The financial services sector may have been slower to adopt social media, but in the past few years, many of the top banks have not only embraced social, but amassed a large following. ViralHeat compiled data on large national banks using social media to see who has the strongest social presence. The breakdown is highlighted in the infographic below.
AllTwitter.com, a blog run by Mediabistro, is running a ten-part series on getting started with Twitter. If your financial institution has recently started a Twitter handle, or you are planning on starting one in the near future, these lessons and tips are helpful resources to “get Twitter.” Below are links to the first seven parts of the series; we will update the list as they add the remaining three.
- The Newcomers Guide To Twitter Part 1: Getting Started
- The Newcomers Guide to Twitter Part 2: Choosing The Right Username
- The Newcomers Guide to Twitter Part 3: Setting Up Your Profile
- The Newcomers Guide to Twitter Part 4: Finding Cool People, Brands and Accounts to Follow
- The Newcomers Guide to Twitter Part 5: How To Get More Followers
- The Newcomers Guide to Twitter Part 6: How To Write Great Tweets
- The Newcomers Guide to Twitter Part 7: Twitter Etiquette
And, here is an infographic with tips on how to get more followers on Twitter.
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.
- Collaboration Goes Social For Banks
The rise and popularity of social media have had a dramatic effect on the ways people interact and share information on a personal level, and many banks have embraced social media as a way to improve customer engagement. But when it comes to bringing social media tools into the enterprise for business uses such as collaboration and project management, the revolution has not been quite as pronounced. That’s especially true in banking, where the use of social tools for internal business collaboration is still in the nascent stages, according to some experts. However, when banks are able to adopt the best practices for taking advantage of social channels internally, it can lead to a much more efficient and collegial work environment.
- Credit Unions Lead in Online Satisfaction
Credit unions top the financial services industry when it comes to online customer satisfaction, according to a survey conducted by customer experience analytics firm ForeSee. The firm this week released its “Financial Services Benchmark,” which reports on online and mobile customer satisfaction trends for various industry segments. The report used data from more than 335,000 surveys from the first quarter of 2013 in which customers shared their experiences with online websites, mobile websites and mobile applications.
- iPad, Tablet Point-of-Sale Systems Gain Popularity
Over the next three to five years, many of the existing larger and pricier point-of-sale systems will be replaced with iPads, says Dave Kaminsky, an emerging technology analyst with Mercator Advisory Group, a payments-industry advisory firm headquartered in Maynard, Mass. It’s impossible to predict when a total conversion of the market would occur, he says. In the same way that some customers continue to write checks in an age of online banking, some merchants will continue to use the older point-of-sale systems out of habit, he says.
- Wearable banking: Google Glass
Using touch controls and voice recognition, Google Glass will allow users to capture photos and videos, view emails, use apps and surf the web on the move. But what does this mean for digital banking? This rises to a quarter for 18 to 24 year olds, which means once the technology is available to buy, banks will need to ensure they have a clear idea of how to extend their digital banking experience to wearable technology. This has interesting implications for how consumers control their finances and suggests that if Google Glass does indeed form an ‘important branch of the tree’, it is likely that consumers will choose to manage their money using the new technology.
- Why The iPhone Still Matters To Mobile Payments
Months before the iPhone 5 was released, the industry was a buzz of rumours on the details of Apple’s new device. New connectors, a new OS, thinner, taller. But one feature that received wide-spread attention from the banking industry was the rumoured inclusion of an NFC Chip. Something that anticipated bringing mainstream scale to a technology that could replace the need for us to carry wallets full of plastic credit & debit cards. Who could forget Google’s George Costanza advert for the Google Wallet, the first NFC Mobile Wallet. Rumors about the new iPhone having NFC, but at this point, they seem like a total long shot.
- The Key to Building Bank Ads That Work
Consumers do not buy products and services, they buy the benefits they receive from them. Take Dove Soap, for example; For years, Dove advertised that its soap had ¼ cleansing cream, leaving skin soft. Dove didn’t become a top seller because it had ¼ cleansing cream, but because it made consumers’ skin softer. Tip: You may need to describe your product and its details, but this isn’t the same thing as selling the benefits the product and its features deliver. For every product feature, you can almost always find a corresponding consumer benefit.
