What We’re Reading This Week
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.
- Facebook, Twitter Become Online Banking Attractions
The social media landscape is still a jungle for many financial institutions, but a few have cut a clear path for themselves. Vantage Credit Union in St. Louis, for example, said it has improved customer engagement markedly by allowing members to access Facebook and Twitter from within online banking; those customers who do so spend twice as much time on the credit union’s website as the users who do not. The much larger SunTrust Banks Inc. started its own social media program about a year ago. Since then, SunTrust said, it has had conversations with about 15,000 customers on Facebook and 1,500 on Twitter. (SunTrust has 5 million customers.) A survey Fiserv Inc. released in November shows the potential of a strong social media strategy. It polled 3,000 online consumers and found 84% were using social media, and 11% connected to their financial institutions this way.
- 2011 Bank Technology Outlook: Major Projects, Bigger Budgets in Store for Bank CIOs
Bank CIOs will be charged with pursuing major tech projects — including compliance, core systems and mobile banking initiatives — in 2011, members of BS&T’s Reader Advisory Board report. The good news is, they’re likely to have more money to complete them. Banks have big things in store for their technology in 2011. After several years of reactionary cost containment, the industry is looking forward to better times, and many financial services firms are prepared to increase their investments in IT in the year ahead. In fact, based on insight from members of Bank Systems & Technology’s newly formed Reader Advisory Board, most banks will undertake major systems upgrades in the next 12 months.
- The 12 Days of Mobile Banking
In the holiday spirit, NetBanker’s Jim Bruene thought he’d lay out the perfect mobile banking/payments app for 2011. Security: Option to log in with 4-digit PIN only; Authorize unusual and/or declined card transactions and unusual checks presented for payment. Bank account management: Banking data presented in order of importance with new transactions in bold; Quick view of current balance with predicted balance going forward based on known upcoming transactions. Paper management: Deposit paper checks via camera (remote deposit); Pay bills by taking a picture of the billing statement (photo bill pay); Scan-and-store paper receipts and statements. Alerts & calculators: Receive important alerts via push messages to the phone’s main screen; Take action or adjust alert sensitivity by responding to messages via text messaging or within the app; Key financial calculators, such as loan/mortgage payments.
- Creating the Right Mobile Banking Ecosystem
- Mobile network providers are feeling the crunch as consumers are demanding more applications, richer content and value-added services. A recent Alcatel-Lucent study determined that consumers have an ever-growing appetite for social networking, entertainment and information, all delivered over the mobile network. When you add mobile banking to the mix, the pressure is intense. The explosive growth in demand has helped to create an environment that is dominated by third-party application and content providers (ACPs), as captured in this report. According to Alcatel-Lucent officials, ACPs are delivering more than the applications and content that are generating the significant increase in traffic; they are also benefitting from the revenue associated with the value they deliver.