What We’re Reading

What We’re Reading: Retail Banking, Square, Voice Biometrics

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 Behind the Mobile Banking Boom (video)

American Banker

Mobile banking has expanded beyond the market for youthful early adopters and is rapidly becoming a mainstream product. American Banker reporters discuss who else is logging on and the hurdles the industry faces to keep the momentum going.

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  • Report: IT Spending in Retail Banking Will Reach $152.5 Billion By 2018

Bank Systems & Technology

Back-end investment for compliance and investment in digital channels will drive strong growth in IT spending among North American banks, according to Ovum. Retail banks will grow their IT spending to $152.2 billion by 2018 in response to rising customer expectations and investment in digital channels, a recent report by analyst firm Ovum predicted.

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  • Navy Federal Promotes Square For Small Business Payments

Credit Union Journal

Mobile payments provider Square could get a big boost from the nation’s biggest credit union. Navy FCU is promoting Square’s mobile card reader and payment processing services to its small-business members. The $56 billion credit union’s website now hosts a page that allows members to sign up for Square. By partnering with Square, Navy Federal is providing members with an easier way to accept credit card purchases and track their sales, according to Jim Salmon, vice president of business services at Navy Federal.

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  • Banking Insider: U.S. Bank tests voice biometrics to replace passwords

Las Vegas Review Journal

U.S. Bank is joining a short list of large financial institutions that are testing voice biometrics as a potential replacement for the traditional password. That list includes Wells Fargo & Co. and Barclays Plc. Voice biometrics software users log in to an application or website by speaking a word or phrase. The word or phrase is compared to a previous recording the customer has made to verify it’s the same user. U.S. Bank employees are piloting the software and using a simple passphrase such as “my voice is my password” to access credit card account balances, search transactions and make payments on accounts using a mobile device.

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  • Why There Is No Amazon Of Banking

Snarketing 2.0

There are no Amazon-branded products or services. As a result, there are no Amazon product managers with a vested interest in selling their product over some other brand. Can you walk into a Citibank branch and open up a JPMorganChase checking account? Nope. Can you go to the Bank of America web site and apply for a Wells Fargo mortgage? Nope.  But you can go to Amazon’s web site and buy just about anything that anybody else sells.

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  • Here’s the One Stat Big Bank CEOs Are Freaking Out About

TIME.com

A new survey shows that nearly a third of consumers haven’t actually set foot in a bank branch in six months, and one expert predicts that number could rise to 50% in just five years. According to Bankrate.com, 30% of respondents to a new survey haven’t gone to a bank branch in six months. And more than two-thirds of those — 21% of respondents — haven’t set foot in a bank in the past year or more.

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Top 5 Mobile Missed Opportunities that Cost Financial Institutions Money

In recent years, the proliferation of smart phones, tablets and web-enabled mobile devices has spurred nearly every financial institution to scramble and put together a mobile banking option for their consumers. It’s not just the growth of these technologies that is driving demand, it’s the users themselves.  Mobile users have been found to access their financial information 64 percent more frequently than non-mobile users.  As these consumers become increasingly more dependent on these devices, financial institutions are realizing that the first-generation mobile banking offerings are not sufficiently supporting the demand for anytime, anywhere banking needs, or giving financial institutions the ability to integrate all product and service offerings.  At what point did the existing mobile banking experience become obsolete?

It is time to start thinking bigger.  Financial institutions of all sizes must evolve their mobile strategy from a simple transaction only application – to a platform that allows your financial institution to offer all products and services via the mobile channel. In fact, it is projected that mobile banking will reach nearly 46 percent of all U.S. bank account holders by 2017.  To stay competitive, financial institutions must embrace mobile technologies to deliver a consumer experience that is both competitive and world class.  This will help mitigate the risk of losing customers in the coming years by supporting the consumer’s needs while simultaneously promoting products and services.  It is time to think in terms of a strategic channel that serves a virtual presence for a growing percentage of financial consumers.