- KeyBank Moves To Data Driven Decision Making
When Cleveland-based KeyBank reaches a decision about its optimal branch footprint, the decision is based on analytics, said David Bonalle, executive vice president and director of client insights and marketing.
- Banks Might Hold The Key To Mobile Wallet Adoption
Banks and other companies worldwide are vying to get consumers to use their mobile wallets, which enable point-of-purchase payments via smartphones. A recent report by network gear leader Cisco Systems found that banks might have the upper hand in the battle to rule a payments technology that could revolutionize how consumers buy things worldwide. The Cisco “Customer Experience Report,” which focused on retail banking, found that mobile wallet providers must offer more personalized and secure banking services before consumers will flock to their offerings.
- Global mobile payment transactions to surpass $235B
Global mobile payment transactions will generate $235.4 billion this year, growing 44 percent over last year’s US$163.1 billion. Asia-Pacific will account for US$74 billion, with growth driven by both developed and developing countries such as Singapore, India, and South Korea. According to a Gartner report released Tuesday, global mobile transactions volume and value will clock an average growth of 35 percent between 2012 and 2017, climbing to over 450 million users and a market worth US$721 billion by 2017.
Below are some interesting statistics on social media usage. Feel free to share your favorite social media statistics in the comments section or Tweet @bankingdotcom.
- 500,000,000: The number of photos uploaded and shared per day in 2013. (Source: KPCB)
- 442,000,000: The number of views per month generated by the top 500 brands on YouTube. (Source: Outrigger Media)
- 50,000,000: The number of unique visitors per month to the Foursquare website. (Source: Foursquare)
- 6,000,000,000: Hours of YouTube video watched per month. (Source: YouTube)
- 5: The number of Vine videos shared every second on Twitter. (Source: Unruly)
- 24: The percentage of online teens that use Twitter, up from 16 percent in 2011. (Source: Pew Internet)
- 150: The number of times the typical smart phone user checks their phone per day. (Source: KPCB)
- 645,000,000: Views of local business Facebook Pages during an average week. (Source: Facebook)
Does your financial institution use Pinterest? Here are three creative ways brands are utilizing the site from Social Media Examiner.
Image courtesy of nattavut / FreeDigitalPhotos.net
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.
- Connect and Follow: Leveraging Social Media for Business Results
Companies need to change the way they look at their employees, says Nathan Egan, the CEO of PeopleLinx, which provides solutions that help companies leverage social media for business and marketing. Businesses have known for several years now that their customers are on social media, and that they can glean important information from listening to their customers on those networks. Financial services firms are generally well ahead of the game in monitoring their customer interactions on social media because of compliance issues, Egan, a former sales executive at LinkedIn when the social media site was still in its infancy, observes. One reason both companies and employees should be interested in using social media to develop business and marketing leads is the ability to track returns, Egan says.
- Google Presents Biggest Threat to Banking
The Google Wallet product announcements at I/O 2013 present a perfect illustration of how Using Optical Character Recognition, Glass could determine the type of television the customer is eyeing. This presents an absolute horror scenario for banks. After you link your Google Wallet with your checking account, there is no need to interact with the bank. This means the complete dilution of the customer relationship. Customers then stop logging into Internet and mobile banking and banks miss out on the opportunity to cross and upsell products
- KeyBank to Certify Small-Business Experts
The Internet is teeming with offers of credit-card processing services, loans and other products geared toward small businesses. But KeyBank plans to deliver something that business owners may not find online: trustworthy advice. This year, the bank is rolling out a program to certify 300 of its frontline employees as small-business experts. “We’re just trying to increase their acumen so they can think more broadly about what their clients’ issues are,” says Maria Coyne, executive vice president of the branch network for KeyBank, the main subsidiary of Cleveland’s KeyCorp.
- Brighter Than Big Data
Despite competition from nonbank providers like Google Wallet and a growing consumer shift away from traditional checking accounts, credit unions are best positioned to provide what the consumer of the near future will demand. So said ProfitStars Director of Strategic Insight Lee Wetherington during his May 21 general session at the CUNA CFO Council Conference, held at the Wild Horse Pass Spa. The financial services consumers of the future will demand transaction services that better enable them to make better financial decisions, including nudges against potentially harmful behavior, Wetherington said. Only their financial institutions have the data to enable such a service, he said.
