"The most significant aspect of Apple's forthcoming iPhone 5S smartphone, some say, is the powerful new processor it will contain. The A7 chip has a 64-bit architecture, which could allow applications to handle large data sets more efficiently.
This brings opportunity and challenge for mobile banking app developers, who could take better advantage of customers' location data, data gathered from nearby sensors and other data sources in real time. They will need to rewrite their programs in order to take advantage of the faster processor." Continue Reading
Showing posts with label iPhone. Show all posts
Showing posts with label iPhone. Show all posts
Sunday, September 22, 2013
Sunday, December 2, 2012
Mobile Banking Updates - Dec 2
Banks Cling to iPhone as Consumers Take to Android
"Steve Jobs would be pleased. The thing that strikes you most when looking at Javelin's latest research on mobile banking and talking to its author, Mary Monahan, is the devotion banks still have to Apple's iPhone, even as Android devices lead in consumer market share, as they did last year. According to Javelin Strategy & Research's latest consumer survey (the group polled 3,000 consumers this quarter), Google's Android smartphones and tablets now claim 48% of the U.S mobile market, up from 34% last year. Apple's mobile device market share is 32% this year, up from 27% last year. (RIM dropped from 25% last year to 12% this year; Windows Mobile dropped from 13% to 8%.)"
Wells Fargo Expands Mobile Deposit Service Nationwide, Increasing Anytime, Anywhere Banking Convenience for Customers
"In a move to deliver innovation and added convenience in the rapidly growing mobile banking space, Wells Fargo & Company (NYSE:WFC) today announced the nationwide expansion of Wells Fargo Mobile® Deposit. Using an Android or iPhone device, customers across the nation can easily deposit checks into their eligible Wells Fargo accounts by taking pictures of the front and back of the check."
Spike Mobile Deposit Adoption Rates With Free $5 Demo Checks
"Old habits die hard. If you want people to try a new technology like mobile remote deposits, it may take cash bribes. Numerica Credit Union paid members $5 each to do just that. To teach people how easy it is to deposit checks using a smart phone, the credit union gave $5 checks away to those participating in live demonstrations."
How often do US expats use their mobile or smartphone for mobile banking?
"The world of the Internet and the world of mobile/smartphones are intrinsically linked and when you bear in mind the number of people who have access to a mobile phone on a constant basis this is perhaps the most powerful communication tool we have ever seen. As a consequence, many of the everyday services which are used to have now been transferred to the mobile Internet arena but is mobile banking as easy to transfer as general Internet use?"
"Steve Jobs would be pleased. The thing that strikes you most when looking at Javelin's latest research on mobile banking and talking to its author, Mary Monahan, is the devotion banks still have to Apple's iPhone, even as Android devices lead in consumer market share, as they did last year. According to Javelin Strategy & Research's latest consumer survey (the group polled 3,000 consumers this quarter), Google's Android smartphones and tablets now claim 48% of the U.S mobile market, up from 34% last year. Apple's mobile device market share is 32% this year, up from 27% last year. (RIM dropped from 25% last year to 12% this year; Windows Mobile dropped from 13% to 8%.)"
Wells Fargo Expands Mobile Deposit Service Nationwide, Increasing Anytime, Anywhere Banking Convenience for Customers
"In a move to deliver innovation and added convenience in the rapidly growing mobile banking space, Wells Fargo & Company (NYSE:WFC) today announced the nationwide expansion of Wells Fargo Mobile® Deposit. Using an Android or iPhone device, customers across the nation can easily deposit checks into their eligible Wells Fargo accounts by taking pictures of the front and back of the check."
Spike Mobile Deposit Adoption Rates With Free $5 Demo Checks
"Old habits die hard. If you want people to try a new technology like mobile remote deposits, it may take cash bribes. Numerica Credit Union paid members $5 each to do just that. To teach people how easy it is to deposit checks using a smart phone, the credit union gave $5 checks away to those participating in live demonstrations."
How often do US expats use their mobile or smartphone for mobile banking?
"The world of the Internet and the world of mobile/smartphones are intrinsically linked and when you bear in mind the number of people who have access to a mobile phone on a constant basis this is perhaps the most powerful communication tool we have ever seen. As a consequence, many of the everyday services which are used to have now been transferred to the mobile Internet arena but is mobile banking as easy to transfer as general Internet use?"
Sunday, August 28, 2011
Mobile Banking Updates - Aug 27
Are Early Adopters of Mobile Banking Satisfied?
"When you follow the mobile wallet news, one of the first things you notice is that there is an enormous amount of investment in mobile banking services. It seems like banks and other financial services firms launch a new app every week. Even credit unions are in on the mobile action. Qualitatively, the investment seems disproportionate to the current adoption level. I can’t say I know anyone who uses online banking, though I have to say I am a frequent user of my mobile Starbucks card."
iPhone Users Keenest on Mobile Banking
"When it comes to mobile banking, iPhone users lead the pack. That is the big news out of a U.K. survey conducted by YouGov polling. While 21% of all Brits say they would pay bills via a mobile phone, 46% of iPhone users say they would.
iPhone users similarly doubled the enthusiasm of all other mobile users down the line of mobile banking tasks: 62% say they would transfer funds, 69% check balances, 45% pay others and 31% make contactless payments."
Motorola's Atrix Certificate Updater remedies its mobile banking blunder
"If you're an Atrix 4G user who has been reeling since your banking apps failed, go ahead and cancel that next therapist appointment -- thankfully for you, a permanent fix is now available in the Android Market. Motorola's Atrix Certificate Updater swaps the troublesome security signatures from v4.1.83 with versions that should play nicely alongside your mobile banking apps. "
Tyfone Talks Mobile Banking Trends with TMCnet
"Don’t be surprised if pretty soon you see smartphones replacing credit cards in the cashier line as the mobile banking space is becoming exceedingly popular. Mobile banking, which allows for consumer purchases to be made through smartphones, is on its way to becoming the "new norm,” and one company ready to ride this wave is Tyfone, a company that offers next generation mobile banking services to both online and offline customers."
"When you follow the mobile wallet news, one of the first things you notice is that there is an enormous amount of investment in mobile banking services. It seems like banks and other financial services firms launch a new app every week. Even credit unions are in on the mobile action. Qualitatively, the investment seems disproportionate to the current adoption level. I can’t say I know anyone who uses online banking, though I have to say I am a frequent user of my mobile Starbucks card."
iPhone Users Keenest on Mobile Banking
"When it comes to mobile banking, iPhone users lead the pack. That is the big news out of a U.K. survey conducted by YouGov polling. While 21% of all Brits say they would pay bills via a mobile phone, 46% of iPhone users say they would.
iPhone users similarly doubled the enthusiasm of all other mobile users down the line of mobile banking tasks: 62% say they would transfer funds, 69% check balances, 45% pay others and 31% make contactless payments."
Motorola's Atrix Certificate Updater remedies its mobile banking blunder
"If you're an Atrix 4G user who has been reeling since your banking apps failed, go ahead and cancel that next therapist appointment -- thankfully for you, a permanent fix is now available in the Android Market. Motorola's Atrix Certificate Updater swaps the troublesome security signatures from v4.1.83 with versions that should play nicely alongside your mobile banking apps. "
Tyfone Talks Mobile Banking Trends with TMCnet
"Don’t be surprised if pretty soon you see smartphones replacing credit cards in the cashier line as the mobile banking space is becoming exceedingly popular. Mobile banking, which allows for consumer purchases to be made through smartphones, is on its way to becoming the "new norm,” and one company ready to ride this wave is Tyfone, a company that offers next generation mobile banking services to both online and offline customers."
Tuesday, July 27, 2010
Citibank iPhone App 'Accidentally Saved Personal Information'
"Citibank said its U.S. iPhone app accidentally saved personal information, including account numbers. The company publicly acknowledged the security flaw Monday, explaining that it had already released an updated iPhone app that patches the leak.
'During a recent review, we discovered that our U.S. Citi Mobile iPhone banking app was accidentally saving information related to customer accounts in a hidden file on their iPhones,' said Citibank spokeswoman Natalie Riper. 'This information may also have been saved on their computer if they had been synchronizing their iPhone with their computer via iTunes.'" >> Continue Reading
'During a recent review, we discovered that our U.S. Citi Mobile iPhone banking app was accidentally saving information related to customer accounts in a hidden file on their iPhones,' said Citibank spokeswoman Natalie Riper. 'This information may also have been saved on their computer if they had been synchronizing their iPhone with their computer via iTunes.'" >> Continue Reading
Sunday, May 23, 2010
Mobile Banking Updates - May 23
Has the iPhone lost its cool?