Throughout our years of experience in the industry we’ve witnessed some of the nation’s largest financial institutions miss significant growth opportunities by not expanding their mobile strategies.  To help, we’ve compiled a list of the top five missed opportunities that are costing financial institutions growth and profit:

Top 5 Mobile Missed Opportunities:

  1. A mobile strategy is not just an app:  A good mobile strategy includes all the services consumers want and need – not just transactional banking. The strategy needs to consider how the app can be used to boost revenue, provide best-in-class customer service, as well as attract new consumers while maintaining and engaging existing users.
  2. Like a traditional branch – the user experience matters: Focus on this experience.  Users find it frustrating to continually enter log-in information for every mobile application an institution offers tarnishing the experience.  A positive user experience will quickly drive product adoption and usage, saving the institution tremendous amounts of time and money.  For example, a typical institution should experience an average savings of $4.15 in processing costs for every check that is deposited through their mobile platform versus a brick and mortar branch.  The app must also be fully customized and branded to align with strategic marketing guidelines.  It should provide the highest level of consumer self-service and provide answers to questions 24/7 to enhance the value of the mobile platform.
  3. One’s enough!:  One app creates a unified mobile presence.   Multiple apps lower adoption and confuse consumers.  The results are poor ROI and consumer adoption.  Give your consumers access to all product and service offerings in one downloadable app.
  4. Make the data work for you: Tracking app downloads just isn’t enough these days.  Your organization is missing out on valuable intelligence about how your consumers are interacting with your app.  Take advantage of analytic tools tied to your platform to learn about user preferences, engagement stats and true ROI data.
  5. Not monetizing the mobile presence:  Beyond simple banking transactions, the mobile app needs to provide opportunities to engage and serve the consumer.  The mobile app should promote products and enhance revenue opportunities through a great user experience, while also maximizing channel efficiency and lowering operating expenses for the institution.  ROI is created by offering products and services like loan applications, knowledge base  answers to questions with strong calls to action,  and new account openings to name a few.

For a growing number of consumers, the mobile experience is the only interaction they have with your financial institution. By avoiding these 5 missed opportunities you will develop a mobile strategy that encompasses all aspects of your business – from attracting new revenue and promoting products, to providing superior self-service. Done right, your mobile strategy and presentation should both increase productivity, revenue and profitability.

 

Amber Robinson is the Director of Marketing at SilverCloud, Inc.

Dan Chaney is the CEO of FI-Mobile.

 

What We’re Reading: Omnichannel Banking, Bank Branches, Apple

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.

  • UMB Emulates Apple in Push to Encourage Mobile, Online Use

American Banker

UMB Bank is channeling its inner Apple to encourage more of its customers to use online and mobile banking. The Kansas City, Mo., bank has begun designating tech support specialists in its branches whose job is to help customers understand and use digital services like mobile deposits and online bill pay.

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  • Omnichannel Banking: More Than a Buzzword

Bank Marketing Strategy

Banks are in an unequalled position to understand their customers. They already can see product use, transaction patterns and demographic profiles. By leveraging channel usage insight, they can develop an even more detailed customer profile. Understanding not only what the customer looks like, but also how they conduct their banking can allow for improved product offers using their preferred channel.

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  • Regions, Credit Unions and USAA Sit Atop Customer Experience Rankings

Bank Systems & Technology

The banking and credit card issuer industries both saw significant improvements over last year in the Temkin customer experience ratings. Regions and credit unions earned the highest customer experience scores among banks in the 2014 Temkin Experience Ratings, released earlier today. Regions and credit unions tied with scores of 81%, followed closely by USAA and TD with scores of 80%, and USAA also earned the highest score among credit card issuers with 77%. Overall both the banking and credit card issuing industries improved their scores over last year.

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  • BBVA creates digital banking unit

Finextra

Spain’s Banco Bilbao Vizcaya Argentaria has established a digital banking unit in a bid to boost the development of its various technology-led businesses. The new business area is charged with leading the bank’s digital transformation around the world, running its multi-channel strategy and the design of operational and commercial processes.  It will also work on developing new business lines, overseeing internal developments such as the Wizzo app as well as the bank’s startup investments made through its $100 million venture fund and Simple, the US firm it bought for $117 million last month.

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  • It’s Not Easy for Banks to Sell You on New Services

The Street

Banks spend tons of money figuring out how you like to spend and save money, especially when it comes to using credit cards and mobile banking, two huge profit center for financial institutions. The credit card industry will process about $4 trillion in card transactions this year, according to Business Insider, and Albany, N.Y.-based ResearchMoz reports that mobile banking is also flexing its muscles, growing from 480 million U.S. users at the end of 2012 to 1.08 billion by 2016.

