What We’re Reading: Corporate Mobile Banking, Mobile Banking in 2012 and Virtual ATMs

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.

  • A revolution coming in corporate mobile banking

ABA Banking Journal

The corporate mobile banking market has matured quite a bit, and a slew of new devices, cheaper data plans, and faster networks are upon us. Business mobile users have the opportunity to take advantage of rich and powerful mobile banking services, provided their bank has an offering, according to a recent report from Celent. Adoption of corporate mobile banking solutions has clearly been slow moving. It’s going to be an uphill climb to bring more banks on board. It’s still a question of matching up client demands, IT budgets, and product prioritizations.

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  • Firms Plan to Boost IT Spending for Customer-Facing Tools

American Banker

Advisors seeking better client communication tools are likely to have their wish come true. Wealth managers indicated in a survey report from Celent that they are likely to add or enhance client relationship management systems and client-reporting and client-facing technology tools within the next two years. Advisors want to communicate better with clients, said Alexander Camargo, an analyst at Celent and co-author of the report on wealth management IT spending. “The new tools being developed allow advisors to gain insight into clients” and achieve a better picture of their wealth, he said in an interview. ”

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  • Using recess power, Obama putting Cordray in job

Associated Press

In a defiant display of executive power, President Barack Obama on Wednesday will buck GOP opposition and name Richard Cordray as the nation’s chief consumer watchdog. Outraged Republican leaders in Congress suggested that courts would determine the appointment was illegal. With a director in place, the new Consumer Financial Protection Bureau can start overseeing the mortgage companies, payday lenders, debt collectors and other financial operations often blamed for practices that helped tank the economy. Even before Obama announced the move in an appearance in Ohio, Cordray said he would begin work right away.

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  • Last Year Witnessed a Mobile Banking Lift Off

Credit Union Times

In the span of just 12 months, a revolution in financial transactions has occurred. Mobile banking has shifted from nice to have to must have at credit unions across the country as a stampede of institutions have embraced the idea that members demand the convenience of banking from the palm of their hands. “About 3,000 of some 14,000 banks and credit unions in the country now offer mobile banking,” said Drew Sievers, CEO of mobile banking apps developer mFoundry. “We sell mobile banking to a new financial institution every 26 hours.” At Fiserv, Kelly Rodriguez, director of strategy, sees similar penetration, “About 30% of credit unions now offer some form of mobile banking.

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  • New law would make it easier to switch banks

CBS News

Switching banks is something a lot of people resolved to do last year because of new fees and being fed up with banks’ behaviors. Even so, a lot of people didn’t switch because of all the hassle involved. Now, just as the banks look to be raising fees again, a new law in Congress would make it easier to switch banks by letting you keep your account number — just like you can now keep your phone number. While Bank of America (BAC) and other major banks backed down over plans to charge a fee just for having a debit card, other fees look to be on their way.

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  • Diebold Virtualizes ATMs To Secure Banking Data

InformationWeek

Diebold seeks to close vulnerabilities by moving customer data off physical machines onto virtualized ATMs on protected data center servers. Automatic teller machine maker Diebold has taken a novel approach to protecting bank customer data: virtualization. Virtualized ATMs store all customer data on central servers, rather than the ATM itself, making it difficult for criminals to steal data from the machines. In places including Brazil, customer data has been at risk when thieves pulled or dynamited ATMs out of their settings and drove off with them. With threats increasing worldwide at many retail points of sale, such as supermarket checkout counters and service station gas pumps, Diebold needed to guarantee the security of customer data entered at the 50,000 ATMs that it manages.

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  • Survey of mobile insiders says financial companies to define mobile payments

Mobile Payments Today

Industry analyst Chetan Sharma has published his annual survey of mobile industry insiders. Sharma solicited the opinions of 150 mobile execs, developers and “insiders,” to gauge what areas to watch in 2012. In many ways, the results of the 2012 survey look similar to 2011′s results, with mobile payments and mobile commerce once again chosen by panelists as the “breakthrough categories” for 2012. Nearly 60 percent of those surveyed said mobile payments would experience a breakthrough this year, and 40 percent said the same for mobile commerce. Of the companies involved in mobile payments, nearly 40 percent of respondents said financial companies will continue to define the space, up from slightly more than 30 percent last year.

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What We’re Reading: Technology Trends for 2012, Credit Union Uptick and Protecting Your Identity

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.

