Sep 11
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Online banking platforms have long been heralded for the level of convenience they offer customers, but new research shows there are financial benefits for both consumers and banks as well.
A recent Fiserv reports explains that customers who receive e-statements and e-bills through online banking platforms are 64 percent less likely to contact Customer Service representatives regarding their accounts each month than those who receive hard copies, American Banker reports. Instead, these customers find resolutions through online banking services. The trend allows financial institutions that offer these services to save roughly $4 per each call center phone call, the news source adds. Other institutions have corroborated these claims.
“Our data shows that customers through our online and mobile banking services, [including electronic bill presentment], adopt an array of electronic, alert and information capabilities over time,” Wells Fargo Internet Services Group senior vice president Adam Vancini told American Banker.
Separate data also shows that individuals enrolled in online banking were more likely to pay their bills on time and stay more involved in their finances.
Sep 11
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*The below article was originally published by American Banker on August 17, 2011. Click here for the original article.
Web fields were turning into mine fields for Dollar Bank’s customers, who were getting trapped by a simple navigation error that was cutting off their online banking sessions.
“People were being instructed to enter a city and ZIP code for one of the links,” but many instead entered their city and state, says Pam Dancisin, a vice president of marketing for the $7 billion-asset bank. “It wasn’t a big error, but it was a major inconvenience. And we were having a lot of issues like that.”
As a fix, the Pittsburgh bank licensed navigation analysis software from the customer experience management company Tealeaf Technology Inc. The software resides alongside the bank’s Web banking platform and tracks Web sessions by observing the flow of data and other information between the browser and other systems.
It spots variances in the normal rules-based flow of that information, which could be signs that people are unable to log in or getting “timed out” too quickly. The software can identify the server or program that’s the source of the glitch.
For Web session glitches that have taken place after the user has logged in, the bank’s contact center can identify the customer and proactively reach out to help complete the transaction that was interrupted on the Web.
The bank’s customer service, sales, marketing and technology staff can access a dashboard to see how Web sessions are failing, and can also determine trends in navigation issues. The dashboard can also quickly alert programmers about other problems.
“We’ve had a number of issues that customers have been complaining about, such as a missing page or a navigation that didn’t work,” says Dancisin, such as the session “timing out” before the normal 15-minute timeout window. “We’re now able to locate these problems and pass them off to a programmer to fix.”
Tealeaf spokesman Geoff Galat says many of these navigation glitches are caused by the complexity of Web banking platforms, which actually combine a number of front- and back-end systems that manage tasks ranging from account opening, customer relationship management, information inquiries and payments to mobile banking and marketing.
At Zions Bancorp, which manages a network of affiliate banks, this complexity was deepened by an ongoing website relaunch at four of its affiliates. Zions uses the Tealeaf tool to monitor its various sites, as well as to troubleshoot problems that arise as consumers adjust to the new products and features that the $56 billion-asset institution is adding to its Web application.
“We used to rely on just a Web-based tool that monitored the Web and gave us page-view responses,” says Matt Wilcox, who says the Salt Lake City institution is also planning to deploy the software for its mobile banking applications. “We’ll now be able to view the flow and timing of what Web users are looking at.”
Aug 11
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In support of the upcoming Financial Technology Innovation Forum, I recently sat down with Finance IQ to share some insights on mobile applications for the Financial Services Industry. Check out our interview below.
The impact mobile applications will have on Financial Services companies is not yet clearly defined. As mobile increasingly becomes an ever more essential part of the way customers conduct their business, players in the financial services industry need to make sure they do not lag behind in their technologies. Finance IQ interviewed Matthew Wilcox, Vice-President of Interactive Services at Zions Bancorporation on the state of these technologies today, and going forward where he foresees mobile taking Financial Services companies in the future.
Finance IQ: Can you address the concepts, methods, and issues for mobile applications in the Financial Services Industry?
