Stat of the Week: Workers spend own money on tech

Source: Forrester Forrsights Global Workforce Benchmark Survey, Q4 2013

Why Hasn’t the U.S. Adopted EMV?

EMV chip technology is not new, but why hasn’t the U.S. gotten on board?

With advanced security, endless technology benefits and success in many other markets, it can be confusing as to why Americans are not already seeing widespread use of EMV technology. After the 2013 breach of Target credit cards during the holiday shopping season, business leaders, including Target’s CFO, are now calling for acceleration adoption of the technology.

So why isn’t this more widespread? This infographic breaks down the benefits of the card and some potential  reasons why the payment technology hasn’t been widely adopted in the US.

What do you think about EMV? Will it still be Europe-only?

 

Smart Cards
Source: ComputerScienceDegreeHub.com

Stat of the Week

Here’s this week’s stat of the week, courtesy of the International Data Corporation (IDC) Worldwide Quarterly Smart Connected Devices Tracker.

Do you have an interesting industry stat you think should be featured on Banking.com? Let us know in the comments section or Tweet @bankingdotcom.

Stat of the Week - 6 24

Stat of the Week

Here’s this week’s stat of the week, courtesy of the Accenture 2014 North America Consumer Digital Banking Survey.

Do you have an interesting industry stat you think should be featured on Banking.com? Let us know in the comments section or Tweet @bankingdotcom.

Accenture Stat of Week 6 9 14

The Mobile Takeover – Where your users are [INFOGRAPHIC]

Mobile.

You don’t need us to underscore its importance. Nevertheless, this infographic from Surge Digital is a good roundup of usage statistics to share with your teams.

What do you think of the insights below?

 

surge-mobile-marketing-infographic

Tax Time & Financial Institutions: Data from Digital Insight

The tax filing deadline is rapidly approaching, and for many consumers that means looking through last year’s financial records for various items like charitable contributions or tax deductions. Digital Insight, which offers TurboTax ® for Online Banking to its financial institution (FI) customers, took a deep dive into how consumers are using tax software and how it can benefit FI’s. Through tax exit studies and surveys, Digital Insight was able to see how the tax preparation software helps FI’s with customer engagement and retention. Below are key findings from the study, and you can view a more in-depth analysis here.

And, you can view previous Digital Insight studies on mobile banking behavior and online banking. 

Intuit, TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties’ trademarks or service marks are the property of their respective owners.

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Is Your Financial Services Business Catering to Women? If Not, You’re Missing Out

Emily Doubet, Insights in MarketingA woman’s influence on the financial service category is strong, with 93 percent (or approximately 148 million women) saying they have complete or some influence on the financial services purchase decision. According to a recent Prudential Research Study, women are more in control of their finances than ever. They’re also earning more advanced degrees, filling more leadership roles at work and earning higher salaries than ever before. While 53 percent of women are primary breadwinners, they’re facing a number of challenges when it comes to financial decision-making.

Some firms have, indeed, taken notice. Citigroup, for example, offers a service called Women & Co, which links finance information/resources to various aspects of her life including: career, family, home and lifestyle. Similarly, Prudential has a Women & Money Sector, which includes a “Manage Family & Relationships” resource. While it’s promising that these companies are recognizing the need for such specializations, the question remains: Are they talking to her effectively?

Insights in Marketing, LLC, a marketing research consultancy based in the Chicago area, believes financial services businesses are struggling to effectively communicate with women. In our survey of 1,300 women and 200 men about which of the top brands effectively market their products and services, only 4 percent of women say Charles Schwab markets their products/services effectively to them and, only 3 percent say TD Ameritrade markets their products/services effectively to them. According to the Harvard Business Review, the financial services industry is the least sympathetic industry to women—and one in which companies stand to gain the most if they can change their approach.

Women have different needs, values and personalities.  Insights in Marketing defined five different psychological profiles (FBI ProfilesTM) that women fall under, and each of those profiles is designed to help businesses communicate more effectively with women. For example, a Profile 1 woman accounts for 26 percent of all women, and is the profile most engaged in the financial services category. These women have the highest household income and image, premium quality and convenience are important to her.

When it comes to finance, these women are more likely than others to:

  • Stay up to date by reading financial news/financial publications
  • Discuss her knowledge of the industry with others and recommend products/services she likes to other people, but also likes learning about financial products or services from others
  • Save her money for a specific purpose
  • Have others seek her advice when it comes to financial matters
  • And most importantly, she finds the rollercoaster (ups and downs) of the financial markets exciting, and is more willing to take risks when investing in hopes of a high return on investment

So how do you win her loyalty?

