consumers quickly identify the key terms of its basic checking account, such as the monthly fee and conditions customers need to meet to have that fee waived. Chase, part of New York-based JP Morgan Chase & Co., will be the first major bank to adopt a version of the consumer-friendly disclosure developed by The Pew Charitable Trusts earlier this year. As it stands, Pew says disclosures are often more than 100 pages and bury the most important fees and terms for customers.

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  • Experts see ‘humongous’ growth in mobile banking in Canada heading into 2012

CanadianBusiness.com

Most Canadians still aren’t pulling out their phones to check their bank account balances and pay bills but experts and users alike expect a whole lot more will be doing so in 2012. “We definitely see there’s been humongous growth on the banking front on the phone platform,” says Bryan Segal, vice-president of the digital measurement firm comScore. Canadians are among the world’s leaders when it comes to embracing online and mobile banking, according to comScore. Last year, Canada ranked as the top country for online banking usage, with almost 65 per cent of our Internet users going on the web each month to check their accounts.

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  • 5 Sneaky Fees Your Bank Could Be Charging You The Exaggerated Impact of Bank Transfer Day

New York Times: Bucks

The numbers sounded a bit too good to be true — and it turned out that they were. The Credit Union National Association now says that about 214,000 people joined credit unions in the month or so of anti-bank fervor this fall, not the 650,000 it originally estimated. As Gov. Rick Perry of Texas might say: “Oops.”The credit union association attributed the difference to ambiguous wording in a survey that may have been misinterpreted by some credit unions. The association had asked its members to gauge the impact of Bank Transfer Day, Nov. 5, which had been designated by a grass-roots movement as the day for customers to switch from big banks to credit unions.

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What Will 2012 Bring for the Banking Industry?

As we wrap up 2011 and head into the New Year, we asked some of our readers to share their thoughts on the banking industry in 2012. This past year has been filled with mobile and tablet innovation, but will that carry on in 2012? How will social media impact financial institutions in the next year? Here’s what the experts are saying:

  • “Of those banks that are currently using social media as a channel to communicate with their customers, much of the focus has been on appealing to Gen X and Gen Y customers,” says Karen Licker, Financial Consultant & Social Banker (Independent) for J.D. Power and Associates. “Clearly Gen X and Gen Y customers comprise the majority of those subscribing to and using social media, but the number of Pre-Boomers and Boomers who do so as well is growing at a considerable rate.  In addition, Based on J.D. Power’s 2011 Retail Satisfaction Survey, nearly one in five Gen X and Gen Y customers state that they are likely to utilize social media for banking-related topics in the future, and more than one in 10 Pre-Boomer and Boomer customers are likely to do the same.  Banks should be prepared to interact with and satisfy the growing Pre-Boomer and Boomer customers too!” *see Chart 1 below
  • “2012 will finally see the tipping point for mobile banking. Mobile moves beyond today’s limited functionality and starts to become the primary remote customer channel. Look for some interesting corporate bedfellows to emerge as the financial services ecosystem starts validating mobile payment business models and the importance of controlling new methods of money transfers and payments. We will see continued disruption in the space, as it relates to payments, security protocols, features like proximity rewards, integrated p2p and a2a with social tether, account opening, and more. Expect feature rich device agnostic applications that enhance usability and user experience across a range of mobile and tablet devices.” Bradley G. Leimer, Vice President, Online and Mobile Strategy at Mechanics Bank (@leimer)
  • “2012 will be the year of improved customer lifecycle management. With the fees and interest margins associated with accounts falling, there is a need to acquire a new customer more efficiently, onboard each new customer more effectively, achieve a higher level of relationship engagement and gain a greater share of wallet. Financial organizations will also need to focus more resources on retaining current clients since replacing these households has become so expensive.”  Jim Marous, Senior Director, Marketing Services, Harland Clarke (@JimMarous)
  • “In the credit card space, service alerts have steadily grown in importance over the last few years,” says Michael Beird, Director of Banking Services for J.D. Power and Associates. “Based on J.D. Power’s 2011 Credit Card Satisfaction Study, cardholder satisfaction increases by 98 index points (on a 1,000-point scale) when service alerts are offered and used. Email (80%) is the most common form of service alert, and is followed by phone calls (23%); text messages (15%); and secure online messages (8%). Interestingly, secure online messaging is the lowest-used service alert feature, but it results in the highest satisfaction (783). While issuers still have to do a better job of informing their customers about the availability of the service, it’s clear that customers are seeking ongoing and proactive communication from their banks. Informing customers of status issues and concerns in real time, via text, email or secure online, is an emerging service that will likely grow exponentially in the year ahead.” *see Chart 2 below

