Commonwealth says Kaching provides a new level of convenience. For instance, someone could easily split a dinner tab with their friend needing nothing more than their email address. Or they could pay the plumber knowing only their mobile number.

“The idea is to let you pay your friend as quickly as you can send your friend a text message,” said Commonwealth’s David Lindberg at a launch event for Kaching.

The Kaching app ports into the phone’s address book and can interface with a user’s Facebook contacts, providing the ability to create peer-to-peer payments without leaving the app.

KACHING INTERFACES WITH CONTACTS FOR EASY P2P PAYMENTS

KACHING FACEBOOK PAYMENTS INTERFACE

Payees don’t have to be Commonwealth Bank customers to receive funds via Facebook and email. Non-bank customers are directed to an external collection site. Any un-retrieved funds are credited back to the payer after 14 days.

The Kaching app was designed to be a complete banking interface for smartphones, so users can also do all the things they could in NetBank, Commonwealth’s online banking system. Users can view balances and transfer money between accounts, as well as schedule payments via BPAY, the bank’s online bill pay platform.

Commonwealth Bank’s NetBank online banking platform has more than 6.2 million registered users, with 57 million logons in August 2011 — over 16 million of those from mobile devices. That reflects a one-year increase of 229%. 79% of all NetBank mobile logons were from an iPhone, 12% from Android devices. Today, 28% of logons to Commonwealth’s NetBank platform are from mobile devices, which is quite remarkable considering that it was just 2% two years ago.

KACHING LOGIN SCREEN

KACHING ACCOUNT BALANCES VIEW

KACHING ACCOUNT TRANSFER SCREEN

Commonwealth Bank customers who download Kaching need to first complete an online registration process, including their existing NetBank login details.

Commbank Kaching users who also add iCarte to their handset can make payments up to $100 with a simple tap of their phone at certain point-of-purchase locations. Adding iCarte technology requires snapping an extension onto the phone, or by using a specially designed case.

This NFC (Near Field Communications) payment system only works in those retailers with MasterCard PayPass enabled terminals. However, there are currently over 42,000 such readers installed across Australia, and over seven million MasterCard PayPass cards already in circulation. In August this year, the number of Mastercard PayPass transactions processed in Australia topped million for the first time.

An estimated 50% of all mobile handsets predicted to be enabled with the technology by 2014, delivering up to $50 billion of mobile payment transactions globally.

KACHING PAYPASS NFC SYSTEM

The Kaching app initially launched with versions for iPhone 4 and 4S only, much to the dismay of many Android users. However, Commonwealth says an Android version will be following shortly.

Commonwealth says it has deployed password encryption technology to ensure that someone will not be able access a user’s personal banking details should their phone be lost or stolen. Kaching is authorized to be used on only one handset, and no personal banking information is stored on the phone.

The bank says it expects Kaching to be released sometime before Christmas, about seven weeks away.

KACHING – VIDEO OVERVIEW

This article © 2012 by The Financial Brand and may not be reproduced.

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The VITAband allows customers to simply “tap and go” when making purchases at merchants that accept contactless payments on MasterCard’s PayPass platform. Signatures are not required for purchases under $50.

The US Bank MasterCard PayPass VITAband contains a Radio Frequency Identification (RFID) payment chip, the technology that enables contactless purchases. Each band also carries a VITAnumber, a unique, 8-digit numeric identifier that links the user to a customizable Emergency Response Profile, where first responders can find the wearer’s identity and critical medical information in the event of an emergency.

Through an online VITAband account, users can check their balance, reload their prepaid wristband and customize their emergency medical profile. Because the VITAband works like a prepaid card, users can limit the amount available to thieves should the pay bracelet be lost of stolen. But if your VITAband falls into the wrong hands, there’s not much you can do to stop them from draining whatever money was loaded on it.

The VITAband has an initial fee of $39.95 which includes a one year subscription to the storage of medical records and emergency contacts. After the first year the service costs $19.95 per year. Replacement bands cost $19.95.

“US Bank MasterCard PayPass VITAband is great for sports enthusiasts or people who are on-the-go and don’t want the hassle of carrying cash and identification,” said Beth Blaisdell, SVP/US Bank Payment Services.

“Combining the speed and convenience of contactless payments technology with a high-tech medical ID bracelet, it is the perfect companion for those with an active lifestyle,” added Mario Shiliashki, SVP/US Bank Emerging Payments.

US Bank became one of the first major card issuers in North America to pilot this new technology when its employees began testing the VITAband in multiple states in the second quarter of 2011.

To develop this new product, US Bank needed to partner with MasterCard for contactless payments, Vita Products who manufactures the VITAband, smart card company Oberthur Technologies and FIS to handle the transactions.

Analysis

US Bank is essentially asking people to strap a second wrist watch to their body, because the VITAband doesn’t even tell time (how much could it have cost to add that feature?). Functionally, the VITAband only does two things — convenience with small payments and emergency medical info. The size of target market for such a bizarre combination of features has to be less than a fraction of a sliver.

Regardless of what you may think of the concept, there is one facet of the VITAband that is hard to deny: it is ugly. It’s one thing to ask consumers to tuck a bland credit card in their wallets. It’s another to think folks will wear an unattractive, bulky band of blue splashed with bank logos. It looks like those cheap digital watches from 1985. With the VITAband so lacking in style, US Bank has forgotten that “fashion” trumps “functionality” when it comes to clothing and accessories.

As Jim Bruene, publisher of NetBanker, put it: “Nice gimmick, but really? Who would wear a bank-branded bracelet for contactless payments?”

The only way VITAband has a shot at survival is if US Bank offers more stylish alternatives. Even then…

It seems the best VITAband can hope for is to serve as a “bridge technology,” something that gets consumers accustomed to the concept of contactless payments. Ultimately, everything consumers need — payment instruments, medical information, songs, movies, etc. — will be housed on their smart phones. There is no room left — in the marketplace or on our bodies — for more unnecessary or redundant gadgets.

Think about it. Who needs a watch when you’ve always got your phone? Same thing for iPods? And wallets are getting thinner. Cash is going away. Checks are nearly extinct. We’re lightening the load by going digital, and consolidating functions on a single device. In a world where we are carrying less stuff — not more — the VITAband feels like one more burden, one more thing to carry around, one more thing you can lose.

This article © 2012 by The Financial Brand and may not be reproduced.

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Users can upload important documents to their personal online filing cabinet that they would normally keep in an traditional safe or safety deposit box, such as tax documents, insurance policies, social security cards, home/car titles, warranties, wills, trusts, medical receipts, mortgage paperwork, birth- and marriage certificates. Documents can be stored indefinitely.

To upload a document, a user can either drag-and-drop a digital file onto a desktop upload tool (available for both Windows and Mac), or take a picture of it using a special iPhone app.

Through doxo, the company that developed the digital vault, financial institutions like OEFCU can deliver any type of document directly into each person’s digital file cabinet — account statements, credit card bills, mortgage statements, loan statements, regulatory and privacy notices, and more. eStatements and other vital communications from the credit union are filed under a dedicated tab.

