What We’re Reading
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.
- Omnego Launches White-Label Mobile Payments App
Omnego Inc. of Toronto announced last week a white-label mobile app that would provide companies with their own branded service, alleviating the need to develop their own apps. Merchants can use Omnego’s program with loyalty programs such as gift cards, membership cards or coupons. The platform also lets companies advertise and track the number of clicks for card and coupon access. The new platform follows the November release of Omnego’s Wallgo app, which similarly enabled merchants to combine loyalty and marketing programs with a mobile wallet.
- Social Media Sites Deliver Deeper Data, Card Brands Say
Credit card companies are using social networks to create ads that are more interactive and that deliver valuable consumer data. Social media websites can help to identify consumers’ interests, such as which businesses and brands they follow. When consumers “like” a product or company on Facebook, it can generate significant brand presence and strength. And that gives marketers an inside track to target those consumers.”It’s interesting as marketers to figure out how to harness the power of the comments going back and forth in social media,” said Alex Craddock, Visa’s head of North American marketing.
- Online banking is about to undergo a generational shift, says Yodlee CEO
If you use online banking, chances are good that you see the same things in your account that I see when I log into mine (albeit with different numbers): a lot of transaction data, and maybe some basic budgeting tools or low-level personalization. But over the next few months, many of the United States’ top ten largest banks will replace their current online banking experience with something more akin to an app store model, where customers are presented financial apps to make their banking experience more personal and more effective. Financial services company Yodlee, who provides some level of online banking functionality to 80% of the nation’s largest banks, tells us that online banking is sitting right on the edge of a big generational shift.
- Tower Federal Credit Union Receives Trailblazer Awards For Excellence in Marketing & Communications
Continuing a tradition of superior member service, Tower Federal Credit Union received two Trailblazer Awards for Excellence in Marketing and Communications from the Maryland & D.C. Credit Union Association (MDDCCUA). MDDCCUA is comprised of 129 credit unions in the state of Maryland and the District of Columbia. Tower won “Best Marketing Campaign” and “Best Newsletter” in the credit unions with $500 million or more in assets category. Tower’s award-winning marketing campaign focused on the credit union’s March 2010 launch of FinanceWorks™, an online Personal Financial Management (PFM) program that is free for Tower members.
- Fait Accompli – Fundtech and S1 Merge ——— Next? One, Two, Core
The Fundtech – S1 merger really isn’t a big surprise to me after covering the online cash management, online consumer and payments spaces for over 25 years. The two were bound to mash up with another entity. In a consolidating bank market, larger scale is needed by both to catch more “ big fish” by serving global and domestic markets with a full suite of information, payments, trade, supply chain and liquidity products. Another scale element of the deal is the ability to serve far more community institutions, more efficiently (they both have SaaS operations in Atlanta).
- Who Bears Online Fraud Burden: Bank Or Business?
Patco, a family-owned construction firm in southern Maine, fell prey to the ZeuS botnet in May 2009. Hackers bilked its account with Ocean Bank for more than $588,000 before the fraudulent activity was detected and stopped. The bank recovered roughly $243,000. Patco sued Ocean Bank for the balance, but it won’t see a dime: A U.S. District Court magistrate in Maine recently recommended the case be dismissed, citing the bank’s accordance with Federal Financial Institutions Examinations Council (FFIEC) security guidelines. It’s a case banking and security experts are calling a potential landmark. As a precedent, it means SMBs–not their banks–are on the hook if their online banking credentials are compromised by malware or other means.
- Debit cards poised to get much costlier; Banks may tap consumers to recoup drop in merchant fees
Debit cards, a gleam in bankers’ eyes 30 years ago, have become the preferred method for people to tap their bank accounts, a free and easy alternative to paper checks, live tellers or cash machines. U.S. shoppers used them 37 billion times last year, making them more popular than credit cards (19 billion transactions) and checks (18 billion), according to the payments newsletter Nilson Report. Another estimate puts the figure at 45 billion debits. But big changes are afoot that could make it much more expensive for consumers to use the cards.