What do you think 2012 will bring for the banking and financial services industries? Leave us a comment below or Tweet @bankingdotcom.

*Chart 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

© 2011 J.D. Power and Associates Retail Banking Satisfaction Study, The McGraw-Hill Companies, Inc. All Rights Reserved.

*Chart 2

 

 

 

 

 

 

 

 

 

© 2011 J.D. Power and Associates Credit Card Satisfaction Study, The McGraw-Hill Companies, Inc. All Rights Reserved.

Mobile Banking and the Underbanked

As we’ve discussed in many recent posts, mobile banking continues to grow in popularity as more consumers utilize smartphone devices. The Intuit Financial Services 4th Annual Financial Management Survey found nearly one quarter (23 percent) of consumers are using a mobile device for banking needs and an additional 17 percent plan to try mobile banking in 2012.

Earlier this month, James Van Dyke of Javelin Strategy and Research delved into an interesting topic: low-income consumers and mobile banking. As Van Dyke writes in his article, the correlation between the low-income demographic and mobile banking shows an interesting connection.

Van Dyke looked a number of expert analyses, including a Javelin study of more than 3,000 U.S. consumers and presented the following data:

U.S. consumers who lack a depository bank or credit union account are:

  • Less likely to have a landline phone connection, by 10 percentage points
  • More likely to have a mobile phone, by six percentage points
  • Slightly more likely to own a smartphone (perhaps surprisingly)

Through his research, Van Dyke also found that the under-banked tend to tap into their finances more frequently and are more likely to be hyperactive users. For retailers this holiday season, this means the under-banked will be checking balances and finances on the spot to determine if they have the means to buy goods, but are also very likely to make purchases directly from their mobile devices.

Van Dyke wrapped up by offering his advice on the correlation between the under-banked and low-income consumers, “Strategist and technologists take heed: while it’s easy to think of new technology as having primary appeal to higher income individuals, mobile defies this truism because it is more likely to be the sole way for lower-income people to manage accounts and purchase goods.”

What are your thoughts on this research? Have you noticed a demographic split at your FI among mobile banking users? Tweet @bankingdotcom or leave us a comment below.

What We’re Reading: Mobile Bill Pay, Going Green, ATM Technology and Digital Wallets

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.

  • Young Adults Trust Banks More Than Other Mobile Payment Providers

American Banker

Young, tech-savvy adults may be the quickest to embrace new technology, but don’t bet on them trusting social media sites or funky startups with their cash. Banks win out easily, at least for now. A new study from Market Strategies International suggests young adults are more likely than any other group to trust banks more than alternative payment providers when it comes to emerging mobile-payment services. “We tested the hypothesis that younger folks who are quick to adopt new technology and are willing to put their entire lives in Facebook trust these alternative providers more than they do banks, and found no support for that theory,” says Mark Willard, senior vice president and head of Market Strategies’ financial services division.