Matthew Wilcox: There are numerous mobile application concepts that range from security to m-commerce within the Financial Services industry. The toughest part of managing a mobile product is navigating through all the hype to get to the small nuggets of material that are relevant to your business. If method is a new way of defining mobile strategy then the answer is it is a no-win scenario. Financial Institutions that are on the bleeding edge are investing in technology that has a limited shelf life, given the rapid advances in mobile technology and the constant demand from mobile bankers to have the latest and greatest. Close followers seem to be making similar mistakes as those on the bleeding edge, due to the time and complexity involved in bringing up new mobile technologies – and the laggards in this space won’t need to worry about mobile since they will not have any customers left. Addressing concept and method should provide you with a solid taste of the issues the Financial Services industry faces in regards to mobile, and all of this happens before you get to security and ROI.
Finance IQ: What kind of impact have mobile applications had on the financial market?
Matthew Wilcox: At this point in the evolution of the Financial Services mobile application we are not at a point where the impact of mobile applications on the financial market is clearly defined. I think everyone agrees that this space is going somewhere, but whether or not mobile lives up to all the hype as the next step in commerce within the U.S. has yet to be seen. Depending on where mobile lands in the next few years will give us a better understating of the kind of impact mobile applications will have on the financial market. However, I predict mobile will overcome online banking in terms of usage and will also be seen as a fully-fledged marketing channel.
Finance IQ: What kind of impact have mobile applications had on your business?
Matthew Wilcox: Currently mobile applications have been seen as an investment in our future. We have had to invest as part of our overall online/mobile strategy. It is important for us to meet consumer expectations for service delivery set by larger financial institutions such as Citibank, Chase, Wells Fargo and Bank of America. In the near future we expect mobile to have a much more positive and profound impact on our business especially when you look the potential that m-commerce presents, which is why it is so critical for us to continue to gain experience in this space.
Finance IQ: What are some conceptual products that make a significant impact in security?
Matthew Wilcox: Products currently exist that have an impact on security and risk, such as Mobile RDC and P2P Transfers. However additional products, such as the mobile wallet, are in the conceptual phase and will have as dramatic an impact on security. In addition, the mobile malware (along with phishing and spoofing techniques) are in their infancy and many of the tools needed to combat these threats have yet to be developed.
Finance IQ: Where do you see this technology taking the Financial Services Industry in the future?
Matthew Wilcox: In the future, mobile will most definitely replace online banking, but more importantly mobile will change the way consumers interface with their Financial Institutions. In a world where managing finances is a monthly, weekly or daily event, mobile will most definitely push more customers and small business owners towards real-time financial management. Even more intriguing is the mobile wallet, which in theory will consolidate the consumer facing process of commerce down to a single application on a mobile device.
Matthew Wilcox is a speaker at the upcoming IQPC Financial Technology Innovation Forum, October 17 to 19, 2011 in New York City. For more information or to register, visit www.financialtechforum.com or email [email protected].
For banks to maintain market share — and profit margins — in an uncertain economic climate, marketers will have to “think outside the box.” Please pardon the use of a cliché; in this case, it happens to fit. Increasingly, banks must walk the fine line between profitability and not letting new or increased fees drive off good clients.
A good option to consider: partnering with merchants.
This can be done with joint promotions, in which clients receive a discount when making a purchase using your bank’s credit card, debit card, or check payment. Vendors and banks can focus the promotion on specific merchandise or a minimum purchase. In turn, bank and vendor can each communicate the promotion to their own respective clients. Doing so will drive traffic to the merchant, while increasing use of bank services.
In other words, just when you feared that card-based loyalty programs were becoming prohibitive or passé, merchants have begun stepping in to fill the void by partnering with their banks and third party providers. For example:
For clients with smart phones, you can make the process even easier by including a QR (Quick Response) code. Users need only aim their phones to download anything — from an app, to a coupon, photograph, website, video, you name it.
Soon you’ll also be able to use NFC (Near Field Communication) apps like Google Wallet for smart phones, meaning all it will take is a quick swipe to access a promotion.
A good starting place for merchant partners is, of course, your bank’s existing business clients. It’s a great way to increase your and their revenues, not to mention a great way to retain valuable merchants as clients of your own.