Category: Innovation

Innovation3 Comments

Yodlee online account opening reduces Banks reliance on switching costs for retention

Colin Henderson

This new service from Yodlee takes their aggregation based product suite to a new and sophisticated level that aggressive banks will leap on, particularly Yodlee banks.

Yodlee Launches New Online AccountOpening Product: Financial News – Yahoo! Finance

Yodlee AccountOpening enables financial institutions to use their website, self-service branch kiosk and other channels to open new accounts and fund them immediately through an automated process that links credit databases, normalizes data and creates a dashboard in real-time so institutions can immediately assess risk for any consumer opening an account.

Relevance to Bankwatch:
One of the characteristics of internet that Banks have expected has been the promise of ease of switching between Banks'. This new service from Yodlee is ground breaking in fulfilling that promise. This greatly reduces Banks' reliance on switching costs for retention. Banks ability to compete is increasingly on providing a better offer, or customers will leave.

Full release for background:

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Innovation

DoCoMo’s cellphone credit card

Colin Henderson

The telco's worry me more than anything in terms of competition in the payments space. They have the prime advantage of having a gizmo in the hands of every waking adult in the world, that has communication and computer smarts built in. This is a heady combination.

Digital World Tokyo – Gadgets, Gear and Good Things from Japan…

…. a verification-free credit payment option to the mix for small amounts. The twin advantages of speed and simplicity could well push cellphone credit payments past the tipping point and into the big time.
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The iD system is to be for touch-and-go payments what Visa and MasterCard are for plastic cards. Some Japanese credit card companies have already started offering iD-compatible cards to customers. 050406_Docomo_dcmx.jpg

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Innovation

Barclays introduces online account opening

Colin Henderson

This is a significant move for Barclays. Online account opening, will be one of the next big things for Banks.

Finextra: Barclays introduces online account opening

The UK's Barclays Bank has added a paperless online application facility to its Internet banking service for customers wishing to sign up to its current account. Barclays says a typical application takes around ten minutes and the whole process is carried out online so customers don't have to send valuable documents through the post.Customers can also apply online for an overdraft as part of their application. Julian Brewer, head of online marketing at Barclays, says the online current account service also has fewer questions for customers to answer.

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Business Models, Innovation, Web/Tech

How IT Drives Product Proliferation: Keeping Complexity at Bay

Colin Henderson

A new report from George Group/ Wharton is summarised at FinanceTech, by By Matt Reilly & Stephen Wilson, of George Group Consulting.

How IT Drives Product Proliferation: Keeping Complexity at Bay

Competitive pressures are driving the need for more product development. But the industry is plagued by complexity-related issues. Why IT may be part of the problem and why the solution may be less versus more

The key driver all Banks contend with are noted.

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Business Models, Innovation, Payments, Web/Tech

The right questions to ask about payments

Colin Henderson

Digital Money held their forum in London, and the presentations are now online (middle left – presentations – speakers). For more detail on the decks, go to the wiki. Here are insights from the leaders in the new payments space, and Banks must listen, and think about the implications. Its a unique opprtunity to see data on Paypal, and thoughts from emerging leaders including Vodaphone, Mi-Pay, Tesco, and Peppercoin. I noted this page from the Peppercoin deck, which asks a set of higly relevant and strategic questions. Small Payments and mobile based payments Contactless payments, and mobile phone based contactless … Continue reading The right questions to ask about payments

Business Models, Innovation

The glib continium – where the good ideas are repressed

Colin Henderson

This is a fascinating piece from "Creating Passionate Users". Its fascinating because it perfectly articulates how Banks operate. Creating Passionate Users: When only the glib win, we all lose In way too many meetings, the fastest talkers win. And by "fastest talkers", I mean those who are the first to articulate an idea, challenge, issue, whatever. Too many of us assume that if it sounds smart, it probably is, especially when we aren't given the chance to think about it. The problem is, the guy with the "gut feeling"–the one who senses that something's not right, but has no idea … Continue reading The glib continium – where the good ideas are repressed

Innovation, Payments, Smart Cards

Consumers like convenience of contactless m-payments, study shows

Colin Henderson

This is an important study for Banks and credit card companies. Payments using contactless cards are merely held over the payment device, versus the traditional method of "dipping" the card into the device, similar to an ATM. Finextra: Consumers like convenience of contactless m-payments, study shows Consumers like the convenience and ease of making transactions with their mobile phones, according to a new usability study of near field communication (NFC) and contactless payment technology released by Royal Philips Electronics and Visa International. The conventional view has been that cards would transition from mag stripe plastic into chip plastic, then evolve … Continue reading Consumers like convenience of contactless m-payments, study shows

Innovation

Yahoo Japan enters the banking world

Colin Henderson

Interesting development, that Yahoo have not done elsewhere.  They have tended to partner in other countries, but Yahoo Japan does operate under a different model. Finextra: Yahoo Japan confirms net banking stake Yahoo Japan confirms net banking stake Yahoo Japan has confirmed that it is buying a stake in Japan Net Bank, the online banking subsidiary of Sumitomo Mitsui Financial Group. Financial terms of the deal were not disclosed. Under the deal Yahoo will acquire 14.9% of a new holding company for Japan Net Bank. Sumitomo Mitsui’s core commercial banking unit will transfer its 57% stake in Japan Net Bank … Continue reading Yahoo Japan enters the banking world

Innovation

Aggregation – an idea whose time has come?

Colin Henderson

Before the dot come crash, Aggregation was all the rage amongst banks, and they were falling over themselves to get into it. Then the research started to come in, indicating consumers were cool to Aggregation, and in particular if there was going to be any “advertising” associated.  Then the crash happened, and Aggregation waned. Aggregation, is the ability to pull information from more than one institution, into one single view.  Best known for this is Yodlee. Yodlee All Yodlee solutions are powered by a patented technology, known in the industry as Account Aggregation, which is built into the Yodlee Platform. … Continue reading Aggregation – an idea whose time has come?