This Week in Engagement Banking #5

Posted on February 3, 2012 by Sara Palmbush

As we embrace a serious cold snap here in Europe, banks in the US are warming to social marketing and Facebook is minting billionaires. Among the highlights in This Week in Engagement Banking, we see Bank of America taking another stab at Groupon-style product sales. We also include a great article, part of a series, from Jim Hanas for FastCompany’s Co.Create blog, about the ways companies of all stripes are adapting social TV to engage with users, as well as, a look at some interesting mobile details revealed in Facebook’s IPO documents. Finally, for those of you who are insecure about your social media strategy, we give you ClickZ’s ‘11 Deadly Social Media Sins for Brands.’  Perhaps it will actually make you feel better about your own?

Bank of America Testing New Deals Service
We’ve seen them do this before without success, but maybe the second time around will be a charm… Reuters reports: “Bank of America is wading into the fast-growing business of offering consumers targeted online discounts. [BoA] will start testing a new service [named BankAmeriDeals] that will allow customers to rack up savings from retailers based on their previous spending patterns. Customers will receive offers through the bank’s online banking website. The discounts will be awarded in the form of cash payments once a month. Customers need not sign up for emailed coupons or check a separate web site, as bargain hunters do with offerings from Groupon Inc. and others.”

The Race for the Second Screen: Five Apps That Are Shaping Social TV
“Co-viewing. Back channeling. Checking in. Double- or triple-screening. Layered content. The increasing symbiosis between good old traditional TV and the social world will be one of the most interesting media trends to watch this year. In this three-part series, Co.Create looks at the world of social TV from a few different angles. First up: the apps.”

Facebook’s Biggest Weakness: Mobile
The SAI Business Insider published an interesting piece by Matt Rosoff about Facebook’s mobile weaknesses along with some other interesting ‘risk factors’ found as the company filed for IPO. “First, Facebook‘s mobile apps are not making any money — Facebook doesn’t show any ads to mobile users. Facebook has to figure out how to show ads fast. Otherwise, as more users turn to Facebook on mobile devices, and away from Facebook on their computers, that could hurt ad revenues. Second, Facebook has no control over the platforms on which its mobile products are used. If Apple or Google limit or block what Facebook can do on their mobile platforms, that could also hurt. It’s doubtful that mobile platform makers will ban Facebook entirely — it’s too popular. But they will certainly exercise control. For instance, last year Facebook introduced a version of its Credits payment platform for mobile developers of Facebook apps. But Apple won’t let developers use Credits on iPhone or iPad apps — they have to route payments through Apple’s App Store instead, giving Apple (rather than Facebook) the 30% cut of each transaction.”

5 Signs of a Great User Experience
It’s safe to say that the quest for the best User Experience can seem never ending. Here’s a great article from ReadWriteWeb that might help lead you further in the right direction. “If you’ve used the mobile social network Path recently, it’s likely that you enjoyed the experience. Path has a sophisticated design, yet it’s easy to use. It sports an attractive red color scheme and the navigation is smooth as silk. It’s a social app and finding friends is easy thanks to Path’s suggestions and its connection to Facebook. In short, Path has a great user experience. That isn’t the deciding factor on whether a tech product takes off. Ultimately it comes down to how many people use it and that’s particularly important for a social app like Path. Indeed it’s where Path may yet fail, but the point is they have given themselves a chance by creating a great user experience. In this post, we outline 5 signs that the tech product or app you’re using has a great UX – and therefore has a shot at being the Next Big Thing.”

 11 Deadly Social Media Sins for Brands
“Most brands are trying really hard to succeed with their social media initiatives. They are trying new ways to engage – from receipts at checkout to advertisements in newspapers; brands are trying their best to connect with consumers on social networks. In the pursuit of trying to get things done, some “top” brands have made mistakes. Here are some things to avoid, with no exceptions – things that I hope are rarely repeated.”

Until next week- TGIF!

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Digital Banking in 2012

Posted on January 30, 2012 by Sara Palmbush

In Backbase’s most recent webinar, “Digital Banking in 2012“, we gave our outlook as well as ideas about what trends will dominate the financial industry this year. In terms of outlook, we saw Bank 2.0 and its ethos finally gain traction in 2011 and we believe it will continue to add momentum in 2012. The idea that customer behavior must be combined with the newest technologies and that this will significantly impact the industry is now undisputed.

