Community Service with the Personal Touch

September 23, 2014
/   Insights

Question: Community branch, personal service, mobile banking—which is the odd one out? Answer: None. Otherwise, the industry is in trouble. For some time now, there have been discussions about the future of community banks...

Cause and Effect: If you build it, will they come?

July 23, 2014
/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

Fast Facts: Student Loans

January 22, 2013
/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

The Top 10 Trends in the Digital Banking Industry

December 18, 2013
/   Spotlight

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions....

Financial Literacy Month: How are you celebrating?

March 22, 2013
/   Insights

With April approaching, it’s almost time to kick off Financial Literacy Month! Strongly supported by the United States Congress and the Financial Literacy and Education Commission, Financial Literacy Month aims to promote the importance...

Platform Shift in the Making

February 13, 2013
/   Insights

What does the banking industry as a whole have to do with Amazon, Microsoft and Apple? Just about nothing—and down the road, it may turn into a major problem (if it isn’t already). Consider...

Mobile Banking Engagement: Data from Digital Insight

June 24, 2013
/   Spotlight

Intuit Financial Services has been conducting a comprehensive and ongoing study of financial institution customers. From these studies, the company has been able to provide a deeper view of banking customer behavior across several...

Security: What It Takes to Lead the Way

January 22, 2014
/   Insights

You say Target, we say EMV—how’s that for a conversation-starter? The recent mass hack of retail giant Target—it’s estimated that more than 100 million consumers’ information might have been compromised—has generated considerable attention, as...

Banking is serious business for serious individuals and institutions. Financial services are for stable entities in thoughtful, analytical environments. This is real life for the real world. It’s not a video game.

But then again. . .

A couple of years ago, Nintendo earned praise for incorporating some new and exciting capabilities into its new Wii U platform, such as the GamePad, a new controller with a 6.2 inch touchscreen. But there was also something else. In fact, this was the first gaming platform to incorporate Near Field Communication, or NFC.

But that’s gaming. Here’s what it has to do with banking.

First, for the uninitiated, NFC comprises a set of standards for mobile and other devices to establish radio communication through touching or proximity, collectively encompassing a broad spectrum of communications protocols and data exchange formats. We already have quite a few applications taking advantage of these protocols, from contactless transactions to simplified Wi-Fi.

As the industry trade publication American Banker pointed out recently, financial services corporations have long sought to boost the use of NFC services for mobile payments. But as with many other aspects payments, success has been hard to come by. And that’s exactly why hose sober, solid and sensible banking industry types should look to industries such and video gaming—and more specifically companies like Nintendo—for pointers on what to do.

To be sure, there’s quite a bit of success to emulate. The original NFC technology in the Nintendo console didn’t seem to have much purpose, but the company recently that the reader will come to life through a series of NFC figurines that easily interact with many popular games.  Those figurines, incidentally are also sold as action figures; the character equivalents take life in the game, and can follow multiple storylines in accordance with the layers’ preferences.

Here’s one sign of the success. This represents another potentially lucrative channel for the creators and owners of these figurines, including Disney and Activision. The latter’s Skylanders was an original backer of this concept, and the franchise passed $2 billion in revenue earlier this year.

Here’s the point: Consumers can make mobile payments through a variety of channels right now, saving massive costs for the financial services institutions involved. But very few are doing it.  There might yet be large-scale adoption, and the numbers will surely keep growing, but the truth is that technology is a fickle business. We don’t really know why some advances take off immediately and others take time. So far, at least, this one hasn’t.

But we also know that the next generation—the one obsessively playing video games right now—will be opening back accounts soon enough. Those now-youngsters will have absolutely no understanding of a world without millions of mobile apps, and it will be completely comfortable with NFC.

Banking and multi-players games surely make for an odd hybrid, but there are precedents. Innovators such as American Express have been embedded in this market for years, specifically to wean an emerging generation of cardholders. Several telecom giants have also had some success with built-in NFC capabilities.

Today, it seems like a long leap from shoot-’em-up games to, say, mortgage banking. But that’s exactly what innovation requires—a leap in imagination and then practice. Those pesky kids playing games today will be opening bank accounts and making payments tomorrow. We need to find ways to reach them before that.

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Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.

Brad Strothkamp

http://www.forrester.com/rb/analyst/brad_strothkamp

James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Marisa Mann

Marisa Mann 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.