Credit Cards are the New App Platform [TWIEB #9]

This Week we are chock full of treats for the Engagement Banker. We’ve got a Forbes.com post pointing to credit cards as the new app platform. (Aren’t cards being eliminated? Just read the article.)  We’ve also got a piece on Near Field Communications (NFC) in the banking industry from the Finextra blog’s report on the Mobile World Congress. The piece, among other interesting tidbits, mentions how Japan’s DoCoMo is already setting up the first world trial (with Korea) of its NFC-based e-wallet offering. And, if you are wondering how the next several years in banking might shake out we have a rather thorough examination of the future of online banking from The Next Web. Additionally, there’s a call for banks to speak to customers in their own language, and we end this week with a report by Netbanker, which argues for banks to get with it and get on Facebook.

The Credit Card is the New App Platform
‘Credit and debit cards are ubiquitous, but they’re mostly pretty dumb. That’s about to change. Over 170 million people in the U.S. have credit cards, and the average card holder has 3.5 of them. And those totals are not even counting debit cards, which are roughly 40% of the total market and growing. That’s a crap load of plastic! In spite of the promise of mobile payments, plastic cards are not going away any time soon.’

MWC12: NFC – but not as we expected it
‘Over the past twelve months the payments industry has been awash with talk of NFC; when will it become mainstream and what will it look like?  It is unsurprising then, that much of the mobile payment talk at Mobile World Congress this year has looked at the topic of NFC and the impact this contactless revolution will soon have on our lives.’

The Future of Online Banking
Last September, The American Bankers Association (ABA) announced that, for the first time, most Americans aged 55-years and older prefer online banking as opposed to visiting a branch or ATM. According to the study, 57% of bank customers in that age group noted that Internet banking was their preferred means of managing their money, compared to only 20% in 2010. Among all age groups, 62% said they prefer online banking, up from 36% on the previous year. In the UK, the numbers of registered online banking users pretty much doubled between 2006 and 2010, meaning that 43% of the adult population is signed-up to side-step bank queues. Of course, there’s still a long way to go. The High Street bank isn’t yet consigned to the history books, if it ever will be. However, there’s little question that digital banking is the future for everyone. But what does that future look like?’

It’s Time to Talk to Customer’s in Their Language
Bob Williams, Director of Marketing Technologies at Harland Clarke and author of the blog, The Merchant Stand responds to an article from American Banker called: ‘Banks Underuse Mobile for Communication.’ ‘The article discusses challenges that financial institutions have with communicating with their customers through mobile devices. While mobile device applications and mobile optimized sites are becoming more common, and expected by account holders, financial institutions are not using the mobile channel for proactive communication. Kael Kelly, senior director at Varolii is quoted in the article “Banks don’t have the data that they need. A lot of the phone number data doesn’t easily distinguish between a mobile number and a land-line.”’

Banking on Facebook
Netbanker just published its latest report, which looks at why banks should establish a presence on the social network. Jim Breune writes, ‘And more importantly, what you can do to make the effort pay off. To some extent, this report was overdue. Facebook has been a major social force for four or five years. However, it wasn’t until recently that brands have taken the platform seriously. And while soft drinks and social games may dominate Facebook brand pages now, every major brand will be there eventually, financial services included.’

Leave a Reply