This Week We’re Reading..

Infographic: The Social Customer

Sprout Social recently released an infographic looking at the social customer and how they interact with brands. The results show some interesting stats, including a nod to the banking/finance sector, which had the highest response rate by industry in Q3 of 2013. The full infographic is below. Do you think the banking/finance sector is as responsive as it needs to be? Any of the data below stand out to you? Let us know by tweeting @bankingdotcom.

The Social Customer Infographic” by Sprout Social

The Social Customer Infographic

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.

Read more 

  • 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

 

New Rules (with Old Problems) In Social Media

In many ways, Peach State FCU symbolizes the essence of the credit union industry: Created in 1961 with a specific goal of serving local educators in a few Georgia counties, it now has more than 41,000 members, while employees of all sponsor Boards of Education and select groups and associations are also eligible to join.

Like all good businesses, Peach State likes to stay current, and that’s why, earlier this fall, it launched social media initiatives through promoted posts on Twitter and Facebook. It was working—the institution says it had soon doubled the number of followers. In November, however, Twitter instituted new rules that “restrict the promotion of financial services and related content.”

For the record, this is not an absolute ban. Financial services providers can indeed use promoted posts, but there’s an approval process that must be followed, and some products, such as short-term mortgages, still can’t be publicized.

If Peach State represents one end of the financial services spectrum—a small, focused institution serving a very specific purpose—then JP Morgan Chase surely represents the other. So what can the two have in common?

On December 6, the Wall Street behemoth sent out an innocuous Tweet from its corporate account promoting an upcoming Twitter Q&A about leadership and careers and featuring the hashtag #AskJPM. It was totally innocuous and uncontroversial. . .except for the fact that just a few minutes earlier, Twitter had gone public with underwriting help from Chase. That first Tweet didn’t get much attention, but a second one a week later certainly did. The #AskJPM hashtag soon became a minefield of nasty messages, most flailing the company for its supposed lack of ethics.

Social Media Tablet

While Chase has had its share of PR nightmares in the recent past, from bribery scandals to the Bernie Madoff fiasco, it surely wasn’t expecting this one. The company hastily scrambled to fix the damage, dropping the Q&A as a bad idea and promising to “back to the drawing board.”

Of course, it’s way too late for that. ‘Social business’ isn’t just coming, it’s been here for a while. The lines between personal and corporate communications, previously blurred by a plethora of mobile apps, have been essentially obliterated by the ubiquity of social media. And the problem isn’t that the rules have changed, it’s that they keep changing on a regular basis.

Just this month, the Federal Financial Institutions Examination Council (FFIEC) released its long-awaited guidelines for this process. Officially intended for financial marketers, “Social Media: Consumer Compliance Risk Management Guidance” actually deserves a broader audience in that it provides a clear overview of this rapidly evolving field, covering both the promise and the potential pitfalls. It doesn’t outline new laws per se, but plays an invaluable role in examining common practices and helping to negotiate current regulations.

Case in point: Twitter itself, which experienced a major snafu in this same timeframe. In mid-December, the company sparked howls of protest when it instituted a rule that enabled blocked Twitter users to anonymously view or Tweet the very users who blocked them. It was done with the best of intentions—Twitter wanted to protect those who sought to filter out abusive messages but feared retaliation—but the change had the opposite effect, and the company almost immediately had to reverse course.It’s important to remember that even a document like this, comprehensive as it is, offers little more than a snapshot in time. Regulations in the traditional sense, like Sarbanes-Oxley and Dodd-Frank, take years to create and implement. Rules around Twitter and LinkedIn, meanwhile, can turn on a dime, evolving as fast as the technologies that enable them.

The simple truth is that new technologies will keep emerging, and the rules will keep changing. In the long run, this is a good thing—each advance fosters better communication and greater competition. But in the meantime, it’s imperative that we monitor new tools as they emerge, stay abreast of changes in user behavior and expectations, and adapt our own practices to stay both current and compliant. It’s a tall order to be sure, but vital nonetheless.