- Tiny Tri-Cities Beats Big Boys With Mobile RDC
With just $25 million in assets, 4,000 members and one credit union branch, Tri-Cities Credit Union in Kennewick, Wash., rolled out a mobile check deposit application on May 22. A big deal to this small credit union is that it became mobilized before the other two credit unions in the county – $1.2 billion HAPO Community Credit Union in Richland and the $1.2 billion Gesa Credit Union – have theirs up and running. “We’re not in competition, “said Doug Wadsworth, president of Tri-Cities Credit Union. “But it sure is fun to be first.” The Tri-Cities area comprises Kennewick, Pasco and Richland, a metro area of about 250,000 people in southeast Washington.
- Why Walmart poses a major threat to the mobile payments hierarchy
It’s been roughly nine months since more than a dozen leading U.S. retailers including Walmart, Target, Best Buy, Sears and 7-Eleven first banded together to create Merchant Customer Exchange, a nationwide mobile commerce network designed to support smartphone-enabled purchases, consumer offers and mobile marketing promotions. The MCX initiative remains a work in progress, but here’s what we know: Its ranks now encompass more than 30 merchant brands representing $1 trillion-plus in annual sales, 80,000 stores, 4 million employees and 700 million payment and other customer accounts. All of those merchants will accept the forthcoming MCX wallet, a cloud-based solution supporting barcode-enabled transactions.
- Bank’s Lobbyists Help in Drafting Financial Bills
Bank lobbyists are not leaving it to lawmakers to draft legislation that softens financial regulations. One bill that sailed through the House Financial Services Committee this month — over the objections of the Treasury Department — was essentially Citigroup’s, according to e-mails reviewed by The New York Times. The bill would exempt broad swathes of trades from new regulation. In a sign of Wall Street’s resurgent influence in Washington, Citigroup’s recommendations were reflected in more than 70 lines of the House committee’s 85-line bill.
- Consumers Prefer ACH Bill Pay, But Billers Still Missing Opportunities
A recent study of billers across the United States reveals while a majority of consumers prefer ACH for bill pay when offered the option, there remains a rich opportunity for billers to migrate paper checks to electronic payments. The study found that the great majority of billers – more than three-quarters of those that offer electronic payment options – offer Direct Payment via ACH, and now, almost 50 percent of consumer bills are paid through this method. Forty-two percent of consumer bills are still paid through the mail, and 11 percent are paid with credit/debit cards. The findings illustrate one of the hidden problems in a highly developed electronic payment market such as the United States: consumer education can still move the needle, something many stakeholders often forget.
- Mobile Wallets 2.0: What’s in your mobile DNA?
Convenience has made mobile wallet technology an increasingly popular payment tool for those looking to save a trip to their back pocket and simply wave their phone instead. However, transacting only scratches the surface of how mobile wallet technology will ultimately revolutionize customer experience at point of sale. Like a physical wallet, mobile wallets have also become identity carriers. The potential lies in the ability to leverage data, which will allow mobile wallets to become virtual identity carriers, and, ultimately a customer’s mobile DNA, which will deliver greater insights to brands.
Banks and credit unions are making headway building their own social media presence and with the influence of the Federal Financial Institutions Examination Council (FFIEC) are beginning to determine how their activities fit into company policies. Financial institutions looking to go social have a bevy of resources to learn from, whether listening to webinars from experts, talking with lawyers familiar with the guidelines or hearing from other members of their community.
For our latest FI Spotlight, we touched base with Jesse Torres, President and CEO of Pan American Bank in Los Angeles, California. Jesse recently posted an instructional video for bankers and directors on social media. To learn more, Jesse provided further insight to Banking.com on his experience with social media at Pan American.
Q: You seem to have a great perspective and experience with social media? How did Pan American Bank build its social channels, and what was your general philosophy?