"Did Google just turn the tables on Apple? Having entered the mobile software market late with its Android offering, Google's initial efforts were a pale imitation of the iPhone OS, a clunky user experience on sub-par handsets. Fast forward to 2010. Suddenly, Google Android is winning over the hearts and minds of technologists and signing up 100,000 converts a day. That raises the question: Is the iPhone losing its sheen?"
Top Mobile Banking Users? Android Phone Owners
"A new Javelin Strategy & Research report issued today – 2010 Mobile Payments – Crossing the Chasm: Industry Models Battle to Bridge the Gap – finds that Android phone users are the most likely mobile phone owners to have logged into their bank in the last seven days, followed by iPhone users. The on-the-go functionality of smartphones is revolutionizing how consumers make financial transactions – or want to. Up to one-in-five consumers have expressed interest in using their mobile device to make payments; Javelin expects a sharp rise in that demand over the next few years. To meet that mandate and boost the currently stalled mobile payments market, diverse stakeholders must work together to identify and shape effective business models and technologies and build the value proposition for both consumers and merchants."
Monitise: 20m mobile banking actions in six months
"Monitise's Mobile Money Manager platform provides mobile banking services to 240 banks in the UK and the US. It says its apps are now being used at the rate of a million a week. These apps run on iPhone, Blackberry and Nokia, and the company is also working on an application for handsets using Google’s Android software."
Obopay, YES Bank introduce mobile banking services
"Obopay, a mobile payment technology provider, has partnered with YES Bank and Nokia for the Commercial Pilot Launch of mobile banking services in Pune. This service is called Mobile Money Services by YES Bank, said a press note here. Obopay provides the technology platform which enables mobile money transaction services. The commercial pilot was launched in Pune in late February. Obopay is also responsible for the entire back-end work and has been able to enroll a significant number of Pune’s population, as well as sign up a substantial number of merchants and agents since then, the note said."
Mobile Banking Subscriber Numbers Doubling Every Year
"New forecasts from ABI Research indicate that in 2015 about 407 million people worldwide will carry out financial transactions with their banks using their mobile phones. Of those, some 66 million will be in North America.
According to senior analyst Mark Beccue, however, 'It’s not the North American market that is moving fastest to mobile banking: that crown goes to the Asia-Pacific region, which accounted for the lion’s share of the world’s 52.2 million mobile banking subscribers in 2009. The global number of subscribers more than doubled between 2008 and 2009, and is expected to almost double again in 2010. This growth can be seen everywhere, but Asia – led by India – is pushing it particularly hard.'”
"Did Google just turn the tables on Apple? Having entered the mobile software market late with its Android offering, Google's initial efforts were a pale imitation of the iPhone OS, a clunky user experience on sub-par handsets. Fast forward to 2010. Suddenly, Google Android is winning over the hearts and minds of technologists and signing up 100,000 converts a day. That raises the question: Is the iPhone losing its sheen?"
Top Mobile Banking Users? Android Phone Owners
"A new Javelin Strategy & Research report issued today – 2010 Mobile Payments – Crossing the Chasm: Industry Models Battle to Bridge the Gap – finds that Android phone users are the most likely mobile phone owners to have logged into their bank in the last seven days, followed by iPhone users. The on-the-go functionality of smartphones is revolutionizing how consumers make financial transactions – or want to. Up to one-in-five consumers have expressed interest in using their mobile device to make payments; Javelin expects a sharp rise in that demand over the next few years. To meet that mandate and boost the currently stalled mobile payments market, diverse stakeholders must work together to identify and shape effective business models and technologies and build the value proposition for both consumers and merchants."
Monitise: 20m mobile banking actions in six months
"Monitise's Mobile Money Manager platform provides mobile banking services to 240 banks in the UK and the US. It says its apps are now being used at the rate of a million a week. These apps run on iPhone, Blackberry and Nokia, and the company is also working on an application for handsets using Google’s Android software."
Obopay, YES Bank introduce mobile banking services
"Obopay, a mobile payment technology provider, has partnered with YES Bank and Nokia for the Commercial Pilot Launch of mobile banking services in Pune. This service is called Mobile Money Services by YES Bank, said a press note here. Obopay provides the technology platform which enables mobile money transaction services. The commercial pilot was launched in Pune in late February. Obopay is also responsible for the entire back-end work and has been able to enroll a significant number of Pune’s population, as well as sign up a substantial number of merchants and agents since then, the note said."
Mobile Banking Subscriber Numbers Doubling Every Year
"New forecasts from ABI Research indicate that in 2015 about 407 million people worldwide will carry out financial transactions with their banks using their mobile phones. Of those, some 66 million will be in North America.
According to senior analyst Mark Beccue, however, 'It’s not the North American market that is moving fastest to mobile banking: that crown goes to the Asia-Pacific region, which accounted for the lion’s share of the world’s 52.2 million mobile banking subscribers in 2009. The global number of subscribers more than doubled between 2008 and 2009, and is expected to almost double again in 2010. This growth can be seen everywhere, but Asia – led by India – is pushing it particularly hard.'”
Tuesday, March 16, 2010
Mobile Device Updates
Study: 40 Percent Of Blackberry Users Want iPhones, One-Third Want Nexus Ones
"I came across an interesting study today that claims Blackberry users are wishing for other smartphones in large numbers- particularly the iPhone and Google’s Nexus One.
While, like most studies, the data should be taken with a grain of salt, the study indicates that roughly 40 percent of BlackBerry users would rather have an Apple iPhone, while one-third are eying Google’s Nexus One as their next smartphone purchase, according to the study released by Crowd Science."
Google announces AT&T-compatible Nexus One
"Google’s Nexus One smartphone is the flagship of the Android fleet. Sold by Google itself via its online store, the phone was unveiled in January for use on the T-Mobile network, with future versions planned for other carriers. On Tuesday, the first of those took its bow as Google announced a Nexus One compatible with AT&T’s 3G network.
Unlike the T-Mobile version of the Nexus One, the AT&T-compatible model isn’t available at a subsidy from the carrier. Customers have to buy the unlocked AT&T-compatible version of the phone, which costs $529. By contrast, those who wish to use the phone on T-Mobile have the option of buying a T-Mobile-compatible unlocked phone for $529 or signing a new two-year commitment with T-Mobile and getting the phone for a discounted price of $179."
"I came across an interesting study today that claims Blackberry users are wishing for other smartphones in large numbers- particularly the iPhone and Google’s Nexus One.
While, like most studies, the data should be taken with a grain of salt, the study indicates that roughly 40 percent of BlackBerry users would rather have an Apple iPhone, while one-third are eying Google’s Nexus One as their next smartphone purchase, according to the study released by Crowd Science."
Google announces AT&T-compatible Nexus One
"Google’s Nexus One smartphone is the flagship of the Android fleet. Sold by Google itself via its online store, the phone was unveiled in January for use on the T-Mobile network, with future versions planned for other carriers. On Tuesday, the first of those took its bow as Google announced a Nexus One compatible with AT&T’s 3G network.
Unlike the T-Mobile version of the Nexus One, the AT&T-compatible model isn’t available at a subsidy from the carrier. Customers have to buy the unlocked AT&T-compatible version of the phone, which costs $529. By contrast, those who wish to use the phone on T-Mobile have the option of buying a T-Mobile-compatible unlocked phone for $529 or signing a new two-year commitment with T-Mobile and getting the phone for a discounted price of $179."
Friday, January 29, 2010
Monday, November 23, 2009
Don't hack your iPhone - New worm attacks iPhone and Mobile Banking
"The panic that will inevitably spread from this story is unjustified. First, if you are a regular iPhone customer you are safe, even if you are in the Netherlands. This is because, like the Ikee hack before it, the new worm will only work on a jailbroken, or hacked iPhone. Further, you will have to explicitly install SSH remote access, and then you will have to leave the root password at its default, which is “alpine”.
If that means nothing to you, you don’t have any reason to worry. If that does mean something to you, shame on you! You should go change that password right now." >> Continue Reading
If that means nothing to you, you don’t have any reason to worry. If that does mean something to you, shame on you! You should go change that password right now." >> Continue Reading
Tuesday, November 10, 2009
Wells Fargo Brings Commercial Banking Services Wherever You Are with New iPhone™ Application
"Wells Fargo & Company (NYSE:WFC) today announced it has released the CEO MobileSM iPhone™ App. The free time-saving tool alerts corporate and business customers to pending transactions and connects them to online commercial banking services.
The CEO Mobile iPhone app delivers mobile access to Commercial Electronic Office (CEO®) portal services. Users can monitor balances in corporate bank accounts, approve outgoing payments, manage exception items, view intraday account activity, and reset user passwords. In addition, the CEO Mobile app alerts users, even before they sign on, to wires, image positive pay exceptions or ACH Fraud Filter reports that await decisions.