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  • Wells Fargo Ties Customer Relationship Management to Its ATMs

American Banker

Wells Fargo has long been an early adopter of new ATM technology — it was the first bank to convert paper check deposits to images, and last year became the first banks to allow simultaneous “mixed media” deposits of cash and checks. It recently finished one of its older projects — allowing “no envelope” deposits at all 12,000 of its ATMs, an upgrade that took the better part of the past decade. The end of the migration means the entire fleet is enabled to sort, count, verify and make cash deposits available for immediate use. The bank classifies the ATM check deposits made by 9 PM as “same day” deposits, in effect lengthening the banking day. As the bank passed that milestone, ATM chief Alicia Moore spoke with BTN about the other capabilities the bank has added to its huge ATM network, advancements that are designed to improve the machines’ ability to work in concert with other channels.

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  • TD Bank Pledges to Decrease Paper Use

American Banker

TD Bank Group said Tuesday that it is aiming to become “paper neutral” in its North American operations by the end of 2012. TD has the overall goal of reducing its paper use by 20% by 2015. Over the next year, the bank will expand its paperless banking options and other online services for customers. The bank also said that it will partner with the Nature Conservancy of Canada to offset the impact of the paper it uses. The program will work to protect areas of threatened forest habitat. TD’s goal to reduce its paper use comes a year after it became carbon neutral.

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  • Customers opt to stay with big banks to avoid the headaches of switching

Boston Globe

Smaller rivals and anti-Wall Street protesters have launched campaigns to persuade depositors to leave the nation’s largest banks, such as Bank of America, Citigroup Inc. of New York, J.P. Morgan Chase & Co. of New York, and Wells Fargo & Co. of San Francisco. But analysts predict the vast majority of customers will stay put. Many appreciate the convenience of vast networks of ATMs and branches and the variety of services offered by the biggest banks. And many like Miller, annoyed as they might be, just don’t want to deal with switching accounts.

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  • Mobile cash transfers gain currency; More banks offer person-to-person money services using email, cellphones

Chicago Tribune

An increasing number of banks are rushing to offer or enhance person-to-person money transfer services. In many instances, all you need to send money to someone is their mobile number or email address. Person-to-person mobile payments are still in their infancy in the United States, with only 4 percent of Web-connected adults using them in 2010, according to a report last month by Forrester Research Inc. But those using the technology are enthusiastic about it: More than half of all mobile person-to-person payment users conduct such transactions at least monthly, and interest has been growing over the past three years, Forrester said.

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  • Six million households paid a bill with a smartphone last year

Into Mobile

Fiserv, a financial and technology solutions company, conducted some really interesting research that showed a significant uptick in the way consumers pay their bills. It turns out that six million Americans have used smartphones to make bill payments in the past year, according to the company’s 2011 Billing Household Survey. This is not only due to the change in how mobile devices operate, but the way all billers have made it easier for customers with destination websites for billing and payment – tailored for last minute and one-time payments. Discussing the survey’s findings, Jardon Bouska, an executive for Fiserv, said: “This year’s Billing Household survey demonstrates that consumers are looking to their banks and billers for multiple billing and payment options that are quick and easy, and can change to meet household needs and expectations.”

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  • War Over the Digital Wallet

Wall Street Journal

The war of the “wallets” is escalating, with two of the biggest names in technology skirmishing over who will control how consumers spend money using their smartphones. Google Inc. said it would bow to a demand by Verizon Wireless, the nation’s largest cellphone operator, and withhold Google’s mobile-payment technology from devices sold by the carrier. While a seemingly small choice, the move shows just how valuable—and disputed—this part of the digital landscape is becoming. Google claims Verizon is blocking its Google Wallet mobile payments app from being pre-loaded on its newest smartphone or being downloaded by consumers themselves.

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Cards for Rent: the Rise of Prepaid Debit Cards

*This blog was originally posted on The Intuit Network

Think of a prepaid debit card like a rental car. Use it for a limited time until you no longer need it. Or in the case of the card, until the money runs out. That’s the advice from industry analyst Gwenn Bézard of the Aite Group, who provided a snapshot look at his firm’s recent research study into the growing consumer prepaid debit card market. “Lots of consumers are using prepaid cards. They are simply renting the card,” Bézard said. When the balance hits zero, the user is done. That’s a lot of rentals: Consumers loaded more than $409 billion on prepaid cards last year alone.