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  • One in Three of Americans Hasn’t Been to the Bank in at Least 6 Months

WSJ Blog

More than a third of people in the U.S. haven’t been to the bank in at least a half of a year, according to a new survey.  People with lower incomes and less education visit bank and credit union branches less often, the Bankrate.com survey found. For example, 35% of people with at least some college education visited a bank in the last week, compared with 21% of people with at most a high-school education.

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What We’re Reading: Branches, Mobile Going Mainstream, Banking Alerts

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.

  • Tech-Savvy Bankers Make the Case for Branches

American Banker

Bank branches may be falling out of favor, but even the most tech-savvy bankers aren’t prepared to renounce them entirely. Take Manolo Sanchez, the chief executive of BBVA Compass, whose bank is spending $117 million to buy the branch-less online startup Simple. You might expect him to declare brick-and-mortar bank locations passé — and yet his company just opened two new branches last week. That’s because customers still want to see branches — even if they don’t go in, and even if they do most of their banking on the computer, the tablet or the mobile phone. Just seeing a physical bank location actually increases a person’s interest in doing business with BBVA Compassonline, he says.

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  • Mobile is Now Mainstream: Report

Bank Systems & Technology 

Mobile banking features play an increasingly critical role in the consumer’s decision to switch primary banks, according to a survey from AlixPartners. Mobile now plays a crucial role in bank-switching decisions made by consumers, according to a new report from AlixPartners.  According to the “AlixPartners Mobile Financial Services Tracking Study,” 60 percent of smartphone or tablet owners who switched primary banks reported mobile banking capabilities as “important” or “extremely important” in their decision to switch, up from 48 percent in a similar survey in the first half of 2013.

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  • Apples and Payments

Celent Banking Blog

What is becoming apparent is that the update is not without its flaws, to say the least. My iPhone, for example, lost half its charge in under an hour, doing nothing. Whilst battery life has never been the iPhones strong point, this was taking the biscuit! Twitter and internet forums have seen significant amounts of discussion on the issues, and it seems to be impacting a large number of people. What was noticeable is that most of the fixes transformed the iPhone to, well, just a phone. Suggestions included turning off apps, turning off search, deleting various elements – in short, many of the reasons why we bought iPhones originally.

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  • Banks buying more time for Windows XP-powered ATMs

Dallas Business Journal

Earlier this year, we told you about the impending problems that many banks might face as Microsoft Corp. (Nasdaq: MSFT) ends its support for Windows XP on April 8. Roughly 95 percent of the nation’s ATMs operate on the aging system, and many banks now are having to buy extended support contracts with Microsoft as they try to convert the machines to a new operating system. JPMorgan Chase (NYSE: JPM) , for example, has bought a one-year extended life support for its Windows XP machines, CNN/Monday reported. In January, Chase told the DBJ earlier that it was working to upgrade its machines as part of normal operations.

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  • Amazon Tests the Loyalty of Its Prime Members With a 25% Price Hike

Javelin Strategy & Research Blog

After 9 years, Amazon has finally decided to increase the price of its Prime membership – and it’s not an insignificant amount. The cost of Amazon Prime will increase on April 17, 2014 by a hefty $20 (from $79 to $99), and the Prime membership will continue to include free two-day shipping, access to Prime Instant Video, and the Kindle Owner’s Lending Library. The Amazon Prime membership is undoubtedly one of the best online loyalty programs available today, and so this significant price change will likely be a true test of just how much consumers are willing to pay for the perks of free shipping and digital perks.

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  • Monitise launches Alerting+ for interactive m-banking

Mobile Payments Today

Mobile banking technology provider Monitise has launched Alerting+, an alerting solution which enables two-way interaction between financial institutions and their mobile banking customers.

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  • Mobile Banking: Critical Switching Trigger Today… Table Stakes Tomorrow

The Financial Brand

Mobile continues to play an increasing critical role in bank-switching decisions, with 60% of smartphone and tablet users citing mobile banking capabilities as “important” or “extremely important” in their decision to switch banks. According to the “Mobile Financial Services Tracking Study” from AlixPartners, 60% of smartphone or tablet owners who switched primary banks in the fourth quarter said that mobile banking capabilities were an “important” or “extremely important” component in their decision to switch. That’s up dramatically from 48% in a similar survey fielded in the first half of 2013.

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What We’re Reading: Retail Banking Myths, Security, ChaseNet

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.

  • 43 retail banking myths—busted!