OEFCU is using the online storage service as part of a wider strategy to get members to go paperless and receive their statements digitally. The credit union recently held a big shred event to promote its paperless solutions.

“[Digital vaults] enable financial institutions to drive much higher adoption rates of paperless solutions,” said Steve Shivers, CEO of doxo. “They can save more than 80% on the current expense of printing and mailing documents.”

OEFCU’S DIGITAL VAULT
An example of what the online filing cabinet looks like from the member’s view.
Everything is hosted on doxo.com, but partners like OEFCU get a personalized URL
so members can access their accounts from the credit union’s website.

But aren’t consumers worried about storing all their most valuable documents in one spot online? Especially when stories in the press tell people that 77 million Sony Playstation users had their private information compromised.

doxo says its network is secure.

“We utilize security and encryption methods that meet or exceed the standards used by most banks and financial institutions,” Shivers said.

For online security, the company utilizes independent verification services and is verified secure by McAfee and TrustE. Critical data and documents are stored and encrypted securely.

“In general, consumer adoption of online storage solutions has increased exponentially over the past few years,” Shivers said. “Consumers are increasingly looking for convenient and secure ways to keep track of key information, have it accessible whenever and wherever they need it, and reduce the hassle of interacting with providers.”

“We tell people that if you had a fire or a break-in at your home, which documents would you want to be sure you had a secure copy of?”

doxo says its digital filing cabinet is perfect for vacationers and other travelers who can upload copies of their passports, birth certificates, plane tickets, itineraries, credit card info and other vital travel documents. With the doxo’s mobile app, user’s digital file cabinet can travel with them anywhere they go, all the time.

The service is free to Oregon Employees FCU members. doxo, receives a small transactional fee each time the credit union delivers a document to a member.

OEFCU is the first credit union client doxo has formally announced. The company says it will be announcing more retail bank and credit union deals in the next few months.

“Launching on doxo was very easy,” said Otto Radke, OEFCU VP Information Technology. “We were integrated and live on the network in less than a month.”

Financial institutions can get more information about doxo and take a free, private test trial at the company’s website.

Another startup called My Peace of Mind has a similar offering. Its patented, web-based lockbox costs $48 per year, and will be marketed through insurance firms and HR companies.

This article © 2012 by The Financial Brand and may not be reproduced.

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Standard Chartered is issuing RFID chips to select customers at its newest Korean location, eliminating the need for affluent individuals to wait in lines at the branch.

When a customer holding an RFID tag enters the facility, the system immediately notifies the branch manager and a relationship manager who can greet the customer personally at the door.

The RFID units won’t be available to just anyone. Only those in the bank’s top three banking tiers will be given special RFID treatment. Recipients will be hand-picked from a select group of Standard Chartered’s Preferred Banking, Priority Banking and Private Banking customers. Preference will be given to those who visit the branch frequently, are open to new technology, and have a strong relationship with the bank.

Standard Chartered caters to a wealthy, international audience, with over 1,700 branches in 70 countries. Its Preferred Banking customers maintain deposits with the bank totaling around $50,000. Priority Banking customers, twice that. Preferred Banking customers — those in the top tier — have nearly $1 million in deposits. These are swanky jet-setters with no time to waste in bank branches.

Standard Chartered says it is the first bank in the world to adopt RFID tags as part of an “intelligent queuing system,” however Yes Bank in India claims to have rolled out an RFID system back in 2009.

When premium customers walk into the branch, their name and basic profile to appear on the screens of both the Relationship Manager and Branch Manager.

Branch prototype serves as testing facility

Standard Chartered’s new branch in Korea represents more than just an advancement in queuing. It’s a prototype branch serving as a beta-testing site for future improvement at other locations. Standard Chartered is exploring the integration of new technologies like video conferencing and digital merchandising.

The sophisticated open-style interior design of the Korean branch will be applied to new, relocated and remodeled branches. After the bank has had the opportunity to evaluate customer reactions, it will then decide whether or not to implement its new, experimental technologies on a wider scale.

“This new branch is expected to appeal to next generation customers, and increase customer transactions through its innovative design and systems,” said Standard Chartered’s Head of Consumer Banking. “I also hope it encourages customers to purchase more products.”

Standard Chartered Korea

This branch features the personalized Q-matic RFID system, iPads for staff/customer engagement and entertainment, digital merchandising/marketing materials, video conferencing, digital whiteboard and an internet kiosk.

Standard Chartered – Singapore

The Marina Bay Financial Center is Standard Charter’s flagship branch in Singapore. This branch illustrates how Standard Chartered creates two distinct spaces, separating experiences for Personal vs. Priority Banking customers. The mass market side of the branch is skews retail, while the upscale side is decidedly more sophisticated.

PERSONAL BANKING – Notice the bright blue-and-green color combination used in the retail banking side of the branch. Shown here: “Quick Service Station” against a merchandising backdrop incorporating Standard Chartered’s “trustmark” logo.

PERSONAL BANKING – Technology, retail merchandising, bright colors and functional decor define the retail banking experience.

PERSONAL BANKING – The digital displays above the teller bays seem like they might lend themselves to a “now serving” queuing system.

FLOOR PLAN  – Personal Banking occurs in the green space, while Priority Banking customers get the blue treatment. Notice the passageway between the two halves of the branch. Where’s the vault?

PRIORITY BANKING – ENTRANCE

PRIORITY BANKING – WELCOME DESK

PRIORITY BANKING – LOUNGE

PRIORITY BANKING – ARTWORK

This article © 2012 by The Financial Brand and may not be reproduced.

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With live online chat, someone can initiate a two-way, text-based conversation with the click of a button. Clicking on a chat icon at a website triggers a new window where people can ask questions, get answers and advice — all in real time.

Live online chat is nothing new. Some financial institutions, like American Airlines FCU, have deployed live chat since at least 2002. Netbanker wrote about it back in 2006, as did the Wall Street Journal. Yet many financial institutions have yet to embrace this simple customer service solution, seduced instead by the sexier promise of social media. It’s time to take a good look at the issues involved with developing a chat strategy — from people and processes to costs and technologies.

Banks and credit unions have invested millions into their online platforms, and millions more convincing consumers to adopt them, so why not do everything possible to encourage adoptions and reinforce usage? With relatively simple and inexpensive live chat technology, financial institutions can restore that vital “personal touch” that gets lost in the online experience.

“Banks are starting to see the need to inject that human element,” George Tubin, a senior analyst at research firm Tower Group told the WSJ.

“From a bank marketing standpoint, having live online chat would be a pretty important way of proving your story if your bank brand is built around ‘superior customer service,’” wrote financial branding expert Jeff Stephens, head of Creative Brand Communications, on his company’s blog. “For any bank advertising itself as responsive and customer-centric, a feature like online chat seems almost indispensable.”

Banks and credit unions — particularly smaller ones — can also benefit by using live chat to position themselves as tech-savvy. This not only makes the financial institution more attractive to a hyper-digital Gen-Y audience, it fosters continued usage of the online channel.