Bézard spoke to payments industry professionals who gathered at Intuit’s headquarters to talk about the future of prepaid cards in the United States. BayPay, a nonprofit payments industry professional group in the Bay Area, brought the group together, including Eric Dunn, Intuit’s senior vice president of payment initiatives, to delve into some of the opportunities and challenges facing the prepaid card segment.

The prepaid debit card industry is a bright spot in an otherwise gloomy economy, Bézard said. Building on slow but steady growth over the past decade, the industry has seen the sector pick up steam over the past few years. He cited solutions such as the TurboTax Refund Card and flexible spending accounts, as examples of the prepaid market’s increasing popularity, particularly with consumers.

How People Use Prepaid Cards

Gwenn Bézard, Aite Group

Consumers are using prepaid cards primarily for everyday purchases, Aite’s research shows. Here’s where they’re spending money:

  • Stores and restaurants – 40 percent
  • Online shopping – 27 percent
  • Pay bills – 24 percent
  • Other banking transactions – 9 percent

Prepaid cards are still considered an alternative service, but are growing  increasingly popular with consumers searching for ways to stay out of the debt without sacrificing convenience. While commonly offered through banks and financial institutions, the cards are among new options available to consumers from companies like Intuit and Green Dot.

I like the opportunity for Intuit, with GoPayment small businesses can accept payment easily and cost effectively, and with such a large base of customers, there is a significant opportunity for Intuit to expand the acceptance,” Bézard said.

The evening also included a panel discussion with industry leaders, including Intuit’s Dunn, who tackled several topics, including trends such as the rise of embedded prepaid cards linked to customer loyalty programs. They also discussed the benefits to prepaid cards that increasingly make it easy and desirable for customers.

The growing popularity of prepaid cards presents opportunities for consumers and businesses alike. For consumers, they offer additional opportunities for financial services. Merchants are increasingly turning gift cards into personal use products and developing loyalty programs to attract customers, or as evidenced by the launch of GoPayment’s Card offering with Visa, small merchants can use the card to get their business up and running quickly.

What We’re Reading: PFM Tools, Mobile Banking and Social Banking

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.

  • Competition, Not Creativity, Gets the Profitable Customer

American Banker

A recent American Banker online survey asked what to do about unprofitable customers. Most responders said that bankers must be more “creative” and find profitable ways to keep these customers. What a remarkably wrongheaded notion. First, when bankers get creative, the consequences can be catastrophic. Auction rate securities were creative, as were structured investment vehicles.

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  • Mobile Banking: Today’s ‘Must-Have’

Bank Info Security

At Bank of America, with $1.45 trillion in assets, mobile banking has become a priority, says Keith Gordon, senior vice president of BofA’s security, fraud and enrollments for mobile and online banking. “We’ve seen significant growth in the number of our customers choosing to use mobile banking as a primary source to gather information about their personal accounts,” Gordon says. “As we look at the past year, the primary changes that we’ve done to our services have been really to make the product and capability easier to use for our customers.” BofA has rolled its mobile offering out to all of the major mobile platforms and applications, including a new iPad app.

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  • Banks Fight Disintermediation With Personal Financial Management Tools

Bank Systems & Technology

Banks must ramp up their PFM offerings to help customers realize their financial goals and to avoid disintermediation. Personal financial management tools represent a win-win situation for banks and their customers. But they also present a potential threat to banks. By creating a better user experience for customers and allowing banks to get a good picture of their customers, PFM solutions can benefit both banks and customers. And according to a November 2010 report by Pleasanton, Calif.-based Javelin Strategy & Research, banks are in an ideal position to offer these types of tools through their online channels.

