What We’re Reading: Mobile Money, Outages and PFM

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.

 

  • JPMorgan Chase Endures Website Outage

American Banker

JPMorgan Chase’s (JPM) website was shut down for some Friday, stopping bank customers from retrieving their accounts. The New York bank took to Twitter to tell customers its online banking was “experiencing intermittent issues” that the company was working to resolve. The outage endured for a few hours, bank spokesman Tom Kelly told American Banker. “We’re back to normal response times now,” Kelly said. JPMorgan Chase is researching the cause of the outage, Kelly said.

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  • Moven From Mobile Banking to Mobile Money

Bank Marketing Strategy

February is definitely a pivotal month for the start-up previously known as Movenbank, having changed its name to Moven, winning the best of show honors at Finovate Europe and gearing up for a February 25 closed beta launch of its mobile-optimized financial services application. Similar to Simple, while not having a banking charter, Moven provides a unique customer experience interface with a traditional banking organization working in the background (with banking licenses, FDIC insurance, etc.).

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  • A Look At What Citi Is Doing With Online Platform

Credit Union Journal

After Forrester Research dubbed Citi’s online banking site the best in the U.S. recently, Tracey Weber, Citigroup’s head of internet and mobile banking and Bank Technology News’ Mobile Banker of the Year for 2012, spoke about the bank’s latest initiatives. The developers made the site simpler, cleaner, and easier to navigate, she says. “We elevated a lot of the quick tasks that you do on a regular basis, like paying a bill, without having to continually have to find your way back to the dashboard. We also integrated PFM and account integration into the dashboard.” Citi partners with Yodlee for PFM and account aggregation.

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  • Four Common Misjudgments About Whether Consumers Want PFM

Javelin Strategy & Research Blog

There is a spirited conversation occurring in a Personal Finance Management subgroup on LinkedIn, spurred by Mary Wisniewski’s column in American Banker about how “PFM Defies Definition.” The heart of the discussion points to the growing awareness that PFM must break free from the 1980s definition of budgeting and investment tools for do-it-yourself PC enthusiasts with a masochistic delight for details, tracking, and quantitative analysis. The financial services industry makes a number of fundamental mistakes in their thinking and approach to PFM.

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  • Banks to spend $118B on tech, mobile banking in 2013

Mobile Payments Today

Retail banks worldwide will increase their IT spending by 3.4 percent this year — to a total of $118.6 billion. Industry analysts at Ovum predict that spending in Asia will rise 5.1 percent, followed by North America at 3.3 percent, and Europe at 1.8 percent. In a new business trends report, Ovum said that mobile banking would be a “clear IT investment priority in 2013.” The company suggested that total spending for online channels — including online and mobile browser-based services — will grow by 6.2 percent in 2013.

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  • More Than 12 Million Identity Fraud Victims in 2012 According to Latest Javelin Strategy & Research Report

PYMNTS.com

The 2013 Identity Fraud Report released today by Javelin Strategy & Research reports that in 2012 identity fraud incidents increased by more than one million victims and fraudsters stole more than $21 billion, the highest amount since 2009. The study found 12.6 million victims of identity fraud in the United States in the past year, which equates to 1 victim every 3 seconds. The report also found that nearly 1 in 4 data breach letter recipients became a victim of identity fraud, with breaches involving Social Security numbers to be the most damaging. Over the past year, companies are responding more quickly which means a consumer’s information is being misused for fewer days than ever before, and the mean cost per victim has been flattening.

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  • Finance and the American poor: Margin calls

The Economist

In December the Federal Deposit Insurance Corporation (FDIC) released a survey that found roughly one in 12 American households, or some 17m adults, are “unbanked”, meaning they lack a current or savings account. The survey also found that one in every five American households is “underbanked”, meaning that they have a bank account but also rely on alternative services–typically, high-cost products such as payday loans, cheque-cashing services, non-bank money orders or pawn shops. Not all the unbanked are poor, nor do all poor people lack bank accounts. But the rate of the unbanked among low-income households (defined in the FDIC survey as those with an annual income below $15,000) is more than three times the overall rate.

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  • Mobile Banking Now Vital To Customer Acquisition

The Financial Brand

A survey recently fielded on FindABetterBank uncovered that 88% of shoppers who said mobile banking is a “must have” feature are already mobile banking users. Therefore, as more consumers download their bank’s mobile apps and begin using them, you can expect the number of consumers demanding mobile banking when they’re shopping for a new institution to increase steadily. Few people, however, defect from an institution simply because mobile banking isn’t offered.

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  • Every company now a digital business

ZDNet

The convergence of social media, mobile computing, analytics and the cloud is transforming the way businesses operate. Companies that adopt available technologies to “go digital” will be better positioned to take advantage of rapidly shifting business opportunities and leap ahead of the competition, according to Accenture’s Technology Vision 2013 report. Since technology is now core to virtually every aspect of a business, every company is a digital business and all senior leaders–not just CIOs–must be able to understand, embrace and drive value from new technologies that affect their organizations, it added.