Big Benefits & Meaningful Measurements

Online chat increases conversions of both existing customers and shopping prospects, resulting in more completed applications and new relationships. Live chat is particularly effective for high-value financial services — e.g., loan, investment and deposit products — where shoppers usually seek more advice. Citbank says 90% of its live chat users complete a home-equity application. Similarly, BofA attributed an 8-fold increase in online mortgages and a doubling in home equity volume partly to live chat. For National City, the conversion rate for visitors using chat shot up six fold, and American Airlines FCU saw new memberships increase 15%.

For customers, live chat can improve loyalty and satisfaction levels. National City’s online visitors applauded their chat experiences, helping the bank achieve 95% customer satisfaction ratings along with exit surveys including comments like this: “This was my first experience with live chat on the Internet. It was great! Honestly, I think it was much faster than calling the local National City.”

With live chat, financial institutions can achieve increased sales and retention rates while simultaneously decreasing the cost of customer interactions. Since more customers can be served by the same or fewer customer service staff, live chat can result in meaningful operational savings. For example, American Airlines FCU says it realized a 20% savings compared to standard 800 and international phone charges

Also, with nearly any live chat system, you can generate comprehensive reports that reveal trends, summarize agent performance and track conversion rates. Plus, chat transcripts can be retained and used for training and audit trail purposes.

Why Consumers Love Live, Online Chat

Consumers continue to express a preference for online channels in greater numbers. A ComScore study from 2008 found that 25% of financial consumers were interested in having the ability to chat online with a bank representative.

Why? For starters, it allows website visitors to stay in their channel of choice. They don’t have to go to a branch or pick up the phone. They are already at your website, so they don’t have to remember to do it later. This give people the feeling of convenience and immediacy. VyStar Credit Union said the organization’s average response time is under eight seconds. But even if someone has to wait a few minutes for their chat to initiate, there is still a sense of instant gratification.

Live online chat is particularly appealing to the “no-I-don’t-want-to-talk-to-you” crowd. These people feel like they can get answers more quickly and are spending less time than they would on-hold… or worse, calling your IVR system. These people often multi-task while engaged in online chats. For instance, someone could sit at home wearing their comfies ping-ponging between Seinfeld reruns and their Facebook page while waiting for a service rep to respond to their question. It sure beats driving to the branch to stand in a line.

Consumers also like the convenience of being able to review what their service rep said by simply scrolling their screen. At the end, they have a written transcript of the entire conversation, complete with addresses, phone numbers and hotlinks to specific web pages on your website by serving up the relevant page.

Powerful & Flexible Features

Hosted vs. Install - Third-party solutions that are widely available will quickly and easily integrate with most bank and credit union websites. For hosted solutions, you will probably only need to insert a small block of code into your web template(s). You can host the system yourself, but installation and set-up can be more complicated and time-consuming. Most hosted solutions charge month-to-month or annually, whereas systems you install yourself typically involve a one-time cost (plus the cost of future upgrade).

Consumers usually do not need to download any special software or plug-ins to use online chat. This can help reassure wary visitors that their computer is safe and not exposed to security breaches. Of all the live online chat services tested by The Financial Brand, only one — Kentucky Neighborhood Bank — required users to download a stand-alone application (a solution from LogMeIn).

Using Smart Tech to Create “Rules” – Some “self-aware” systems analyze traffic patterns in real time to identify and target site visitors most likely to benefit from chat interactions. Sensing when visitors might need assistance, a permission-based pop-up invites consumers to chat with a live agent. For National City, almost 20% of visitors who were proactively offered the opportunity to chat accepted the invitation.

Providers of live chat solutions offer varying levels of control over the conditions — the “rules” — that trigger pop-up invitations. For instance, you could specify that whenever a site visitor clicks on more than five pages, a window might pop up saying “Having trouble finding something? Chat with a service representative online right now. [Click here.]” Or you could tell the system to look for site visitors engaged in mortgage shopping behaviors. If someone clicked on your site’s home loan page then checked out your loan rates, it might trigger a window saying “Would you like to chat with one of our mortgage experts online?”

Hours - While it is reasonable to limit the availability of online chat — most financial institutions seem to stick to traditional bankers’ hours, M-F/9-5 — customers will see more value in the service during those times when other contact options are typically unavailable (i.e., after hours and weekends).

Service Credit Union, with $1.7 billion in assets, maintains its LiveChat24 online chat feature 24/7 for its military members stationed around the world. Air Force FCU does the same thing. KeyPoint Credit Union’s chat service is available 24/7, but only to online banking customers.

Tip: Provide alternate contact options whenever the chat service is unavailable. Allow customers to email their question or message, and promise a response time. Give site visitors your branch locations and phone numbers, or at least direct them to your contact page.

When Summit Credit Union’s chat service is unavailable, users aren’t given a lot of information or options. “Your request is queued?” What does that mean? There should be an option to leave a message or send an email. At the very least, a link to Summit’s Contact page.

Exit Survey - When a user concludes their online chat, you can give them the option to review their experience. This helps you evaluate the success of individual service agents as well as the overall value of online chat.

Post-chat evaluation survey from Kentucky Neighborhood Bank.

Partial Rollout - Some financial institutions are extremely conservative with any new technology, in which case it might be better to test online chat with a limited pilot program. The availability of live chat can be restricted to specific areas of your website — say for instance, the online account opening process — but this isn’t ideal. If your institution chooses to embrace online chat, it should aim to address 100% of the exact same type of inquiries you would typically encounter through the call center.

You may, however, successfully limit live chat to online banking customers. Just be aware that if you do, you are essentially creating a pure tech-support platform and will be missing out on the additional sales and service opportunities created by a system that is more widely deployed.

Info Page & FAQ - Some site visitors who aren’t familiar with live online chat may have some questions before choosing to try the service. You can create a chat landing page with basic information and answers:

• What is live chat?
• Is it secure?
• Do I need an account number or password to use live chat?
• What services are available through live chat?
• What if there are no chat representatives available?
• What if I am accidentally disconnected?

Tip: Don’t forget to add live online chat as one of the options on your Contact page. If you create a special chat page, don’t forget to include it on your website’s sitemap.

What About Security?

Most of the questions posed via online chat are innocuous and require no sort of authentication at all. “What is your routing number?” “Is the rate on the 12-month CD also available on 6-month CDs?”

When customer need to discuss account details, online chat operators should use the same security precautions when working in a live chat session as they would if taking the call on a phone.

“Verify first and last name, ask for their account number, ask two challenge questions and follow whatever identification guidelines your bank or credit union follows,” advises Jason Sherrill of InetSolution, a provider of tech solutions like online chat for financial institutions. “And don’t forget, you’re using SSL to secure the chat conversation.”

Staffing

Banks use different strategies to staff their live-chat operations. Because the service is internet-based, chat operators can work from corporate headquarters, remote offices or even from home. Some smaller banks simply have call-center employees field electronic inquiries in addition to phone calls. SunTrust houses its “e-group” as a separate unit within the bank’s call center.