First, financial services organization need to show her that they recognize the need to talk to her directly. Let her know that you care about her needs and want to help. You should also:

  • Make her feel important and valued (don’t talk down to her). She is smart & savvy
  • Exhibit stellar customer service; make her feel important and special
  • She is busy so save her time
  • Show her how your product/service fits easily and conveniently into her life. For example, show her the ease and capabilities available via her smartphone
  • Simplify your offerings. Provide easy quality measures or comparisons on the bank’s website, and explain what separates your bank from other brands. If not, she will find it on someone else’s site
  • Make sure the sales team is well trained to identify her sensitivities
  • Explain any service benefits, such as first-time service discounts, perks/rewards, etc. Assure her that you are at her disposal and always available to help her. Small gestures will go a long way

Women offer an enormous opportunity for those in the financial services industry, but first, you must know what she wants and how to give it to her. Start a dialogue today, and you may discover your most loyal customer, yet.

 

Emily Doubet is the Consumer Intelligence Manager at Insights in Marketing. She has more than 8 years of supplier-side marketing research experience and has worked with some of the world’s leading brands at both the domestic and global levels. 

To learn more about Insights in Marketing and their Female Behavioral Insight Profiles (FBI ProfilesTM) visit insightsinmarketing.com. For more ideas on how to elevate your marketing to women, download Insights in Marketing’s latest eBook “Getting Women to Buy:  Better Insights to Transform Your Marketing” here.

The Top 10 Trends in the Digital Banking Industry

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions. What do you think about the trends below? Which one do you think rings most true for 2013 and 2014?

*click on each image to enlarge it

 

1. U.S. Consumers continue to favor large financial institutions. There are over 13,000 chartered financial institutions in the United States, yet close to three-quarters of all deposit dollars are held by just 100 financial institutions. Although deposits are flowing into large national banks, an opportunity exists to gain market share for regional & community financial institutions by offering consumers the most relevant services available in the market today.

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2. The U.S. population is aging and changing banking behaviors. 39% of the U.S. population over the age of 44, compared to 34% 10 years ago. New consumers opening their first account at a financial institution represent a demographic that is different than five to 10 years ago, meaning an “older” consumer is opening up their first account with the bank and/or credit union.

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3. Younger generations are becoming more active bill pay users. Although the population is aging, the age of active bill pay consumers is declining, with Gen Y consumers becoming more active bill payment users. In addition, mobile banking consumers are 14 years younger than offline bankers.

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4. Boomers and Seniors are engaging in digital banking. Although Boomers and Seniors have tended to be late to technological adoption, these groups are showing an increasing willingness to engage in digital banking! The traditional product curve for online banking reveals early adopters are younger demographics who embrace technology, have grown up with a computer and internet access, and value anytime/anywhere convenience. Technology services such as email, Skype and eBay have become increasingly popular with Boomers & Seniors, and as their technology comfort level grows, so does their adoption of online banking.

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5. Consumers are moving to mobile-only banking. More and more consumers are starting to “ditch” their PC and rely solely on their phone and/or tablet to conduct their banking needs. Mobile-only banking is increasing, while PC-only banking has declined over the past year. One challenge that financial institutions face from mobile banking is the inability to grow cross-selling opportunities through the online and branch channels.

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6. Mobile bankers are early adopters. The majority of mobile users become engaged in mobile banking early in their digital banking lifecycle. Of new consumers who adopt mobile, 62 percent adopt within 90 days of registering for Internet Banking. Mobile banking leads to higher engagement for financial institutions’ customers. Over a month-long span, the average offline banker visits the branch two times and the ATM three times; a total of five touch points. When compared to an engaged online banker, the financial institution has three times the opportunity to cross sell to this customer.

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7. Digital bankers user multiple devices to connect with financial institutions. Now more than ever digital banking consumers are using multiple ways to interact with their primary financial institution, and the trend of consumers using multiple “touch points” continues to rise. Approximately 40 percent of digital bankers are using multiple devices to access their financial information.

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8. More devices means more time online. As consumers use more devices to interact with their financial institution, they spend more time on their financial institutions’ website. This provides financial institutions additional opportunities to cross-sell their most profitable products to their customers. Online bankers spend approximately 38 minutes per month on financial institutions’ websites.

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9. Mobile remote deposit capture is changing consumer behavior. Mobile features, such as mobile remote deposit, are changing how consumers interact with their financial institutions. For banking and credit unions, cross-sell opportunities will become increasingly relevant as more consumers rely on the digital banking channel to conduct transactions and become less dependent on brick and mortar visits. Consumers who adopt mobile remote deposit capture display similar deposit activity to consumers who never use remote deposit, but once mobile remote deposit consumers start actively using the service, they quickly become less dependent on the branch.

