What We’re Reading: Unbanked, Twitter, BYOD

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.

 

  • Gruenberg: Cell Phones May Hold Key to Access for Unbanked

American Banker

The Federal Deposit Insurance Corp. plans to issue a report next year exploring whether cell phones could help draw consumers not served by a bank into the mainstream financial system, the agency’s chief said Thursday. “We want to take a hard look at this issue from the perspective of economic inclusion to try to assess what the potential is here in a careful way of using this technology to expand access,” FDIC Chairman Martin Gruenberg said at a conference hosted by the Consumer Federation of America.

Read more 

 

  • New Twitter Rules Stymie Credit Unions From Promoting Themselves

Credit Union Journal

New rules from Twitter have thrown a wrench in the social media works for some credit unions that want to use promoted posts to break through the clutter and highlight their offerings on the popular social networking site. Peach State FCU entered the social media realm in October with Facebook and Twitter profiles, using promoted posts on each site. (A promoted post pays the site to expose the tweet or post to a larger number of users.) But a recent change to Twitter’s rules sometime in November has shut out some credit unions from using this common business marketing practice. “We had some luck with Twitter in October doing promoted tweets and promoting the account as a whole,” said Meredith Olmstead, founder and social media marketing consultant at Social Stairway, who is serving as a social media consultant for Peach State.

Read more 

 

  • Mobile Wallet Collaboration Crucial for CU Success

Credit Union Times

A mobile wallet will only be successful if members adopt and consistently use the app to conduct daily transactions. Ultimately, merchants will play a critical role in the success or demise of each mobile wallet solution. Forging mutually beneficial relationships with merchants, navigating the various merchant requirements including point-of-sale technology preferences and negotiating pricing agreements can be a daunting, if not impossible,  feat for an individual credit union to accomplish, regardless of its size or resources.

Read more 

 

  • NAFCU – Strategic Growth Conference

The Financial Brand

According to data from FindABetterBank, consumers who are specifically interested in mobile banking services are very likely to believe they’ll bank 100% virtually in the future. While fewer banking “traditionalists” (those using checks, for instance) see an all-digital future, it’s still a healthy percentage — nearly two-thirds.

Read more

 

  • Security and BYOD policy management key barriers to corporate mobile banking

Finextra

Corporate treasurers cite security challenges and bring-your-own-device business policies as the key obstacles to wider uptake of mobile banking platforms for treasury activities. Of 135 finance and treasury professionals collared by Capital One at the annual Association for Finance Professionals (AFP) gathering, barely one-in-three used a corporate mobile banking platform. Security challenges with sensitive corporate data was cited as the primary barrier to widespread adoption (66%), followed by obstacles for companies figuring out their BYOD policies (24%).

Read more

 

  • Banks Face Losing To Google And Amazon, While Shortchanging Corporate Clients

Forbes.com

Two strong critiques of banking in the Financial Times today. Francisco Gonzalez, CEO of BBVA bank, writes that banks can expect competition from Amazon, Google and Facebook. BBVA is based in Spain but owns BBVA Compass in the U.S. Goonzalez writes that technology has transformed many businesses — next in line is banking. That may come as something of a shock to bankers who think they are on the cutting edge, but Gonzalez points to competitors in providing financial services including PayPal, Square iZettle, SumUp and Dwolla.

Read more 

 

  • Email Design: Discover Card’s “Statement Available” Message

Net Banker

Most statement alerts are simple one liners asking the user to do all the work: login, find the right tab, click on the correct button, and so on. Discover, on the other hand, positions key summary information right within the body of the email: statement end date, statement balance, credit available, minimum payment due, and due date. The company includes a button to view the statement at the top, but somewhat buries the payment link near the bottom. Analysis: This is one of the better (maybe best) statement-available message I get from the major brands. But it could still be improved

Read more 

 

What Small Businesses Can Teach Us About Technology

For the majority of businesses, IT is a DIY proposition – do it yourself. That’s because most businesses are small businesses, which makes information technology decision-making at the Mom and Pop shops a DIY affair, far different than their larger business counterparts, where procurement is a managed process.

While the mechanics of technology decision-making for SMBs differ from those at large enterprises, their early embrace of the “Bring Your Own Device,” aka BYOD, strategy has lessons for the industry as a whole.

Try replacing a small business employee’s iPhone with a business-friendly BlackBerry and see how far you get. Chances are employees are using their own phones on the job. This consumerization of IT, in which consumers bring their own devices to work, is increasingly the rule at SMBs, not the exception.

This raises many questions for employers.

  • How can I connect these devices to existing services, including email and payment processing?
  • How can I protect against loss or theft?
  • How do I make sure company data doesn’t leave if the employee finds a new job?

The costs associated with these questions sound extreme, but the benefits of a BYOD strategy will, in most cases, more than offset the costs. Not surprisingly, when employees use devices they like and have chosen for themselves, they’re happier.

And there are hard savings as well. By putting employees in charge of their technology, a BYOD strategy also shifts the responsibility for managing and maintaining – and in some cases, purchasing – that device to the user, reducing the overall company’s technology costs. The small business that lets its people use their iPhones is the small business that doesn’t have to buy them corporate devices.

Aside from the discussion of benefits and downsides, a bigger question remains: Why is BYOD so popular?

The answer lies in a simple but infrequently acknowledged truth: Most business technologies deployed to users aren’t designed for users. They’re designed instead for buyers, whose agenda is far different than their individual employees. For decades, enterprise technology vendors courted CIOs, IT managers and other buyers with promises to make their life easier: automate deployment, ease the pains of management, and lock down individual devices so that users required permission to install even a new browser. The user experience, the interface’s aesthetics and any functionality not directly related to the business were afterthoughts, if they were thought of at all.

And then everything changed.

Five years ago this past January, Steve Jobs unveiled the iPhone, forever transforming the way we communicate. For the first time, users had a device that was designed not for the employer and not for the carrier, but for no one other than the person using the device.

With its first mobile phone product, Apple not only leapfrogged every other device manufacturer on the planet, they completely reset users’ expectations. No longer would we have to settle for a device that was clumsy and awkward to use – which described virtually every device built for businesses. Users revolted and embraced, and today you see iPhones, iPads and dozens of other consumer-focused devices tacitly, even explicitly, supported within the enterprise.

For the businesses, then, the lesson is simple. Think carefully about who your customer is and who you’re building for. Because if you forget about the person who actually has to use your product, you can be sure that someone else won’t.

*This post originally appeared on the Intuit Network

About Stephen O’Grady:
Stephen O’Grady is an industry analyst and cofounder of RedMonk. He is based in Maine, a frequent traveler, ardent RedSox fan and focused on helping companies understand developers better and, in general, helping developers do what they do best. He is a paid contributor to the Intuit Network.