ABA Banking Journal

With the financial services industry changing so quickly, it should come as no surprise that many assumptions banks and credit unions believed to be true for years could actually be rendered obsolete.  Myth 1. Banks must embrace big data to be successful. Reality: Most banks and credit unions have not fully leveraged insight that is currently available within their firewalls. Account ownership, demographics, product use, and other behavior data should be used for offers and communication before adding unstructured data from outside the organization.

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  • Holidays Drove High Use of Mobile Banking Apps

American Banker

December was a busy month for mobile banking, as on-the-go holiday shoppers actively logged into their accounts to check balances or see if purchases went through. In American Banker’s monthly survey of mobile banking activity, more than 65% of respondents said that volume was up in December from a month earlier, while just 2% said activity declined. The rest reported that activity was roughly the same month to month. Several respondents attributed higher activity to the fact that their mobile banking app is relatively new.

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  • Mobile Banking: Making Security and Convenience a Package Deal

Bank Systems & Technology

The key to mobile security success is a multi-layered approach that enables companies to verify who their customers are and what they are authorized to do. The clash between convenience and security has been in motion as the world has shifted to mobile devices, but this is only the beginning. While highly-connected companies have been managing these challenges for years, the speed, scale, and scope of the ongoing business transformation are enormous.

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  • Chase’s Quick Checkout: Leveraging the Power of ChaseNet

Celent Banking Blog

A digital wallet, which stores customer’s payment credentials and shipping details, and pre-fills them at checkout. Like other digital wallets, Quick Checkout is “open” – i.e. customers can register their non-Chase cards. However, their Chase cards will be automatically available and kept up-to-date in the wallet when they get replaced in case they expire or get lost or stolen.

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  • Capital One Ups the Punching Power of ClearXchange

Javelin Strategy & Research Blog

Person to person (P2P) payments are quickly becoming a regular feature of today’s banking industry. ClearXchange, the P2P payment platform that developed as a partnership between Bank of America, Chase, and Wells Fargo, has announced that it has added Capital One to its list of owners. Capital One is the second FI to join clearXchange (the first institution was the regional FI FirstBank) and is scheduled to go live with the service later in 2014. According to Javelin data, the addition of Capital One now gives clearXchange the capacity to reach 40% of all U.S. banking adults and 53% of all adult credit cardholders.

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  • It’s Time to Uncork Commercial Relationship Revenue

Gonzo Banker

There is a brutal feeding frenzy occurring in the banking industry today: the complete commoditization of mainstream commercial and commercial real estate lending. Like a pack of vultures picking at the flesh of a potential new mini-perm deal or term loan, liquidity-rich banks are feverishly bidding down pricing into the zone of shareholder destruction. We see fixed-rate deals for 7 to 15 year terms that carry coupons lower than many banks’ net interest margins. Despite calls for sanity from every senior loan committee across the country, the brinksmanship continues. Business customers have grown savvy, and even the most loyal now send their credit needs out onto the street for competitive RFP bids. Loyalty these days seems to buy about 10 basis points for the banker.

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  • Banking Trojans emerge as dominant mobile malware threat

ZDNet

Kaspersky Lab’s latest mobile threat landscape report portends more ominous news for mobile device users as the number of new malicious programs tailored for smartphones and tablets more than doubled to nearly 100,000 malicious modifications in 2013. The vast majority of the most damaging mobile malware targeted users’ money and bank cards, according to the security software firm’s latest data, and more than 2,500 attempted infections by banking Trojans were blocked last year alone.

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What We’re Reading: Biometrics, Photo Bill Pay, Mobile Wallet

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.

  • U.S. Bank Pushes Voice Biometrics to Replace Clunky Passwords

American Banker 

When U.S. Bank announced Wednesday that it’s testing voice biometrics for possible use by customers to access account information, it joined a line of banks that have been testing this technology, including Wells Fargo (WF) and Barclays. Voice biometric software users log in to an application or website by speaking a word or phrase. That word or phrase is compared to a previous recording the customer has made, to verify it’s the same user. Many industry observers have been saying for at least a year that the password is dead and more secure alternatives to authentication, such as voice biometrics and iris scans are needed to verify a user’s identity when banking online or via a mobile device. Some press accounts Wednesday stated that the goal for U.S. Bank’s pilot is to improve customer data security.