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10. Personal financial management users are more engaged with their financial institution. The percent of consumers aggregating outside accounts into their online banking experience has doubled in three years. Consumers are able to see their entire financial picture in personal financial management (PFM) solutions, which means intelligent cross-sell opportunities are growing dramatically. Consumers who enrolled in FinanceWorks (Digital Insight’s PFM offering) in 2012 were two-times more likely to aggregate outside accounts than consumers who enrolled in 2009. FinanceWorks consumers log-in 54 percent more frequently than online bankers without FinanceWorks.

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About Heather Youngo:  Heather is a business analyst with Digital Insight and leads the initiative on generating and maintaining the accuracy of financial institution profitability data.  Heather holds a Bachelor of Business Administration degree in marketing from the University of Georgia.

The data used for this article was analyzed by the following Digital Insight team members: Jason Weinick, manager of analytics, Ann Gladstone, business analyst, Fatai Bamidele, senior business analyst, Brenda Shimmons, manager of analytics and Denis Kimondo, senior marketing analyst.

The Bank and Credit Union Marketing Opportunity: Small and Home Office

This article originally appeared on CUGrow.com.

I enjoyed participating in the Digital Insight, Barlow Research and Banking.com Twitter Town Hall chat. The discussion revolved around findings from Barlow Research in the small and home office market. Below are some key tweets from the session along with insights from my perspective. I believe there is a big opportunity for credit unions to tap into the small and home office (SOHO) market segment. What if credit unions who currently engage the consumer market were to offer solutions for the SOHO market that not only provided financial services but also a community market place?

The SOHO business members could provide relevant offers to the consumer members as the credit union acts as a commerce conduit, providing financial services to both market segments. The success of this would be dependent on other factors, but imagine the possibilities of a credit union building a united community bringing together buyers and sellers. Another thought would be to target the Gen-Y SOHO segment and offer some kind of business incubator service. Imagine if your credit union were to hold bi-yearly SOHO contest allowing members to vote for the best business idea. How many leads could your credit union generate for loans and new accounts both from the consumer market as well as the SOHO market?

Like any new opportunity, let’s begin by first exploring the small and home office market segment itself. Market segmentation (watch the video) can be a way for your credit union to find new blue oceans in a digital economy.

What is the Small and Home Office (SOHO) Segment?

The small and home office segment could be defined as a business with less than $100,000 in annual sales revenue. According to the study, this segment is overlooked and ignored by almost every major bank.

 

 

 

Is there a way for credit unions to make money in this segment?

As credit unions focus on serving the underserved in the community segment, could they do the same for the SOHO segment? Is this even a viable market segment to focus on as a way to generate revenue through loans and accounts?

Will digital play an important role in the SOHO space? 

What if a credit union is focusing on Gen-Y growth right now?

If a credit union is currently targeting Gen-Y growth, the SOHO segment may complement these efforts nicely. Remember that bi-yearly SOHO contest mentioned above? Think about the number of leads, both from the consumer and SOHO markets, this could generate for a credit union.

What are other important things a credit union should consider?

As I have continued to repeat, operating in a digital economy will require credit unions to re-imagine their current business models and tear down internal silos. In addition to providing financial services, credit unions could build credibility with the SOHO market by providing relevant on-demand educational content and a digital community (similar to the OPEN Forum) along with complementary services.

What if credit unions who currently engage the consumer market were to offer a solution for the SOHO market that not only provided financial services but also a community market place?

The SOHO business members could provide relevant offers to the consumer members as the credit union acts as a commerce conduit providing financial services to both market segments. The success of this would be dependent on other factors but imagine the possibilities of a credit union building a united community bringing together buyers and sellers.

What happens if a credit union does not explore new market segments like SOHO?

As we are seeing on the consumer side of banking, non-traditional players will continue to disrupt the marketspace. The SOHO market could be an area to focus on for strategic change. If not, someone else may do just that. It’s only a matter of time.

Barlow Small Office and Home Office Study: Mobile and Payments

There is a significant business market that is being ignored by almost every major bank. Many know this market as the small office/home office (SOHO), non-employer or personal business segment — generally thought to be businesses with less than $100,000 in annual sales revenue.

Today, November 14th, at 1:00 pm ET/10:00 am PT, we will host a #SOHOStudy Twitter Town Hall with colleagues from  Barlow Research and Digital Insight. In advance of this event we wanted to share some insights from Barlow’s research on mobile and payments.

Let us know what you think about the data and we look forward to seeing you on 11/14 at 1:00 pm ET. If you have not yet registered yet, you can here.

Please view the infographics below and download a PDF with additional data here.

Barlow SOHO Study Mobile Infographic

Barlow SOHO Study Payments Infographic