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.
- First Look: Why Banks Should Copy Amazon’s Mayday Video Support
The days of scanning user manuals to figure how to make a gadget or app work are finally evolving into more intuitive experiences and better support options to help puzzled customers out — including video. Financial intuitions eager for customers to resolve their own mobile banking issues could emulate the feature in their smartphone and tablet apps. “Banks could probably make dozens of excuses for not adding the functionality, but obviously visionaries like Bezos [Amazon's CEO] believe enough in improving the customer experience to lead the charge,” says Jim Marous, senior vice president of corporate development at New Control and author of the Bank Marketing Blog. “This will be a foundational requirement eventually for banking, I believe. It is just a matter of when a bank will step in front and offer the capability.”
- Mobile Security Case Study
As bank employees rely more on mobile devices to get their work done, ensuring secure file-sharing is a top priority. James Gordon of Needham Bank in Massachusetts shares his security strategy. “We were an early adopter of the iOS platform. We’ve been on the frontlines for deployment of those devices,” including accommodating the use of personally owned devices, says Gordon, who manages IT for the $1.2 billion bank. “We are having more discussions about how to use iPads for more than just an e-mail. And as that shift started to happen, we researched a number of different solutions.”
- Adoption of Self-Service Technology Expected to Ramp Up In 2014
When it comes to technology, don’t expect any game-changing innovations in the next year. Instead, credit unions should expect to see increasing functionalities within technologies that already exist, including an emphasis on self-service channels. Robert Reh, a member of the executive committee for the CUNA Technology Council, told Credit Union Journal that the move toward increased self-service may ultimately be the defining technology trend of 2014. “That’s something [consumers are] already accustomed to with other retail establishments,” said Reh.
- My 2014 Wishlist for Digital Financial Services
1. Gmail-like priority inbox/feed for my financial transactions. 2. Hybrid loans that blend bank financing, P2P, and friends & family funds (blog post coming soon). 3. No login option for mobile access to my primary bank accounts (Chase, BofA, US Bank, Capital One, Wells). 4. No more telephone calls (and cryptic voicemails) from the fraud department at my credit card issuers. Instead, replaced with two-way text messaging (thanks Citibank and Discover for adopting this practice in late 2013). 5. Fraud insurance on my business banking accounts paid for as a percent of assets (eg. $5+ per month per $50,000 covered with a $5,000 deductible).
- Target card breach and what to do: Our view
Credit and debit card fraud hit $11.3 billion in losses worldwide last year. The U.S. industry is migrating to these “EMV” cards, but it has moved slowly. Put stronger protections on debit cards. When thieves hacked into credit and debit card data of as many as 40 million Target customers over the holidays, the breach rattled nerves and roiled Christmas shopping. But the truth is, if you shopped at Target between Nov. 27 and Dec. 15 while thieves were hacking data, you’re unlikely to lose a dime. Federal law and industry practices protect virtually all customers from any liability for fraudulent charges.
- The Data Product Era Begins in Financial Services
Technology, data, and analytics have transformed other industries, such as retail, publishing, and entertainment. Computers have already revolutionized the transactional side of financial services. Now it appears they will also be adding higher forms of value in that industry as well. It’s going to be fun to watch.