What We’re Reading: Check Deposit, Lessons from Amazon and Mobile Apps
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 or Tweet @bankingdotcom.
- More Reasons Banks Are Taking Outsourced IT Work Onshore
Outsourcing firm CGI (GIB) has created 800 jobs in the U.S. in the past five years, due to a “rebalancing” taking place among its customers — large U.S. corporations, a third of which (200) are banks, including 16 of the top 25 U.S. banks. In this geographic shifting of work, companies are not tearing up their outsourcing relationships, but they are moving some outsourced IT work back onshore. Where before, a company might have handled 80% of its IT workloads in India, the Philippines and other popular outsourcing destinations, today it might do 70% of its work offshore and handle more tasks on U.S. soil. “The banking industry pioneered moving offshore,” observes George Schindler, president, CGI U.S. “But we’re starting to see clients look at changing their sourcing strategy.”
- Nuance’s Nina Platform Adds Speech Interface to Corporate Mobile Apps
If you’ve ever wanted to talk to the mobile banking application on your iPhone or Android device, you soon may get the chance. Nuance, the voice technology company best known for its Dragon Naturally Speaking line of voice applications for personal computers and Dragon Dictation on the iPhone, today announced Nina, a voice platform that’s aimed at enhancing customer-service applications with a Siri-like voice-control interface. AllThingsD got a demo of the technology last week. It basically brings together what Nuance does well: Speech recognition, text-to-speech, natural-language understanding and voice-ID biometric technology.
- Five Lessons Credit Unions Can Learn from Amazon.com
As the online channel has become the primary channel through which most customers interact with their financial institutions, the pressure to deliver a more compelling user experience has grown. Websites such as Amazon.com are often cited as the gold standard for the online experience, yet turning your credit union website into a carbon copy of a retailer site is neither practical nor wise. While no financial institution can be, or should be, just like Amazon, there are some strategies and tactics that credit unions can borrow from online retailers, particularly when it comes to promoting products and services. To better understand consumer attitudes toward online banking and shopping, Fiserv conducted a series of consumer focus groups and a survey of 3,000 U.S. consumers who both bank and shop online.
- Banks grow check deposit, other mobile services
Bank of America has become the latest of the big banks to roll aggressively into this new area, launching a service that allows retail customers to deposit checks by transmitting a photo of the check via hand-held devices. It also launched a P2P program that will allow money transfers via email addresses and mobile phone numbers. These programs will increasingly be seen as de rigueur. Wells Fargo has already launched a mobile check deposit service for retail customers. Recall also that the clearXchange P2P initiative, involving JPMorgan Chase, Wells Fargo and Bank of America, was also launched earlier this year.
- Mobile purchases to make up a quarter of all e-commerce revenues by 2018
Mobile shopping will account for 24.4% of global online shopping revenue by the end of 2017, according to new figures from ABI Research that emphasize a growing consumer reliance on smartphones for making purchases. Although ABI claims that mobile commerce accounts for a relatively small fraction of total e-commerce revenues, bringing in USD65.6bn, it does not provide any comparative figures. If total e-commerce revenues in 2011 came to USD680bn, as forecast by J.P. Morgan, that would mean mobile currently accounts for less than 10% of all online shopping revenues. ABI attributes the current growth to the continuing boom in smartphone ownership, which in turn is fuelling better apps, platforms and services.
- Mobile payment options grow for small companies
Small-business owners are skeptical about spending money on yet another piece of hardware. With so many options available, consumer confusion is inevitable. Still, a confluence of recent developments suggests that the payment revolution engendered by mobile devices will forge ahead. Wireless carriers — which stand to make money from all purchase-transaction data traffic carried on their networks — also are aggressively pushing the mobile-payment effort.