The Mobile Cash Crunch

Hand on mobile phoneWe love cash—literally. We love it so much that we’re willing to eschew the alternatives afforded by modern society. All these millennia into human evolution, and those crinkly, dirty pieces of paper that have passed through countless hands still have a place in our hearts and wallets, and bring a gleam to a mugger’s eye. By contrast, the credit card is so modern, an ultra-fast option that’s both convenient and safe, and helps build a financial history. But it’s not to new either. In fact, the idea goes back to at least 1887, when it gets 11 mentions in the Edward Bellamy novel “Looking Backward.” And today, 127 years later, it’s the only real alternative to the coin of the realm.

Let’s put it another way: Why haven’t mobile payments taken off?

It should be a no-brainer, since we use mobile apps for just about everything else. Apple passed the 1 million figure for the iPhone App store back in October 2013, and devices and apps exist to help us in every facet of our busy lives: shop, communicate, get healthy, get richer, get away on vacation, do our jobs, slack off, play games, and just plain kill time. Mobile banking in multiple forms has revolutionized our industry.

Yet the most fundamental form of human transaction—paying for goods and services in person—still relies on cash and credit cards. We can punch a button on the phone and get it done, more conveniently and a lot more safely. But we don’t.

It’s not as if there hasn’t been any progress. Consumers spent $235.4 billion through mobile payments in 2013. That, according to research from Gartner, represents a hefty jump over the $163.1 billion spent this way the year before. The numbers for 2014 will surely be higher still. However, the numbers are considerably lower for the United States: about $37 billion in 2013, up from $24 billion. And if even that seems big, consider this: The U.S. GDP for 2013 approached $17 trillion.

In other words, the potential for mobile payments is gigantic, and the reality is minuscule. Could it be that the technologies to support such a transformation aren’t here yet? No quite the contrary. In fact, we have a wealth of options available—and that might be the problem.

Remember, we first got to see Google Wallet exactly three years ago this month, and the expectation was that it would revolutionize basic transactions. It didn’t. More recently, we’ve had a steady stream of alternatives, from Square and Clinkle to Belly. Tech vendors and financial services have teamed up to offer joint options, such as Visa’s payWave on coming pre-loaded on Samsung Galaxy phones. Apple will presumably come up with a mobile wallet of its own at some point. Yet so far, the many ripples have not turned into a splash.

The chicken-or-the-egg question is particularly valid here. As recent reports have noted, merchants are wary of making the necessary deals and installing the technology in their stores until there’s enough of a critical mass in the public. But by the same token, most consumers can’t be bothered to download the relevant apps—even when they’re free—and go to the trouble of finding which store accepts which option.

Many other fields face similar compatibility issues, from games to stock trading, yet there’s typically more growth—a slow evolution followed by a spike. In mobile payments, despite the tremendous potential, widespread adoption has been stymied by competitive offerings.

So what’s the answer here? Should we still be waiting for a killer app from a particular vendor? Should the current technology entrants try to get together and create a common platform that enables compatibility but potentially hurts innovation? Should financial services vendors form an agreement of their own and force tech companies to go along? Should the government get involved?

We likely won’t have an answer for a while. But it’s worth noting that the time for the mobile wallet has come, and perhaps will soon be gone.

 

The Mobile Takeover – Where your users are [INFOGRAPHIC]

Mobile.

You don’t need us to underscore its importance. Nevertheless, this infographic from Surge Digital is a good roundup of usage statistics to share with your teams.

What do you think of the insights below?

 

surge-mobile-marketing-infographic

Monetizing the Mobile Channel – Webinar

*Disclosure: Banking.com is powered by Digital Insight

The mobile channel is no longer optional for banks and credit unions. But for those financial institutions already deploying mobile solutions, how do they optimize profit and benefit to the customer?

On  Wednesday, April 23rd, Digital Insight will host a free webinar,  “Monetizing the Mobile Channel,” as part of their 2014 Momentum Webinar Series.

Digital Insight Mobile Webinar

The webinar will include insights on optimizing the benefit of your mobile channel and help you:

  • Learn about key trends driving mobile innovation and their potential to solve real problems for your users while driving revenue.
  • Rethink potential disruptors to your business with a new collaborative approach.
  • Understand how traditional channel profitability analysis may limit your perspective and therefore your outcomes.

Does your mobile spending embrace change with a laser focus on ROI? Join Digital Insight as we kickoff our  and take a dive into the future of the mobile channel as a profit engine.