Certain companies (Amazon, Apple, Simple) have raised the bar when it comes to offering customers a seamless online journey. Technology has also advanced significantly in the last year and now facilitates a profusion of consumer-oriented applications. All of this leads us to predict the top four trends for this year will be: Self-directed customers, better User Experience (UX), mobile banking, and more personal and relevant banking interactions.

Accenture has been tracking customer behavior for several years and was already seeing the beginning of a behavioral shift due to social networks and computer and cell phone usage back in 2009. In its most recent survey on global customer behavior it saw a distinct increase in customers seeking direct self-service, more personal interactions, and more discounts online. All of this fits with our expected trends for 2012.

In order to offer this kind of service we expect banks will improve UX and incorporate microsites as a way to interact on a more personal level with customers while also making their interface compatible for mobile banking initiatives, which is another of our expected trends. Higher demand for mobile applications will inform the UX of banking sites like never before. Simplicity will reign. Further, making applications more personally relevant will mean more segmentation and customization by the banks.

Watch the webinar for more on our trend predictions as well as the great questions from participants (along with our answers).

Digital Banking in 2012

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This Week in Engagement Banking #4

Posted on January 27, 2012 by Sara Palmbush


In the latest edition of This Week in Engagement Banking comes a spot-on look at the legacy problem within large financials via a recent piece by David Bannister in Banking Technology. We especially identified with this statement: “…they [big banks] are also strong believers in the old maxim, ‘if it ain’t broke, don’t fix it’. The result is that most organizations have a raft of systems held together by sealing wax and string.”

Other highlights this week include our advisor, Bank 2.0 and Movenbank founder, Brett King’s launch of his latest book on the death of branch banking, as well as, a lively post about how some banks are dealing with Twitter feedback – hint, hint – not so successfully.

Big Banks Struggle to Help Customers on Twitter
The ‘Bucks Blog’ from the New York Times recently reported that Twitter is proving to be a vexing customer service tool for big banks. According to a new report from Javelin Strategy & Research on banks’ use of social media, customers seem to like the speed and directness of sending a question or complaint to their bank by Twitter, but banks must weigh the implications of responding quickly with the need to protect a customer’s personal and financial information, like bank account numbers. As a result, they’re ‘struggling’ with how to best use the service, Javelin found.

Managing Complexity, Living With Legacy Systems
Banking Technology’s David Bannister discusses the issue of legacy systems within financial organizations. “A combination of new technologies, systematic methodologies and sheer necessity is driving firms to finally address their legacy issues. For as long as anyone can remember, the financial technology world has had to get to grips with the problems caused by the plethora of legacy systems in use in most organizations. Banks have always been heavy users of technology, but they are also strong believers in the old maxim, ‘if it ain’t broke, don’t fix it’. The result is that most organizations have a raft of systems held together by sealing wax and string,” he writes.

Want Popcorn at the Movies? Try QkR, MasterCard’s New Mobile App
Demo of QkR by MasterCard, the latest smart phone payment pilot app developed in conjunction with Hoyts and Commonwealth Bank.

Which Will Make a Bigger Splash in 2012, Mobile Wallet or EMV?
During the latter half of the past decade, a heated battle has been fought around the world to determine which payment method will take center stage in the coming years. According to a Bank Innovation blog entry by Robert Siciliano, an identity theft expert, many believe mobile payment will leapfrog what is known as EMV, which stands for Euro MC/Visa, or chip and PIN credit card technology, and that soon enough chip and PIN technology will go the way of the magnetic striped credit card.

As he argues, certainly, there are many major companies that have wagered heavily on the presumed success of their chosen technology, and these companies have a vested interest in the failure of their rivals. He thinks there is more than enough room for both Mobile Wallet and EMV.

Branch Today, Gone Tomorrow: The Case for the Death of Branch Banking
Backbase advisor Brett King’s new book has just been released.  In it he once again touches on the lag between what is currently  possible in a Bank 2.0 world and what still holds banks back. Specifically, the new book discusses how, in the wake of the global financial crisis, retail bankers face another equally challenging shift to their business in the near term – the demise of the branch. For example, in the UK, one branch has closed everyday since 1990. In the US, transaction volume in-branch will be down almost 60% from 2006-2015. In developed economies, consumer visits bank branches have been down 80-90%. Yet today most banks spend more than 80% of their channels budget on branch real estate, staffing and support.

With that we bid you adieu for this week!