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Forget Social, Banks Need to Customize Their Accounts

*This post originally appeared on MyBankTracker

What does it take for a bank to understand its customer base? A whole lot, according to Ernst & Young, which has published one of the most exhaustive and comprehensive studies on what customers expect out of their banking relationship. In a survey of almost 30,000 banking customers in 35 different countries, the study ultimately shows that bank loyalty worldwide has been disintegrating as customers spread their wealth among multiple banks and search for the most convenient ways to access their money.

Customer loyalty isn’t what it used to be — nowadays people want to find the cheapest and most convenient banking experience. In the United States this has caused a 7 percent increase from the previous year in customers willing to switch banks as well as an equivalent decrease in those adamant on staying with their current banks. Customers in the U.S. have also been migrating away from keeping their money in a single bank in favor of opening accounts in multiple banks. Over the past year, the amount of customers with an account at only one bank has decreased from 51 percent to 42 percent and increased in those with two, three or more accounts.

An omni-channel banking world

However, perhaps even more important than the fact that customer loyalty is decreasing are the reasons. The study offhandedly references a term that Cisco has coined: the omni-channel approach to banking. As opposed to the multi-channel approach, where customers are bombarded by the many different ways to access their bank accounts, which do not necessarily coincide or complement one another, the omni-channel approach seeks to enjoin all the banking channels so that they work together harmoniously.

Cisco published an entire study just to explain and present this term only about a month ago. Now E&Y reference it as commonplace: “Move from multi-channel to omni-channel distribution: Banks need to look beyond multi-channel distribution, recognizing that customers care more about convenience than about channels.” Coupled with the data that consumers have been leaving their current banks, both partially and fully, it seems that consumers are already choosing which channels they prefer to access, whether or not banks are prepared.

Consumers prefer different channels for different banking functions, which the study only breaks down based on simple or complex transactions. But with all the different channels — branches, call centers, email, mobile apps, etc. — banks must understand which are most appropriate and when.

Banks must also understand that social networks currently are pretty much inept and any efforts to engage customers on social networks either fall short or are simply not worth reporting. Only 13 percent of customers use social networks to discover a bank’s products and services — and it goes down from there. Compare that to China, where it’s at 81 percent of customers.

Customize

The answer for banks trying to garner broad customer loyalty is not reaching out over Facebook or Twitter or even connecting with customers, it’s in personalization. Customers need to see that banks are versatile and flexible. While they search for the right bank to fulfill their needs, banks should be asking themselves, “How do we ensure that we are the ones filling those needs?” Some customers are looking for the best rates while others look for the best online experience. Still others need more products. With multiple amounts of services offered, banks must tailor them to different customer packages. Customers know what they should be paying for their experience and are willing to pay for certain extras.

Blanket debit card fees placed was a bust, but an essentially comparable fee works on the prepaid market. If a bank needs extra funds, it should increase its service and charge accordingly. In this way it will keep customers happy, while providing a fair value for its service. The omni-channel approach is more than just technology — and it is here to stay.

You can find the full study by clicking here.

About Zachary Ehrlich: Zachary holds a B.A. in English from the Macaulay Honors College at Queens College, has a strong passion for writing and transparently explains relevant nuances in personal banking. Zachary has banked with CitiBank his whole life and recently opened a checking account with Capital One for its competitive rates overseas as he lived in Italy for 6 months. Follow his tweets: @ZachEhrlich

Video: New Expectations for Customer Experience

CeCe Morken, senior vice president and general manager of Intuit Financial Services recently presented the opening keynote at the Barlow Research National Client conference. This is part three of the video series.

How Can Your Financial Institution Get the Right Feedback?

It is essential for financial institutions to monitor and respond to feedback provided by their customers. With the increased use of social media, consumers now have a vehicle to project their attitudes about a given company or product at any time, and into a large net of listeners, such as Twitter.

A recent study by the Temkin Group investigated how often consumers give feedback, segmenting results by age and type of feedback. The data reveals that consumers are far more inclined to report bad feedback, a fact that is not surprising due to the volume of complaints to customer service centers and through social media. The data suggests financial institutions need to find ways to react quickly and inform users to curb these negative complaints; additionally financial institutions need to tailor their relationships with customers to ensure younger demographics are encourage to be more vocal about their banking experience.

You can see a representation of the report findings below, or on the Customer Experience Matters blog.

How do you ensure you are getting the right feedback from your customers and members?  Let us know by posting a comment below or tweet at @Bankingdotcom.

Are Your Ideas Organic?

Forrester’s Kerry Bodine recently blogged about how Apple has affected consumers in significant ways – from what we buy and how we work – but most importantly, how we measure good design. Bodine noted that Apple has raised awareness around simplicity and attention to detail, and that customer experience professionals at other companies are beginning to take notice.

When it comes to financial services, Bodine mentioned she was fascinated by the number of companies outside of the consumer electronics industry that seem set on copying Apple. She also noted the “dangers” of un-organic ideas, including:

  • “The experience you create will not be aligned with your brand.”
  • “The experience will be one dimensional — and set the wrong expectations for customers.”

Are you your own leader? What defines your brand and customer experience? Let us know in the comments below.