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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What We’re Reading: Mobile Payments, Bank Fees and BAI Retail Delivery

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

  • Small Institutions Face a Dangerous Technology Gap

American Banker

Community banks and credit unions are well behind the innovation curve, enough to draw alarms from one of the segment’s most ardent advocates. “What is amazing about our industry is your customers and members use Amazon and Hulu and Square and we think it’s OK that when those customers and members walk into our branches they are going back 30 years,” said Louis Hernandez, chairman and CEO of Open Solutions. Open Solutions operates the DNAappstore in which smaller banks and credit unions can be certified to develop and share tech products, which are called DNAapps.

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  • Finance CIOs reveal plans to recover from recession

Computer Weekly

The Financial Services Report research out by IT giant Fujitsu analysed the activities and plans of 55 banks across the retail, investment and wholesale banking sectors. CIOs were asked for their top three IT priorities for the next three years. Over half (51%) listed reducing cost as a top priority, while 27% said upgrading IT systems, 22% improving customer experience, 20% mobile banking and 18% said moving to the cloud. A total of 85% said the IT department is attempting to meet the needs of the business by doing more with less. Mobile banking is high on the agenda. A significant 71% of the CIOs surveyed said mobile banking is important for customers compared to 49% that were asked the question three years ago. The biggest overall benefit of mobile banking is the ability to generate new revenue streams, with 80% citing it as a key benefit. Better customer retention is a key benefit according to 76% of respondents.

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  • How Checking Account Fees and Terms Vary by State

New York Times Bucks Blog

No one likes to pay bank fees. And they are even more annoying when it is clear that the amount and variety of fees can vary depending not only on where you bank, but also on the state where you live. The Pew Safe Checking in the Electronic Age project, part of the Pew Charitable Trusts, recently analyzed the fees and terms offered to consumers in the 50 states, using the country’s 12 biggest banks by deposits. Nationally, for instance, Pew found that 89 percent of checking accounts had a monthly fee. The median fee was $12, and the median minimum balance amount necessary to avoid the monthly fee was $2,000. The median length of a bank disclosure, meanwhile, was 69 pages. And the median number of “extra” fees – categories beyond the 12 most common fees charged by many banks – was 26.

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  • At BAI: The Mobile Wallet Wars Are On: Onsite Coverage

Credit Union Times

The mobile wallet wars will be over inside two years. That was the chilling prediction offered on Thursday at the BAI Retail Delivery conference by Carl Tsukahara, chief marketing officer at Monitise. The U.K.-based mobile apps developer recently acquired ClairMail, which had succeeded in staking out a foothold in the U.S. market “but as Monitise we are unknown in the U.S.,” Tsukahara shrugged. Tsukahara’s message to financial institutions is that the time has passed for sitting on the sidelines because non-banks – think PayPal, Google, Amazon, possibly Apple – are circling and they seem ready to attempt to disintermediate financial institutions. Tsukahara cited third-party research that showed 50% of consumers indicated a preference for PayPal as their mobile wallet provider. Thirty-percent (30) liked Google. A similar number liked Apple.

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  • Who’s Securing Mobile Payments?

Bank Info Security
Google and Facebook are in the mobile payments arena. But consumers still expect their banking institutions to secure the mobile wallet, says Alphonse Pascual of Javelin. What role must banks play? Pascual, who focuses in security, risk and fraud at Javelin Strategy & Research, says banking institutions must declare their roles as security experts in mobile payments, and they have to stake their claims early. As more non-traditional financial players take seats at the emerging payments table, the burden of security leadership and fraud prevention will fall on the shoulders of traditional financial-services providers, he says.

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  • How to Cut Bank Fees

Barron’s

Get ready to see banking costs and balance requirements go up while free checking is put on the endangered-species list. That’s the expensive state of banking, according to BankRate.com’s 15th annual checking survey, which concludes that banks are in a “fee-ing frenzy.” The average monthly fee on basic checking accounts rose 25% over the past year to a record $5.48, says the survey. The average minimum balance required to avoid that charge on “free” checking accounts rose 23% to $723 nationwide, also a record. Neither a checking nor basic savings account pays enough interest these days to bother calculating. Accounts still called “free” have dwindled from 76% of all checking in 2009 to about 39%, notes McBride, and will grow scarcer.

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