*Image courtesy of  samuiblue - FreeDigitalPhotos.net

What All Financial Institutions Should Do on Social: Q&A with Sprinklr CEO

Reports claim that financial institutions are struggling on social. But why? Many brands in other industries have found creative ways to use social media to solve customer service woes, create deeper touch-points with users and keep members apprised of important information. To gain more insight on ways banks and credit unions can ramp up their social cred, we recently spoke with Ragy Thomas, founder and CEO of Sprinklr, a social relationship infrastructure company. Ragy shares his insight with us on what FIs are doing wrong, how they fix some of their biggest problems and banks and credit unions to look up to.

Ragy Thomas Sprinklr CEO

Banking.com: According to CEB TowerGroup, 65% of banks have plans to replace or adopt social networking management technology. Why do you think there is such a need to change services or adopt new ones?

Previous generations of social management technologies and solutions were designed to achieve single-issue “point” solutions, fulfilling one or two social needs such as social publishing or social analytics.

Unfortunately, their inability to work together, or solve for the many other needs mature social management requires (e.g., social engagement, compliance, workflow, listening, governance, etc.) now renders point solutions insufficient.

As in the case of other cross-department infrastructures such as CRM or knowledge management, brands need a true social infrastructure. Financial institutions are realizing they need a single, interconnected infrastructure to effectively manage conversations, campaigns, content and community at scale. They need to be able to collaborate as a team to create a unified customer experience across all channels.

What do you think the biggest challenges are for financial institutions on social?

Compliance, security and privacy are still big challenges for financial institutions when it comes to social.  To go into more depth though, people now expect every brand to know who they are, regardless of which “division” within the brand they connect with. This paradigm is particularly stressful for financial institutions, perhaps more than any other industry, who typically suffer from “business inertia” — internal departmental, divisional, and locational business groups that typically don’t work together smoothly.

Inter-departmental friction flies in the face of arguably the sharpest disruption social has created — the expectation among consumers for a “unified experience.” Regardless of whether they are talking to a teller at the branch, on the phone with customer service, or tweeting out their frustrations, people want to be recognized and cared for as individuals in a personal manner. This comes into play especially when it comes to the extreme sensitivities associated with financial matters. When internal systems are not aligned and don’t “talk” to each other, and internal divisions are not encouraged or rewarded for collaboration to meet customer expectations, customer satisfaction is likely a difficult goal to achieve.

To truly support the “omni channel customer and journey,” banks have to collaborate across teams, departments and divisions. They need to create new processes, and define “ownership” across the breadth and depth of a person’s entire brand journey. This is unfamiliar territory for most banks, with lots of land mines along the way. Given that the volume and pace of social conversations is only likely to increase in the future, the pressure to quickly put together a solution is acute.

Social can be a powerful lever for nurturing unified relationships and generating long-term, meaningful engagement. Every meaningful social conversation can be nurtured into a real relationship that can, over time, become a direct revenue opportunity, positive word-of-mouth, or direct referral. Used effectively, social can become a cost-effective lead generation and activation channel for banks. To start, banks need to build a contextually unified profile for every prospect and customer, the foundation of which is a comprehensive conversation history — combining interactions from Facebook, Twitter, LinkedIn, Youtube, etc. With these individual histories, banks will know exactly what has been discussed with each prospect or customer, and will have clear indicators for how to nurture relationships through social interaction.

What would you suggest as the best tactic for financial institutions when responding to negative banking experiences online?

Financial institutions need to be able to admit when something has been handled poorly and rectify it immediately. Additionally, banks must be empathetic and be willing to listen to and trust their customers. As an industry that previously championed process-based decision making, this is a radical change.

If financial institutions were to change one thing today about how they use social networks, what would it be?

Create a cross business unit team that can be an advocate for optimizing client experience across channels, teams, departments, divisions and locations. This can be headed by the chief client experience (social) officer who can champion the transformation to being a social business.

