What We’re Reading: Customer Surveys, Cloud, Big Data

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.

 

  • What’s new is what’s happening

ABA Banking Journal

It’s big deal when your company is named in a list of the “world’s top 100” anything, and it’s a really big deal when your company is listed on Forbes’ “World’s 100 Most Innovative Companies.” So the people at FIS—or more specifically, Fidelity National Information Services—should rightly feel pretty good about their recent placement on this very list, at the 98th spot. It’s the only U.S. financial technology provider there, which includes such other companies as Apple, at a surprisingly distant No. 79, Pepsi, at No. 58, and Google, at No. 47.

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  • Bank Fees Rankle Otherwise Satisfied Customers: Survey

American Banker 

Checking account fees may help banks pad revenue, but a new survey suggests that ATM and overdraft charges can send customers running. Over a third of Americans said they would be very or extremely likely to switch banks to avoid paying fees on their checking accounts, according to TD Bank’s inaugural survey of more than 3,000 consumers. In fact, 14% of respondents have already moved their business for those reasons. Some types of charges aggravate customers more than others; 38% of respondents said that nonbank ATM fees were the most frustrating type of charge. Another 27% awarded that dubious honor to overdraft charges. Just 13% picked minimum balance fees as the most annoying type of charge.

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  • Microsoft and Nokia: What Kind of Marriage Will It Be?

Celent Banking Blog

Microsoft announced that it has purchased Nokia’s mobile phone business. According to the announcement, “Under the terms of the agreement, Microsoft will pay EUR 3.79 billion to purchase substantially all of Nokia’s Devices & Services business, and EUR 1.65 billion to license Nokia’s patents, for a total transaction price of EUR 5.44 billion in cash.” Both companies have been struggling to adapt to changes in mobile computing – Nokia has lost its leadership in handsets, and Microsoft was rather late in announcing its latest Windows mobile operating system, which remains a distant third to Apple and Android.

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  • ‘Stache & Save’ Helps Kinecta Connect On Facebook

Credit Union Journal

Kinecta FCU here boosted its Facebook engagement by using mustaches and an online slot machine. Kinecta launched it “Stache & Save” campaign as a way to increase engagement on its Facebook page and grow its number of likes. To do so, it created an online slot machine, and when users pulled the digital handle, it rotated through three different mustaches. Three matches made for an instant winner of a $50 gift certificate and was entered into a drawing for a $2,500 gift certificate.

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  • Big Data and Payments Drive Loyalty in Business Banking.

Finextra

In the ‘consumer edition’ of the blog it was suggested that banks can reinvigorate their payments brand and influence customer loyalty by integrating incentives and offers to their payments solutions. The premise is that banks are missing out on an opportunity to become more influential in where people shop and what they buy, rather than just how they pay. Offers can be driven by analytics into a combination of historical payments information and big data analysis of demographics, location positioning and peer group analysis. Such a strategy requires more than an offers solution, or a mobile banking app.

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  • The Path to Innovation Goes Through the Cloud

Huffington Post

As cloud adoption reaches the tipping point, some sectors are seeing newer market entrants threatening to overtake legacy players mired in tradition. Gartner predicts that the worldwide cloud services market will grow 18.5 percent in 2013 to total $131 billion, up from $111 billion in 2012. Yet, many of the world’s oldest professions such as accounting, legal and banking have been slow to tap the cloud to make it rain. The flexibility of cloud computing – being able to try before you buy, scale easily and use the device that suits you – allow savvy businesses to respond quickly to market trends and demands.

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  • 6 Tips for Safer Smartphone Banking

TIME.com

More than half of American adults have a smartphone today, and more of us are using them to check balances, pay bills, deposit checks and conduct other banking business. Luckily, experts say there are steps that even non-technophiles can easily take to safeguard sensitive information. Password-protect your phone. Stay off public wi-fi networks. Use the bank’s app. Don’t save your log-in data. Keep up with updates. Log off when you’re done.

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Will the U.K. Abolish Checks?

 

The use of paper checks is declining as consumers move to an online world of e-bills and reoccurring Web payments. The U.K. in particular has seen such a steep decline in the use of checks that the Treasury proposed eliminating checks. However, despite the change from paper to online, small businesses, charities and consumer groups have protested this move as they still rely heavily on paper checks.

The U.K.’s Payments Council, which operates independently of the Treasury, is planning to vote on the abolishment of checks, beginning in 2018.

Bank Technology News reported, “There also seems to be a war of sorts brewing between the Treasury and the Payments Council—the Treasury is for evidence of trends in likely check usage over the next ten years, the advantages and disadvantages of abolition and asking the Payments Council on submissions on whether it’s accountable for the impact of its decisions on consumers.”

Do your customers and members still rely on checks? What are your thoughts on abolishing checks?

A Bouncing Debit Card?

While many consumers enjoy the benefits and convenience of debit cards, some banks across the country are beginning to consider allowing debit cards to “bounce” – similar to how a check would not clear.

According to the Wall Street Journal, with new rules and regulation in place, banks are now restricted on how much they can charge merchants for debit transactions, with the end result being a loss of billions in revenue.

Some are considering dividing debit services into components and charging for each separately, at the cost of the merchant. This turns the table on retailers, who according to the post, “won a significant victory with the enactment of debit-transaction fee limits.”

Is your institution considering allowing debit cards to “bounce?” Leave us a comment below.

Free Checking May Become a Luxury of the Past

Due to recent changes in debit and credit card fees from the Dodd-Frank bill and the CARD Act respectively, banks are looking to replace traditional sources of fee income. Some banks and credit unions are beginning to charge for checking accounts that, in recent years, were provided to customers for free.

According to recent reports from the Wall Street Journal and New Jersey’s Star-Ledger, Bank of America will begin testing $6 a month fees and J.P. Morgan Chase and Wells Fargo will begin phasing out free checking in New Jersey.

While these fees may keep banks out of the red, a recent survey by BAI & Finacle Index of Bank Sentiment suggests that consumers are not ready for this change. Some of the key findings from the survey are below:

• 85 percent of consumers surveyed do not expect to pay fees for a checking account.
• 44 percent of respondents state that fees charged by banks are reasonable but 42 percent remain neutral about the fairness of fees.
• Only 45 percent of respondents say they are saving money for the future, which is down 6 percent from the February 2010 index.
• They still don’t trust the financial industry as a whole. About 37 percent of respondents indicate they see banks as trustworthy; this is up from 33 percent six months ago but remains a low number.
• They’re trying to reduce their debt. 55 percent of respondents to the most-recent index say they intend to pay off some or all of their credit cards.

Detailed information on the survey is available here.

What are your thoughts on implementing fees for checking accounts? Let us know in the comments section below.