'We’re answering the call of our CEO Mobile customers who asked for an iPhone app,' said Amy L. Johnson, channel manager of the CEO Mobile service. 'Wells Fargo has kept its focus on integration with Wachovia, yet at the same time we’ve continued to invest in technology, products, and people.'” >> Continue Reading
The CEO Mobile iPhone app delivers mobile access to Commercial Electronic Office (CEO®) portal services. Users can monitor balances in corporate bank accounts, approve outgoing payments, manage exception items, view intraday account activity, and reset user passwords. In addition, the CEO Mobile app alerts users, even before they sign on, to wires, image positive pay exceptions or ACH Fraud Filter reports that await decisions.
'We’re answering the call of our CEO Mobile customers who asked for an iPhone app,' said Amy L. Johnson, channel manager of the CEO Mobile service. 'Wells Fargo has kept its focus on integration with Wachovia, yet at the same time we’ve continued to invest in technology, products, and people.'” >> Continue Reading
Sunday, November 8, 2009
Mobile Banking Updates - Nov 7
A view on the trigger behaviour for mobile payments
"Dave postulate that widespread adoption of payment systems are triggered by change in behaviour of the population. He says (for instance) that the big move to card-based payments from check-payments was triggered by people that started travelling more frequently. Check-payments from foreigners were frowned on, but quickly got replaced by a plastic card."
Android Army Pumped for All-Out Attack on iPhone
"Soon, you’ll need more than two hands to count the number of Android phones on the market. At this rate, it seems inevitable that the number of phones running Google’s open source operating system will eventually outnumber the number of iPhones, which run Apple’s proprietary (and closed) operating system. It’s a situation that has many observers thinking back to the 1980s, when IBM introduced its PC and eclipsed Apple in market share by betting on open platforms. In the end, Apple was left with a respectable business, but a single-digit morsel of the PC market share."
Touchscreen Mobile Phone Adoption Grows at Blistering Pace in U.S. During Past Year
"comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, today released a study of touchscreen mobile phone adoption in the U.S., which showed a significant 159-percent growth rate during the past year to 23.8 million users in August 2009. The growth in touchscreen device adoption substantially outpaced the already strong 63-percent growth in U.S. adoption of smartphones."
How Banks Are Looking to Become Serious Players in P2P Payments
"Electronic person-to-person payments have been around this entire decade, but they’re still largely the domain of specialists such as PayPal Inc. and a host of tech companies. But leading bank processors are getting into the P2P act, and if they’re successful they could spur greater usage from the consumer mainstream and confirm banks’ Web sites as go-to places for new payment services. Leading bank processor Fiserv Inc. this week unveiled its personal-payments service that will become available to the 3,100-plus financial institutions in Fiserv’s online bill-payment network in the first half of 2010. The service leverages the updated CheckFree RXP bill-pay platform that Fiserv acquired two years ago when the company bought bill-pay leader CheckFree Corp."
"Dave postulate that widespread adoption of payment systems are triggered by change in behaviour of the population. He says (for instance) that the big move to card-based payments from check-payments was triggered by people that started travelling more frequently. Check-payments from foreigners were frowned on, but quickly got replaced by a plastic card."
Android Army Pumped for All-Out Attack on iPhone
"Soon, you’ll need more than two hands to count the number of Android phones on the market. At this rate, it seems inevitable that the number of phones running Google’s open source operating system will eventually outnumber the number of iPhones, which run Apple’s proprietary (and closed) operating system. It’s a situation that has many observers thinking back to the 1980s, when IBM introduced its PC and eclipsed Apple in market share by betting on open platforms. In the end, Apple was left with a respectable business, but a single-digit morsel of the PC market share."
Touchscreen Mobile Phone Adoption Grows at Blistering Pace in U.S. During Past Year
"comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, today released a study of touchscreen mobile phone adoption in the U.S., which showed a significant 159-percent growth rate during the past year to 23.8 million users in August 2009. The growth in touchscreen device adoption substantially outpaced the already strong 63-percent growth in U.S. adoption of smartphones."
How Banks Are Looking to Become Serious Players in P2P Payments
"Electronic person-to-person payments have been around this entire decade, but they’re still largely the domain of specialists such as PayPal Inc. and a host of tech companies. But leading bank processors are getting into the P2P act, and if they’re successful they could spur greater usage from the consumer mainstream and confirm banks’ Web sites as go-to places for new payment services. Leading bank processor Fiserv Inc. this week unveiled its personal-payments service that will become available to the 3,100-plus financial institutions in Fiserv’s online bill-payment network in the first half of 2010. The service leverages the updated CheckFree RXP bill-pay platform that Fiserv acquired two years ago when the company bought bill-pay leader CheckFree Corp."
Thursday, November 5, 2009
BAI Mobile Banking Announcements - Nov5
Vasco Uses IPhone, IPod Touch for Authenticating Users
"Vasco Data Security said Thursday it is bringing its Digipass product, which is used for two-factor authentication, to the iPhone and iPod Touch.
The company has developed a version of the application for the Apple devices that can be downloaded for free from the App Store. Vasco's server products are also needed for the system to work.
Digipass for Mobile can be used to authenticate users and sign transactions or documents in areas such as mobile banking, e-banking, e-commerce and enterprise security, according to Vasco. There is also an API (application programming interface) for integrating the system with a company's own applications."
Nation's Largest Credit Union Service Organization Adds New iPhone/iPod Touch Applications to Mobile Banking Platform
"Easy on-demand access to financial information is the driver behind the explosive growth of mobile banking. PSCU Financial Services, the nation's largest credit union service organization, has made its mobile banking platform even more cutting edge with the launch of new iPhone(TM) and iPod® touch applications, which are now
available.
This latest capability will help credit unions attract Gen Y and other member segments who are avid iPhone/iPod users. It also builds brand recognition through credit union logo visibility on the member's mobile device and customized iPhone application in the iTunes store."
"Vasco Data Security said Thursday it is bringing its Digipass product, which is used for two-factor authentication, to the iPhone and iPod Touch.
The company has developed a version of the application for the Apple devices that can be downloaded for free from the App Store. Vasco's server products are also needed for the system to work.
Digipass for Mobile can be used to authenticate users and sign transactions or documents in areas such as mobile banking, e-banking, e-commerce and enterprise security, according to Vasco. There is also an API (application programming interface) for integrating the system with a company's own applications."
Nation's Largest Credit Union Service Organization Adds New iPhone/iPod Touch Applications to Mobile Banking Platform
"Easy on-demand access to financial information is the driver behind the explosive growth of mobile banking. PSCU Financial Services, the nation's largest credit union service organization, has made its mobile banking platform even more cutting edge with the launch of new iPhone(TM) and iPod® touch applications, which are now
available.
This latest capability will help credit unions attract Gen Y and other member segments who are avid iPhone/iPod users. It also builds brand recognition through credit union logo visibility on the member's mobile device and customized iPhone application in the iTunes store."
Sunday, November 1, 2009
Mobile Banking Updates - Nov 1
It has been an extremely slow week in the world of mobile banking, but with BAI kicking off on Tuesday I expect a slew of announcements over the next 48 hours. Check back often it should be fun week!
Android 2.0: The iPhone killer at last?
"In its three years, the iPhone has redefined the mobile device. But despite the iPhone's popularity, it is by no means certain to become the mobile equivalent of Windows, the dominant platform that defines our experience of a particular technology, as well as the business choices that surround it. Google's Android 2.0 OS is the latest in a series of mobile offerings seeking to derail the iPhone's momentum. Backed by heavyweights Google, Motorola, Verizon Wireless, Acer, and other big-name manufacturers, Android could potentially knock the iPhone down a peg. After all, while users love the iPhone, Apple's controlling tendencies have frustrated developers, and its disrespect for business concerns have frustrated IT."
Bling Nation gets another $20M funding for its pay-by-cellphone system
"Bling Nation, a Palo Alto-based company, has created a mobile payment service called Redi Pay that lets phone users pay for things in stores with their phones. I wrote about Bling Nation in July, when the company landed $8M in funding $from Lightspeed Venture Partners, Meck and Camp Ventures."
Android 2.0: The iPhone killer at last?
"In its three years, the iPhone has redefined the mobile device. But despite the iPhone's popularity, it is by no means certain to become the mobile equivalent of Windows, the dominant platform that defines our experience of a particular technology, as well as the business choices that surround it. Google's Android 2.0 OS is the latest in a series of mobile offerings seeking to derail the iPhone's momentum. Backed by heavyweights Google, Motorola, Verizon Wireless, Acer, and other big-name manufacturers, Android could potentially knock the iPhone down a peg. After all, while users love the iPhone, Apple's controlling tendencies have frustrated developers, and its disrespect for business concerns have frustrated IT."
