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.
- Data Losses Overall Are Up, But Bank Data Breaches Are Fewer: Report
A report released by KPMG on Tuesday finds that globally, there’s been a 40% increase in the number of publicly disclosed data loss incidents in the past two years. However, financial services firms have seen an 80% decrease in number of incidents in the past five years. The improvement is a result of effort on the industry’s part, Greg Bell, global and Americas service leader for information protection at KPMG says; “Financial services organizations have done a much better job at defending themselves from cyberattack,” he says.
- JPM Plans ‘Organic’ Growth Through Technology, Job Cuts
JPMorgan Chase, the country’s largest bank, on Tuesday convened its top executives to discuss its growth strategies. A major component: cutting a net 17,000 jobs over the next two years. But more notable than the job cuts, composed largely of planned attrition in JPMorgan’s consumer bank and about 15,000 cuts in its mortgage operations, was the bank’s resigned attitude about boosting business while waiting for interest rates, regulatory pressures and the overall economy to improve.
- What Banks Need To Know About Vendor M&As
The recent Fiserv/Open Solutions and FIS/mFoundry deals suggest that the banking industry is going through another wave of vendor consolidation. In 2009, within IDC Financial Insights’ FinTech 100, we lost only two vendors through acquisition. Last year, the number doubled again to eight. The main reason continues to be that companies must increase scale in order to make money in such a competitive environment. Vendors have realized that they need to figure out how to grow organically, acquire competing or complimentary solutions, or become an acquisition target themselves.
- Intuit Founder: ‘Success Makes Companies Stupid’
Intuit’s founder, Scott Cook, believes that success can actually be dangerous to the company. At a seminar with Harvard Business School faculty, he said that “Success is a powerful thing, it tends to make companies stupid, and they become less and less innovative.” According to Harvard Business School Working Knowledge, Cook argues that companies need to adopt the lean startup model pioneered by Eric Ries. That means “launching as quickly as possible with a “minimum viable product,” a bare-bones creation that includes just enough features to allow for useful feedback from early adopters. The company then releases a quick succession of product upgrades, forming hypotheses and conducting experiments with each new version along the way.”
- Seven Killer Apps All Small Business Owners Should Add to Their Everyday Operation
If you don’t already know about Mint, you’ll be glad you do now. A subsidiary of Intuit (the makers of TurboTax and Quicken) Mint is a free web-based tool that manages your personal finances, provides an in-depth look at all of your expenses, and even helps set budgetary goals to help you stay on track. By organizing all of your expenses, you can keep a close eye on every penny you spend on business supplies, gas, food, utilities, etc. When your budget is limited, it’s certainly important to stay on top of your finances in order to reach your goals
- As Financial Firms Go Social: The Key Is Integration
Actiance provides a customizable platform Socialite that firms can use to monitor social media as it is used by its advisors, and ensure that it’s compliant. “Companies are starting to realize that doing social media is not a point product,” Actiance CEO Kailash Ambwani said when asked about his expectations for 2013. “It’s something that needs to be integrated into the firm’s enterprise platform. And it requires resources, overseeing and management.”
- It Was A Wonderful Life: How Banks Can Revive Their Reputations
The banks’ Financial Trust Index remained stagnant at 28 percent for December 2012. In other words, three out of four Americans don’t trust their financial institutions. That’s a far cry from the days when public confidence sat at 75 percent–a figure that stood for more than three decades after Clarence got his wings. More specifically, Ernst & Young’s Global Consumer Banking Survey 2012 finds that the number of consumers planning to change banks grew 5 percent last year; that customers with only one bank (also known as brand loyalty) fell 10 percent last year; and that customers with three or more banks are up 11 percent from 2011.
- The Future Of Mobile Banking Fueled By Smartphone Cameras
The impetus for financial institutions to provide mobile remote deposit capture and mobile photo bill pay is growing. A full 58% of iPhone users finding mobile deposit desirable, and 42% of mobile bankers say they’d like to use photo bill pay. Currently, 40% of all consumers and 66% of mobile bankers find mobile RDC desirable. Another 15% want it but their financial institution doesn’t offer it. This according to a report from Javelin Strategy & Research, who also says that 64% of the top 25 retail banks in the U.S. are now offering mobile deposit.
- Card Networks Take On Plastic With Mobile Platforms
The world’s largest payments networks are angling to capture more electronic transactions by eliminating plastic from the equation. Visa Inc. and MasterCard Inc. on Monday unveiled industry partnerships and technology systems intended to make it easier for consumers to make purchases online, on mobile devices and in physical stores without having to pull out a credit or debit card. MasterCard said its new MasterPass platform will allow cardholders to store their card information in a single software program that can be used to make payments through merchants who sign up for their service.