Category: Innovation

Innovation, Payments3 Comments

More detail on the NACHA pilot for online debit transactions

Colin Henderson

Additional detail from financetech on the NACHA pilot which we noted a few days ago. NACHA Takes a Page From PayPal's Playbook The process sends transactions on a round-trip. When consumers at an online retailer, for example, click on the "buy" button, they are redirected via a secure network (courtesy of Sydney-based eWise Systems) to their banks' Web site where they are asked to log in. Logging in will presumably be with the exact same method the banks ask their customers to log in for banking services, relates Herd. The consumer confirms the transaction details at the bank site and … Continue reading More detail on the NACHA pilot for online debit transactions

Innovation, Security

Banks set up text, email fraud alerts for customers

Colin Henderson

Customer loyalty has been established by face to face relationship in the past.  With the advent of internet, and pervasiveness of electronic theft, and multiplicity of payment methods nowadays customers want greater attention paid to their spending patterns and many want control over unusual amounts, or significant changes in their accounts. Enter automated alerts, customised to the their preferences, that provide the assurance of confirming customers activity, and importantly notifiying them immediately of anything that was not them. Banks set up text, email fraud alerts for customers – Financial Services – Breaking Business and Technology News at silicon.com The threat … Continue reading Banks set up text, email fraud alerts for customers

Innovation

MySpace and why Bankers should study it carefully

Colin Henderson

This may look off topic to traditional bankers, but bear with me here. I cross post this from my Web Lifestyle blog, because this is a living demographic shift that we had better understand.

I work in the middle of online banking, and yet this post from Alexa (pasted below) is worth studying, and filing for reference next time you are in a planning session.

Alexa studies web trends. They deal in facts. Fact: MySpace is in the top 10 of all web sites in the world. The user base are all teenagers.

graph.png

Now look at MySpace compared to CNN. MySpace have overtaken CNN just last month.
cnn graph.pngbbc graph.png

The issue isn’t that MySpace is bigger than CNN. The issue is that they are so diametrically different. You watch CNN (or BBC) and they watch MySpace. It doesn’t matter because MySpace overtook both last month. (Note MySpace is blue in both cases).

Just as us boomers see things different than our parents you can bet the MySpace generation will act similarly relative to us. The next generation expect a degree of informatlity, of randomness, and simplicity – just make it so!
We had better not be building the same boring bank web sites that we do today, and here are some examples.

Relevance to Bankwatch:

Today

  • static pages
  • bank defined
  • Lowest browser level
  • Assume dial up
  • Replicate branch info

Future

  • evolving screen (read Ajax and beyond)
  • customer defined
  • maximum browser level
  • Assume maximum bandwidth
  • Value add – eg free spending assessment *

* Wells Fargo already have this, today, 2006, with a view to GenYers needs. Don’t make me think about it- just give it to me!
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From my other blog www.2036ad.com

MySpace – the James Dean/ Mick Jagger of 2006

MySpace is fascinating, and this is one of the most prescient posts I have seen for a while. This from Alexa sums it up so beautifully:

If you go to MySpace, you will probably walk away with the impression that it is a joke… some kind of junkyard of personal pictures, blogs and random stuff clumsily plopped onto the Web. And, unless you are a studious observer of the Alexa Traffic Rankings, you would almost certainly walk away with the impression that it is no big shakes. But you would be dead-wrong.

If you are under 18, move on, because you already get it. Older than that, read on. Read that intro carefully, and consider how my parents felt about Mick Jagger, Eric Burdon, Dylan, and Elvis – well don’t even go there!

But consider today … who are we listening to on today’s TV ads. Cadillac/ Led Zeppelin being the archetypical example. Good grief there is no more irresponsible reprobate than Robert Plant, and the whole group had no respect for anyone around them, either in the music business, or their listeners .. but the music … hmmmm

Alexa Web Search

I think the lesson here is not to discount the kids. They will become the prime Internet demographic in the years to come and they will determine what’s hot and what’s not. Just like with soda, music and movies, the marketing dollars are more interested in my kids than me… and judging from MySpace, the marketers may be right. The kids are a major force on the Web.

