Middle East, Web/Tech

e-Banking holds key to future growth of Mid East banking sector

Colin Henderson

Middle East Banks have been lagging in their adoption of electronic channels, for a variety of reasons, but now that internet is taking hold there, online banking is a key component in their channels strategies. e-Banking holds key to future growth of Mid East banking sector The strategic approach for many of the region’s banks has always been to offer unique products and services that maintain their competitive edge, but in the technology driven global market, the participation of IT is absolutely essential. Chief Information Officers (CIO) are now being empowered to develop new strategies regarding how technology runs daily … Continue reading e-Banking holds key to future growth of Mid East banking sector

Security, US

TowerGroup: Case Study on Use of Strong Online Authentication to Beat Fraud

Colin Henderson

Bank of America were the first large scale roll out for the PassMark solution (branded Sitekey by BofA).  The solution identifies the bank to the customer, and identifies the customer to the bank. TowerGroup: Case Study on Use of Strong Online Authentication to Beat Fraud Beyond just the online channel, TowerGroup believes that Bank of America has taken an important macro step in the fight against fraud by developing an enterprise detection system to monitor potentially fraudulent transactions across all delivery channels. Since fraud isn’t limited to the online channel, this cohesive view of customer transactions will become increasingly important … Continue reading TowerGroup: Case Study on Use of Strong Online Authentication to Beat Fraud

Canada, Telephone Banking

Bank branches take a back seat to Net, drive-through

Colin Henderson

In Canada, bank customers have shifted away from the branch. 46% never visited a branch last Fall.

London Free Press – Business – Bank branches take a back seat to Net, drive-through

An annual research study released recently by research organization TNS Canadian Facts shows just more half of Canadians (54 per cent) visited a bank branch last fall, the lowest level of branch banking since the tracking study began in 1994.

Continue reading “Bank branches take a back seat to Net, drive-through”

US, Web/Tech

Advice to IT companies – dump the marketing department

Colin Henderson

In typical style, Art tells it like it is here.  I have to agree with him … just last week, we had a vendor in talking about two factor authentication, and they have a great product which might actually complement our security strategy, but getting past the hype of their “front man” made it hard to sort out useful from hype. Its particularly important for Banks, because banks are large, with multiple groups who all hear things differently.  This accounts for the many unsatisfactory implementations, that fail to meet original expectation (read hype).  Its particularly evident with American companies. Bank … Continue reading Advice to IT companies – dump the marketing department

AI

Debit cards overtake cash on the high street

Colin Henderson

“In 2005 a generation of consumers who have grown up with Switch, Maestro and Solo in their wallets and purses spent a total of £89 billion on debit cards, a 9 per cent hike on 2004.”

Debit cards overtake cash on the high street – Industry sectors – Times Online

Across all payments, the use of cards once again eclipsed the use of cash in 2005, with consumers spending £295 billion on plastic during the year, compared with £272 billion in cash. Total use of debit cards, which celebrate their 20th anniversary this year, soared by 14 per cent to £171 billion. Credit card spending was just 1 per cent higher at £124 billion.

Continue reading “Debit cards overtake cash on the high street”

AI

London is in the clutches of a remarkable financial services boom

Colin Henderson

London is booming, specifically in The City. The reasons though are interesting, between traditional specialities in commodities, and regulation management. The latter is a choice that Government makes, and one that separates UK from the US highly regulated and interrogative approach.

globeandmail.com

Regulation has also been a key driver in attracting capital, people, and foreign companies. British authorities have steered clear of the strictly prescriptive rule-making enshrined in the U.S. Sarbanes-Oxley Act, opting instead for a looser, more principles-based approach. The result: an explosion of Britain’s Alternative Investment Market (AIM), a junior stock exchange catering to smaller companies.Then there is the proliferation of hedge funds and structured products experts, which have made the City a fertile ground for developing new financial products.

Continue reading “London is in the clutches of a remarkable financial services boom”

US

Keynote studies – Customer Experience, Service Level, WebExcellence Scorecard Rankings for Banking Web Sites

Colin Henderson

 Some key points extracted from the press release from these studies:

  1.  "Our studies have consistently shown a strong correlation between a positive online experience and increases in brand equity and customer acquisition and retention."
  2. "Our rankings show a strong finish by many of the larger banks in the industry. This finish is based not on market or brand positioning, but rather on the investment and focus these companies have put into building the industry's best online banking sites,"

Continue reading “Keynote studies – Customer Experience, Service Level, WebExcellence Scorecard Rankings for Banking Web Sites”

EU

EU: Credit, Debit Cards Charging Too Much

Colin Henderson

The European Commission said customers are paying too much because the industry was still split along national lines and new card providers find it hard to set up shop.

EU: Credit, Debit Cards Charging Too Much

BRUSSELS, Belgium – Credit and debit cards such as Visa and MasterCard are racking up “abnormal” and “excessive” profits for banks, European Union antitrust chief Neelie Kroes said Wednesday.

The report makes the connection between the high merchant fees, and consumer prices.

She said the industry should also rethink the way it sets prices. “Banks collectively set fees that tax businesses and ultimately all consumers for every card payment,” she said. “As a consequence there is not enough market pressure on fees and retail prices are inflated due to card payments.”

Continue reading “EU: Credit, Debit Cards Charging Too Much”

US

Bank Of America Considering Its Own Credit Card Brand

Colin Henderson

More on the BofA credit card  story – it could be a branded card, directly in competition with Visa and Mastercard.

This is a great example of considering a strategy to differentiate banking.  The savings of $75 million annually are probably small relative to the market share opportunities.  Marketing costs on the other hand would probably eat up all those savings.

Bank Of America Considering Its Own Credit Card Brand

The Charlotte Business Journal reported on April 14th that Bank of America was considering its own electronic payment processing network, in order to compete with card issuers Visa and MasterCard, thereby eliminating the fees it now pays them to process charges made with Bank of America-issued cards.

Continue reading “Bank Of America Considering Its Own Credit Card Brand”