  • Postal Woes Spell Opportunity for Online Banking and Bill Pay

American Banker

The U.S. Postal Service has announced a number of proposed steps to slash costs in recent months, after losing $5 billion last fiscal year. The agency is projecting greater losses going forward, as mail volumes continue to decline. “We’re talking inevitably about a significant and universal disruption of one of the most entrenched networks in this country, affecting every single household,” says Eric Leiserson, a senior research analyst at Fiserv Inc. “Disruption means bills get lost, payments get lost and payments are late.”

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  • 8 Bank Technology Trends That Will Shape the Industry in 2012

Bank Systems & Technology

With IT budgets finally rebounding, BS&T identifies the eight trends that will shape tech spending in 2012 and determine banks’ competitive positions for years to come. For the past several years, bank IT budgets generally remained flat. The financial crisis and ensuing fallout forced belt-tightening across the industry. In 2011, however, bank IT executives finally enjoyed some breathing room thanks to some revitalized spending power.

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  • New law would make it easier to switch banks

CBS News

Switching banks is something a lot of people resolved to do last year because of new fees and being fed up with banks’ behaviors. Even so, a lot of people didn’t switch because of all the hassle involved. Now, just as the banks look to be raising fees again, a new law in Congress would make it easier to switch banks by letting you keep your account number — just like you can now keep your phone number. While Bank of America (BAC) and other major banks backed down over plans to charge a fee just for having a debit card, other fees look to be on their way.

Read more

  • 2011 changed the way we manage money

Chicago Tribune

Remember way back in the first part of 2011, when Washington was arguing about taxes, homeowners were having trouble getting refinanced and investors were dumping gold? Hmmm … that makes it seem like 2011 was an uneventful year. But 2011 forever changed the way you’ll manage your money. The Chicago Tribune provided an overview of the big financial stories of the past year.

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  • Three New Ways to Protect Your Identity in 2012

Forbes

Don’t start 2012 as the victim of identity theft. Your bank account isn’t the only casualty of identity theft and fraud; time is another significant cost. The average identity fraud case will cost a consumer 33 hours to resolve—equivalent to more than four work days. CreditKarma.com recently launched a new, free credit monitoring service that monitors your credit report on a daily basis and notifies you via email if a significant change is detected. Credit monitoring is one of the best safeguards against identity theft and fraud, and for the first time, it’s totally free.

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  • Credit Unions Booming From Anti-Bank Outrage

NPR

We’re highlighting people, movements and ideas that had a good year, and today we’re going to take a look at credit unions. Credit unions counted more than a million new members this year, according to the Credit Union National Association, which said that 1.1 million new members were added through October of 2011. The latest American customer satisfaction index showed credit union satisfaction scores jumped seven points to record high of 87 out of a possible 100 points. Do you think that this move toward credit unions will continue?

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Video: The Mobile Lifestyle

Intuit Financial Services’ John Flora and Laurie Holmes of Service Credit Union discuss the mobile lifestyle in a video filmed at the BAI Retail Delivery Conference.

10 Resolutions Bank Marketers Can’t Ignore in 2012

*This blog was originally posted on Bank Marketing Strategy by Jim Marous. Jim is a marketing services leader focused on building strategic solutions for the financial services industry. You can follow him on Twitter @JimMarous or connect on LinkedIn.

2011 was year that many bankers, and especially bank marketers would love to forget. Not only was focus diverted by the need to respond to new regulations for the second consecutive year (this time it was the Durbin Amendment), but the image of our entire industry was challenged as foreclosures and bank failures continued to be in the news.

We didn’t do ourselves any favors in 2011 either, as some of the larger banks learned the power of social media when they decided to increase (and then rescind) debit card fees, or when the industry fought internally with Bank Transfer Day.

The biggest impact of all of this noise was that attention was diverted from what should have been accomplished in 2011. As I reviewed my post from last year, Ten Bank Marketer Resolutions for 2011, it is clear that most bank marketers lacked the time/focus to make much progress on any of last year’s goals. So, in writing this year’s Bank Marketer Resolution post, I could have simply posted the same resolutions from last year (similar to what I do with some of my personal resolutions). Instead, I reached out to bank industry leaders from across the globe for their ideas. There was surprising uniformity in their suggestions, and a sense of urgency around the need to achieve much more than last year.