Bling Nation gets another $20M funding for its pay-by-cellphone system
"Bling Nation, a Palo Alto-based company, has created a mobile payment service called Redi Pay that lets phone users pay for things in stores with their phones. I wrote about Bling Nation in July, when the company landed $8M in funding $from Lightspeed Venture Partners, Meck and Camp Ventures."
Tuesday, September 8, 2009
Mobile Banking Discussion with Cameron Franks of Sybase
Today I'm excited to publish the notes from my interview with Cameron Franks - Director, mCommerce - Sybase 365. Click to learn more about Cameron.
Q: What’s your differentiator? What sets your mobile banking solution apart from the competition?
A: Sybase is an aggregator; plus, we provide software for banking and payments. Sybase is the only vendor that provides both.
Q: Who are your key clients?
A: Compass Bank (iPhone app and SMS alerts), Citizens Bank (Business Mobile Banking), Citi Bank (Messaging and Intelligent Services), IXE (WAP, SMS and Application). In addition, we have PayPal, Mastercard and Western Union utilizing our messaging services.
Q: Who are you key partners?
A: Within the Sybase family we work closely with Financial Fusion. Externally, we partner with IBM and Western Union.
Q: Budget season is just around the corner, and the #1 question bankers want to ask is – What’s it going to cost me?
A: Sybase offers two approaches:
1) Purchase the License Up Front. Depending upon the size of the institution and options selected this will cost approximately $300-$500k.
2) Pay Monthly. The cost of this model is based upon the options selected and the number of active monthly users. For example: An FI with a small number of users could expect to pay roughly $50,000 per year.
Additionally, we’re developing a third model for small banks. This will be a streamlined version that is hosted by Sybase and will be less expensive – more details coming soon.
Q: What components of your ROI model have begun to materialize?
A: A reduction in calls to the call center has materialized. Clients are choosing to use mobile banking instead of calling.
Also, more banks are using their mobile banking service as an acquisition tool and a retention tool. Banks are using the image of the iPhone in their advertising to draw the attention of prospects.
Q: What’s your highest client adoption %
A: It’s reasonable to expect 5% adoption of online banking users within 6 months.
Q: What do the demographics of your users look like?
A: The clients using WAP and applications are almost exclusively high-end smart phone users within the Gen X and Boomer demographics. However, we are starting to see lower-end smart phones being used by the Gen Y segment. SMS is very interesting because we’re seeing usage from Gen Y, Gen X, Boomers, and even some Seniors.
Q: What do the usage patterns look like? Balance, History, Transfers, BP, Locator?
A: The majority of users are focused on checking their balance. Some clients are reviewing their pending transactions and transferring funds, but we’re not seeing a lot of bill payment activity. Account alerts will be the catalyst that will drive adoption of bill payment and advanced functions.
Q: What security elements are incorporated into your application?
A: The key is to make sure that layers of security are appropriate for the service. The Sybase platform is channel aware and can allow the institution to dictate what’s required to complete the transaction.
For example: Requesting a balance can be performed via SMS and there’s really no need for additional security. Yet, for transferring funds via SMS the institution may wish to require an additional layer of security.
Q: How likely are biometrics to become a component?
A: Biometric security is a long way off because the devices don’t have the necessary hardware.
Q: How has the iPhone changed your approach to the business?
A: A couple of years ago people were trying to figure out how to get their application on every phone and which carriers to work with. The iPhone and App store took care of this question; plus, removed many of the banks’ customer service concerns.
Q: What has been your biggest surprise/lesson-learned over the last couple of years?
A: Marketing of the mobile banking service is very important. In the UK nearly half of financial institutions now have their SMS short code on billboards and general advertising.
Q: What big industry development should we expect within the next 12 months?
A: The two main developments we anticipate are:
1) More effective P2P solutions. In many other countries it’s easy to move money online between banks. This is an untapped market in the US and is a great opportunity.
2) Mobile Coupons. We need to resolve questions around opt-in, privacy, and enrollment but there’s great potential.
Q: What can banks do a better job of to facilitate adoption?
A: Banks need to focus on creating services that make sense while you’re mobile. Alerts for example add incremental value. These types of services will drive uptake.
Q: What’s your differentiator? What sets your mobile banking solution apart from the competition?
A: Sybase is an aggregator; plus, we provide software for banking and payments. Sybase is the only vendor that provides both.
Q: Who are your key clients?
A: Compass Bank (iPhone app and SMS alerts), Citizens Bank (Business Mobile Banking), Citi Bank (Messaging and Intelligent Services), IXE (WAP, SMS and Application). In addition, we have PayPal, Mastercard and Western Union utilizing our messaging services.
Q: Who are you key partners?
A: Within the Sybase family we work closely with Financial Fusion. Externally, we partner with IBM and Western Union.
Q: Budget season is just around the corner, and the #1 question bankers want to ask is – What’s it going to cost me?
A: Sybase offers two approaches:
1) Purchase the License Up Front. Depending upon the size of the institution and options selected this will cost approximately $300-$500k.
2) Pay Monthly. The cost of this model is based upon the options selected and the number of active monthly users. For example: An FI with a small number of users could expect to pay roughly $50,000 per year.
Additionally, we’re developing a third model for small banks. This will be a streamlined version that is hosted by Sybase and will be less expensive – more details coming soon.
Q: What components of your ROI model have begun to materialize?
A: A reduction in calls to the call center has materialized. Clients are choosing to use mobile banking instead of calling.
Also, more banks are using their mobile banking service as an acquisition tool and a retention tool. Banks are using the image of the iPhone in their advertising to draw the attention of prospects.
Q: What’s your highest client adoption %
A: It’s reasonable to expect 5% adoption of online banking users within 6 months.
Q: What do the demographics of your users look like?
A: The clients using WAP and applications are almost exclusively high-end smart phone users within the Gen X and Boomer demographics. However, we are starting to see lower-end smart phones being used by the Gen Y segment. SMS is very interesting because we’re seeing usage from Gen Y, Gen X, Boomers, and even some Seniors.
Q: What do the usage patterns look like? Balance, History, Transfers, BP, Locator?
A: The majority of users are focused on checking their balance. Some clients are reviewing their pending transactions and transferring funds, but we’re not seeing a lot of bill payment activity. Account alerts will be the catalyst that will drive adoption of bill payment and advanced functions.
Q: What security elements are incorporated into your application?
A: The key is to make sure that layers of security are appropriate for the service. The Sybase platform is channel aware and can allow the institution to dictate what’s required to complete the transaction.
For example: Requesting a balance can be performed via SMS and there’s really no need for additional security. Yet, for transferring funds via SMS the institution may wish to require an additional layer of security.
Q: How likely are biometrics to become a component?
A: Biometric security is a long way off because the devices don’t have the necessary hardware.
Q: How has the iPhone changed your approach to the business?
A: A couple of years ago people were trying to figure out how to get their application on every phone and which carriers to work with. The iPhone and App store took care of this question; plus, removed many of the banks’ customer service concerns.
Q: What has been your biggest surprise/lesson-learned over the last couple of years?
A: Marketing of the mobile banking service is very important. In the UK nearly half of financial institutions now have their SMS short code on billboards and general advertising.
Q: What big industry development should we expect within the next 12 months?
A: The two main developments we anticipate are:
1) More effective P2P solutions. In many other countries it’s easy to move money online between banks. This is an untapped market in the US and is a great opportunity.
2) Mobile Coupons. We need to resolve questions around opt-in, privacy, and enrollment but there’s great potential.
Q: What can banks do a better job of to facilitate adoption?
A: Banks need to focus on creating services that make sense while you’re mobile. Alerts for example add incremental value. These types of services will drive uptake.
Monday, August 31, 2009
Drew Sievers - CEO of mFoundry on Mobile Banking
This evening I'm pleased to share the details of my interview with Drew Sievers (CEO - mFoundry). To read more about Drew visit mFoundry.com.
Q: What’s your differentiator? What sets your mobile banking solution apart from the competition?
A: mFoundry has the two components necessary to grow:
1) A 3 mode fully integrated mobile banking solution
2) Access to core banking providers
Q: Who are your key clients?
A: Citi, PNC, BB&T, IBC, Zions Bank
Q: Who are you key partners?
A: Fidelity (15 FIs), PSCU (6 CUs), NCR, FirstData, CoOp (8 CUs)
Q: Budget season is just around the corner, and the #1 question bankers want to ask is – What’s it going to cost me?