We’ll be attending, following along and sharing insights via Twitter with the hashtag #DIMobile.

You can register for the webinar by clicking the image above. See you there!

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.

Read more 

  • 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.

Read more

  • 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.

Read more 

  • 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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Who Will Win the Mobile Banking Revolution?

Today, the value of the brick-and-mortar banking experience is fading quickly and mobile banking transactions are filling the void. But it seems that consumers are not so pleased with most mobile app experiences out in the marketplace, particularly with the big banks.  The basic features of account balances, transfers and mobile check deposits are expected basic functionality, but it’s not enough. Users want value beyond just transactions; customers want enriched interactions to understand what their money can do for them. The key to winning in the mobile banking space is relevance – whoever can make the mobile banking experience the most relevant to a user will win the revolution

What is relevance?

Relevance creates a personalized user experience: know what I want, when I want it, before I ask for it and make me smarter. From smartphones to wearable technology (e.g. Google Glass, smart watches, activity trackers, etc.), personal finance is interwoven into our everyday activities. Between the quantifiable self, need-to-know, and constant connectivity, our desire to be engaged with our money is increasing, changing our behavior and evolving what is expected from banks.

The experience can’t be just ordinary, it has to be extraordinary. If you simply spout numbers and balances, you’re not replacing the personalization that is eliminated when a user chooses mobile banking over their local branch with tellers. Mobile banking needs to help explain what a user’s money and transactions mean and what they can do. Users want an experience that is contextual, not just based on location, but also based on previous transactions, current account balances, and what is being planned for the near and long-term future. Banking data can be used to drive key decision points for consumers. The user expects the experience to be not only visually appealing, seamless and pleasurable, but also to take advantage of the latest technologies. Why can’t I know my current balance from my smart watch or Google Glass? A critical aspect of relevance is interacting with consumers where they prefer to interact.

So the big question is, who is winning?

Right now, it’s the startups – apps like Simple, Moven and Level. The start-ups are more nimble and are taking more risk to stay relevant. They’ve pushed beyond just a transactional experience to a lifestyle utility. They aren’t just a source of information, but are tapping into what money can help with, in a very personalized way. No one wants to see only how much they owe on their credit card. For many users, looking at a bank account is more of a source of stress. It has remained a relationship that was strictly transactional with deposits and payments. But when you help the user manage their money and look ahead at what their money can do for them, you become a source of hope.  Users want a relationship where someone is looking out for them, understanding their motivation and goals.

Solstice MobileBanking_Chart

Big banks are not out of the game yet. The new start-ups are missing years of data, historical trends and key partnerships. In order to delve into a rich contextual experience means tapping into Big Data and banking trends. So, my advice for the big banks? Put your customer and his or her experience first. Continue to innovate, rapidly iterate and bring new solutions to market quickly instead of getting stuck in analysis paralysis and letting start-ups beat you to the best in mobile banking.  Find ways that you can use disruptive technologies and a contextual experience to create more frequent and more relevant touch points for your user.

Last, but not least, the brick and mortar isn’t really dead. A true user-centered mobile experience can be a catalyst to drive a better experience across all of your channels, which is something the start-ups don’t have. The mobile banking ecosystem is still in its infancy. As it evolves, the ones to win the revolution will be those who innovate quickly and put a relevant, cross-channel user experience above all else.

 

Marisa MannMarisa Mann, Director of Solution Delivery at Solstice MobileMarisa brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.

 

What We’re Reading: Cloud, Tablet Growth, Social Media

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.

 

    • Companies turning to multiple cloud models

ABA Banking Journal

As cloud computing becomes a default part of the IT landscape, more companies are relying on cloud computing for business processes such as storage (59%), business continuity and disaster recovery (48%), and security (44%), CompTIA’s Fourth Annual Trends in Cloud Computing study reveals.

Read more

    • More than Half of Consumers Pay Bills on Mobile Devices: Survey

American Banker

More than half of consumers worldwide use their mobile devices to pay a bill, according to SAP’s survey of more than 12,000 adults who own a basic mobile device or smartphone. SAP, a financial technology vendor, published the survey Wednesday. “Through our research, and the work we have done with leading global banks, we see the consumer appetite for mobile banking – and the range of services that can be provided via mobile devices – increasing as customers are keen to embrace more complex banking activity,” said Eric Stine, general manager of financial services for SAP America, in a press release.