So where am I going with all this. MySpace is not understood by those of you who are still reading. Those who get it have gone. So we had better understand what’s happening there, and consider that generation because believe it or not, they will be earning $100K per annum, buying homes, having families, and investing for retirement within 10 – 20 years.

Not a long time in the future in strategic terms, and the brands, sites that attract them soonest will win them. They are loyal, and have pack mentality. Consider the market share of Microsoft, Google, MySpace in their world.

Continue reading “MySpace and why Bankers should study it carefully”

Innovation, Payments

Online Credit Card security and the PSP sector

Colin Henderson

Good summary of some of the changes developing in the credit card industry.

Relevance to Bankwatch:
The message here is that there is no magic bullet, and despite the several initiative listed here, liability fraud is not eliminated, and liability remains with the card issuer in many situations.

SECPay – Online Credit Card Security and the PSP Sector

Note: About SECPay

SECPay is the UK’s largest independently owned processor of secure, real-time, online credit and debit card transactions. Specialising in the provision of payment services for merchants on the Internet, through Call Centres and for Mail Order Fulfilment Houses. SECPay handles the capture, authorisation and settlement of credit and debit card payments and all the associated electronic and physical security required.

Despite the early fears surrounding e-commerce transactions, using credit cards online has become safer due to the steps taken by key industry members. Chris Dipple, Technical Director at leading real-time payment service provider, SECPay, explores how online credit card security has improved and what still needs to be done to ensure all online credit card transactions are as secure as possible.According to the IMRG, Internet Shopping is expected to be worth around £17 billion in the UK this year, representing around 7% of all retail sales. The IMRG predicts that 400 million orders will be made by the UK’s 16 million internet shoppers. With this phenomenal level of financial transactions, online payment methods have evolved significantly over the last decade.

Continue reading “Online Credit Card security and the PSP sector”

Innovation, US

“Madness!” “Outrageous!” “How’s this help the rich?” (New Washington Mutual campaign)

Colin Henderson

So even though their web explanation isn’t clear, this advertising campaign to support WAMU’s new account is brilliant, and should resonate with consumers.

This is what I would have expected from WAMU.

Relevance to Bankwatch:

Banks have a long way to go to truely think and act in the best interests of consumers. Thinking like a bank is not how you get inside the minds of consumers. Time to clean out some of the traditional banker types in HQ.
Washington Mutual Launches National Advertising Campaign in Support of Its New WaMu Free Checking(TM) Account, Stirs Up the Industry

SEATTLE–(BUSINESS WIRE)–March 13, 2006–Washington Mutual, Inc. (NYSE:WM) Humorous Approach Takes on ‘Stodgy’ Banking Industry to Cries of ‘Madness,’ ‘This is Outrageous'”Madness!” “Outrageous!” “How’s this help the rich?”

There hasn’t been this much commotion in the marbled halls of banking since the bars were removed from teller cages. What’s got old-fashioned bankers from NYC to LA chomping their cigars to a nub?

Washington Mutual’s at it again.

The bank today launches a national advertising campaign supporting a new free checking account that’s got bankers (at least the ones in the ads) fuming over the unprecedented bundle of free features.

Continue reading ““Madness!” “Outrageous!” “How’s this help the rich?” (New Washington Mutual campaign)”

Innovation, US

Banks that “get it” – Wells Fargo

Colin Henderson

Clearly one of the world leaders, they become the second bank to introduce RSS feeds. Wells RSS http://www.wellsfargo.com/rss/this_date or if you dont know RSS, try this: Wells about RSS https://www.wellsfargo.com/about/this_date Its quite a smart move to introduce this experiment by talking about Wells in history. Its low impact, yet rich and interesting. PS the other bank is below, but not much happening on their feed yet. Go to bmo.com and select “news feeds” in the right margin. Continue reading Banks that “get it” – Wells Fargo