A: The price of a mobile banking solution depends upon the assets of the bank and their DDA base. The industry average is around $1/user/month - $3/user/month. There are vendors that allow for “all you can eat pricing,” but these are primarily solutions that utilize screen scrapping.
During your price discussions, be sure to confirm that the amount you’re quoted includes all 3 modes. Some vendors price the solutions separately. And, finally inquire about monthly minimums. These will again vary by the size of the institution.
Q: What components of your ROI model have begun to materialize?
A: Currently, the largest savings is due to call center deflection. Our solution has been proven to move customers that repeatedly call-in to the less expensive mobile banking channel. Mobile banking has also been proven to make the clients stickier and less likely to attrite. In the future, the new ROI model will be around expedited payments. This will be a great way to generate revenue.
Q: How many active users do you have across all FI’s?
A: Hundreds of Thousands
Q: What’s your highest client adoption %
A: One client achieved 8% in just 5 months.
Q: What’s your lowest client adoption %
A: We don’t really have any laggards. It has become pretty standard to achieve 10% by the end of year 2, but banks will need all 3 channels to be successful.
Q: What do the demographics of your users look like?
A: We have witnessed heavier usage among the “young” and “affluent.” Smartphone users gravitate toward the mobile web and applications, while clients with other handsets (non-smarthphones) use text banking.
Q: What do the usage patterns look like? Balance, History, Transfers, BP, Locator?
A: Account balance is the “killer app.” Customers with feature phones don’t use the mobile web – they use text banking. Mobile Web adoption tends to mimic application adoption with 90% of users coming from either the iPhone or a Blackberry device. However, application usage is 3-4 times larger:
o Mobile Web – 1/week
o Mobile App – Multiple/week
Q: What security elements are incorporated into your application?
A: The mobile device is already more secure than a laptop, but there are different levels of security within each of the channels:
o Text Banking - Is the most unsecure because it flows across unsecure channels.
o Mobile Web – Is more secure but there are concerns because of spoofing.
o Application – The application is the toughest and the most secure.
Also, be cautious of two-way interactions utilizing a combination of text and links to the mobile browser. This is scary because it trains the customer to expect unsolicited alerts that ask for permission to launch a link where credentials are input.
Q: How likely are biometrics to become a component?
A: Biometics won’t happen in the near future.
Q: How has the iPhone changed your approach to the business?
A: The iPhone has changed everything! It made the system less dependant upon the carriers and allowed bankers to have a direct interaction with the client. Carriers didn’t think they were blocking innovation, but the app store has shown the kind of innovation that can occur when you take away the barriers.
Q: What has been your biggest surprise/lesson-learned over the last couple of years?
A: First, all 3 modes of mobile banking are critical. Second, customers expect solutions from banks not mobile operators.
Q: What big industry development should we expect within the next 12 months?
A: I think the two biggest developments will be expedited bill payment via mobile devices and P2P bank to bank.
Q: What can banks do a better job of to facilitate adoption?
A: You must build it and promote it. The banks that do a good job with promotion online and through the branch do very well.
Q: What’s your differentiator? What sets your mobile banking solution apart from the competition?
A: mFoundry has the two components necessary to grow:
1) A 3 mode fully integrated mobile banking solution
2) Access to core banking providers
Q: Who are your key clients?
A: Citi, PNC, BB&T, IBC, Zions Bank
Q: Who are you key partners?
A: Fidelity (15 FIs), PSCU (6 CUs), NCR, FirstData, CoOp (8 CUs)
Q: Budget season is just around the corner, and the #1 question bankers want to ask is – What’s it going to cost me?
A: The price of a mobile banking solution depends upon the assets of the bank and their DDA base. The industry average is around $1/user/month - $3/user/month. There are vendors that allow for “all you can eat pricing,” but these are primarily solutions that utilize screen scrapping.
During your price discussions, be sure to confirm that the amount you’re quoted includes all 3 modes. Some vendors price the solutions separately. And, finally inquire about monthly minimums. These will again vary by the size of the institution.
Q: What components of your ROI model have begun to materialize?
A: Currently, the largest savings is due to call center deflection. Our solution has been proven to move customers that repeatedly call-in to the less expensive mobile banking channel. Mobile banking has also been proven to make the clients stickier and less likely to attrite. In the future, the new ROI model will be around expedited payments. This will be a great way to generate revenue.
Q: How many active users do you have across all FI’s?
A: Hundreds of Thousands
Q: What’s your highest client adoption %
A: One client achieved 8% in just 5 months.
Q: What’s your lowest client adoption %
A: We don’t really have any laggards. It has become pretty standard to achieve 10% by the end of year 2, but banks will need all 3 channels to be successful.
Q: What do the demographics of your users look like?
A: We have witnessed heavier usage among the “young” and “affluent.” Smartphone users gravitate toward the mobile web and applications, while clients with other handsets (non-smarthphones) use text banking.
Q: What do the usage patterns look like? Balance, History, Transfers, BP, Locator?
A: Account balance is the “killer app.” Customers with feature phones don’t use the mobile web – they use text banking. Mobile Web adoption tends to mimic application adoption with 90% of users coming from either the iPhone or a Blackberry device. However, application usage is 3-4 times larger:
o Mobile Web – 1/week
o Mobile App – Multiple/week
Q: What security elements are incorporated into your application?
A: The mobile device is already more secure than a laptop, but there are different levels of security within each of the channels:
o Text Banking - Is the most unsecure because it flows across unsecure channels.
o Mobile Web – Is more secure but there are concerns because of spoofing.
o Application – The application is the toughest and the most secure.
Also, be cautious of two-way interactions utilizing a combination of text and links to the mobile browser. This is scary because it trains the customer to expect unsolicited alerts that ask for permission to launch a link where credentials are input.
Q: How likely are biometrics to become a component?
A: Biometics won’t happen in the near future.
Q: How has the iPhone changed your approach to the business?
A: The iPhone has changed everything! It made the system less dependant upon the carriers and allowed bankers to have a direct interaction with the client. Carriers didn’t think they were blocking innovation, but the app store has shown the kind of innovation that can occur when you take away the barriers.
Q: What has been your biggest surprise/lesson-learned over the last couple of years?
A: First, all 3 modes of mobile banking are critical. Second, customers expect solutions from banks not mobile operators.
Q: What big industry development should we expect within the next 12 months?
A: I think the two biggest developments will be expedited bill payment via mobile devices and P2P bank to bank.
Q: What can banks do a better job of to facilitate adoption?
A: You must build it and promote it. The banks that do a good job with promotion online and through the branch do very well.
Thursday, August 27, 2009
Interview with Lisa Stanton - CEO of Monitise
Today I'm excited to share the details of my mobile banking interview with Lisa Stanton (CEO - Monitise). To learn more about Lisa please visit the Monitise website.
Q: What’s your differentiator? What sets your mobile banking solution apart from the competition?
A: There are 5 ways in which Monitise is unique:
1) Inclusivity – The client does not need to be an online banking user to be a mobile banking user. The Monitise platform covers all of the modalities. Any device. Any consumer. Ubiquitous.
2) Bank Grade – Our solution is tried and tested by the largest banks in the world. It is secure.
3) Line of sight to Payments – We built mobile banking to get to mobile payments and we can use the same rails.
4) Stability – Based on ownership of Metavante/Fidelity & Monitise
5) Turn-Key Service - Monitise can deliver the basic functionality in just 4 weeks. There’s no integration and no hardware required.
Q: Who are your key clients?
A: We have dozens of prepaid programs but H&R Block (Top 10 in debit cards issued) is our largest. We also have over 100 FIs now signed, including a couple of Top 20 Banks.
Q: Who are you key partners?
A: Visa, Corporate Network eCom, eCommLink, and Metavante
Q: Budget season is just around the corner, and the #1 question bankers want to ask is – What’s a mobile banking solution going to cost me?
A: With Monitise there is no upfront investment. The institution simply pays a small ongoing monthly base fee, and they can choose their preferred method:
1. Pay Per Transaction
2. Pay Per User/Month
Monitise also has a business case template to help guide the FI. The return of a mobile banking solution is based upon migrating clients away from foreign ATMs and the Call Center. Additionally, with just a small amount of customer acquisition and a little retention benefit the business case becomes very compelling.
Q: What components of your ROI model have begun to materialize?
A: It has been proven soundly that we’re able to migrate clients away from the ATM and the Call Center. It’s very easy to justify when you’re not incurring $0.50/transactions at a foreign ATM. We have also witnessed more transactions and more dollars flowing through mobile banking accounts, and reducing attrition by just a percent or two goes a long way.
Q: What’s your highest client adoption %
A: 5% in just one year
Q: What’s your lowest client adoption %
A: Around 2% at the end of year one.