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  • Mobile Photo Bill Pay Continues Shaky Start

Credit Union Times

Major players are investing in mobile photo bill pay as a natural next step to mobile deposit checking but the tool may have a long way to go to catch up with taking pictures of checks with smartphones. In the past year, 600 to 1,000 banks have installed mobile RDC and less than a dozen have done the same with mobile photo bill pay, said Bob Meara, an Atlanta-based senior analyst for the New York-based research firm Celent. “Mobile RDC is this wonderfully convenient invention and it scores highly on all the consumer surveys, but if you ask the same question about mobile photo bill pay, people just don’t get as excited about it, for a variety of reasons,” Meara said. “It’s just not as compelling.”

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  • It’s Time to Rise Above the Risk and Compliance Whining

Gonzo Banker

According to The Cornerstone Report, 7th Edition, bank assets per enterprise risk management FTE decreased from $147 million in 2010 to $55 million in 2012. Furthermore, the gap between median and 75th percentile performers was much wider than the gap between 25th percentile and median performers.

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  • MCX and Paydiant Mobile Wallet – and Capturing the Consumer

Javelin Strategy & Research Blog

MCX announced it would be adopting the Paydiant mobile wallet, a cloud-based, white label platform. MCX is a consortium of 70 prominent brands with 110,000 locations representing over $1 Trillion in annual payments volume and 700,000 loyalty cards. MCX includes companies like Wal-Mart, Best Buy, CVS, Bed Bath & Beyond, Target, Exxon, Southwest, and today it extended to QSRs like Wendy’s. FIS, rated Javelin’s Best in Class Mobile Banking Vendor provides MCX with payment processing, routing and settlement for mobile commerce transactions.

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  • Study finds small business mobile banking services lacking in US

Mobile Payments Today

U.S. banks need to make a greater effort to capitalize on their small business customers’ appetite for mobile banking services, according to research by Aite Group. This will involve providing their clients with business-specific mobile banking offerings instead of rebranded consumer mobile banking services, the U.S. consultancy says. In September 2013, Aite Group surveyed 1,003 U.S. companies with revenues of under $20 million for two reports: “Monetizing the Small-Business Opportunity” and “Why Banks Should Offer Mobile Banking to Small Businesses.” The survey found that about 32 percent of those businesses bank via mobile devices, according to Christine Barry, research director for Aite Group’s Wholesale Banking practice.

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  • Banks See More Confidence But Face Threat From New Providers

Wall Street Journal Blog

After a period of sharp decline coming out of the financial crisis, the banking industry has seen a rise in consumer confidence for two years in a row, according to a new survey of 32,000 banking customers in 43 countries. The study, by Ernst & Young, showed that globally, one-third of customers reported an increase in confidence in the banking industry compared to a year ago.  This marks a rise from Ernst & Young’s prior survey in June 2012, when just 22% reported an increase in optimism. In 2011, only 13% percent reported an increase in confidence in the banking industry, compared with 44% who reported a decrease.

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What We’re Reading: Mobile Bankers, Millennials, Cyber-Attack Trends

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.

  • Mobile Banking Increases the Need for Mobile Bankers

American Banker

Ask a thousand bank managers what makes their bank a better choice than the competition, and about nine hundred and fifty will tell you “our people.” I won’t argue that. In an increasingly commoditized industry, our people can be one of the few true differentiators left. But the model that has them forever sitting in buildings that fewer and fewer people utilize makes less strategic sense each year. The term “universal banker” has become pretty ubiquitous. Universal bankers (usually) can handle anything from assisting with a teller transaction, to opening an account, to performing varying levels of financial needs analysis.

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  • Banking Cyber-Attack Trends to Watch

Bank Info Security

The key for banking institutions in 2014 will be to focus on detecting and mitigating multiple risks across multiple channels. “We will see more blended attacks that combine DDoS with some form of attempted data compromise,” says Doug Johnson, vice president and senior adviser of risk management policy for the American Bankers Association.

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  • Three Ways Millennial Business Owners Differ from Your Traditional Business Customers

Barlow Research

Barlow Research recently hosted a Webcast panel-discussion on the millennial generation entitled “Banking the New Face of Business: Millennials, Boomers and Dynamos.” Our panel included three very knowledgeable panelists: Himmat Randhawa from Digital Insight, and John Yarley and Alfred Chin from Visa. Through the course of the panel discussion on millennials, we learned three important things about this generation. 1. Instant Gratification Is Expected. Himmat Randhawa from Digital Insight believes that a challenge that financial institutions have with understanding the millennial generation has to do with their usage of technology and their channel preferences. “The vast majority of millennials are tech-savvy and think about the online channel as their primary channel with very little interaction with the offline channels. Millennials want anytime, anywhere access to information and don’t have an expectation to do that in-person.”