“If you have people answering the telephone to provide support, then you most likely have all the manpower you need to provide live chat,” observes InetSolution’s Sherrill. “It can actually require less manpower to provide customer support via live chat than on the telephone.”

“A single customer service representative can service one customer at a time on the phone,” Sherrill continues. “However, that same customer service rep can chat with two, three, four or even more customers simultaneously using live chat.”

“With our chat system, any number of operators can be signed-in and waiting for chat requests,” Sherrill explains. “Incoming chat requests can be directed to specific reps based on the nature of the inquiry, or the reps can accept chat requests on an as-available basis.”

“If a rep needs to step away for a break, to perform other duties or to go home for the day, he simply signs out,” explains Sherrill. “If all of the reps sign-out, then our system automatically hides the live chat button on the website. Alternatively, we can show a message to tell customers that live chat is unavailable at the moment.”

BofA says it staffs each section of its website with chat employees who have undergone the same sales training as specialists working in branches. “You’re not chatting with a customer-service rep, you’re chatting with a mortgage specialist,” says Sanjay Gupta, BofA’s consumer and small-business e-commerce executive.

VyStar Credit Union has chat users select a topic before initiating a chat. This allows the financial institution to (A) direct the user to a service agent trained in that specific area, and/or (B) bring up the relevant information on the service agent’s screen.

Providers of Live Online Chat Services

InetSolution’s subscription-based services range from $79.95 to $500 per month, depending on the number of operators, security and auditing options you require. For larger banks and credit unions who have their own data center and connectivity, solutions can range from $800 to $4,000 initially, with annual maintenance of usually 20% to 30% of the initial cost.

In addition to InetSolution, other providers of online chat services specifically for financial institutions include LivePerson.com and SightMax.

The Financial Brand tried using the online chat service at LivePerson’s website to answer some questions for this article, but two separate chat reps told The Financial Brand they were unable to help, even with the most basic, common questions. The Financial Brand was instructed to contact the company’s PR department… via phone or email. Ironically, the PR department’s voicemail box was full, and no reply was received via email, proving that technology isn’t the secret to excellent service, even when your company specializes in customer service technology.

At the end of the day, customer service is still ultimately about people.

This article © 2012 by The Financial Brand and may not be reproduced.

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When BBVA decided to completely redesign the concept of ATMs from the ground up, it turned to IDEO, a global design consultancy. Together, the two companies have pioneered the ATM of tomorrow. They herald their new super ATM as “the future of self-service banking,” offering increased privacy, a simplified touch-screen interface and just one slot for all media.

The IDEO design team started by interviewing and observing people using ATMs at BBVA and other bank branches across Spain, Mexico and the U.S. The team also examined other self-service transactions, such as those at gas pumps, supermarket checkouts and train-ticket kiosks. One of the things they found was that customers felt uncomfortable when those in the queue could look over their shoulder while conducting transactions. IDEO and BBVA decided to rotate the machine 90 degrees, obstructing the view of onlookers with a privacy screen.

“Three principles guided our team along the way,” IDEO said. “Simple, human, and flexible.”

THE FUTURE OF SELF-SERVICE BANKING
A six-minute video detailing the development process of the new ATM and all its features.

Throughout the development process, IDEO and BBVA worked closely with manufacturing partners NCR and Fujitsu to ensure that the original design intent was maintained throughout the engineering, build, and implementation of the new ATM.

IDEO spent two years working on the project.

BBVA has already installed five pilot units, and has plans to roll the new machines throughout its Spanish branches. The bank expects to introduce its new super ATMs in different countries over the next few years.

BBVA (short for Banco Bilbao Vizcaya Argentaria) is a global banking company with over $535 billion in assets and more than 47 million customers in 30+ countries.

IDEO has also worked with PNC in the development of its revolutionary Virtual Wallet product.

PRIVACY SCREEN
Customers stand at 90° to anyone who may be
waiting in the queue, shielded by a frosted panel.

TOUCH SCREEN
The entire interface and all activities are conducted on a 19” touch screen.

INTUITIVE INTERFACE
No longer is the ATM confined by a limited number of buttons. The touch screen accommodates any purpose, including a full standard keyboard.

SINGLE SLOT
All deposits, checks cash, statements and receipts are handled in and out by a single slot, eliminating “slot clutter” seen on today’s machines.

THE FUTURE OF SELF-SERVICE BANKING
A microsite that design partner IDEO put together about its ATM project with BBVA.

Tip of the Hat: To Chris Skinner at the FinanSer blog for bringing this item to The Financial Brand’s attention.

This article © 2012 by The Financial Brand and may not be reproduced.

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Much like an ATM, PAT spits out cash and takes deposits. But PAT, short for Personal Assisted Teller, has a number of features you won’t find on your typical cash machine. It can handle coins. It has a digital signature pad. And, most notably, PAT has a live video interface so users can interact with a real teller while they do their banking.

“PAT offers live video-banking, with the service of a teller and the convenience of a banking machine,” says FirstOntario. “PAT is as secure as using a banking machine or going directly into the branch.”

PAT uses uGenius remote teller technology to connect users with on-screen service representatives using live streaming video. FirstOntario says most of the daily banking you would normally do face-to-face can be done at PAT, including deposits, withdrawals, check cashing, bill payments and Canadian drafts. Only FirstOntario members can trigger the live video chats with tellers.

To stimulate the public’s interest in PAT, FirstOntario is holding a “Bonus Cash Giveaway,” where withdrawn bills will randomly be replaced with larger denominations. There are six weekly prizes with bonus cash totaling $250. Each week PAT will randomly dispense:

• One $100 bill in place of one $50 bill
• One $50 bill in place of one $20 bill
• Two $50 bills in place of two $10 bills
• Two $50 bills in place of two $5 bills

FirstOntario says it introduced video tellers as a way to stretch service hours at its branches. “The beauty of PAT is that we can extend hours,” Dave Schurman, EVP/COO at FirstOntario, told CHCH news in an interview. “We could virtually go 24/7, 365.” Indeed, that’s what Mid-Hudson Valley Federal Credit Union did late in 2009 with its video tellers.

About the strategy, FirstOntario said, “PAT is sure to appeal to our younger members while still keeping the human touch that older generations love.”

PAT is currently installed in only one location, but there are immediate plans to roll units out at three other branches.

FirstOntario hints that it may build PAT units in other areas where it doesn’t have branches. “We are also looking at strategic partnerships to launch PAT in remote locations,” FirstOntario said. Translation: FirstOntario is looking to sublease space (within a mall or store for instance) vs. building freestanding PATs. Stay tuned…

Analysis
There’s a fierce debate raging within the financial industry about what role — if any — branches have in 2010 and beyond. While some argue that branches are doomed to obsolescence, others see a future for branches as service centers, with smaller footprints focused on high-value products and resolution of customer issues. Oddly, neither side ever discusses how video tellers fit into the equation.

Why not deploy video tellers as stand-alone kiosks in areas where it’s impractical to locate branches? Walk-up or drive-through. For financial institutions looking to expand their footprint without a huge investment in bricks and mortar, video tellers seem like the obvious solution. Perhaps the future will see more video tellers handling routine transactions, while regional service centers focus on high-value financial services across wider geographic areas.