Read more

    • Banks Sit On Sideline As Tablet Growth Continues

Bank Marketing Strategy

According to PEW Research Center, tablet adoption has almost doubled over the past year and for the first time, a third (34%) of American adults currently own a tablet computing device, including almost half (49%) of those in their late thirties and early forties and a majority (56%) of those in higher income households. With this platform becoming increasingly important to customers, banks and credit unions can no longer sit on the sidelines and watch as the digital landscape develops around them. Unfortunately, with limited resources, new research indicates that development of native tablet apps has occurred at a snails pace due to limited resources and a focus on developing new smartphone applications.

Read more 

    • Getting Past the Hype with Customer Analytics

Celent Banking Blog

There are at least three reasons why now is a good time for financial institutions with no customer analytics experience to take the idea seriously. And for those with customer analytics initiatives, why now is a good time to revisit how and how broadly things are being done. Together, these factors will advance customer analytics from a project undertaken by a minority of banks to a core competency among the majority of financial institutions over the next five years. Yet a small minority of banks have experience with customer analytics.

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    • The New 80/20 Rule? Pew Study Finds Online, Mobile Adoption Differs

Credit Union Journal

Findings from the Pew Internet & American Life Project show that while 91% of Americans own mobile phones, only 35% of cell phone owners do any banking business through that channel, a 17-percentage-point increase from two years ago. Of those consumers that do mobile banking, the study found an equal percentage of men and women (35%) using the channel, with those between the ages of 18 to 40 with at least some college education being the most likely to use it. Persons with higher household incomes are also more likely to use mobile, as a 13-point gap separates users with incomes above or below $50,000 annually.

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    • Social Media Can Deliver, With Some Creativity

Credit Union Times

Recognizing that getting younger consumers to care about savings, life insurance or even the credit union difference, would be challenge, IC Federal Credit Union turned to robot monsters, clay, zombies, a medieval tale and the blues. “The majority of videos out there are unwatchable, because no one wants to hear a credit union explaining their services. Moreover, younger consumers either can’t relate or are not even listening, when you start talking about dry topics like budgeting,” said Jim Pond, co-owner of James and Matthew and Co., the Boston-based digital services agency that created the popular videos. “We wanted to create entertaining, engaging, humorous videos based on what the viewers want to watch, that respect their time. It has to be worth watching,” Pond explained.

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    • U.S. Bank and Western Union Make Mobile Remittance Transfers a Reality

Javelin Strategy & Research Blog

U.S. Bank and Western Union announced some great news for mobile money transfers: U.S. Bank is now expanding the Western Union Money Transfer service to its online banking and mobile banking platforms. U.S. Bank customers have been able to initiate Western Union transfers at the branch since 2009, but this is the first time in the United States that Western Union’s remittance transfer service will be directly integrated within a mobile banking app. This new development is huge for both U.S. Bank and Western Union, as it allows U.S. Bank to directly compete with the up-and-coming digital remittance players (such as Xoom or Remitly) and provides an excellent revenue opportunity for both players.

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Infographic: Mobile Marketing – No Longer a Spam & Pop-Up World

The face of marketing is changing and adapting as society becomes more and more technology-dependent. Mobile is now the first screen of influence for many marketers while adults are spending more time on mobile media than newspapers and magazines. The infographic below (from Top Marketing Schools) shows how mobile marketing has evolved throughout the ages.

Mobile Marketing: No Longer a Spam & Pop-up World
Source: Mobile Marketing: No Longer a Spam & Pop-up World

What We’re Reading: Bank Websites, Mobile Fees, Security Gaps

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.

 

  • Value-add mobile features offer potential revenue play

ABA Banking Journal

Retail banks can realize the full potential of mobile banking by offering segmented consumer experiences and advanced digital wallet capabilities, according to a study by Cognizant and Monitise. This, the study states, represents a new opportunity for retail banks to drive customer loyalty, attract new business, and generate more revenue. Tablets have emerged as a unique and valued user interface with 41% of survey respondents wanting to use tablets compared with smart phones, and 60% of tablet owners preferring a tablet for mobile banking. Feature personalization like rearranging tabs and functions is also important to more than 75% of the consumers surveyed. Offering this flexibility can give banks a competitive edge and help retain customers.

Read more

  • Whither wallets?

