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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The New Financial Social Network: B2B Synergy Links the ePayments Industry

Members of the financial services industry constantly strive to adapt to new technologies, procedures and systems.  In a world of new media and banking 2.0, sites like Banking.com and the new social site B2Bsynergy.org powered by The Payments Authority aim to spark conversations and keep financial leaders connected.

B2B Synergy provides another community for credit unions, bankers, vendors and merchants to congregate through message boards, community discussions, white papers, case studies and other educational material to discuss the electronic payments industry.

Amy Smith, President and CEO of The Payments Authority believes B2B Synergy to be the first social network dedicated solely to payments and financial services.  She states in a Bank Systems & Technology article,

“It’s amazing to see other people from other institutions — banks and credit unions, credit unions and community banks — all weighing in and sharing best practices.”

Read the full Bank Systems & Technology post here.

Are you already a B2B Synergy user? How do you see social networking sites benefitting your business? Let us know in the comments below.

The Battle of Sexes: How it’s affecting financial literacy

Men and women stereotypically have a difference of opinion about many issues. Finances, as a recent MyBankTracker blog post highlights, is one of them. According to a PNC Financial Services Group survey, 49 percent of women, as opposed to 39 percent of men, say that the recession caused them to plan finances more carefully.

Not only does this chasm between opinions draw attention to the problems couples may be having financially, but also to the financial literacy of their children. As parents try to educate their own children, the impact of the recession and the differing views of parents can lead to misinformation and confusion. However, the PNC survey showed that 55 percent of men and 57 percent of women felt that the recession will change the way their children manage their finances, indicating a growing concern that the next generations “may have a tougher time making it financially.”

R. Bruce Bickel, senior vice president of PNC Wealth Management, notes that this can be solved by talking to children early and often about managing money. Bickel advises,

“Helping children create budgets and discussing the principles of earning, giving, saving and spending instills discipline early in life and they are more likely to carry these values forward,” he said. “It doesn’t matter how much money a family has, this approach is indispensible and helps assure future success with finances.”

How are you educating your customers to prepare for the future? Are you implementing any programs for youth? Let us know in the comments below.

Banks’ IT Spending: Progress Report

Even as banks are reporting improved financials, they continue to be slow in re-engaging on IT investments.  American Banker reports that there are some financial institutions that are spending on specific projects, but not many are confident enough to move forward on the big investments that tech vendors have been waiting for.  “Banks are going to really look to that as one of the latter things they do when there’s uncertainty around their capital structure, credit quality or regulatory environment,” said Darrin Peller, a vice president who covers technology vendors for Barclays Capital.

Bank information technology spending in North America is expected to increase 3.9 percent this year to $53.4 billion, according to a report that research firm Celent released in January. But, what’s interesting is the discussion around where banks are actually spending: very specific areas such as mobile banking, bill payment services and Internet systems.

Are you planning to invest money into IT projects in 2011? Let us know in the comments section below.