With the press of the “chat” button, PAT connects users with a teller via video.
The unit includes solutions enabling tellers to verify someone’s ID and signature.

VIDEO TELLER DEMO/OVERVIEW
A very thorough 5:45 video demonstration and overview of uGenius video banking technology.

This article © 2012 by The Financial Brand and may not be reproduced.

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“myFinanceTracker is a dynamic, customizable financial management tool that allows users to turn banking information into valuable knowledge so that they can SEE and SEIZE opportunities.”
– RBC Canada

Much like other PFM solutions RBC’s myFinance Tracker automatically categorizes transactions, tracks expenses and provides advanced budgeting capabilities for all personal banking and credit card accounts. RBC says the new system will help customers better understand where they are spending their money. Users are able to set budgets, and will receive email alerts whenever they exceed their set limitations.

myFinance Tracker, which RBC believes is the first PFM tool in Canada, is available to all RBC clients at no extra cost.

RBC also timed the redesign of its online banking system to coincide with the launch of myFinanceTracker.

Regarding the decision to deploy a PFM solution, RBC cites a recent poll indicating demand for more advanced — yet simple — online banking capabilities. 20% of Canadians say they are looking for an automated way to access transactions that are simple and intuitive.

myFinance Tracker provides online banking customers with the following online capabilities:

Categorizing Account Transactions — myFinanceTracker groups similar transactions into categories such as “travel” or “grocery.” Includes some common, pre-defined categories, and users can define custom ones of their own. RBC bank account and credit card transactions are automatically loaded into pre-set categories.

Expense Analysis — All account transactions are displayed for each category and sub-category along with the budget limit, giving users an at-a-glance summary of their activity. myFinance Tracker also provides graphs and charts to give users the big picture and show them where their money is going. A pie chart breaks down expenses, so users can quickly see their spending habits.

Budgeting — Consumers will have the ability to clearly define their budget with a maximum spending limit for each category over a specified period. For example, a user could set a $200 limit for dining out. Users can add transactions and immediately see how they fit into their overall budget, so they can plan accordingly.

Money Management — Users have the ability to establish an account balance target for one or more accounts and an alert will be triggered when the balance of an account drops below set parameters. Users can also create printer-friendly reports.

Financial Calendar — A calendar view of past and pending transactions, myFinanceTracker shows all bills, transactions and account balances for the month at once.

Jacob Jegher, a Celent analyst writing in his company’s blog, points out what he sees as a significant shortcoming to myFinance Tracker. “RBC has committed a false start by deciding not to include account aggregation capabilities in the launch,” writes Jegher. “Potentially interested customers who try the service will be frustrated by this. Many of them have multiple accounts (including cards) at a variety of institutions, and the ability to view their complete financial picture is a must.”

ONLINE BANKING ACCOUNT CENTER
RBC strategically placed a banner ad inside its firewall, within its online banking account center.

SPENDING BREAKDOWN
myFinance Tracker shows users how their spending habits distribute by category.

BUDGETING VS. SPENDING
Users can easily monitor how much budget they have remaining in each category, and whether or not they’ve exceeded their spending limits.

CALENDAR
RBC’s myFinance Tracker lays out bills, expenses, deposits and other account activity on a visual calendar.

MANAGE BUDGET
Specify spending limits for each category.

ACCOUNT GROUPS
Users can create their own custom groups in addition to using the pre-defined categories provided by myFinance Tracker.

This article © 2012 by The Financial Brand and may not be reproduced.

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Here’s how it works:

• When shopping online or logging in to an online banking service, the cardholder activates the authentication process by pressing the “Verified by Visa” option button on the card’s keypad.
• When prompted, the consumer inputs their PIN into the keypad embedded in the card.
• A unique one-time-passcode appears on the card’s display, which is then used by the cardholder to authenticate a normal Verified by Visa transaction.

You can get a general sense for how it works in this short overview video:

VISA CodeSure – PHONE AUTHENTICATION

CodeSure cards can also be used to authenticate online banking sessions.

• When a cardholder accesses their online bank, they would be provided a dynamic numeric challenge code (a number) from the bank.
• The challenge code would be entered into the Visa CodeSure card by the cardholder, to confirm it is a request from their bank
• Only when the challenge code has been entered and correctly verified and approved is the cardholder then prompted to enter their PIN into the card
• This subsequently creates a unique one-time passcode for access to the online banking with both parties being mutually reassured.

The same steps would apply if conducting a transaction over the phone using Visa CodeSure. The following 1-minute video illustrates how CodeSure can be used for authentication in a customer service call:

VISA CODESURE – PHONE AUTHENTICATION

CodeSure technology can be incorporated into any Visa debit, credit, prepaid or commercial card.

Visa initially started developing its CodeSure technology in 2009. Visa, along with partner Emue Technologies, conducted extensive pilot trials with eight European banks and their cardholders. Following pilot programs in the UK, Italy, Israel, Turkey, Switzerland and Germany, Visa now says CodeSure is “fully available for commercial launch,” but it appears that launch will initially be limited to Europe. Presently, it isn’t clear when- or if CodeSure cards will be coming to North America.

Visa has approved use of CodeSure cards for the following purposes:

• PIN generated one-time-passcode for Verified by Visa payments at participating merchants globally – without changes to merchant software or cardholders having to register and remember passwords
• PIN-generated one-time passcode for online banking access
• PIN-generated one-time passcode for telephone banking services
• Transaction signing for online banking services, using specific elements such as Account Reference Number or amount of transaction
  Access to third-party services such as frequent flyer programs or corporate virtual private networks (VPN) for commercial card users.

Sandra Alzetta, Head of Innovation at Visa Europe, suggested that CodeSure cards could have other, more broad uses. For instance, companies might use them as portable password generators. “The solution goes beyond just online and remote shopping but also allows organizations to use the card in place of other online log-in systems to access, for example, corporate virtual private networks (VPN),” Alzetta said.

“The Visa CodeSure card offers banks a solution to fulfill all of their multi-channel banking requirements,” the company said in a press release. “The use of PIN-generated, one-time passcodes and mutual authentication technology, will provide banks with an attractive solution that enables security and convenience in the same device – a Visa payment card.”

BofA rolled out a similar service dubbed SafePass in 2008.

Thanks to CashCow.in, the #1 financial marketing blog in India, for the lead.

This article © 2012 by The Financial Brand and may not be reproduced.

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It’s called Santander City. This sprawling corporate HQ for one of Europe’s biggest banks is a visually stunning concept integrating advanced robotics, interactive design and LED-based art murals.

Santander City’s “El Faro” Visitors Center, is the gateway to Santander Group’s financial complex. The center is a creative mix of advanced robotics, hi-res LED paneled columns and interactive interface design that offer engaging ways to explore the group’s history and global presence. Visitors to the center can interact with information about the banking group, money markets and even the campus itself.