So here are the resolutions bank marketers should not ignore in 2012 according to industry leaders:

1. Validate The Value of Marketing Through Measurement: As highlighted in my recent post 100 Years Later, Marketers Still Have Difficulty Measuring Up, there is still a tremendous gap between what bank marketers implement and what is measured. Not only are there almost 20% of marketers who don’t find measurement of results imperative according to recent research by Ifbyphone, but less that 50% of any channel is measured. Dan Marks from First Tennessee says, “Bank marketers should resolve to measure and optimize true marketing ROI – having the courage to seek out the unproductive part of the marketing mix and replace it with other activities that generate real shareholder returns.” Serge Milman, CEO of Optirate states, “In 2012, bank marketers should resolve to have a more diligent focus placed on business drivers that can help manage and grow the bank,” while Bradley Leimer, vice president of online/mobile strategy at Mechanics Bank said that,  ”The number one resolution for bank marketers in 2012 must be to ‘put data first,’ since the proof of any program resides in the measurement of results.”

Jeffry Pilcher from The Financial Brand added a common sense resolution that is not always followed . . . “stop doing things that don’t work.” It is clear that if only one resolution can be accomplished in 2012, the measurement of attribution and program results is the most important.
2. Don’t Confuse Channel Economy with Channel Effectiveness: One of my resolutions from last year that needs reinforcement is that bank marketers should leverage the measurement mentioned above to ensure that the right channel (and mix of channels) are used for the right customers. While social and digital media seems less expensive, it doesn’t work as well on its own as it does when mixed with traditional channels. In fact, recent research discussed on this blog has shown that for financial services, many of the traditional channels are more desired and effective than new media. In addition, many bank customers are not reached at all with phone, email or social media programs. As mentioned above, 2012 should be the year of improved measurement and improved attribution analysis, which will help to answer the questions around which channels should be used.

3. Be Customer-Centric: Ron Shevlin, senior analyst from Aite Group and author of the book and blog Snarketing 2.0 stated in a recent post, “banks need to be perceived as doing what’s right for their customers and not just their own bottom line.” One of the banks I work with stated it best when they said that customer centricity means:

    • Know who the customer is and what they want
    • Look out for the customer and help them make the right decisions
    • Reward the customer for their patronage with tangible and intangible benefits

Saying you’re customer-centric is not enough, though. “When claiming your bank is customer-centric, actions speak louder than words,” warned Elizabeth Lumley, special projects editor at Finextra. This was especially evident in 2011, when many large banks made fee changes that created an uproar in social media, resulting in reversals of those decisions. To this new phenomenon, Chris Skinner, author of the Financial Services Club Blog suggested, ”Bank marketers should resolve to make 2012 the year where good communication and real transparency ensures that we don’t get screwed by social media campaigns.”

4. Build a Social Media Strategy That Compliments Your Overall Marketing Plan: Instead of engaging in social media because other industries are doing so, it is time to treat social media like other channels, with defined goals, strategies and expected ROI outcomes. “While simply having a Facebook page or Twitter account may have been sufficient in the past, customers are expected to utilize these channels to connect with their bank even more in 2012,” says Karen Licker, financial consultant and social banker (independent) for J.D. Power and Associates. “Given the public nature of these contacts, bank marketers should have a resolution to be aware of these conversations and direct customer outreach, and be equipped to respond quickly to questions or issues raided via these channels.”

Nicole Sturgill, research director for delivery channels at TowerGroup, suggested that bank marketers should resolve to engaging the front line in social media since many don’t realize they are being talked about. Alex Bray, managing consultant at IBM recommended, “Bank marketers should create a clear vision for social media based on a genuine customer value proposition while killing vanity projects that don’t add value.” Added John Owens “In 2012, bankers will need to understand the role and importance of social media to better serve clients and receive feedback.”

5. Leverage Big Data for Better Conversations: There is a lot of discussion in the marketplace about the use of ‘big data’ to transform customer communication and the customer experience. There are very few places where more customer insight is available than in the financial services industry, where we not only have access to demographic and financial service ownership data, but also transactional insight that gives us a view into financial and purchase behaviors. But big data is nothing new, and should not be overwhelming in an environment where the ability to process data has also grown exponentially.

Unfortunately, as was found by Ron Shevlin from Aite Group earlier this year and in a soon to be published report, bank marketers are still not very comfortable with communicating online or through mobile channels using available insights. This may require new talents and new teams according to Brett King, founder of Movenbank, and author of the best-selling book and blog Bank 2.0. ”In 2012, bank marketers should have a resolution to build a team that can create compelling customer journeys in real-time,” states King. “Marketing is no longer about ‘pushing’ messages,” continues King. Fred Hagerman, CMO of Firstmark Credit Union adds, ”Bank marketers should have a resolution to combine web analytics and database knowledge to drive even more relevant communication.”