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  • Personal shopper: App tracks email receipts

Boston Herald

Slice is a new app that’s linked to email accounts and manages ordered, shipped and delivered purchases with the precision of the NORAD Santa tracker. Slice CEO Scott Brady said he and a team of Stanford Business School engineers started building the app using Yahoo accounts because most of those 93 million users have had their accounts for a number of years, and thus have more data to work with (Normandin has used Yahoo for 13 years). There is an iPhone app, however, and a Google version that can be synched up with one Yahoo account per log-on (Google executive chairman Eric Schmidt was an initial investor). Since launching Nov. 15, Slice had processed “a little over 6 million transactions” as of last week.

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  • The 20 Best New Startups Of 2011

Business Insider

From the smallest panoramic camera in the world to a new mobile bank with access to 40,000 fee-free ATMs, startups have launched some cool things this year. Simple wants to get rid of bank fees altogether and become a whole new mobile bank. Founders: Alex Payne, Josh Reich and Shamir Karkal. Funding: Raised $10 million in August and has raised ~$13 million to date. What it is: People keep their money in more than one place and they get charged a lot of money by every bank.

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  • Should Social Sign-in be Used For Financial Services?

Celent Banking

Earlier this week, startup Movenbank came under fire for allowing users to its alpha site to sign in using Facebook credentials. Should Facebook be used to identify and authenticate users at a banking site? Facebook Connect isn’t ready for prime time for online or mobile banking. There are many who are going to disagree with me here, particularly given the popularity of Facebook Connect.

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  • 5 Steps to Take Back Control Over Your Money

Forbes.com

Do you sometimes feel like you’re living paycheck to paycheck and not knowing where your money went by the end of the month? Regardless of how high your income is, what really matters is how much you make relative to how much you spend. If you’re earning $3k and spending $2k a month you’d probably be less financially stressed than if you’re making $8k but spending $9k a month. Here are some steps to help get you back in control over your finances:

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

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

  • 1,000,000+ RSVPs in the past year to events via professional social network Linkedin (Source: LinkedIn)
  • 81% of small businesses now use social media, up from 73 percent earlier this year (Source: Constant Contact)
  • 66% of US adults use social media platforms such as Facebook, Twitter and LinkedIn  (Source: Pew Internet)
  • 2,400 advertising partners for Twitter, up from 600 in June 2011 (Source: Twitter)
  • 53% of young adults ages 18-29 go online for no particular reason on any given day  (Source: Pew Internet)
  • 42.6 billion videos were viewed by the US Internet audience in October 2011, an all-time high (Source: comScore)
  • 3.5 billion videos are watched on YouTube every day (Source: YouTube)
  • 60% user growth so far in 2011 for professional social network LinkedIn (Source: LinkedIn)
  • 50% of US adult cell phone owners have apps on their phones, up from 43 percent in May 2010  (Source: Pew Internet)

“Show Me The (Mobile) Money”– A Case Study in Monetization

*This blog was originally posted on The Intuit Network

In this week’s Predictions Webcast, IDC’s Chief Analyst Frank Gens declared 2012 the year “Mobile Wins,” meaning we’ll see tablets and smartphones handily outpace their PC predecessors. While this isn’t necessarily a shock– mobile has been barreling toward us all for some time now– the concept of effectively capatalizing on mobile reamins a hot topic.

In the following presentaiton from SIAA’s “All About Mobile Conference,” Intuit’s own John Flora shares how Intuit Financial Services is helping mid-sized banks and credit unions serve their customers at their point of need in the cloud, on a tablet or even a smartphone. It all starts with focusing on “real customer problems” and designing for seamless experiences.

What We’re Reading: Online Payments, Tablet & Mobile Banking and Cyber Monday

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.