Robotic Butlers

The most amazing aspect of the facility are the Santander Interactive Guest Assistants (SiGA for short), little red robots using GPS technology to guide visitors around the campus. The knee-high robots are a little shorter than R2D2, but like the stumpy Star Wars droid, they are fluent in multiple languages.

“When the visitor arrives, they find a touch screen console where they can choose a language and their destination — a meeting room, the auditorium or the exit to the bus station,” says João Serpa, Project Manager with Ydreams, the design firm that gave Santander City its unique flair.

“It’s Santander’s very own family of robotic butlers,” adds Luís Carvalho, Ydreams Operations Director.

“This is probably the first application that uses ‘swarm robotics’ in a commercial context,” notes Luís Vargas, an Industrial Designer with Ydreams. “We’ve developed a set of robots that function in a crowded space — 24/7, 365 days a year.”

Augmented Reality Model

Ydreams built a huge architectural model of the Santander’s campus. They translated the model into 3D space, then used augmented reality technology to superimpose an additional layer of digital information. Visitors can scroll any one of four touch-screens across the diorama to explore points of interest and architectural details.

“The main idea is that these four screens look like they’re transparent,” Vargas explains.

The Wall

Inside Santander City’s Visitor Center, Ydreams had a huge wall — a huge opportunity to do something dramatic. They created a massive motion-sensing video wall out of touch-screens.

“The main feature we wanted this wall to have was the ability to function on different stages depending on the user’s distance to the wall itself,” Leonel Duarte, Ydreams Creative Director, says. “The application is aware of what’s around and can react and adapt itself to different conditions.”

Santander has over $1 trillion in assets, 90 million customers, 11,178 branches and 130,000 employees. Retail banking — the main aspect of Santander’s operations — generates 82% of the group’s profit.

SANTANDER – TOUR OF HQ FEATURES

SANTANDER HQ IN SANTANDER, SPAIN
There is a marked difference between the new HQ and the old, historic one in the bank’s founding city.

This article © 2012 by The Financial Brand and may not be reproduced.

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Whenever Apple introduces a new product, everyone in every industry inevitably asks, “What does this mean to me?” For financial marketers, Apple’s introduction of the iPad doesn’t mean much.

The iPad is somewhere between an Amazon Kindle e-reader, a portable DVD player, an Apple iPod Touch, and an Apple MacBook Air but without a keyboard. The interface has been replaced with something akin to Microsoft’s Surface touch-screen technology.

“Tactically, it should have
almost zero impact.”
— Jim Bruene, Netbanker.com

Apple believes its iPad fills a niche between mobile phones — which can be too awkward for things like web browsing and watching videos — and laptops, which can often be bulky overkill.

Prices for iPads range from $499 to $829.

For some Apple fans who already own an iPod, iPhone and MacBook, the iPad may just be one device too many.

“It’s not worth it if you already have a smartphone and a laptop,” says technology megablog Mashable.

Reality Checks:

• As Mashable puts it, “The iPad will not turn industries upside down. It won’t be your primary computing device. And it’s not even a bigger, better iPhone.”
• Every product Apple rolls out is not a hit, and Steve Jobs does not walk on water. Remember the Newton, Apple’s PDA flop? The iPad’s future is far from certain.
• The only thing you couldn’t do before that you can do now with an iPad is wave your finger instead of a mouse.

The iPad is simply one more device in Apple’s array of options for consumers to stay connected to the internet. Apple wants to make sure it has the right-sized device for everyone and every occasion, so we can all live the iLife 24/7.

What can financial institutions use iPads for?

Peter Glyman, co-founder of Geezeo, is “very excited about the iPad as a delivery channel for financial institutions.” He’s optimistic that iPad’s touch-screen technology will have a big impact on online banking platforms.

“Imagine using the mutitouch screen to move money between accounts, or live video chat with customer service from your couch,” Glyman says. “It’s going to create a very exciting user experience for online banking, no doubt.”

In branches, iPads could be used for paperless loan applications — a cool, high-tech solution that environmentally conscious financial institutions should consider.

Andy LaFlamme, Community Development Officer at MaPS Credit Union, thinks “it would be pretty cool to have staff use them to perform transactions in a café-style branch without teller stations.”

And financial planners across North America can’t wait to showcase their graphs and charts with iPad pizzazz when meeting with clients.

But what else is the iPad good for…? At this time, it seems like not much else. (But don’t be discouraged from coming up with your own ideas. If you have any you’d like to suggest, please feel free to leave a comment below.)

Key Questions: If Apple really believes people will adopt 3-5 of their products (and can afford them), which will people use for banking? Will they compartmentalize their usage habits — one device is for A and B, while another other device is preferred for Y and Z? Which device is the most likely to be used for banking most frequently?

While Apple’s latest gadget isn’t likely to be a game changer in the financial industry, the iPad signals an important digital trend financial marketers need to embrace. The iPad is clear evidence of how increasingly wired — and mobile — we are becoming. The day when consumers expect to be able to find/buy/do just about anything online is upon us. Just make sure your financial institution is prepared.

Bottom Line: Most financial institutions have more pressing technology concerns than worrying about how to respond to the iPad.

1. Enhanced performance and functionality of your online banking experience
2. Mobile banking
3. Online tools for personal financial management (PFM)
4. An iPhone application, as Netbanker suggests

Any of these items should be prioritized over an iPad initiative.

This article © 2012 by The Financial Brand and may not be reproduced.

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What do you think will be a major trend shaping financial marketing in 2010 and beyond? Please leave your thoughts and comments below.

1. The Megasite

The once-simple microsites financial institutions made for their marketing campaigns have ballooned into massive undertakings. Look at the monstrous scale of Umpqua’s “Save Hard, Spend Smart” website or GTE Federal Credit Union’s “U-22” site. These are major undertakings with multiple layers and dozens of pages.

Nowadays, creating an immersive and engaging online experience requires a lot more work. Figuring out how to integrate the array of social media platforms — Twitter, YouTube, Facebook — is a struggle.

Megasites will be a continuing trend through 2010 and beyond. Just be sure to create brand/image synergy between your promotional subsite(s) and your primary website.

2. Financial Edutainment

Financial education will have to become a lot more entertaining and interactive in 2010 and beyond. Check out BofA’s “Morris on Campus,” or their comic attempt with “Mo Rocca on Banking,” to get a good idea for how high the bar has been raised.

Many credit unions are using “savings challenges” to stimulate interest in lessons of thrift. Umpqua’s “Save Hard, Spend Smart” initiative has a number of financial education components. ING DIRECT’s “Planet Orange” is another great example. And Nevada State Bank hired the world’s most celebrated conman to create a series of online educational videos about fighting identity theft and financial fraud.

3. New Channels for Customer Service

Live online chat has been around for a few years, but financial institutions are deploying it at a quickened pace. With instant online chat, you can address people’s questions and concerns right at the point-of-sale, transforming an otherwise static, one-directional marketing tool into an interactive sales/service experience. Expect to see a continuing increase in the uptake of live chat.