Is there an example or a few examples of banks and credit unions that are really nailing it on social?

Navy Federal Credit Union provides a great example of a financial services company that has employed a mature, holistic approach to social engagement. They intently listen to their social communities, and know which customers spend more and more time on social. As a result, NFCU today provides 24/7 customer service and have an SLA response time of less than one hour. Since 60% of their members log on to social through mobile, they also now make sure new apps work seamlessly on any mobile device.

Another example is Citibank, which serves more than 100 million customers in 40 countries. With more than a million of those customers following their social channels, there were a lot of conversations happening around the brand and it was hard to keep track of them. Citi adopted a social relationship infrastructure approach to help them provide better customer service through social. As a result, the banking giant was able to save roughly 20% of their community manager’s time that was previously devoted to customer service issues. They are now able to optimize resources to social engagement, where they are committed to creating meaningful conversations and escalating customer issues to the right people.

What these two brands have in common is that they use social to enhance the customer experience and make their lives easier. That’s what all brands should aim to do through social.

 

Banking.com, Barlow Research and Digital Insight to Host Twitter Town Hall on November 14th

Banking.com and Barlow Research SOHO Twitter Town Hall

In conjunction with Barlow Research and Digital Insight, we will host a Twitter Town Hall on Thursday, November 14th to discuss Barlow Research’s recent study of the Small Office/Home Office (SOHO) market. The Twitter Town Hall will discuss the survey results and how they tie into current banking trends, including  financial management, payment and credit card behaviors, mobile and digital banking habits.

Barlow Research recently completed a comprehensive, multi-sponsored study that gathered the information needed to segment the SOHO market, examine their financial management, payment and credit card behaviors, measure the value of the SOHO customer, analyze product usage and explore business Internet banking and mobile device habits. Banking.com will be hosting a Twitter Town Hall to discuss the study results, how banks are currently serving consumers and answer any questions about the study.

The Twitter Town Hall is open for all our readers to join and participate in the conversation. To join us and/or learn more about the event, see below

Steps to Join:

  • Twitter Town Hall: Go to www.tweetchat.com. Log in using your Twitter ID.
  • Enter the hashtag to join the conversation: #SOHOStudy
  • You can also follow the hashtag (#SOHOStudy) using Twitter applications such as Hootsuite or Tweetdeck 

Details:

  • Date: Thursday, November 14th
  • Time: 10:00 am PST/1:00 pm EST
  • Hosted by: Banking.com Staff (@bankingdotcom), Joel Mueller, Research Analyst, Barlow Research (@BankingResearch), John Barlow, President, Barlow Research (@JohnRBarlow) and Digital Insight (@Digital_Insight)
  • RSVP/Add to your Calendar: You can register for the event via Eventbrite and add a reminder to your calendar. See Eventbrite link here

Additionally, if you are interested in submitting a question prior to the Twitter Town Hall, please DM us on Twitter.

We hope to “Tweet” with you on November 14th!

For more on the study, visit our earlier posts on the topic.

 

What We’re Reading: Underbanked, Mobile Game App, DDoS

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.

  • They May Be Underbanked, But They’re Highly Networked

American Banker

A remarkable 68 million Americans today lack full access to traditional financial services, such as a bank account or credit card, or choose not to use them. Interestingly, though, these financially underserved individuals are far from disconnected. They are actually more active users of mobile phones and social media than the population at large. The vast majority of the so-called “underbanked” are highly networked, using their mobile devices to connect via social media, purchase goods online and, increasingly, conduct financial transactions.

Read more

  • BB&T Teaches Leadership Creed with Mobile Game App

Bank Systems and Technology

The Winston-Salem, N.C., bank released a mobile app this month called Legacy: A BB&T Leadership Challenge, in which users play the role of a medieval hero enlisted by King Alpheus to help the land of Failburg succeed. (The king is named after BB&T founder Alpheus Branch.) Players gain influence – and proceed to the next level of the game – depending on how they interact with the characters.