Pan American Bank began using social media in late 2009 in response to the backlash against banks. As a conservative community bank, Pan American Bank never participated in subprime lending and other questionable lending practices. However, due to the broad and sensational messaging delivered by the media, Pan American Bank and other community-focused banks were painted with the same brush as those that violated public trust through questionable lending practices. Social media provided Pan American Bank with the platform to tell its story – one person at a time.
Through social media, the bank has been able to demonstrate its commitment to the community and other stakeholders. Social media is a tremendous tool for “personalizing” the institution and creating a venue for honest and transparent two-way communication.
While Pan American Bank maintains a presence on Twitter, LinkedIn and YouTube, it has chosen to focus the majority of its social media resources on Facebook. Facebook was chosen due to its broad adoption (over 1 billion worldwide users) and its mix of tools (e.g., status updates, video, photos, the ability to create and host events). These factors allow Pan American Bank to maintain an ongoing relationship with stakeholders using information in a variety of formats.
Q: What’s your best piece of advice for a financial institution just beginning to establish their social media presence?
Institutions need to realize that social media is now a regulatory hot button. During the past five years social media has transformed from an emerging technology to a mature technology. Many institutions now believe that it is time to incorporate social media into their strategy – perhaps due to having greater familiarity with the technology or because of competitive pressure. As such, the social media space is becoming increasingly occupied by financial institutions.
Regulators have noticed the growing trend but, until recently, have been unable to focus on social. As the industry recovers and as fewer banks risk failure, regulators are returning to business as usual. Any institution pursuing social media must become adequately familiar with the regulatory expectations – governance, policies and procedures, third party due diligence, training, content monitoring, audit, and board reporting. At a minimum, institutions should address social media through a risk assessment, policy and training.
Q: What’s one unexpected difficulty that banks can prepare for when developing their social media policies?
The main challenge in developing a social media policy is the governance structure. Contrary to what many may believe, social media risk is not a technology risk. It is a human resource risk. The dangers involved with social media do not involve malfunctions of technology or similar events. The dangers arise from employees being poorly trained and unintentionally creating risk for the institution. As such, the governing individual or body should have sufficient influence to require adequate employee training. This fact is many times lost as social media is often assigned to the IT department rather than to a department with broader human resource training capabilities. Ideally, due to social media’s broad impact of an organization (compliance, legal, sales, marketing, information technology, etc.), an appropriate governing structure should include a cross-departmental team.
Q: What do you see as the next trend for financial institutions on social media?
While adoption has increased over the past five years within the banking industry, the recent January 2013 FFIEC draft social media issuance and pending final regulations will slow adoption as the regulatory process works itself out. Once adoption resumes, financial institutions will increase their use of social media as a customer service channel. More progressive institutions, with greater risk appetites, will consider its use in completing financial transactions (think Chirpify). Others may utilize the platform for underwriting, using the social networks as an indicator of credit risk (good credit risks beget, or befriend, good credit risks). However, most institutions will limit its use to community building and brand differentiation due to their conservative nature and the rise of hacking incidents of both bank and social media platforms coupled with regulatory skepticism over the security afforded to bank customers through social media channels.
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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.
- Prepaid Cards Still Have Lots of Fees: Survey
A survey by Bankrate.com compares 24 prepaid cards based on the fees they charge consumers. For example, the 2012 survey found that 14 of 18 prepaid cards charged customers a balance inquiry fee on at least some automatic teller machines. This year, 18 of 24 cards charged such a fee on at least some ATMs. In last year’s survey six out of 18 prepaid cards charged fees for at least some declined transactions. This year, nine out of 24 cards did.
- FDIC on Social Media Risks
As the use of social media grows among banking institutions, federal banking regulators warn those institutions need to be mindful of phishing and spoofing schemes. Drafted guidance issued by the Federal Financial Institutions Examination Council now details how banks and credit unions can prepare to mitigate the new and emerging risks social media poses. The drafted guidance, issued in January, references applicable laws and regulations banking institutions should consider when planning and conducting their activities related to social media, says Elizabeth Khalil, of the Federal Deposit Insurance Corp., which is part of the FFIEC.
