Category: Innovation

Innovation3 Comments

Wesabe today announce that Palo Alto-based Addison Avenue Federal Credit Union is to integrate Springboard Community App

Colin Henderson

Wesabe are making progress with their Springboard product that I blogged about in March. For the details here is that post. They are announcing today that they have signed Palo Alto-based Addison Avenue Federal Credit Union. That is a big one, given the internet savviness of their customers reflected in the fact only 30% ever visit the branch. The groundbeaker for me with this service, is the integration of a web app with an individuals online banking. This brings the outputs of the wealth of a social site into the personal world of online banking allowing the customer to investigate … Continue reading Wesabe today announce that Palo Alto-based Addison Avenue Federal Credit Union is to integrate Springboard Community App

Business Models, Innovation, Social networks2 Comments

Collaboration (1) vs Beaurocracy (0) | Wikipedia & CIA Factbook example

Colin Henderson

Here is a striking example of the power of collaborative ‘wisdom of crowds’ approach to information preparation, versus traditional top down beaurocratic approach. I was reading the Obama speech in Ghana, and his references to the current and previous governments, including Jerry Rawlings which rang a history bell for me, so thought I would read up.  First off I checked what used to be my old favourite the CIA factbook, and it has not been updated since sometime before Dec 2008 [note highlight]. On the other hand a quick visit to Wikipedia had more than enough detail being up to … Continue reading Collaboration (1) vs Beaurocracy (0) | Wikipedia & CIA Factbook example

Innovation, VRM2 Comments

A market test alternative for credit cards

Colin Henderson

This is a variation on the theme I cover periodically called Vendor Relationship Management (VRM). The variation here is that the Vendor must place the consumers product up for bif from competition when they are considering changing the terms, such as interest rates.  The consumer would then have the choice of accepting the change, or accepting one of bidders. (HT Payments News) A Market Test for Credit Cards We have an alternative solution, employing a market test of a proposed change. At the time when the lender proposes a unilateral change, it would be required to put the existing account … Continue reading A market test alternative for credit cards

Economy, Innovation

Bank deposits – the hidden risk associated with government guaranteed deposits

Colin Henderson

The focus on bank financial strength is generally on the lending side of the business and the potential for bad debts.  Here is another view, and something that drives some banks to make ever riskier loans to produce enough revenue to pay for their deposits. For Banks, Wads of Cash and Loads of Trouble | NY Times The 79 banks that have failed in the United States over the last two years had an average load of brokered deposits four times the national norm … But the hot money also came with a high cost. To lure the money from … Continue reading Bank deposits – the hidden risk associated with government guaranteed deposits

Innovation, Payments

DOCOMO to Launch Mobile Remittance Service

Colin Henderson

Banks continue to be challenged by disintermediation from telco’s and here is another example, this time in Japan.  The service will launch 21st July, and allow sending up to $200 with only the payee’s phone number being required. An interesting tweak is the ability to have the money deposited with DOCOMO under the guise of a credit to your account, however this is deposit taking by another name. DOCOMO to launch mobile payments service Customers of DOCOMO’s i-mode™ mobile Internet service on the FOMA™ 3G network will be able to remit up to 20,000 yen (about 208 U.S. dollars) per … Continue reading DOCOMO to Launch Mobile Remittance Service

Innovation

ETRADE have released a new Online Advisor service

Colin Henderson

ETRADE have released a new Online Advisor service, and let me take a look at a demo on the US site to review. It walks the user through a set of relevant questions that source and validate the users investment needs, then produces an asset allocation model at the end.  For the self service type who wish to move beyond gut feel, and assess one portfolio or their entire portfolio, this tool is a useful addition.  Its the kind of thing that is worth an afternoon, and taking the time to properly assess the approach you would wish to take. … Continue reading ETRADE have released a new Online Advisor service

Innovation

Skygrid introduces web based real time financial news platform with | [beta invites]

Colin Henderson

The folks at Skygrid have a beta financial news site that is focussed on financial news, real time.  It has been written up by Scoble and Techrunch so that was enough to pique my interest further when I was introduced to the service. To be clear it is probably not for everyone.  It is however useful for those who follow the markets closely and daily providing various filters for different news sources, including web, blogs, and EDGAR.  The interface is work in progress, and be sure to turn off the ‘bubbles’ so you can see what you are doing.  This … Continue reading Skygrid introduces web based real time financial news platform with | [beta invites]

Innovation

BBVA pays staff to take 5 years off

Colin Henderson

A very unusual and novel cost cutting measure from BBVA, the Spanish bank.  The 70% cost reduction, with a guaranteed pool of employees after the period is up is certainly a new approach. Can’t help but think there will be unintended consequences after the 5 years are up, built certainly the immediate consequences will be more palatable than normal layoffs, which generate acrimony, as well as an expense one time charge.  This approach will drive accountants nuts. It will allow the bank to make future hiring plans, and attrition management with some knowledge of the future. Bank pays staff to … Continue reading BBVA pays staff to take 5 years off

Innovation

Where will the innovation come from in financial services?

Colin Henderson

A central question for financial services is this:  “Where will the innovation come from in financial services?” I read this piece from Dave over at Digital Money Forum, and it highlights a central problem that traditional financial services falls into. The 50 year plan : Digital Money forum That sounds like the Greek restaurant will have to give a British cardholder a couple of pages of A4 and make sure that the customers reads them before they punch in their PIN. Anyway, the point is that for banks, the PSD comes at an interesting time when transaction banking is becoming … Continue reading Where will the innovation come from in financial services?

Innovation

FinovateStartup Apr 2009 videos now up

Colin Henderson

A great source for reviewing the latest innovations in financial services. The Latest and Greatest FinovateStartup is the only event exclusively designed to showcase the innovative work of financial technology startups. With a unique format designed to foster great conversations and new ideas, this is truly THE event for people running and interested in financial and banking technology startups. Interested in participating in FinovateStartup next year? Please email Eric Mattson at eric@netbanker.com. Continue reading FinovateStartup Apr 2009 videos now up