Q: What do the demographics of your users look like?
A: There are generational differences but you will see engagement across all demographics. The most intriguing aspect is that there appears to be a huge spike of mobile banking adoption at age 42. There is something to be said for better phones leading to better adoption, but we have 50 banks running on NYCE that are text only.
Q: What do the usage patterns look like? Balance, History, Transfers, BP, Locator?
A: The balance request is the winner by a mile. The second most popular feature depends upon the country. In the UK it is Top-Ups but in the US it is the ability to transfer funds.
Q: What security elements are incorporated into your application?
A: We feel great about our security. We have been live for a couple of years with largest banks and have met all of their requirements. Our application is specific to the device and can not be transferred. Plus, we use a secure PIN that is not tied to the ATM or Debit card.
Q: How likely are biometrics to become a component?
A: We don’t have biometrics on the roadmap currently.
Q: How has the iPhone changed your approach to the business?
A: It has changed the business for everyone. Before the iPhone no one knew how to download mobile banking applications; yet, today many people are very comfortable with the concept. The iPhone also brought about the app stores for Apple, RIM, Palm, etc.
Q: What has been your biggest surprise/lesson-learned over the last couple of years?
A: Monitise Americas really took off just as the economy began to slump. Yet, it has not affected the level of interest in mobile banking. For three years we have seen plenty of interest and engagement in mobile financial services.
Q: What big industry development should we expect within the next 12 months?
A: We will likely see a big bank choose to rollout NFC past the pilot stage, and there will be advances, but they will not be industry changing.
Q: What can banks do a better job of to facilitate mobile banking adoption?
A: Banks need to do a better job of marketing the product, “tell them and they will come.” I know marketing dollars have been stripped, but just a little goes a long way.
Also, institutions can still use mobile as a differentiator, and they should take advantage of the opportunity for as long as they can. It’s great for them and for the industry.
Click on the links below to view the other five articles in this series.
Scott Moeller - MShift
Adam Clark - MCOM
Pete Daffern - Clairmail
Steve Kietz - Mobile Money Ventures
Tripp Rackley - Firethorn
Q: What’s your differentiator? What sets your mobile banking solution apart from the competition?
A: There are 5 ways in which Monitise is unique:
1) Inclusivity – The client does not need to be an online banking user to be a mobile banking user. The Monitise platform covers all of the modalities. Any device. Any consumer. Ubiquitous.
2) Bank Grade – Our solution is tried and tested by the largest banks in the world. It is secure.
3) Line of sight to Payments – We built mobile banking to get to mobile payments and we can use the same rails.
4) Stability – Based on ownership of Metavante/Fidelity & Monitise
5) Turn-Key Service - Monitise can deliver the basic functionality in just 4 weeks. There’s no integration and no hardware required.
Q: Who are your key clients?
A: We have dozens of prepaid programs but H&R Block (Top 10 in debit cards issued) is our largest. We also have over 100 FIs now signed, including a couple of Top 20 Banks.
Q: Who are you key partners?
A: Visa, Corporate Network eCom, eCommLink, and Metavante
Q: Budget season is just around the corner, and the #1 question bankers want to ask is – What’s a mobile banking solution going to cost me?
A: With Monitise there is no upfront investment. The institution simply pays a small ongoing monthly base fee, and they can choose their preferred method:
1. Pay Per Transaction
2. Pay Per User/Month
Monitise also has a business case template to help guide the FI. The return of a mobile banking solution is based upon migrating clients away from foreign ATMs and the Call Center. Additionally, with just a small amount of customer acquisition and a little retention benefit the business case becomes very compelling.
Q: What components of your ROI model have begun to materialize?
A: It has been proven soundly that we’re able to migrate clients away from the ATM and the Call Center. It’s very easy to justify when you’re not incurring $0.50/transactions at a foreign ATM. We have also witnessed more transactions and more dollars flowing through mobile banking accounts, and reducing attrition by just a percent or two goes a long way.
Q: What’s your highest client adoption %
A: 5% in just one year
Q: What’s your lowest client adoption %
A: Around 2% at the end of year one.
Q: What do the demographics of your users look like?
A: There are generational differences but you will see engagement across all demographics. The most intriguing aspect is that there appears to be a huge spike of mobile banking adoption at age 42. There is something to be said for better phones leading to better adoption, but we have 50 banks running on NYCE that are text only.
Q: What do the usage patterns look like? Balance, History, Transfers, BP, Locator?
A: The balance request is the winner by a mile. The second most popular feature depends upon the country. In the UK it is Top-Ups but in the US it is the ability to transfer funds.
Q: What security elements are incorporated into your application?
A: We feel great about our security. We have been live for a couple of years with largest banks and have met all of their requirements. Our application is specific to the device and can not be transferred. Plus, we use a secure PIN that is not tied to the ATM or Debit card.
Q: How likely are biometrics to become a component?
A: We don’t have biometrics on the roadmap currently.
Q: How has the iPhone changed your approach to the business?
A: It has changed the business for everyone. Before the iPhone no one knew how to download mobile banking applications; yet, today many people are very comfortable with the concept. The iPhone also brought about the app stores for Apple, RIM, Palm, etc.
Q: What has been your biggest surprise/lesson-learned over the last couple of years?
A: Monitise Americas really took off just as the economy began to slump. Yet, it has not affected the level of interest in mobile banking. For three years we have seen plenty of interest and engagement in mobile financial services.
Q: What big industry development should we expect within the next 12 months?
A: We will likely see a big bank choose to rollout NFC past the pilot stage, and there will be advances, but they will not be industry changing.
Q: What can banks do a better job of to facilitate mobile banking adoption?
A: Banks need to do a better job of marketing the product, “tell them and they will come.” I know marketing dollars have been stripped, but just a little goes a long way.
Also, institutions can still use mobile as a differentiator, and they should take advantage of the opportunity for as long as they can. It’s great for them and for the industry.
Click on the links below to view the other five articles in this series.
Scott Moeller - MShift
Adam Clark - MCOM
Pete Daffern - Clairmail
Steve Kietz - Mobile Money Ventures
Tripp Rackley - Firethorn
Monday, August 24, 2009
Tripp Rackley (Firethorn) on Mobile Banking and Mobile Commerce
Today I'm excited to publish the notes from my interview with Tripp Rackley, CEO - Firethorn. To learn more about Tripp visit the Firethorn website.
Q: What’s your differentiator? What sets your mobile banking solution apart from the competition?
A: A few years ago all mobile banking vendors were lumped into one category, but many of the companies that the industry would consider as Firethorn’s competitors have mobile platforms that can accommodate only account servicing (balances). Firethorn was not formed to service accounts – we are not trying to replicate internet banking on the phone. The focus needs to be on mcommerce and payments.
From a banking perspective it comes down to just 2 things:
1. Great distribution across ATT & Verizon, the two largest wireless carriers.
2. Scale to support all operating systems. Android doesn’t have mass adoption yet but Firethorn has already built the platform.
Q: Who are your key clients?
A: Synovus, BancorpSouth, Arvest, America First, USAA, CitiCards, SDCCU, BECU, Wachovia, SunTrust, Regions
Q: Who are your key partners?
A: AT&T, Verizon Wireless, CellularSouth, CheckFree, FundTech, FTPS (Fifth-Third Processing Solutions), Mastercard
Q: Budget season is just around the corner, and the #1 question bankers want to ask is – What’s it going to cost me?
A: The key to success is – don’t limit it to mobile banking. This is a path to mobile commerce until consumers can access all of the brands they want, with the phone they have, through the channel they prefer.
Mobile will not have the same ROI as online banking until there is scale, but this is coming. Initially, clients will use mobile in addition to the existing channels, but in time these will become “replacement transactions” that will extract expense from the system.
Understanding cost is important, but the real cost is in people and support. The ROI play today is to capture customers with mobile that did not adopt online banking. This is where handset enrollment comes into play and could be substantial for an FI.
Q: What components of your ROI model have begun to materialize?
A: There’s only ROI where you can change the consumer behavior – promote mobile over a more expensive channel.
All major brands need mobile. If you choose to ignore mobile it would be like saying, “we’re not going to embrace the internet,” or even worse because mobile is so much more prevalent.
Q: What do the demographics of your users look like?
A: Our users are more demographically focused than handset focused and match the general industry data of 18 to 35.
Q: What do the usage patterns look like? Balance, History, Transfers, BP, Locator?
A: Firethorn is very pleased with the usage trends.
• Avg. logins of 4-5/week
• Avg. 3 transfers/month
• Avg. 2 bill payments/month
Q: What security elements are incorporated into your application?