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  • Top Reasons Card Data Breaches are Here to Stay

Credit Union Times

By far, the main reason thieves have begun to steal card data from U.S. firms, some experts say, is because they can. “The U.S. payments industry has become the one household in the neighborhood that has not upgraded its security system while everyone else has,” explained Karisse Hendrick, program manager in payments and fraud for the Merchant Risk Council, an international trade group that is organized to help firms fight card fraud. “When you are perceived to have security that is the easiest to beat, she added, thieves will try to beat your security.”

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  • Ally Bank launches app for Windows Phone 8

Finextra

Ally Bank, the direct banking subsidiary of Ally Financial Inc., has expanded availability of its popular Ally Mobile Banking app to include a version designed exclusively for Windows Phone 8 users, enabling even more customers to access and manage their money “on the go” using the Bank’s award-winning app.

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What We’re Reading: Mobile App Mistakes, Security and Voice-Recognition

 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.

  • Smartphone users worldwide seek more mobile banking services

ABA Banking Journal

Smartphone consumers want to do much more mobile banking than most of today’s smartphone apps permit, according to an international survey by FICO. While the most requested functionality is the ability to check account balances (75%), more than half of respondents want to receive notifications of potential fraudulent activity (59%), make payments from their account (53%), and transfer money between their accounts (50%) using their smartphone.

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  • The Biggest Mistakes Banks Make in Mobile App Design

American Banker

How can banks make their mobile apps more competitive? We recently asked Greg Nudelman, principal and CEO of San Francisco-based DesignCaffeine, who has worked with USAA, Intuit, and Wells Fargo on app design, about his pet peeves. Too many people try to approach app development the way they approach web development. ]That’s the completely wrong question to ask. They’re missing the entire opportunity that is presented by devices. You have to start from the ground up. The best way to approach that is lean methodology.

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  • A Guide to Winning the Mobile Banking Arms Race

Bank Systems & Technology

The rapid pace of change occurring in the financial services market largely driven by growing consumer adoption of mobile is permanently altering the retail banking landscape. More and more, offering basic mobile banking capabilities is perceived by consumers as mere table stakes when it comes to evaluating their banking relationship. Differentiation in the mobile channel is critical for financial institutions (FIs) to attract and retain customers and to reap the resulting revenue benefits. To achieve this, new features must be continually introduced, and at a frequent cadence to keep up with consumer expectations.

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  • Psst, Want to Know What Bank of America Spends on Mobile?

Bank Innovation Net

Mobile continued to grow in importance as a channel for the Charlotte, N.C.-based bank, with 14.4 million mobile customers, up from 14 million last quarter and 12 million a year ago. We dug into BofA’s earnings reports and found that CEO Brian Moynihan revealed the bank’s tech spend to grow its mobile channel during today’s 4Q 2013 earnings call. Moynihan said the bank had invested “half a billion dollars in the online mobile platform across the last three or four years, and we’ll continue to invest at that rate.”

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  • Major security holes found in 90% of top mobile banking apps

BGR

Security is important in every app, of course, but if there is one group of mobile apps that users want to be secure even more so than any others, it’s probably mobile banking apps. It will undoubtedly come as a shock, however, that a new study has found 90% of mobile banking apps from top banks have serious security vulnerabilities that could potentially compromise sensitive user data. Security researcher Ariel Sanchez of IOActive recently published his findings after diving into home banking iPhone and iPad apps from 40 of the 60 top banks in the world.

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  • Wells Fargo tests voice-recognition mobile technology

Charlotte Observer

Imagine picking up your phone and being able to ask, “How much did I spend at restaurants last month?” That scenario might be in the not-too-distant future. Wells Fargo has begun testing voice recognition technology that would break ground on how customers interact with their smartphones. U.S. Bank said last year it was testing the technology among its employees. Insurers Geico and USAA have also incorporated voice recognition in their applications. Wells Fargo does not yet have a time frame for launching its version.

