Wallet: Apple In, Google? [TWIEB #12]
As we all try to cope with spring fever this week, there’s big news in This Week in Engagement Banking with Chris Skinner weighing in on Apple’s launch of iWallet, incidentally just as Google is said to be re-evaluating its Wallet push. And, if you thought mobile cross-selling was something for the future, we link to an article about a Vienna-based bank making it work right now. Additionally, see what American Express has done with its buzzed-about Sync rewards.
Innovators break the rules: here comes Apple’s iWallet
Chris Skinner on his Financial Services Club Blog: I did a speech about innovation yesterday. As usual, the opening question was: “which is the most innovative company in the world?” and, as usual, the answer shouted back was: “Apple”. Apple. The firm everyone wants to be like because they are cool, successful, the world’s most valuable company by market capitalization and because they are what we all want to be. But it wasn’t always this way. Some of us remember 1997 when the company was on its knees. Back then, when asked what he would do with Apple, Michael Dell was famously quoted as saying that he would “shut it down and give the money back to the shareholders”. Instead, Steve Jobs came in and took the company into the stratosphere. The result is that $1,000 invested in Apple in 1997 would be worth $58,000 today. Not a bad return on investment. What did he do?
From Mobile Bill Payment to Mobile Wallet
Mobile bill payment can be the stepping stone to consumer adoption of mobile bill payments at the point of sale while keeping banks at the center of those transactions. Over the last year, media attention and overall interest in mobile payments has surged dramatically. While point-of-sale (POS) payments and mobile wallets have grabbed most of the headlines, the real story may be the growth of mobile bill payments. Consider these finding from the 2011 Fiserv Billing Household Survey: Almost six million U.S. online households make a mobile bill payment each month; Bill payment via mobile banking increased by 33% in 2011 from 2010; Fifty-eight percent of smartphone owners are interested in paying bills on their mobile device and cite the ability to make expedited payments as a top reason.
Google Said to Rethink Wallet Strategy Amid Slow Adoption
Google Inc. is weighing changes aimed at improving its Google Wallet mobile-payment system following slow adoption and the departure of two key managers, according to people with knowledge of the project. The company is considering sharing revenue with carriers such as Verizon Wireless and AT & T to get them to embrace the technology, which lets users pay for items at checkout by tapping phones on a reader device, said the people, who asked not to be named because the discussions are private. “They are in a bit of a re-evaluation pattern right now,” said Rick Oglesby, an analyst at Boston-based research firm Aite Group. “It’s going much slower than anticipated.” Google said it’s enthusiastic about Google Wallet’s progress so far.
How Austria’s ZUNO Cross-Sells on Mobile Devices
Delivering the perfect marketing pitch via mobile or web at the point of sale is one of the primary upselling goals of mobile banking, one which requires sales pitches and marketing campaigns to be delivered faster, and with more user-appropriate content. For Zuno Bank, which is running a vast bundle of marketing programs — more than 60 in each country in its footprint — matching the right program to the right consumer requires quickly navigating a maze of data and delivering the cross-sell message.
To do this, the bank is turning to a business rules management system that accumulates transactions to quickly update consumer profiles, then matches daily event-based marketing pitches based on those changes in profile. Peter Fusek, head of CRM for ZUNO, which is the direct banking arm of Vienna-based Raiffeisen Bank International says: “We wanted something flexible enough so the business line users wouldn’t have to ask IT for help to use the product.” ZUNO, which was launched by Raiffeisen in 2010 to target primarily web and mobile banking consumers.
Photo courtesy of: homepuzz.com