The Bankwatch

Tracking the consumer evolution of financial services

Posts Tagged ‘netbanker

Active and Passive Banking as a way to filter your online banking & mobile services

One challenge that banks continue to fail at is mobile banking. Jim here coins the phrase ‘active banking’ to describe the gap that can be filled with mobile banking. Some have tinkered with active banking but most focus on mobile being a mini online banking (‘passive banking’).

In these days of deliberating on cost cutting while simultaneously improving service to assure customer retention, this piece is worth the read, to form basis for analysis of your own strategies for active and passive banking.

The Impact of Always-On Mobile Banking | netbanker

But most users will want to be in active banking mode as little as possible. So the challenge for financial institutions will be to make it easy for mobile users to balance "active banking" (alerts, warnings) with "passive banking" (logging in, requesting more data, changing settings and preferences).

Ultimately, the companies that manage this communication challenge well, will have customers for life.

Written by Colin Henderson

October 12, 2009 at 20:42

BofA to Eliminate Wire Transfers from Branches, Moving Volume to Online Banking | netbanker

By co-incidence here is yet another chink in the armour of the branch network. Long ago Jim had the foresight to write what others could not admit to at that time, with the 40 year view of The Demise of Branches. Iin that far-sighted piece Jim aimed at the core raison d’etre amongst traditionalists, account acquisition, and developed potential approaches to offer a better value proposition than ‘just being there’.

In 2006, Banks were in major branch build out mode, to support their market share objectives. The payback period on those branches is extended to say the least. On the other hand, the payback period on branch elimination is almost immediate, but it has to be managed. It is a strategy that is aimed at the growing majority, but services must be made available online for that new majority.

BofA are aiming at a particularly work intensive branch activity – wires – I know and have done them – its a pain, and its work and time intensive. Its the ideal application to automate. Time to knock off those labour intensive branch apps that serve as an excuse to retain branches.

2010 will be the year when we see branches being actively reduced amongst the large banks. What will be interesting is to see to what extent they follow BofA’s lead and ensure the services can be offerred online. In that vein, who will be first to go for cash replacement with electronic purse/ smart card type offers?

Bank of America to Eliminate Wire Transfers from Branches, Moving Volume to Online Banking | netbanker

Beginning this summer, wire transfers will no longer be available in your local banking center…
What it means: When the nation’s largest online bank starts talking about reducing branches and takes steps to eliminate a traditional (and labor-intensive) branch-based service, you have good evidence that branch banking is on the wane.

Thoughts welcome!

Written by Colin Henderson

August 17, 2009 at 21:48

Intuit releases their iPhone app – is yours coming soon?

Jim notes the release of the Intuit iPhone app.  Last week we had the Wesabe app released offerring a stronger product and better competition to Mint.

In general it continually amazes be that banks are not leaping on this opportunity for a low cost, high visibility ad for their online services.  Which leads me to todays question de jour for bank executives:

Have you tried an iphone?

If not go to a store immediately and do so.  Whether you buy it or not, you will be left with the impression this is a game changing device, and remember the people who use them are vocal.  Then go talk to someone who does iphone apps and be prepared to be surprised at the cost of entry.

Anyhow, well done Intuit.

Written by Colin Henderson

May 2, 2009 at 14:42

FinovateStartup will return to San Francisco on April 28, 2009

Looking forward to following FinovateStartup tomorrow.  While the big banks languish in the worry about their balance sheets, and the losses they still have to recognise, it will be refreshing to see examples of the future of financial services.



FinovateStartup will return to San Francisco on April 28, 2009 with an innovative new format that mixes fast-paced demos (no slides allowed!) from handpicked innovators with networking sessions featuring the largest group of financial technology startups ever assembled in one place.

Written by Colin Henderson

April 27, 2009 at 21:46

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