6. Build Customer Value From Day 1: While there has been a great deal of discussion around the cost of a checking account since the December 9 American Banker article on the subject, there is no disputing the fact that fees alone can’t make a relationship profitable. As a result, it is imperative that bank marketers look at customers as valuable assets to the bank that need to be nurtured and grown through increased engagement, relationship expansion and retention. As stated by Matthew Wilcox from Zions Bank, “2012 is a year when all bank marketers should resolve to have multichannel new customer onboarding programs as well as highly targeted relationship growth initiatives. To not have these programs in place would leave valuable money on the table and risk losing potentially valuable relationships.”

7. Build Bank Value Daily: The past few years have been difficult for our industry, with the faith and confidence in many leading financial organizations being shaken. In 2012, consumers will look for solid value in products and services with every purchase and decision they make. Those organizations that don’t reinforce the value they provide – every day – will be challenged. Dan Marks said that bank marketers should resolve to “refine, renew, and reinforce the bank’s key brand distinction across the entire enterprise – everyone should know and exhibit how the bank uniquely serves customers’ needs.” Steve Cocheo from the ABA Banking Journal suggested a rather straight forward resolution, “Bank marketers need to accentuate trust and value in the communications they develop and strategies they build.” Bank consultant, Lori Philo-Cook seconded this resolution when she recommended, ”Bank marketers should resolve to find new ways to communicate with customers in order to rebuild trust and strengthen relationships.”

8. Innovate: Plain and simple, 2012 is a year where bank marketers should try new things and support innovation done in other areas of the bank. Bryan Clagett, CMO and investor at software services provider Geezeo put it best with his recommended resolution, “Bank marketers should not be afraid to experiment and think outside the box in 2012.” For those organizations where budget, philosophy or other variables may make true innovation challenging, payments pro Scott Loftesness provides a suggestion, “Bank marketers should prepare to be a fast follower, especially in mobile for 2012, unless they have the budget to be an innovator.”

9. Focus on Personal and Professional Development: While the skills needed to do effective bank marketing remain pretty much the same (targeting, messaging, measuring, etc.), the channels available have definitely increased. Therefore, bank marketers can no longer rest on their laurels and hope to succeed in the new marketing environment. More than ever, there needs to be a dedication to becoming familiar with the changes in the marketplace from a product and channel perspective. As stated by bank consultant Jeff Marsico, “The goal for bank marketers is to earn a place at their bank’s strategic planning table and to be more than just an ad budget.” Being aware of the changes in the marketplace can help earn this respect.

For me, I find that following industry leaders on Twitter and subscribing to industry blogs (like mine) are a great way to keep up to speed. Throughout this post, I have provided links to some of the industry pundits who share valuable insights and research on Twitter. Following them will go a long way towards keeping you in the loop. Watching who they follow will further expand your depth and breadth of knowledge. Bob Williams from Harland Clarke put it well in his suggested resolution, ”Bank marketers should resolve to listen, discuss, think, read, and write. In short, they should be part of the conversation.” Community banker David Gerbino provided a more basic, yet important resolution that, “Bank marketers need to resolve that they will understand finance, financial reports, and know how to calculate product profitability.”

10. Don’t Be Afraid to Break From The Herd: The banking industry is notorious for having a ‘herd mentality’, following each other’s lead as opposed to thinking independently. In the past, the logic for doing this was usually based around risk aversion. Today, following other bank’s can be both risky and can inhibit value creative. Look at the events around the raising of debit card fees by Bank of America, where many large banks followed the strategy of Bank of America only to have to follow the bank again as they rescinded the fee. The same can be said for the jumping into the social media waters without a defined strategy. While almost all banks are doing something in social media, very few can define the value it is bringing to their bank or what the ROI on this investment is.

2012 should be the year of breakout opportunity for those bank marketers who want to embrace the challenges associated with change. It is definitely not ‘banking as usual’, but is the environment where market leadership is gained and disruption creates new business models and customer segments.

I doubt if any bank marketer will succeed at all of the above resolutions. There may even be better resolutions than the industry experts provided above. If you have one that we missed, let me know. If you think some of the resolutions above are not valid, let me know as well.

I look forward to your comments and to a very exciting 2012.

Leave us a comment below, or Tweet at the author @JimMarous.