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  • Defining Social Media’s Purpose Can Help Produce ROI

Credit Union Times

In 2012, the $55 billion, Vienna, Va.-based Navy Federal Credit Union said it launched its “4 Million Members, 4 Million Stories” campaign as a way to thank its members for helping to reach the member milestone. The concept revolved around members submitting videos to share what they loved about Navy Federal on Facebook and to vote for their favorites to win prizes ranging from $4,000 and $1,000 certificates of deposit to $100 gift cards. During the giveaway, the credit union took the opportunity to promote auto loan refinancing and CDs via a mix of strategically crafted posts and paid Facebook ads.

Read more http://www.cutimes.com/2014/01/22/defining-social-medias-purpose-can-help-produce-ro

 

What We’re Reading: Mobile Wallets, Mobile Payments and Mobile Metrics

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 Bank Tries to Beat Big Banks at Their Own Tech Game

American Banker 

With 22 branches and $2.2 billion in assets, Rockville Bank is on the smaller end of the banking spectrum. But the lender has made a big commitment to virtual banking. The Rockville, Conn., company decided last year to create a position dedicated to overseeing its mobile, online, ATM and customer support center services. Now the role has been filled by a woman on the front line of digital banking for nearly two decades: former Bank of America (BAC) online and mobile product executive Donna Patel. Rather than attempt to beat big banks in the race for whiz-bang apps and sophisticated platforms, Rockville plans to focus on harnessing technology to better serve its customers.

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  • Loyalty Startup Seeks Credit Union, Bank Partners to Help Feed the Hungry

American Banker 

Mogl, a startup that’s created a restaurant loyalty mobile app, continues to gain credit union and bank partners for its program, which provides cash back for meals out, with the option of donating the money to local food banks. Financial services partners could benefit by becoming top-of-wallet while also helping to feed the hungry, and in turn, improving their brand images. Currently, the California startup counts nine credit unions, one bank, and two airlines as partners. Three additional credit unions are finalizing their participation in the program. Unlike some apps that use Yodlee or Intuit to power the user’s ability to link in outside accounts, Mogl has users enter in – or swipe in — their payment data. The information is sent to the card associations, which send back a token. Mogl does not store any card data.

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  • Two In Five Americans Will Use Mobile Wallets By 2017

Business Insider 

One-fifth of U.S. smartphone owners used a mobile wallet in 2013. That comes out to 40 million Americans, according to Parks Associates. The market research firm forecasts that this number will grow 183% to 113 million, or 43% of smartphone owners, by 2017. One factor that will likely drive growth is an explosion in payments technologies coming onto the market, which will have broader application beyond payments, including mobile loyalty programs and in-store marketing. These will give a greater number of smartphone users and merchants a reason to start using and accepting mobile wallets.

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  • How OnPoint Community Plans to Build Enthusiasm For Mobile Payments

Credit Union Journal 

OnPoint Community Credit Union is using person-to-person payments as the foundation of building consumer comfort with mobile as a channel for money movement. The $3.4 billion-asset credit union is adopting Fiserv’s Popmoney system, which includes a mobile and online version. Popmoney allows consumers to direct funds to a recipient’s mobile phone number, e-mail addresses or bank account number. “We’ve had very little mobile payment capability, so this is our entry. The opportunity is there to allow members to move money to other members and non-members’ accounts,” says Jim Armstrong, senior vice president of technology and human resources for OnPoint.

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  • Check Your Mobile Metrics

Credit Union Times 

Just five years ago, mobile banking seemed futuristic, the stuff of sci-fi; but today, it has emerged as a must have. That’s a powerful statement by Credit Union Times Correspondent Robert McGarvey in this week’s page 1 story (5 Mobile Banking Trends to Watch in 2014). How many credit unions still think of mobile banking as an optional, whiz-bang feature?

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  • Who are your most valuable Twitter followers? A new firm from ex-Dwolla staff wants to find out

The Next Web 

Payments platform Dwolla has lost its head of business development and its developer evangelist. Alex Taub and Michael Schonfeld have moved on to start their own company called Modern MAST that will develop products aimed at commerce, advertising tools, and APIs. In a post announcing the move, Taub says that the separation from Dwolla was an amicable one and that the two now-cofounders decided that it was the right time to begin their own venture. Why advertising technology? Over the next five years, it’s estimated that $350 billion will be allocated towards next generation ad tools and Modern MAST wants a piece of that.

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