BofA was the first bank to provide customer service via Twitter. Wells Fargo, Wachovia and others have joined in. Now, BofA is getting serious. They have a whole dedicated Twitter team, and a new fancy CMS tool to manage their Twitter-based customer service interactions.

But you don’t need to be on Twitter to provide next-generation customer support. For example, you can text “unhappy” to the State Bank of India and they guarantee they will respond to your complaint within 48 hours.

4. Online PFM

Few things have made as big a difference to consumers over the last couple years — from a practical perspective — as the introduction of online Personal Financial Management tools. Online PFM is like a more robust, next-gen version of desktop applications like Quicken, enabling consumers to track spending and manage their money. One big feature is that many PFM solutions aggregate information from multiple financial institutions in a single view. Other PFM features can include financial advice, community features, and visualizations.

Companies offering online PFM services like Mint, Geezeo and Jwaala have taken the financial industry by storm. Now, white label players are coming into the market, and some banks are even deploying their own proprietary PFM solutions. Any financial institution that underestimates the significance of the PFM trend is making a big mistake.

5. “We’re Listening”

Financial institutions who believe that their primary purpose on the social web is to listen will solicit feedback — both the good and the bad — from the public, and do so publicly. They are out there on the web saying, “Go ahead and tell us what you think.”

HSBC’s FirstDirect, with a website displaying good and bad customer feedback, is one of the most notable examples. HSBC also invited folks to speak up on its “Soapbox.” There’s also Westpac in Australia with its “Truth Pod.” USAA hosts “What’s on Your Mind.” And United FCU created “Matter” so Gen-Y could rant and complain.

6. Proprietary Applications

ING DIRECT was probably the first to introduce an API for Twitter with its “Fee Tweeter” application. And Vantage Credit Union’s “Tweet My Money” is a fully-proprietary innovation that allows people to access account information and make transfers via Twitter.

Chase hosted a contest for charitable donations using its own proprietary Facebook app. And SunTrust recently launched its “Swap A Solid” Facebook application enabling people to trade durable goods with one another.

Netbanker.com has written extensively about iPhone innovations in the financial industry. Check out their archive of iPhone articles. They even produced a comprehensive (and meaty) report.

7. Remote Deposit Capture

Whether by mobile phone (like USAA and WV United FCU), scanner (like Jefferson Financial) or even the honor system, enabling people to make deposits remotely will be a big trend from now until checks go away.

8. Online Reviews, Q&A Forums

Allowing actual users of your products and services to publicly comment on them at your website is Web 2.0 at its purest: open, honest, transparent and accountable. America First Credit Union was one of the first financial institutions in the country to let people rate and review its products. You can take it a step further and let people ask and answer questions, as USAA has with its “Member 2 Member” forums.

9. Online Contests for Charity

Financial institutions will wake up in 2010 and realize they can be making engaging online promotions out of their charitable donations. Just look at what Servus Credit Union and Wells Fargo have done. None of this was really feasible before social media tools came along. And you don’t need to give away a lot of money, as one credit union proved with its $2,000 scholarship giveaway.

10. UGC

While nothing new, UGC (short for “User-Generated Content”) will continue to be one of the primary ways financial institutions integrate social media tactics into their marketing mix. Financial institutions will host blogger contests, photo contests, “my ugly [fill-in-the-blank]” contests and make-your-own TV contests. Just be careful that you don’t “salt the mine” with your own submissions, as one bank painfully learned.

11. Making “Community” the focus of Online Communities

Instead of building self-serving online social media communities, some financial institutions are trying to help improve their real, offline communities. Check out what this bank and these two credit unions did to help their communities during the recession. To see this strategy lived out to its fullest, take a look at the myriad of ways Caja Navarra supports its communities online. This Spanish bank will put most non-profits (and not-for-profit credit unions) to shame.

12. Automatic Savings Plans

BofA was one of the first to introduce automatic savings programs, with its “Keep The Change” project. Then there was Wachovia’s “Way 2 Save.” Citizens Bank recently introduced “GoalTrack Savings,” a goal-based savings account with rewards. Third-party products like Bancvue’s “Kasasa” are integrating automatic savings options. You can even include automatic savings into your auto loans.

This article © 2012 by The Financial Brand and may not be reproduced.

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The CRM package automatically creates “service cases” whenever someone says something on Twitter matching a set of pre-defined keywords. A support agent can search an integrated “knowledge base” for resources addressing a customer’s query, then attach any relevant information in a reply tweet that gets logged and tracked.

SALESFORCE TWITTER DEMO
This video shows how the Twitter CRM solution from Salesforce works.

SERVICE CLOUD 2 SCREENSHOT

BofA has been helping its customers on Twitter since January, making it the first bank to use the social media tool as a customer service channel. After experimenting with the idea for nine months, it’s now clear BofA believes in Twitter and sees enough future promise to make this deeper level of commitment.

It would seem BofA’s Twitter CRM initiative addresses a concern some social media analysts have raised about financial institutions that don’t track the customer service interactions via Twitter.

BofA was reluctant to discuss details of the project until it was further developed. It’s unclear precisely when the bank will actively deploy the CRM system.

Other Salesforce clients deploying its CRM solution include Dell, CNN and Orange.

Key Questions:

• How are multiple users handled, since some financial institutions like Wells Fargo and Amex have a team of staffers manning their Twitter accounts.
• Will Twitter interactions logged through CRM systems like Salesforce be integrated into a financial institution’s broader customer data file — something all employees could view and access?

Bottom Line: If you want to prove the value of something, you have to track and measure it. How else could BofA know whether its customer service efforts on Twitter will be paying off if it didn’t deploy a CRM solution (or something similar)? Simply saying, “It seems we have a lot of happy customers” isn’t enough.

This article © 2012 by The Financial Brand and may not be reproduced.

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With the revolutionary new service, members can check their account balances, deposits, withdrawals, holds and cleared checks with simple commands. They can also transfer funds within their accounts. And it can all be done through Twitter for free.

You could call it “Twitter 2.0″ for financial institutions.

Instant Registration, Easy Utilization

Once you’re an online banking user with Vantage Credit Union, you can register for TweetMyMoney instantly. You can do both online.

Then all you do to make it work is send a direct message with a basic command to Vantage Credit Union’s Twitter account (twitter.com/myvcu).

There are seven basic functions TweetMyMoney performs:

• #bal – Reports balances for as many as five different types of deposit accounts
• #15d – Returns the last 5 deposits, including the date posted.
• #15w – Returns the last 5 withdrawals, including the date posted.
• #15c – Returns the last 5 checks to clear, including the check number and date cleared.
• #15t – Returns the last 5 transactions, including the date posted.
• #holds – Reports any active point-of-sale (POS) holds on the account, including the name of the merchant and the amount of the hold. Hotels are one type of merchant that commonly put holds on debit cards. The amount of the hold counts against your balance, which, if you didn’t know about it, could trigger overdraft fees.
• #tran – Allows a member to transfer money between their deposit accounts. A transfer can only be make between various accounts held by a specific member. Money cannot be transferred to any external third-party.

How registered users can request their balance by sending a direct message to Vantage within Twitter.