A: Security should be prevalent to the consumer but easy to use, and all heavy security should be hidden. It’s about the form factor. With an ATM the client uses a PIN. It would be inappropriate to ask for an online banking password at the ATM.
Yet, some FIs want the mobile banking password to match the online banking password. This is not appropriate – the form factor isn’t right. It’s wrong to approach mobile as an extension of the online banking.
Q: How likely are biometrics to become a component?
A: I spent time looking at biometics before starting Firethorn, but it was just too early. There’s a heavy fear of biometrics, and the domestic devices are not equipped with the necessary hardware.
Q: How has the iPhone changed your approach to the business?
A: The iPhone has had a major emotional impact on the industry and has brought about “freedom” for all smart devices. The iPhone is an exceptional device that is beautifully designed and very successful, but it doesn’t cover the mass market. Some institutions have reacted with just an iPhone application or just a Blackberry application, but you need to offer what the market demands. You must address them all. You can not pick just one.
Q: What has been your biggest surprise/lesson-learned over the last couple of years?
A: Going into 2010 mobility should not be a question – it’s a must have. You can not pick just one mobile channel as a strategy. You must address consumers the way they want to be addressed.
Q: What big industry development should we expect within the next 12 months?
A: NFC still has a long time to go. There will be implementations of NFC but still in trial environments. I’m “bullish” on mobile commerce.
Additionally, Firethorn has invested heavily in research to confirm what consumers really want and need; this helps shape our product and also helps our partners better market to their key audience with the right message.
Q: What can banks do a better job of to facilitate adoption?
A: You must get mobile in front of the customers. Incorporate mobile into all of your existing media: banner ads, radio, print.
This craze is similar to the beginning of the internet. This is the time to capture customers. There are people purchasing a device, walking out of the store, and then sitting down and looking for things to do with it. It’s phenomenal!
Q: What’s your differentiator? What sets your mobile banking solution apart from the competition?
A: A few years ago all mobile banking vendors were lumped into one category, but many of the companies that the industry would consider as Firethorn’s competitors have mobile platforms that can accommodate only account servicing (balances). Firethorn was not formed to service accounts – we are not trying to replicate internet banking on the phone. The focus needs to be on mcommerce and payments.
From a banking perspective it comes down to just 2 things:
1. Great distribution across ATT & Verizon, the two largest wireless carriers.
2. Scale to support all operating systems. Android doesn’t have mass adoption yet but Firethorn has already built the platform.
Q: Who are your key clients?
A: Synovus, BancorpSouth, Arvest, America First, USAA, CitiCards, SDCCU, BECU, Wachovia, SunTrust, Regions
Q: Who are your key partners?
A: AT&T, Verizon Wireless, CellularSouth, CheckFree, FundTech, FTPS (Fifth-Third Processing Solutions), Mastercard
Q: Budget season is just around the corner, and the #1 question bankers want to ask is – What’s it going to cost me?
A: The key to success is – don’t limit it to mobile banking. This is a path to mobile commerce until consumers can access all of the brands they want, with the phone they have, through the channel they prefer.
Mobile will not have the same ROI as online banking until there is scale, but this is coming. Initially, clients will use mobile in addition to the existing channels, but in time these will become “replacement transactions” that will extract expense from the system.
Understanding cost is important, but the real cost is in people and support. The ROI play today is to capture customers with mobile that did not adopt online banking. This is where handset enrollment comes into play and could be substantial for an FI.
Q: What components of your ROI model have begun to materialize?
A: There’s only ROI where you can change the consumer behavior – promote mobile over a more expensive channel.
All major brands need mobile. If you choose to ignore mobile it would be like saying, “we’re not going to embrace the internet,” or even worse because mobile is so much more prevalent.
Q: What do the demographics of your users look like?
A: Our users are more demographically focused than handset focused and match the general industry data of 18 to 35.
Q: What do the usage patterns look like? Balance, History, Transfers, BP, Locator?
A: Firethorn is very pleased with the usage trends.
• Avg. logins of 4-5/week
• Avg. 3 transfers/month
• Avg. 2 bill payments/month
Q: What security elements are incorporated into your application?
A: Security should be prevalent to the consumer but easy to use, and all heavy security should be hidden. It’s about the form factor. With an ATM the client uses a PIN. It would be inappropriate to ask for an online banking password at the ATM.
Yet, some FIs want the mobile banking password to match the online banking password. This is not appropriate – the form factor isn’t right. It’s wrong to approach mobile as an extension of the online banking.
Q: How likely are biometrics to become a component?
A: I spent time looking at biometics before starting Firethorn, but it was just too early. There’s a heavy fear of biometrics, and the domestic devices are not equipped with the necessary hardware.
Q: How has the iPhone changed your approach to the business?
A: The iPhone has had a major emotional impact on the industry and has brought about “freedom” for all smart devices. The iPhone is an exceptional device that is beautifully designed and very successful, but it doesn’t cover the mass market. Some institutions have reacted with just an iPhone application or just a Blackberry application, but you need to offer what the market demands. You must address them all. You can not pick just one.
Q: What has been your biggest surprise/lesson-learned over the last couple of years?
A: Going into 2010 mobility should not be a question – it’s a must have. You can not pick just one mobile channel as a strategy. You must address consumers the way they want to be addressed.
Q: What big industry development should we expect within the next 12 months?
A: NFC still has a long time to go. There will be implementations of NFC but still in trial environments. I’m “bullish” on mobile commerce.
Additionally, Firethorn has invested heavily in research to confirm what consumers really want and need; this helps shape our product and also helps our partners better market to their key audience with the right message.
Q: What can banks do a better job of to facilitate adoption?
A: You must get mobile in front of the customers. Incorporate mobile into all of your existing media: banner ads, radio, print.
This craze is similar to the beginning of the internet. This is the time to capture customers. There are people purchasing a device, walking out of the store, and then sitting down and looking for things to do with it. It’s phenomenal!
Wednesday, August 19, 2009
Mobile Banking with Steve Kietz of MMV
My fourth interview in the Mobile CEO series was conducted with Steve Kietz of Mobile Money Ventures (MMV). To learn more about Steve please visit MobileMoneyVentures.net.
Additionally, I'd like to take a moment to thank Steve for his support of the St. Jude Childrens Hospital. Please be sure to click on the MMV banner in the right margin to view a demo of the MMV platform.
Q: What’s your differentiator? What sets your mobile banking solution apart from the competition?
A: There are three main components that differentiate MMV.
1. The Mobile Money Platform™ is not a point-to-point solution. It’s robust and scalable with five key modalities: 1) Banking 2) Stock Trades 3) Payments 4) Deals & Rewards 5) Manage & Track (PFM).
2. The content adaption tool allows for deployment in weeks, but the institution is still able to rely on the platform for long-term success.
3. MMV was founded on a “Best in Class” customer experience. The platform is easy, intuitive, and visually appealing.
Q: Who are your key clients?
A: MMV has multiple installations with Citi, and will continue global expansion, installing in more than 12 countries by the end of 2009.
Q: Who are your key partners?
A: Our key partners are:
• Citi
• SK telecom and SK C&C
• Accenture
• Mobile Complete (Device Anywhere)
Q: Budget season is just around the corner, and the #1 question bankers want to ask is – What’s it going to cost me?
A: Truthfully, it’s tough to name a price since MMV has so many solutions to accommodate many different budgets. Our content adaption solution is a bundle package and can be launched in weeks. We do have a “go to market” strategy that includes a low installation fee and per user pricing. Basically, this means that MMV is taking risk with the institution. If there’s no uptake – we don’t get paid. We are, “putting our money where our mouth is.”
The key is the 12 month payback resulting from call center expense reductions. You don’t have to eliminate very many $5 calls to break even.
Q: What components of your ROI model have begun to materialize?
A: Many analysts question whether mobile can really eliminate more calls. They feel that online banking has already maximized the reduction. However, the truth is – it’s occurring.
There are also some retention benefits and some proof of mobile driving new relationships, but the most obvious driver is a lower number of inbound calls.
In the future, ROI will not be focused on expense saves. It will be focused on:
• Cross-sell
• Up-sell
• Mobile CRM
Q: How many active users do you have across all FI’s?
A: We have strong adoption of the mobile platform worldwide with hundreds of thousands of users.
Q: What’s your highest client adoption %
A: Our iPhone application is experiencing the highest rate of adoption. The App store is key with 50,000 applications and 1.5 billion downloads.
Q: What’s your lowest client adoption %
A: Our lowest adoption occurs with mobile-specific browser URLs. For instance, directing customers to urls of m.xyzbank.com or xyzbank.mobi are not as successful.
Q: What do the demographics of your users look like?