ABA Banking Journal

ComScore’s study earlier this year painted a pretty dismal portrait of the digital wallet future. This company specializes in measuring consumer awareness of all things digital and when it queried a lot of people about digital wallets in particular, it found that only 51% of U.S. consumers had any understanding about what digital wallets are about, with the exception of PayPal. “Digital wallets represent an innovative technology that has not yet reached critical mass among consumers due to a variety of factors, including low awareness and a muddled understanding of their benefits,” says Andrea Jacobs, payments practice leader at comScore. Again, with the exception of PayPal-of which 72% of respondents were aware and 48% of respondents had actually used-only 12% of respondents said they had used some other form of digital wallet.

Read more

  • How to Perfect Your Bank’s Website

American Banker

Up until the last decade or so, many banks and credit unions didn’t even have websites allowing consumers to access existing accounts, open new ones or apply for loans. Today, however, financial institutions not only have these sites, they are more focused on the mobile experience and creative apps that allow consumers to, for instance, deposit checks via their phones or get texts after they use an ATM. However, financial firms should make sure that their website is helping generate and retain customers before launching into more advanced mobile ventures. A website should influence customers to talk about their experience in a positive way, which helps expand a bank’s presence.

Read more

  • Why Banks Are Finally Embracing Cloud Computing

American Banker

Banks are warming to cloud computing after nearly a decade of hesitation about trusting their data to outsiders. Seventy-one percent of bank executives surveyed in a recently released report say they plan to invest more in cloud computing, nearly four times the figure a year earlier, according to PricewaterhouseCoopers. (About half of the 115 large banks surveyed around the world are based in the U.S.) One reason for this shift, according to Julien Courbe, PwC’s financial services technology leader, is that vendors of public cloud services have made their offerings to banks more secure and reliable.

Read more

  • 4 Ways Banks Can Improve Their Fraud-Fighting Efforts

Bank Systems & Technology

Today, we see threats associated with denial of service attacks, potential disruptions of sites, not necessarily intrusion onto sites. Over the years, banks have grown accustomed to the balancing act between protection and convenience. As threats change, protection measures must change, as well. Some protection measures are more transparent to the customer. Many customers use the same personal computer to conduct online banking, and their financial institutions are able to recognize the familiar computer as a method of authentication.

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  • Pay for Mobile? Banks Think So; Looking for ROI

Credit Union Journal

How to make money off mobile banking? — That was the question on the minds of bankers at the recent Mobile Banking Summit here. For banks, mobile app development projects can cost $1 million to $5 million, and often boards and executive committees want to see some kind of ROI first. For banks, the obvious answer is fees. Some in the industry feel it’s reputationally risky to charge fees for mobile banking services. Some believe mobile banking initiatives pay for themselves because the channel is much lower cost than branches.

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  • Surge in Mobile Banking Creates a Security Gap That’s a ‘Wild West’ for Fraudsters

Entrepreneur.com

Online banking has become ubiquitous as more people turn to their smartphones to carry out daily tasks. Still, while it may be more efficient, using your phone to make financial transactions could raise security risks. Portland, Ore.-based online fraud detection company iovation tracked online financial transactions across 1.5 billion devices in July and found that 20 percent were done through a mobile device or tablet. That’s an increase over the 18 percent of online financial transactions done on a mobile device between January and July of this year, and 11 percent last year, according to a statement the company released today.

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  • Global core banking market to hit $10bn in 2017

Finextra

Global spending on core banking technology is set for steady, if unspectacular, growth over the next four years, breaking the $10 billion barrier in 2017, according to research from Celent. This year, around $8.6 billion will be invested by banks around the world on core systems and Celent is anticipating a four per cent rate of growth over the next few years. Breaking down the spending, maintenance is set to rise at 6.1%, compared to just 2.4% for new projects. Fiserv remains the dominant vendor in the market among small banks with less than $1 billion in assets, commanding 39% of the market, more than twice as much as nearest rival, Jack Henry & Associates. Among bigger banks, the market is more splintered, with FIS, Temenos and Misys leading the way.

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  • The $1.5B Opportunity in Mobile Banking

FOX Business

If banks want to add another $1.5 billion to their collective bottom line, they should work on promoting mobile banking opportunities and, in particular, mobile deposits. That’s according to a July report from Javelin Strategy & Research, which found that banks could see significant savings if they did more to leverage mobile banking. The report notes that not only do mobile transactions cost less to process, but that mobile customers tend to be younger and more affluent — two traits that make them desirable targets for banks: Mobile deposits can save nearly $50 per customer and better banking apps might help.

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