Image provided by chaitanya via www.deviantart.com

 

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Social Media is the Ultimate Outside-In Tool

Posted on January 20, 2012 by Sara Palmbush

Social media has been the topic of many a marketing website, blog and industry report. You see social media nearly everywhere you turn, and yet, the number of companies [especially financial] who are able to truly access its potential, “make it real” in fact, is still disappointingly small.  With all the information available online and elsewhere about how to use this technology it’s inexcusable. It’s also a pity since social media represent an easy way to provide the kind of ‘outside-in’ thinking that is necessary for financials to succeed now and in the future.

The biggest problem:

Some banks tackle social media by treating it as just another way to distribute marketing messages. Instead, banks should begin by defining their business objectives, listening to the social conversations occurring online and creating a targeted plan to meet customer needs. By monitoring social media, you don’t have to guess what your customer wants. You can be part of the conversation as they discuss their financial goals.

Amen! This was taken from a recent article in BAI Banking Strategies. It’s identical to the kind of message we’ve been trying to get across to financials ourselves as a company whose prime objective is helping banks to connect with their customers.

So, you say, the past is the past. True. How can financials use the tools available to gain this critical outside-in thinking now? Well, according to BAI Banking Strategies they can use it to focus on:

  • Customer acquisition: Engaging brand advocates to acquire new customers and increase loan portfolios.
  • Community engagement: Building strong customer relationships through participation in local events and promotions.
  • Customer service: Providing prompt, personal attention for questions or complaints.

This last bit, refers to customer service, which is a key area that has, and does, actually impact the bottom line. Banks can use software to monitor customer responses and in effect, manage to kill two birds with one stone by responding better to customer’s needs and gaining important knowledge about who its customers are as well as what they want. This, in turn, makes it easier to sell products and services that customers will actually buy.

In short, if financials make the leap and decide to use the social media tools at their disposal, they will reap the rewards of improving the bottom line and gaining consumer insight all while helping improve customer engagement which, in the end, is what it’s all about. Right?

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This Week in Engagement Banking #3

Posted on January 20, 2012 by Sara Palmbush


What if paying your bills was as much fun as playing Farmville? Believe it or not, gaming has become a part of the financial service provider’s arsenal to attract online banking customers and – it seems to be working. Other positive signs are emerging that mobile banking is gaining further traction and if you are looking for a strategy to tackle all these new digital initiatives Chris Skinner gives you some ideas, plus some future insight for the industry. You can read about these trends and more in this edition of ‘This Week in Engagement Banking’.

Banks Start Playing Games with Your Money
Financials (Visa, CapitalOne, Chase) are embracing gaming as a way to attract and keep customers engaged according to a recent article by Reuters journalist Linda Stern.  Game-like scenarios such as contests, prizes, scorecards, badges, friendly competitions and so forth, are perhaps obviously being used to attract a younger demographic, but also and more interestingly, can even result in encouraging lower-income people to save more money (so says the article).

How to Create a Banking Strategy
On his own blog, ‘The Financial Services Club’, Chris Skinner discusses how to avoid the faddish management philosophies of the times when coming up with a banking strategy. He has devised an acronym PEST – Political, Economic, Social and Technology, which encompasses the forces he believes will most impact change for Financials in the near future.

Digital Banking Tipping Point Set for 2015, and Customers will Pay for It
PricewaterhouseCoopers’ (PWC) recent survey and research, highlighted on the Finextra news site projects that in three years time more people will interact with their banks digitally than through branches, and they’ll be prepared to pay for the privilege.

How Many Jobs will Digital Kill Off in Banking?
This question is posed by Bank 2.0 guru, writer and entrepreneur Brett King this week. The ultra juicy post begins: While I won’t name any names or budgets, I’ve heard of mid-sized banks dedicating more than $50 million to Internet, mobile and social-media this year, and large banks in the range of many hundreds of millions. This begs the question – where’s the money going? Keep reading . . .

Bank of America Banging it in Banking
Finally, we end with a positive blog note about BoA. Yes, I wrote positive. Hard to believe maybe, but JJ Hornblass over at Bank Innovation lends some insight to BoA’s latest earnings report in which it disclosed mobile usage growth. BofA said that its mobile banking customers grew 45% in 2011 to 9.2 million by the end of the fourth quarter. It also says it has about 29 million active users of its online banking platform today and there’s more!

Image source: HDW (High Definition Wallpapers)

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