What Vantage sends to someone who requests their balance via Twitter.
Note: In this example, the member has 4 separate accounts (numbered 0, 6, 7 and 9).
The #bal command returned balances for each of the four accounts.

There’s an online video that should give you a pretty good idea of how the system would look and work from the end-user’s perspective.

TweetMyMoney Overview Video

In fact, there’s no shortage of tutorial videos and documentation. Most curious parties should be able to get most — if not all — of their questions answered by reviewing the library of materials Vantage provides:

• How to register for tweetMyMoney account access via Twitter
• How to send tweetMyMoney banking commands
• Transfer example
• Enrollment instruction screenshots
• Commands instruction screenshots
• tweetMyMoney Commands reference document
• tweetMyVantage FAQs
• Correspondence Authentication Codes explained

How Secure Is It?

If you’re like most people, you’ll immediately wonder about the security of such a system. But Vantage seems to have done a good job ensuring its new system is secure. The credit union devised its own Correspondence Authentication Codes that puts a special six-digit “signature” in digital communications such as eAlerts, eStatements, and, of course, banking information delivered via Twitter. It’s a very slick yet simple idea that is summarized in a short video. As a method to ensure authentic eCommunications, it’s really worth studying:

Correspondence Authentication Codes Explained

The real security within the TweetMyMoney platform is that money can only be transferred between accounts held by a single member. There’s no way to use TweetMyMoney to deliver — or pry with malice — funds externally.

And if the TweetMyMoney Twitter account is ever hacked, Vantage says the hacker wouldn’t have access to any private or sensitive information. Tweets sent directly to members aren’t saved, and private messages from members would only contain meaningless commands. There really wouldn’t be much for a hacker to utilize. (Of course, a hacker controlling a financial institution’s Twitter profile doesn’t need anything else to wreak havoc and steal people’s money.)

Four-Prong Strategy

In an interview with The Financial Brand, Eric Acree, EVP/Vantage Credit Union says TweetMyMoney is the first step in a four-prong strategy centered around mobile banking. Vantage chose Twitter to debut its online banking offering because it was “the easiest and least expensive” option.

In phase two, the credit union plans on unveiling essentially an identical set of features and services via Facebook, which Acree thinks should be ready around Q1 next year.

Further on the horizon, in phase three, Vantage is considering introducing SMS- or text-based banking from mobile phones. In the fourth and final stage, Vantage wants to unveil an iPhone application. Acree says no plans have been finalized yet.

“It something we have to carefully consider.”

Acree says it took only three months to conceive and deploy TweetMyMoney, but says most of the credit belongs to Vantage Credit Union’s chief “Technovation Guy,” Cam Minges.

Is 4,000 Users Realistic?

Acree says the strategy is designed to target a younger demographic with services they find attractive.

“Seventy percent of our new members are under 40,” Acree points out.

With over 100,000 members, Vantage is hoping TweetMyMoney will ultimately have a base of around 4,000 users.

“We have about 30,000 to 40,000 members using online banking today,” Acree says. “We’d be extremely pleased if we could get 5-10% of those to start using TweetMyMoney.”

Despite his optimism, Acree is not blind to the realities of launching Twitter-based banking.

“We know this isn’t a mass-market service,” he admits.

Inasmuch, Acree doesn’t expect the credit union’s more exotic flavors of mobile banking to appeal to everyone.

“People will have one of two reactions to TweetMyMoney,” Acree predicts. “They’ll either think, “Wow, that’s awesome!’ or, ‘Oh my gosh, that’s stupid!’”

“And that’s what we anticipate will happen when we roll out our Facebook application,” he reflects candidly.

What Lies Ahead?

For many months now, the retail financial industry has found Twitter both fascinating and puzzling. A few financial institutions have enjoyed some success offering customer service through Twitter, but the vast majority have struggled to integrate the popular social media tool into their marketing in any meaningful way.

Earlier this summer, ING Direct Canada launched its FeeTweeter service, the first-ever Twitter application from a financial institution. Now, with the launch of TweetMyMoney, it seems the financial industry is taking Twitter to a whole new level. It makes you wonder, “What’s next?”

This article © 2012 by The Financial Brand and may not be reproduced.

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• Kaching!

ING Direct in Canada has launched Fee Tweeter, a new Twitter application that will automatically track and tally bank fees. The project is a new component of the fairfees.ca initiative previously covered by The Financial Brand.

Those with Twitter account already can go to the Fee Tweeter website (feetweeter.fairfees.ca), enter their Twitter username and password, and submit any bank fees they may have been charged. Fee Tweeter will then do three things:

1. Send a tweet from ING Direct’s Fee Tweeter account on Twitter announcing the fee.
2. Tally the fees. The Fee Tweeter application will keep track of how many fees you’ve shared with ING Direct, and send you a weekly message with the total you’ve been charged so far.
3. ING Direct also keeps a cumulative total for all fees shared at its Fee Tweeter website, $19,296 thus far.

The Fee Tweeter Interface
Includes a running tally of all fees shared with ING Direct. The Financial Brand was unable to logon to the Fee Tweeter application in two attempts. The third attempt was successful, however.

@FeeTweeter
Seeing what other people are paying in bank fees doesn’t sound very interesting, but ING Direct’s FeeTweeter account on Twitter has over 400 followers nonetheless.

A Typical Fee Tweet
Once you share a fee with ING Direct through its application,
the company will broadcast it via Twitter.

ING Direct modestly claims to (A) be the first bank in Canada to (B) launch a Twitter application that (C) tracks fees. In all likelihood, they are the first bank to launch a Twitter application — period — not just the first in Canada, nor just the first that tracks fees.

On the Fee Tweeter website, ING Direct describes the initiative as a place “where savers can share and compare the bank fees they’ve incurred.”

“It’s for Canadians who want more control over their finances. It’s for connecting people dedicated to saving their money — with help from ING Direct!”

Key Questions:

• How does sharing and tallying fees give people
  “more control over their finances?”
• How does this initiative “connect people” with one another?
• How do users “compare the bank fees they’ve been charged?”

“Speaking up about unfair bank fees is the first step to getting things changed and helping Canadians keep more of their hard earned savings,” ING Direct explains. “You’ll not only feel better sounding off about the high cost of fees, hopefully you’ll also be helping to one day get rid of them.”

Key Questions:

• How many people will be willing to take the time to use this website?
• How many times will someone be willing to do this?

Spending time moaning about fees instead of doing something about it seems a little pointless, and, perhaps, that’s the point. It almost seems as if ING Direct is implicitly saying, “If you’re willing to take the time to use this application, why don’t you do something about bank fees and make the switch?”

“The tool is basically an easy and fun calculator to help Canadians keep track of their fees,” Gloria Chik, an ING Direct spokesperson, told The Financial Brand.

“We don’t have fees at ING Direct,” Chik added.

No fees? That’s a powerful message, and one that probably should have been celebrated more vocally throughout the Fair Fees initiative. After all, who wouldn’t prefer to have “no fees” over “fair fees?”

This article © 2012 by The Financial Brand and may not be reproduced.

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