Monthly Archive for August, 2009

Study: Mobile Banking Promo On The Rise

Mobile banking promotion is on the rise in direct marketing, according to Mintel Comperemedia.
In the first half of 2009, the phrase “mobile banking” appeared in banking direct mail offers more than twice as often as in the first half of 2008. Significantly more email offers also now mention “mobile banking”, according to Mintel Comperemedia’s analysis of email advertising from banks.

Financial institutions ranging from USAA, Bank of America and Wells Fargo to local credit unions all promote mobile banking in direct marketing. Mintel Comperemedia has tracked emails promoting iPhone Apps from banks like Wells Fargo. Other leading institutions continue to create new mobile applications, like USAA allowing customers to deposit checks by phone or Citibank’s “Obopay” letting people send money via text messages.

“Mobile banking isn’t new, but it’s getting a huge push from the popularity of the iPhone and BlackBerry,” says Susan Wolfe, VP of financial services at Mintel Comperemedia. “As more consumers adopt smart phones and adapt to truly on-the-go lifestyles, they’re seeking banking applications and technology that keeps up with them.”

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August 31, 2009 | Adoption, MarketWatch and Payments | Closed

Diebold's Mobile Banking Plans for the U.S.

Companies such as Nokia have been cashing in on mobile banking in emerging markets including India, Brazil, and South Africa. The success is in part due to the large number of people in these areas who have mobile phones but do not yet have access to land lines and Internet. Will well-wired American consumers have the same demand for this service?

Diebold believes there is potential. I recently spoke with Keith Lewis, director of marketing for the North Canton (Ohio)-based maker of bank equipment (e.g. ATM) and security products. He said the company plans in September to launch mobile banking services for banks and credit unions in the U.S. Diebold plans to focus on Generation Y generation though it will reach out to other groups. Diebold, which ran into headline-grabbing problems with its voting machines several years ago—it’s since spun off this business—sees mobile banking as one element leading to its next breakthrough: innovating the banking experience.

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August 31, 2009 | Adoption, CM in the News, Cust-Partners, MarketWatch and Payments | Closed

BE PROACTIVE ON BANK FEES & RATES

When it comes to banking, consumers are in the driver’s seat these days — thanks to cutthroat competition among brick and mortar banks and a growing wealth of online alternatives, financial services experts said.

Banks may seem to have the upper hand as they cut credit lines and jack up fees, raking in an estimated $38.5 billion in overdraft fees alone this year — double the amount in 2008, according to Mike Moebs, CEO of research firm Moebs Services.

But the simple fact is banks benefit because many people do not negotiate when hit with a hefty fee, or shop around for a better deal. That’s a costly, easily avoidable mistake, the experts said.

“It’s a consumers’ market — for the consumers that get off their asses and take advantage,” said Ramit Sethi, author of “I Will Teach You to Be Rich.”

“Banks [only] have the upper hand against lazy people and in certain situations where people don’t have alternatives,” Sethi said.

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August 31, 2009 | Adoption, MarketWatch and Payments | Closed

Mobile banking picks up in Asia

Mobile banking uptake in the Asia-Pacific region has “strong potential” to scale; banks that have not yet taken advantage of this additional customer engagement channel stand to lose, according to an analyst based in the region.

Shawn Yip, market analyst at IDC-owned Financial Insights Asia-Pacific, told ZDNet Asia that mobile banking could represent the primary customer touchpoint in “significant unbanked or underbanked populations such as India and Indonesia”, as well as provide added convenience to users in more developed markets such as Hong Kong and Singapore.

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August 31, 2009 | Adoption, MarketWatch and Payments | Closed

Mobile money round-up: new services, anti-fraud and iPhone

The UK and Canada both have stories about the fight against fraud when it comes to mobile banking. We’ve also got a new Canadian service being rolled out by Virgin Mobile (or Bell Canada, if you like), and yet another mobile payment application for the iPhone.

Anti-fraud guidelines for mobile payments accepted by UK government:

In co-operation with various the mobile phone and banking industry, the UK governent has created a set of guidelines to make mobile banking more secure. These guidelines are dealing primarily with “contactless” payment methods. What we mean by that is payment options that allow your phone to be used like a swipe card for transactions. Using extremely short-range wireless communications, your phone can be waved over a reader at any shop checkout, and the payment will be automatically debited to your account. To ensure that fraud and criminal abuse of this system is kept to a miminum, the Home Office has created a set of limitations, including maximum transaction sizes and a rapid system to disable payment functions on lost/stolen devices.

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August 31, 2009 | MarketWatch, Payments and Security-Fraud | Closed

Mexico to push mobile banking

Mexico’s push to bring more people into the banking system and out of the cash economy will get a helping hand this year when regulations are put in place to allow consumers to make basic financial transactions using their mobile phones, reports Wall Street Journal.

“We are creating a regulatory framework to allow mobile phones to be used like a debit card,” said Carlos Marmolejo, director of technology and risk management supervision at the National Banking and Securities Commission.

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August 31, 2009 | Adoption, MarketWatch and Payments | Closed
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