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  • Biometrics Has Potential in Mobile Banking Apps

Barlow Research

Apple finally delivered on its much hyped biometric capabilities in September when it released its new iPhone 5S with a built in fingerprint identity sensor, Touch ID. It had been rumored to be in the works for several years and the public was finally able to view how the finger printing technology works. Touch ID has some great benefits; it is a user-friendly way to let users get to their information quicker and it also allows a fingerprint to authorize a purchase from the iTunes or App store. These two capabilities have potential for the future of mobile banking apps.

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  • DDoS Growing; CUs Unprepared

Credit Union Times

The DDoS threat keeps growing. Third-party experts and credit union executives—primarily speaking anonymously on the subject—said most credit unions have done nothing to protect themselves against the threat, which has been increasingly linked with theft of funds at financial institutions. “They are remarkably naive,” said an expert, who asked to remain anonymous, of credit unions. Added a senior engineer at a Northeast credit union with more than $500 million in assets, who also requested anonymity, “We haven’t had any outages and we haven’t installed any new defenses.”

Read more

  • Top 100 Banks & Credit Unions Adding The Most New Facebook Likes

Financial Brand

The top 100 banks and credit unions on Facebook ranked by their new ‘Likes’ in the last 90 days through September 2013.

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  • Executives see no letup in mobile trend

Miami Herald

There are 7 billion activated cellphones worldwide, about the same as the population. About 6 billion hours of video are accessed on YouTube every month. Of that, 70 percent is from outside the United States; 25 percent is accessed on mobile devices. On Friday morning, panelists at WorldCity’s Tech Connections event — executives Marcelo Caputo of Telefonica, Jose Antonio Rios of Celistics, Mark Hans-Joachim Crofton of SAP, Juanjo Duran of YouTube and Richard Wadsworth of MasterCard Worldwide — shared these numbers as well as a glimpse into the future. The consensus: There will be no letup in the speed of mobility or big data, particularly in Latin America.

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Creative Social Media Solutions for Banks

Most banks and financial institutions have a Twitter feed and a Facebook page, but not every bank is employing those social media options in the most effective way. Customers won’t pay attention to a Twitter feed just because “it’s there,” and they won’t befriend a Facebook page simply because an advertisement compels them to do so. Even a staid business like a bank needs some creativity in the realm of social media.

Here are some tips to make social media work for your financial institution.

1. Use Social Media for Research

Social media is not a one-way street, and banks can learn from what their customers say to and about the financial institution on Facebook pages. 1st Mariner Bank, a small bank in Baltimore, Maryland, decided that it would use social media to query its customers about bank features and needs.

Instead of conducting sessions with focus groups, 1st Mariner asked the entire internet what it could do better. Through questions posted on social media pages, the bank was able to determine that it needed to provide a better banking experience to teenagers and parents.

2. Expand Customer Service Options

Social media is all about the engagement and responsiveness of the bank with its customers, and the immediacy of social media like Twitter offers customers the satisfaction of quick answers to problems.

Although the information shared on social media by a bank must be controlled in such a way to ensure security and privacy, the medium remains a reliable option for communicating with customers about their problems. Bank of America recently set up an active Twitter account that took some time to develop, but which eventually turned into a valuable outlet for customer service queries. Other merchant and review sites are also using Twitter as the go-to source for customer interaction.

3. Partner with a Popular Entity

United Kingdom-based Barclays Bank took note of the popularity of football (that’s soccer to Americans) in the country and decided to buy into title sponsorship of the country’s Premier League. Out of this sponsorship came an incredibly popular Twitter feed where the bank started to offer timely updates on what was happening with the professional football league.The feed swiftly gained over a hundred thousand followers, and Barclays was able to fortify brand recognition through Twitter. Each time a fan would see a Twitter update on the football feed from Barclays, he would see the Barclays Bank logo.

There is no doubt that social media propels advertising today, but it may also help a bank to improve customer service and create personalized relationships with its depositors and customers. Today’s customers are on the internet, and it is essential for banks to be inventive and resourceful with their social media campaigns.

