HSBC attracts $3 billion deposits in one year, but is that good?


 Jim notes the progress made by HSBC Direct with great statistics.  Assuming typical high-yield balance levels of $8000 to $10,000 per account (our estimate), the bank has attracted more than $3 billion in deposits. The bank has marketed its 5%+ APR account heavily, so it’s not likely that the new business is making much of a profit contribution yet. Based on the bank’s reported online ad spending, its acquisition costs were $75 per account from the online spending only, not including what it spent in other media to support the direct business unit (see note 1). Source: NetBanker 2.0: HSBC … Continue reading HSBC attracts $3 billion deposits in one year, but is that good?

Want to Loan Me Money? Here’s a Picture of My Dog | Washington Post


 Jim from NetBanker is quoted in this quite comprehensive article on Prosper with real customer examples provided. When you have a brand-new ecosystem like this, you don’t know how much fraud can come into play,” said Jim Bruene, editor of Online Banking Report. Source: Want to Loan Me Money? Here’s a Picture of My Dog. – washingtonpost.com The fraud aspect is outstanding, and the other thing I felt the article didn’t really get into is the social aspect. Lenders are encouraged to protect themselves by lending small amounts to many borrowers with different risk levels so if one defaults, the … Continue reading Want to Loan Me Money? Here’s a Picture of My Dog | Washington Post

Global Neighbourhoods: Blogging Blackmailers & Death wishers


Shel outlines four recent incidents in top level blogs that illustrate the coming of age of blogging.  At first its all idealistic, and deservedly so.  But then with maturity comes complacence, and worse, a sense of divine right.  In three of these new cases, my perception is that bloggers were trying to use their voice to intimidate other parties. In the fourth case, a potential employer was afraid that not hiring the blogger would give her cause to further embarrass the company by future postings. I’m sad to say their is legitimacy in the concern. Source: Global Neighbourhoods: Blogging Blackmailers & Death … Continue reading Global Neighbourhoods: Blogging Blackmailers & Death wishers

Message to Microsoft


Microsoft reduced their forecast for their Internet business. Good grief … this is tantamount to corporate suicide.  Time to fire people, and get back to the drawing board.  Several months ago we expressed disappointment here in Ray Ozzie’s progress …. nuff said.  I feel strongly about Microsoft … they brought us IE when all there was, was Netscape.  They seemed to get it in the 90’s. “Microsoft’s Live branding has been tremendously confusing and has hurt the company, and it is very likely contributing to the situation they are in right now. They’ve created another brand and have not differentiated it.” –David Smith, analyst … Continue reading Message to Microsoft

BIGresearch: The Consumers’ Control of Media Continues to Grow


 Great piece of research here, that cements the consumers control of media messages. Consumer rate word of mouth highest (30% for car, 43% for electronics).  This bodes well for blogs, and social networks. Source: BIGresearch Press Release Hat tip: Church of the Customer   Technorati tags: marketing, social+networks, consumer, consumer+purchasing+decisions Continue reading BIGresearch: The Consumers’ Control of Media Continues to Grow

A Tale of Two Lenders


Fascinating article comparing the genesis, and evolution of Prosper and Kiva. There are dramatic similarities, and differences. It is not surprising that Prosper’s reach is so much broader than Kiva’s. In its first seven months, Prosper’s 100,000 registered users have made $22 million in loans, averaging about $5,000. Kiva’s 15,000 lenders have made $1.2 million in loans, with an average loan size of $500. That translates into success for both companies, whose founders agree that there is room in the wide-open field for both models. Says Kiva’s Shah: “Right now there are so few people doing this and it’s so experimental, … Continue reading A Tale of Two Lenders

Strategic customer engagement – ‘click to call’ for the right reasons


We talked before about push to talk/ click to call.  This is the capability of your customer entering a phone conversation with the Bank, right from a web page.  Dan over at eStara pinged me with their latest white paper on the topic.  This chart struck me as useful, in determining which method to associate with what kind of customer activity.  Click to call is moire expensive because of the synchronous engagement of people, but its more focused, because it presents the employee with the web page that the customer is on, and the customer and employee can work through … Continue reading Strategic customer engagement – ‘click to call’ for the right reasons

Need an identity…. create a new one!


 This post in interesting and challenges typical boomer & Gen X patterns. Many teens are content (if not happy) to start over with most of their accounts in most places. Source: Ma.gnolia.com – Find Web Sites & Build Community Online What if next generations are ok with multiple identities?  What if they translate that into multiple bank relationships with not association? First of all, we Banks) are screwed!  Our architecture whether technology, product or channel, assumes customers are unified, and presume to remained that way. This is an example of a disruptive force that we need to understand.   Technorati tags: … Continue reading Need an identity…. create a new one!

Davos07: thoughts on the importance of video


 There are so many provocative thoughts arising from this few seconds of video, capturing Chad Hurley (Youtube) at Davos. Source: Youtube Who the hell is Chad Hurley? Who invited him to Davos? I thought Davos was for world leaders? Oops … the world has changed.  Within 24 months of launching a video platform, some geek is sitting in Davos.  Davos for the uninitiated is the place business and political leaders gather annually in January to discuss world progress.  I recall being amazed that Bill Gates was there a few years ago, but if you haven’t figured out that the world has … Continue reading Davos07: thoughts on the importance of video

Banks fees are not sustainable


Yes, its election time in Canada again.  Ordinary Canadians have seen an explosion of punishing fees at a time when Canadian banks are basking in record profits, Source: Canadian Banks & Insurance Putting aside the obviously political motivations of the Canadian NDP, the more basic matter is that Bank fees are a motivating issue for people.  The concept with this particular one is that ATM’s are a utility, available for all to use just like a water tap.  While this ignores the multi million dollar investments of the Banks’ in their ATM networks and associated infrastructure, that means nothing.  Telco’s … Continue reading Banks fees are not sustainable