- Creating A Customized Banking Experience With Big Data
Big data opens the door for banks to group their customers according to their banking preferences, which can make customers more satisfied and more profitable. Banks have been increasingly focused on customer experience in recent years, but they’ve been taking an approach that is too broad, says Dean Nicolackis, a partner at PwC’s banking and capital markets practice. While many banks are trying to configure a customer experience that is consistent for every customer across every channel, the key to a really great customer experience is providing a different personalized experience that fits different customer segments, Nicolackis contends. Different customers just want different things – and are willing to pay for different things – from their bank.
- Are Tablets Their Own Channel And Does It Matter?
The latest research from Javelin Strategy and Research indicates that the tablet users are older; between the ages of 35 to 54, have an average household income of $75,000, and half of them consider themselves to be early adopters. When compared with mobile banking, statistics show that users spend more time on tablets. The question though is not whether it should be considered a separate channel. However, whether separate or not, the bottom line, from a customer experience point of view, the service has to be consistent, and that is the key – it has to be fully integrated into all the other channels and the interchange between the channels has to be seamless.
- SaveUp Program, Other Tools Target Millenials
Frankenmuth Credit Union CEO Vickie Schmitzer is continually focused on implementing industry innovations to attract members of all ages, but especially Millenials. That focus stems from the credit union’s work in the field. “We work as much as we possibly can with our local public and parochial schools at every grade level,” said Schmitzer. “We know they are our credit union’s future and that new technology is what attracts them to a financial institution or business of any kind, for that matter,” said Schmitzer.
- First Tech Also First CU to Launch Windows App
First Tech FCU, the credit union for Microsoft Corp., said it has introduced a new Windows Phone mobile banking application, the first credit union in the U.S. to introduce a native Windows Phone mobile banking app complete with integrated mobile deposit and bill pay functionality. First Tech launched its new Windows phone app on-site at the main Microsoft campus in Redmond, Wash., giving employees of Microsoft an in-depth look at this new platform. Microsoft employees and First Tech members will be able to view the app on a giant Microtile phone display, chat with First Tech App experts and personalize their Windows Phone at a laser engraving station.
- Malware Attacks Growing, Getting Smarter, Targeting Android: Report
In 2012, 95 percent of malware threats targeted Android, says a new report. Malware attacks are increasing, getting smarter and targeting Google’s Android mobile operating system, according to a new report from NQ Mobile, a mobile security solutions provider that based the report on the findings of its Security Lab. Mobile malware threats increased by 163 percent in 2012, and 95 percent of all threats were targeted at Android, said the report. The firm estimates that 32.8 million Android devices were infected in 2012, an increase of 200 percent from the 10.8 million infected in 2011.
- Banks Are Designing Branches to Look Like Apple Stores In a Struggle to Remain Relevant
There are a few regional banks, like Umpaqua, that fully embraced “smart banking” years ago. For major, national banks, it was Citi that sparked the trend. In 2008, beginning with its Singapore location, the bank began constructing futuristic branch prototypes that swapped tellers for touchscreens, size with efficiency, and gave locations the overall look and feel of Apple stores.. Rather than reinventing the wheel when it came to modern design, Citi actually hired the services of Eight, Inc., the architectural and strategic design firm behind Apple, according to The Financial Brand.
- Digital Wallet Race Is Far From Over
Payments players with digital wallet aspirations — including Visa, MasterCard, Google, PayPal, Apple and Isis — are all vying for customers’ virtual pocket books in a race to truly electronic transactions. Yet none have had much luck, so far. There have been delays in launches (e.g. Isis’s delays on launching in its two pilot cities); changes in the way at least one major, digital wallet innovator processes its transactions (think: Google Wallet); and, most importantly, a lack of features appealing enough to spur widespread adoption. “Mobile wallets have been around for a while, and even for us, in the industry, we are only just starting to adopt these technologies,” says Philip Philliou, a payments consultant. “I don’t think anyone is far ahead in terms of disruption. We are still early on.”
- 3 Things Banks Must Do to Survive the Mobile Payments Jungle
The mobile wallet market appears to be wide open to new entrants, with banks having a slight edge. While more than 20 percent of U.S. online consumers prefer to use their checking account for digital wallet services, 17 percent prefer PayPal, according to Gartner. That gap could quickly close in the next few years. To survive in the mobile payments landscape, banks need to do three things: Integrate mobile into existing offerings. Rebuild loyalty. Banks need to leverage emerging customer analytics techniques, coupled with geo-location services through mobile devices in order to make relevant offers at the right time. Redefine success. It’s no longer sufficient for banks to measure success by counting the number of mobile payments and online users.
