The commoditisation of mortgages until they are reduced to the banking equivalent of selling milk at the grocery store continues. They are low profit products that serve as introductions.  Mortgages are commodities to get customers in the door.  This detailed analysis of the banks’ 3rd quarter expected results is illuminiating with regard to mortgages and the profitability pressures felt by the Canadian banks. Canadian Banks & Insurance: BMO CM Preview of Cdn Banks Q3 2006 Earnings New mortgages continue to be originated at tighter margins than a year earlier. There is little doubt that the residential mortgage business has been … Continue reading Mortgages are reduced to door openers for Canadian banks

This article confirms my own observations in Manhattan May. A Bank for Every Block – New York Times At the intersection of 32nd Street and Park Avenue in Manhattan, a Citibank branch sits on the northeast corner. A Commerce Bancorp branch is across the street. A North Fork bank stands over the southwest side. And taking up the fourth corner spot: a new branch for J. P. Morgan Chase, which is not more than a short sprint from an HSBC banking center up the block. The business results are becoming dysfunctional. Deposit growth is expected to slow, and some data … Continue reading A Bank for Every Block

Account alerts are a key component for online banking going forward.  While Javelins definition might be a bit over the top we agree on the importance of alerts. Javelin Strategy and Research » Alert Growth Doubles Following ATMs and Internet Banking, Alerts Signify The Next Revolution in Personal Finance Internet banking has evolved and account alerts are not only a key next level, they will deliver greater customer loyalty by always being “there” for the customer.  Account alerts are sticky. Key points in online banking evolution before we got to alerts: account information bill payment customer service requests cheque presentment/ … Continue reading Alert Growth Doubles

Interesting and thought provoking meeting with a colleague today. Topic was customer behaviours, behavioural economics, and impacts on how we develop banking strategies. How we leap that chasm between strategies and results that can be directly attributable to those strategies? We all want to grow revenue, and let’s say there are 4 ideas on the table to generate revenue. All will require customers to buy into the idea and buy our products. At some point, it becomes a leap, and do we really know what constitutes success? Then layer in customers’ rapidly altering behaviours as a result of internet. Its … Continue reading Are customers behaviours changing

Westpac (Australian Bank) indicates that online marketing is not for it, because brand experience is not driven online.  When I started to read this article I misread it as a bank that doesn’t get it, but reading on, I feel quite the opposite.  Westpac understand the (Internet) medium well as it applies to big banks. The Better Banking Blog: Why Westpac won’t be spending more online Westpac says three things drive customer satisfaction – customer experience (around 50 per cent), products – their functionality and pricing (around 20 per cent), and brand perception (around 30 per cent). (Note:  this description … Continue reading Why Westpac won’t be spending more online (for marketing)

Petro isn’t a Bank, but this is impressive.  They have developed an infomesssage and put it on YouTube.  Its very friendly, informative, and low key.  Kudos to them.  YouTube – Why are gasoline prices higher than in the past? Why are gasoline prices higher than in the past? Relevance to Bankwatch:Which bank will go on YouTube and talk about service charges or mergers? Continue reading PetroCanada levers YouTube to get their message out

I read this post over at CRM Blog and I just have to give a bit of a rant.  First of all, here is the post: CRM Blog: Benefits of Customer Relationship Management Excellent customer service is about understanding the customer requirements and reacting to them efficiently. CRM helps companies understand, anticipate and respond to the customers’ needs in a consistent way. Implementation of CRM requires and efficient and integrated internal business system. Many businesses benefit from the organizational discipline offered by the CRM. Customer relationship management (CRM) has the following characteristics: It develops better communication channels It collects vital … Continue reading Why CRM often (usually) fails

That perennial topic is back, this time raised by Tara. It used to be the thick client/ thin client debate. In any event it its worth examining, because it has implications for how we design online banking over the next 5 years. It is a safe bet that it won’t remain the way we see it today. But first the browser debate. ::HorsePigCow:: life uncommon: R.I.P. Browsers But, after spending some intensive time with Chris, our clients and really starting to think about it, I feel more and more that someday – and it may be sooner than we think … Continue reading Browsers or no browsers; implications for online banking

This is a great post and Banks would do well to listen to this. Kudo’s to Heather the manager for correcting it right away, but this story should define how a bank can improve.  The core point here is that the Bank  needs to know each customer real time.  It is no surprise the customer used the the ATM,to make their deposit. 85% of all transactions are handled electronically nowadays.  So the focus of development should not be on the branch anymore;  it needs to be on the place the customer spends their time … the electronic channels. So its … Continue reading Why does this customer have to have their deposit held!

User communities will drive incremental improvement, but the big moves are probably up to us.  Good article on inovation, and the role of users/ user testing/ user input. Creating Passionate Users: We can’t leave innovation up to our users Our users will tell us where the pain is. Our users will drive incremental improvements. But the user community can’t do the revolutionary innovation for us. That’s up to us. Technorati Tags: user+community, online+banking Continue reading We can’t leave innovation up to our users