  • Online Payments Shifting from Debit to Credit Cards, Report Finds

American Banker

Assuming new Federal Reserve Board rules regulating debit card interchange stand, total U.S. consumer payments volume from online use of credit cards will climb 63% during the five-year period from 2011 to 2016, while debit card online-payment volume will rise by just 2%, according to Javelin Strategy & Research’s latest Online Retail Payments Forecast report. “After several years of declining use, credit cards are poised for resurgence,” Beth Robertson, Javelin director of payments research, said in a Nov. 28 press release. “Despite the nation’s very rocky economic recovery, consumers appear to have halted their belt-tightening, and bank incentives to use credit cards rather than debit are gaining appeal.” Javelin predicts a 16% increase from last year in the U.S. online market as retail e-commerce sales rise to $309 billion in 2011 and to $444 billion by 2016.

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  • Yodlee Taps Open Solutions for FinApp Partner

Credit Union Times

Yodlee Inc. said Open Solutions Inc. of Glastonbury, Conn., will be the California company’s first channel partner to offer its customizable personal financial management platform and app store for institutions. The Yodlee Platform with FinApp Center includes a consumer-driven marketplace for personalized financial applications. Yodlee said it certifies each FinApp so financial institutions can choose and present secure, personalized functionality through their own websites, the company said. The FinApp center will be integrated into Open Solutions’ DNAweb online banking system, the companies said.

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  • Alt Marketing: Bank of America Helps Feeding America on Cyber Monday

NetBanker

Yesterday, NetBanker looked at several financial institutions using Black Friday/Cyber Monday to promote banking products. But it’s also a great time to focus on community outreach and charitable pursuits, a tack taken by Bank of America.  The bank is supporting Feeding America, which leverages a small amount of cash, into a large number of meals by tapping bulk food donors. It says that every dollar donated translates into 8 meals. Bank of America’s is providing $1 million outright plus an additional $500,000 pledged in matching funds.

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  • Banking by smartphone catches on, will increase

Pantagraph.com

With telephones now serving as de facto personal computers for many, financial institutions are rapidly jumping on the mobile banking bandwagon. “It’s exploding the way Internet banking exploded a few years ago,” said Debbie Jemison, a spokeswoman for the Illinois Bankers Association. A 2010 survey showed that, while just 27 percent of banks in Illinois offered mobile banking, 89 percent of the others were looking to add it in the near future. Banking via smartphone is also an aspect of finance that PNC Bank’s Area Regional Manager Jason Pals did not see coming when he entered the industry in 2000. “Of course no one was using mobile banking, but estimates are 40 percent we’ll be using it by next year,” said Pals.

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  • Banks scrambling to serve tablet users

Reuters

With the success of Amazon’s new Kindle Fire tablet on the heels of Apple’s pioneering iPad, the growing number of tablet users like Davis who want to do their banking on the device are likely to notice something lacking in the experience. Of the nation’s biggest banks, only 30 percent offer a tablet-specific app, says Mary Monahan, the head of mobile devices research at Javelin Research & Strategies. And that’s just for iPad users. So far, none of the banks have a specific application for iPad’s Android-based competitors that are gobbling up market share, including Kindle Fire. “We’re seeing the opportunity coming alive right before our eyes,” says John Flora, director of product management for mobile for Intuit Financial Services

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  • Banks Stumble Along Tech Frontier

Wall Street Journal

In September, Google Inc. introduced phones that are embedded with a chip that allows consumers to make payments by tapping their phones against a device at the cash register. Visa Inc. and MasterCard Inc. are backing the technology, and merchants such as American Eagle Outfitters Inc., Jack in the Box Inc. and Macy’s Inc. are accepting the payment method. For mobile payments to take off, “something has to be in it for the consumer and something has to be in it for the merchant,” said Paul Galant, chief executive of Citigroup’s Global Enterprise Payments group, which designs payment solutions for consumers, corporations and governments. The banking industry, led by J.P. Morgan Chase & Co., flooded customer mailboxes with new cards that cost $2 to produce, compared with 20 cents for a traditional card with a magnetic strip.

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