- All Those New Channels Affecting Accuracy of Data
Credit unions face many challenges as channels diversify and members demand digital options. According to a recent Experian QAS survey, financial institutions are operating through an average of four different channels, the most popular being the organization’s website. While these new channels are exciting endeavors, many credit unions are experiencing problems with collecting accurate contact data. According to that same data, 91% of financial institutions suspect their customer/member and prospect data might be inaccurate in some way. On average, respondents think that as much as 18% of their data might be inaccurate. Even worse, another 27% of respondents are unsure how much of their data is inaccurate.
- Introducing The Social Media Power 100 Rankings For Banks And Credit Unions
The Power 100 is an interactive list of retail banks and credit unions who have achieved the most social media traction. Components of the Power 100 score include Facebook ‘Likes,’ Facebook engagement rate, Twitter followers, tweets sent, YouTube views and YouTube subscribers. The top 15 institutions in the banking and credit union category are as follows: Chase, Capital One, ICICI Bank, E*TRADE Bank, Bank of American, Axis Bank, GT Bank, Wells Fargo, Citi, Commonwealth, FNB, Navy FCU, Bank of Nova Scotia, NAB and TD Canada.
- DDoS: The Worst Case Scenario
Since September of last year, Izz ad-Din al-Qassam has engaged in cyberwarfare against U.S. financial institutions, and it is a war with which they have had a great deal of apparent success if we believe that their goal was to inconvenience U.S. bank customers by rendering online banking portals inaccessible for a number of hours at a time. More than information sharing on best practices is needed – financial institutions should pool resources to ensure the availability of excess network capacity, and network operators must be involved in the effort to identify infected servers and to subsequently stop the malicious traffic its source. And while intelligence support is a good start, the Federal government must identify those responsible and cripple their ability to continue this campaign.
- Facebook tries to get more in your face
It’s hard not to detect a whiff of desperation in Facebook’s new please-don’t-go interface, which is determined to keep people within the social network as long as it can. Facebook Home is intended to dominate Android smartphones, making Facebook your first and last port of call as you traverse the wireless wonderland. It will keep Facebook features front and center, rather than require users to use an app.
- Credit Union Takes an Early Lead with E-Signatures
Aaron Pugh recently published a story on credit unions using e-signatures on CreditUnions.com. He writes that only eight and a half percent of credit unions larger than $20 million in assets currently offer e-signatures to their customers even though the market for e-signatures as a whole has shot up 48 percent from 2011 to 2012 according to Gartner Research. Among the early adopters in the industry is the Teachers Credit Union in Ontario, Canada. The member-owned financial organization serves employees of education and their families throughout the province. The 15,000 members conduct business through multiple branch locations, ATMs, online and via mobile banking.
- Intuit Finally Lets Banks White-Label Mint
Intuit Inc. announced Wednesday it is incorporating features from Mint, its well-known consumer-facing PFM software, into its digital banking line. The initial Mint product line for banks will combine Intuit mobile banking apps and online banking software with aspects of Mint PFM featured front and center. “We want to blur the lines between PFM tools and digital banking,” says Greg Wright, vice president, product management at Intuit Financial Services, the company’s unit that sells to banks. “This is a sign of where Intuit needs to go and wants to go. …It’s all part of this essential movement to resurrect and redefine PFM,” says Mark Schwanhausser, director multichannel financial services at Javelin Strategy & Research.
- JPMorgan Chase Rides Out Online Banking Outage
JPMorgan Chase’s (JPM) website has stumbled again roughly three weeks after a cyberattack. The nation’s biggest bank by assets took to Twitter on Monday afternoon to tell customers the website was “experiencing intermittent issues” and to recommend customers use its mobile service while the company worked “to get things up to full speed.” As of late Monday, the site had been affected for three hours.