A bank shouldn’t see social media as a simple advertising machine but rather a conduit for the exchange of ideas with customers.

Tanner M is a web specialist and entrepreneur and runs Multiple Streams, a site about helping people with their personal finances. Tanner also writes for TopTenReviews.com.

What We’re Reading: Mobile Banking Scorecard, Social Media, 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.

  • Fifth Third CEO: Social Media Keeping Banks Honest

American Banker

The Consumer Financial Protection Bureau was created to ensure that banks treat customers fairly, but Facebook and Twitter are even more effective at keeping banks honest, argues Fifth Third Bancorp (FITB) Chief Executive Kevin Kabat. In a speech that largely focused on the regulatory response to the crisis, Kabat said social media is now taking a central role in helping banks assess their standing among customers and shareholders. Banks don’t really need new guidelines and mandates from regulators, he said, since every action — from the introduction of a new product to new disclosures on checking accounts — can be censured in real time.

Read more

  • Study: Banking’s branch of tomorrow

ATM Marketplace

In new research, “Arriving Now — Banking’s Branch of Tomorrow,” Mercator Advisory Group reviews continuing evolution of branches today in banks and other financial institutions, according to a news release about the study. “With recent advancements occurring in the self-service banking channels — including ATM, online, and mobile banking — coupled with an expansion of teller duties in both full- and assisted-service roles, branches continue to evolve at many financial institutions, with branch reconfiguration at the center of many FIs’ branch strateg[ies],” said Ed O’Brien, director of the banking channels advisory service at Mercator, and author of the report.

Read more

  • Chase Tops Keynote Mobile Banking Scorecard

Bank Systems & Technology

Banks are moving towards offering more robust, transactional mobile services and capabilities, the scorecard finds. Chase achieved the top overall score in the 2013 Mobile Banking Scorecard from Keynote Competitive Research, the industry analysis group of San Mateo, Calif.-based Keynote Systems. The scorecard compared the mobile banking offerings of the top 15 U.S. banks and ranked the banks across four mobile categories: text, mobile Web, iPhone app and Android app. The banks were ranked in four categories, functionality, ease of use, quality & availability and privacy & security.

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  • Sibos #2 – Your Weather Forecast for 2014

Celent Banking Blog

The headline is that Sibos is back. Swift would argue that it never went away, but after the rather damp squid that was Osaka, the difference was clearly different, with the halls full and buzzing. Swift clam 7,648 delegates, which breaks out to roughly 44% Europe, 29% Middle East & Africa, 16% Asia Pacific and limping in last, 11% Americas.  Considering the size of the delegations from the large US banks, the latter number shows that Swift needs to continue to make sure the conference returns to the US regularly.

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  • How CUs Can Use Big Data To Drive Big Revenue

Credit Union Journal

The ever-growing file of aggregated, disparate information known as “big data” is leaving many credit unions with more questions than answers. A new report, however, shines some light on how CUs can use predicative analysis to increase revenues. “Big data is something we have recently begun to focus on but we are new to it,” said Robert Keats, vice president of information technology for Grow Financial FCU. “I believe there probably have been some missed opportunities in the past, but if we had all the data in front of us, and understood it, better decisions could be made.”

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  • Behind eBay’s $800M buy: Braintree will replace PayPal’s developer platform

GigaOm

eBay’s $800 million purchase of Braintree is primarily motivated by one big factor: PayPal’s need for a nimble and flexible commerce platforms that met the demands of the new generation of startups and mobile app developers. That’s according to John Lunn, PayPal’s global director of developer networks, who spoke with GigaOM Thursday morning.

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  • Chase leads US mobile banking segment

Telecompaper

According to new mobile banking data from Keynote, Chase achieved its fourth consecutive win for Overall Score. Following Chase was Wells Fargo and Bank of America, with US Bank moving into the top tier, tying with Bank of America for third place.

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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.

Read more 

    • 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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