What We’re Reading: Cloud, Tablet Growth, Social Media
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.
- Companies turning to multiple cloud models
As cloud computing becomes a default part of the IT landscape, more companies are relying on cloud computing for business processes such as storage (59%), business continuity and disaster recovery (48%), and security (44%), CompTIA’s Fourth Annual Trends in Cloud Computing study reveals.
- More than Half of Consumers Pay Bills on Mobile Devices: Survey
More than half of consumers worldwide use their mobile devices to pay a bill, according to SAP’s survey of more than 12,000 adults who own a basic mobile device or smartphone. SAP, a financial technology vendor, published the survey Wednesday. “Through our research, and the work we have done with leading global banks, we see the consumer appetite for mobile banking – and the range of services that can be provided via mobile devices – increasing as customers are keen to embrace more complex banking activity,” said Eric Stine, general manager of financial services for SAP America, in a press release.
- Banks Sit On Sideline As Tablet Growth Continues
According to PEW Research Center, tablet adoption has almost doubled over the past year and for the first time, a third (34%) of American adults currently own a tablet computing device, including almost half (49%) of those in their late thirties and early forties and a majority (56%) of those in higher income households. With this platform becoming increasingly important to customers, banks and credit unions can no longer sit on the sidelines and watch as the digital landscape develops around them. Unfortunately, with limited resources, new research indicates that development of native tablet apps has occurred at a snails pace due to limited resources and a focus on developing new smartphone applications.
- Getting Past the Hype with Customer Analytics
There are at least three reasons why now is a good time for financial institutions with no customer analytics experience to take the idea seriously. And for those with customer analytics initiatives, why now is a good time to revisit how and how broadly things are being done. Together, these factors will advance customer analytics from a project undertaken by a minority of banks to a core competency among the majority of financial institutions over the next five years. Yet a small minority of banks have experience with customer analytics.
- The New 80/20 Rule? Pew Study Finds Online, Mobile Adoption Differs
Findings from the Pew Internet & American Life Project show that while 91% of Americans own mobile phones, only 35% of cell phone owners do any banking business through that channel, a 17-percentage-point increase from two years ago. Of those consumers that do mobile banking, the study found an equal percentage of men and women (35%) using the channel, with those between the ages of 18 to 40 with at least some college education being the most likely to use it. Persons with higher household incomes are also more likely to use mobile, as a 13-point gap separates users with incomes above or below $50,000 annually.
- Social Media Can Deliver, With Some Creativity
Recognizing that getting younger consumers to care about savings, life insurance or even the credit union difference, would be challenge, IC Federal Credit Union turned to robot monsters, clay, zombies, a medieval tale and the blues. “The majority of videos out there are unwatchable, because no one wants to hear a credit union explaining their services. Moreover, younger consumers either can’t relate or are not even listening, when you start talking about dry topics like budgeting,” said Jim Pond, co-owner of James and Matthew and Co., the Boston-based digital services agency that created the popular videos. “We wanted to create entertaining, engaging, humorous videos based on what the viewers want to watch, that respect their time. It has to be worth watching,” Pond explained.
- U.S. Bank and Western Union Make Mobile Remittance Transfers a Reality
U.S. Bank and Western Union announced some great news for mobile money transfers: U.S. Bank is now expanding the Western Union Money Transfer service to its online banking and mobile banking platforms. U.S. Bank customers have been able to initiate Western Union transfers at the branch since 2009, but this is the first time in the United States that Western Union’s remittance transfer service will be directly integrated within a mobile banking app. This new development is huge for both U.S. Bank and Western Union, as it allows U.S. Bank to directly compete with the up-and-coming digital remittance players (such as Xoom or Remitly) and provides an excellent revenue opportunity for both players.