- SEC Lets Companies Provide Disclosures Over Social Media
Companies may now handle disclosures over social media, the Securities and Exchange Commission ruled. Banks and other public companies can use outlets like Facebook and Twitter to make crucial announcements as long as they notify investors beforehand which social media platforms they’re going to use, the SEC said Tuesday. They must follow the same disclosure regulations that apply to company websites, the agency said.
- Banking by Appointment…finally!
Banks have historically relied on a 100% walk-in model for in-branch sales and service. With branch traffic declining at most banks by more than 5% CAGR, sales leads aren’t just walking through the doors like they used to. And that traffic won’t return unless banks take proactive steps to generate those leads. Banking by appointment is one great way to do so.
- Mobile Chat – Passing Fad or Key Capability?
Earlier this week, RBS launched a mobile chat feature, available to its business mobile banking users. RBS isn’t the only one jumping onto the mobile chat bandwagon – San Diego County Credit Union announced a similar offering. The concept is pretty straightforward, and is similar to the online chat tools that some banks have incorporated into their web sites and/or online banking. It’s a familiar experience to most mobile users and therefore could catch on.
- Don’t Miss The Boat; It’s Time To Get Moving On Mobile
If your credit union is still taking a wait-and-see approach to mobile banking, you are in danger of missing the boat if you don’t act quickly. “The boat is getting pretty dang close to leaving the dock,” said Brian Abele, SVP of product management at Q2ebanking. “It’s really critical for credit unions to make sure they start jumping into this. Not only are we seeing that mobile is becoming more of a standard across the board for every institution, but we’re starting to get to the next level of functionality and services-like mobile deposit capture-and once they’re rolled out to members they’re adapted very quickly and are some of the most engaging services for members.”
- Credit Unions Ride Social Media
No longer is it a case of should a credit union be active on social media outlets such as Facebook and Twitter. Now, it has shifted to just how active and on exactly which channels. One of the reasons is that social media has become integrated into the lives tens of millions in America and ignoring the channels may not make strategic sense, some experts have advised. “Facebook has become instrumental in how we reach out to our members,” said Lynne O’Leary, vice president of marketing at the $4.7 billion Teachers Federal Credit Union in Hauppauge, N.Y.
- The Fed: Mobile Banking Usage Soars
The numbers have it and, according to a new report from the Federal Reserve, mobile banking usage is soaring as it keeps close pace with mobile phone adoption. According to the Fed: “As of November 2012, 28% of all mobile phone users and 48% of smartphone users had used mobile banking in the past 12 months. This is a significant increase from 21% in December 2011 for mobile phone users and 42% for smartphone users.
- Inside Citi’s Mobile Strategy
A study by Compete found that 57 percent of U.S. smartphone users rely on mobile banking. And a recent Juniper Research report predicts that there will be 1 billion mobile banking users by 2017, which is equivalent to more than 15 percent of global mobile subscribers. Tracey Weber, head of Internet and mobile at Citi, says that mobile is a must have, but it does present its own set of unique challenges. For one, not all consumers are comfortable having their financial information on their mobile phone.
- More Banks Hit by Cyberattacks than Initially Thought
Last week’s cyberattacks against U.S. banks were more widespread than reported, industry experts say. Though JPMorgan Chase and BB&T are the only big banks to confirm a denial of service attack on Tuesday, roughly a half dozen institutions endured digital assaults at around the same time, according to Radware, a security firm that has investigated cyber intrusions on behalf of financial firms. Tuesday’s attacks “were the largest attacks we’ve seen to date in scale,” Carl Herberger, a vice president of security solutions at Radware, told American Banker. “The one that was advertised to the world was Chase, but I can tell you that almost on an hourly basis banks were being attacked, which is a very substantial campaign.”
- Funny Ads, Social Media Can Help Small Banks Stand Out
Small banks would attract more young customers if they embraced social media and got more creative in their advertising, according to bankers who have turned to more daring marketing. About 87% of people between 18 and 29 use social networking sites and 61% bank online, according to materials from a session called “Developing & Marketing Products Aimed at the Younger Generation.” The research from the Pew Internet & American Life Project found that Among those ages 30 to 49, 68% use social networking sites and 68% bank online. In contrast, only 30% of community banks use social media such as Facebook or Twitter, while 60% provide customer account alerts by email, according to a 2012 ICBA technology survey.
- Should Banks Charge Fees for Mobile RDC?
Last week, the Chicago Tribune broke a story that PNC was considering charging fees for its mobile remote deposit capture (RDC). Hundreds of US financial institutions now offer mRDC and that number will likely double in the next year. RDC is quickly becoming a staple mobile banking capability and all but two financial institutions offer it free of charge. The revenue opportunity is uninteresting. Most mRDC users deposit just a few checks per year.
- 1 in 4 Tablet Users to Pay Bills via Their Devices by 2017, Juniper Report Finds
The new Juniper report, Mobile Banking: Handset & Tablet Market Strategies 2013-2017, found that as consumer tablet adoption continues to rise, there will be significant migration of purchasing and transaction activity from laptops and desktops to tablet devices. Indeed, the development of the ‘couch commerce’ trend within the payments industry will be increasingly replicated within the banking industry.
- Bitcoins and Amazon: Bringing E-Commerce to a Country Near You
It is a testament to the tenacity of bitcoins that the virtual currency has managed to survive the roller coaster it has been riding for the past two years. As Javelin has documented in multiple blogs, the currency has been linked to drug trafficking, been the target of a Trojan virus, had the value of the coins plummet after being hacked by a Hong Kong-based hacker group, had nearly $250,000 worth of bitcoins stolen from the virtual currency exchange Bitfloor, faced direct criticism from the Attorney General and DEA, and was the subject of the FBI’s Intelligence Assessment report. Any one of these catastrophes alone would normally mean the decimation of a fledgling currency, but bitcoins have managed to not only survive, but to increase functionality in the wake of disaster. Consumers today can now use their bitcoins to make online transactions and have the purchases shipped throughout the globe, using Amazon’s shipping service.
- Should you switch to an online-only bank? The growing appeal of Web-based checking and savings accounts
With financial institutions making a push into online-only checking and savings accounts, some industry insiders say this could be a defining year for Internet banking. But does it make sense for customers to adopt a purely web-based model? Overall, online-only banks saw their deposits rise to $364 billion in 2012, up 32% from 2010 and more than 400% from 2004, according to Novantas, a research firm. More players large and small have been wooing those migrants: New Jersey-based financial firm CIT, for example, recently announced that it has landed 50,000 customers and $5 billion in deposits in less than 18 months since the launch of its internet-only CIT Bank.
- Report: Tablet boost to mobile banking
A quarter of tablet PC users will use their device to pay bills by 2017. That is one of the headline findings of a new report by Juniper Research. Because of a sharp rise in tablet adoption, Juniper calculates that users of transactional tablet banking services will number almost 200 million in 2017. The research firm says this will account for around 19 per cent of total mobile banking customers in 2017, up from 9 per cent this year.
- Next in Mobile Banking: Photo Bill Payments
U.S. Bank this week introduced a mobile “photo bill pay” service, which allows its online and mobile banking customers to snap a photo of a paper bill with their phone and have the information automatically loaded into their account; Then, they can pay the bill electronically. First Financial Bank in Abilene, Tex., began offering the service earlier this year, too. U.S. Bank is offering the service as part of its mobile banking app, which is available on Android phones as well as the iPhone and iPad. Niti Badarinath, the head of mobile banking at U.S. Bank, said that only about 20 to 30 percent of active online banking customers at the biggest banks use e-bills. And those who do prefer e-bills still have to deal with merchants that don’t offer them — and it’s not just mom and pop stores, but sometimes larger companies, too.
- Social media regulatory guidance for U.S. banks: a road map for the finance industry
In January 2013, the Federal Financial Institutions Examination Council (FFIEC) addressed the risk of the use of social media without specific guidance by federally supervised banks, and certain nonbank entities (collectively, banks), called the Social Media: Consumer Risk Management Guidance (PDF). It completes the set of guidance available and confirms that all major regulators are adopting a similar risk-based approach to adaptation of traditional rules for social media. It makes two points: 1. The same traditional standards apply that have applied to pre-electronic forms of communication; 2. The financial firm must apply a risk-based approach in building a compliance program to manage the new, largely operational risks created by social media.