A: There are some specific demographics for the iPhone, but even people without lots of disposable income will purchase the device. MMV’s strategy is to design for the masses. We’ve conducted focus groups but there are no specific age buckets. We designed our solution to work with all classes of phones, from simple flip phones with small screens to sophisticated smart phones.
Q: What do the usage patterns look like? Balance, History, Transfers, BP, Locator?
A: Our data is consistent with the industry reports. The future relies on the enhanced features. For example in Hong Kong stock trading is very big.
Q: What security elements are incorporated into your application?
A: To ensure the highest level of security, MMV’s solution utilizes two-factor authentication, employing a one-time password and securing communication with end-to-end encryption. MMV provides end-to-end security from the mobile device to the backend server regardless of WAP gateway.
The key is to be “aligned with the bank requirements” as well as the country/government specifications. For example, in the Philippines, Citi required two-factor authentication.
Q: How likely are biometrics to become a component?
A: We looked at biometics in early 2008, but tests revealed that it wasn’t stable enough for the mainstream customer. It would have been more of a deterent for customers, and we don’t want security to be a hinderance for mass adoption. It will be something to watch, but the key is to focus on, “what’s best for the consumer.”
Q: How has the iPhone changed your approach to the business?
A: It has changed everybody’s business. We knew that applications were a better experience for the customer, but we needed to figure out how to get past the download. Now clients understand the download process and are accustomed to the experience.
Apple offered unique API’s and MMV optimized the form factor. We designed a banking-appropriate yet similar experience. This has resulted in interest for additional apps and MMV is developing for other platforms including Blackberry.
Q: What has been your biggest surprise/lesson-learned over the last couple of years?
A: Being based in California during the recession has enabled MMV to attract world-class talent across all jobs and in all disciplines. We found talented individuals excited to participate in a half corporate/half start-up setting.
Q: What big industry development should we expect within the next 12 months?
A: 2010 will be the year of the payment sticker, and MMV has a solution that will link the sticker to the mobile device.
Q: What can banks do a better job of to facilitate adoption?
A: There are to ways:
1) Build awareness. We’ve all benefited from the mass media of large FIs.
2) Look at history. What have banks done to accelerate previous technologies?
Citi was regarded as the ATM pioneer but they weren’t the first to market. Citi was able to differentiated by being the first bank to dedicate people/resources to show customers how to use an ATM machine. The mobile winner will be the first bank to have a kiosk/booth that is used to train customers how to download/use mobile applications.
To read the first three articles in the series click any of these links:
Scott Moeller - MShift
Adam Clark - MCOM
Pete Daffern - Clairmail
Additionally, I'd like to take a moment to thank Steve for his support of the St. Jude Childrens Hospital. Please be sure to click on the MMV banner in the right margin to view a demo of the MMV platform.
Q: What’s your differentiator? What sets your mobile banking solution apart from the competition?
A: There are three main components that differentiate MMV.
1. The Mobile Money Platform™ is not a point-to-point solution. It’s robust and scalable with five key modalities: 1) Banking 2) Stock Trades 3) Payments 4) Deals & Rewards 5) Manage & Track (PFM).
2. The content adaption tool allows for deployment in weeks, but the institution is still able to rely on the platform for long-term success.
3. MMV was founded on a “Best in Class” customer experience. The platform is easy, intuitive, and visually appealing.
Q: Who are your key clients?
A: MMV has multiple installations with Citi, and will continue global expansion, installing in more than 12 countries by the end of 2009.
Q: Who are your key partners?
A: Our key partners are:
• Citi
• SK telecom and SK C&C
• Accenture
• Mobile Complete (Device Anywhere)
Q: Budget season is just around the corner, and the #1 question bankers want to ask is – What’s it going to cost me?
A: Truthfully, it’s tough to name a price since MMV has so many solutions to accommodate many different budgets. Our content adaption solution is a bundle package and can be launched in weeks. We do have a “go to market” strategy that includes a low installation fee and per user pricing. Basically, this means that MMV is taking risk with the institution. If there’s no uptake – we don’t get paid. We are, “putting our money where our mouth is.”
The key is the 12 month payback resulting from call center expense reductions. You don’t have to eliminate very many $5 calls to break even.
Q: What components of your ROI model have begun to materialize?
A: Many analysts question whether mobile can really eliminate more calls. They feel that online banking has already maximized the reduction. However, the truth is – it’s occurring.
There are also some retention benefits and some proof of mobile driving new relationships, but the most obvious driver is a lower number of inbound calls.
In the future, ROI will not be focused on expense saves. It will be focused on:
• Cross-sell
• Up-sell
• Mobile CRM
Q: How many active users do you have across all FI’s?
A: We have strong adoption of the mobile platform worldwide with hundreds of thousands of users.
Q: What’s your highest client adoption %
A: Our iPhone application is experiencing the highest rate of adoption. The App store is key with 50,000 applications and 1.5 billion downloads.
Q: What’s your lowest client adoption %
A: Our lowest adoption occurs with mobile-specific browser URLs. For instance, directing customers to urls of m.xyzbank.com or xyzbank.mobi are not as successful.
Q: What do the demographics of your users look like?
A: There are some specific demographics for the iPhone, but even people without lots of disposable income will purchase the device. MMV’s strategy is to design for the masses. We’ve conducted focus groups but there are no specific age buckets. We designed our solution to work with all classes of phones, from simple flip phones with small screens to sophisticated smart phones.
Q: What do the usage patterns look like? Balance, History, Transfers, BP, Locator?
A: Our data is consistent with the industry reports. The future relies on the enhanced features. For example in Hong Kong stock trading is very big.
Q: What security elements are incorporated into your application?
A: To ensure the highest level of security, MMV’s solution utilizes two-factor authentication, employing a one-time password and securing communication with end-to-end encryption. MMV provides end-to-end security from the mobile device to the backend server regardless of WAP gateway.
The key is to be “aligned with the bank requirements” as well as the country/government specifications. For example, in the Philippines, Citi required two-factor authentication.
Q: How likely are biometrics to become a component?
A: We looked at biometics in early 2008, but tests revealed that it wasn’t stable enough for the mainstream customer. It would have been more of a deterent for customers, and we don’t want security to be a hinderance for mass adoption. It will be something to watch, but the key is to focus on, “what’s best for the consumer.”
Q: How has the iPhone changed your approach to the business?
A: It has changed everybody’s business. We knew that applications were a better experience for the customer, but we needed to figure out how to get past the download. Now clients understand the download process and are accustomed to the experience.
Apple offered unique API’s and MMV optimized the form factor. We designed a banking-appropriate yet similar experience. This has resulted in interest for additional apps and MMV is developing for other platforms including Blackberry.
Q: What has been your biggest surprise/lesson-learned over the last couple of years?
A: Being based in California during the recession has enabled MMV to attract world-class talent across all jobs and in all disciplines. We found talented individuals excited to participate in a half corporate/half start-up setting.
Q: What big industry development should we expect within the next 12 months?
A: 2010 will be the year of the payment sticker, and MMV has a solution that will link the sticker to the mobile device.
Q: What can banks do a better job of to facilitate adoption?
A: There are to ways:
1) Build awareness. We’ve all benefited from the mass media of large FIs.
2) Look at history. What have banks done to accelerate previous technologies?
Citi was regarded as the ATM pioneer but they weren’t the first to market. Citi was able to differentiated by being the first bank to dedicate people/resources to show customers how to use an ATM machine. The mobile winner will be the first bank to have a kiosk/booth that is used to train customers how to download/use mobile applications.
To read the first three articles in the series click any of these links:
Scott Moeller - MShift
Adam Clark - MCOM
Pete Daffern - Clairmail
Friday, August 14, 2009
Mobile Banking: Pete Daffern of Clairmail
Today, I'm excited to share the details of my recent interview with Pete Daffern (CEO - Clairmail). To learn more about Pete to visit Clairmail.com.
Q: What’s your differentiator? What sets your mobile banking solution apart from the competition?
A: Ultimately, Clairmail has a mobile banking platform that will give you more adoption and a higher volume and depth of engagement than any other vendor. Our platform allows clients to proactively interact with their customers rather than just waiting for the customer to reach out to the bank.
What’s in it for the bank?
Bankers are continually looking to improve the cost structure of the interaction while improving the level of service; and, this is particularly true for high volume/low value requests such as balance and history. Banks need to deepen the relationship to reduce churn, and multi-level alerts can help accomplish this task.
Here are a few low balance alert examples:
• Informational Alert: "Your checking account balance has fallen below $100."
• Actionable Alert: "Your checking account balance has fallen below $100. Would you like to transfer funds from Savings? Reply ‘T’ to move $100.”
• Conversational Alerts: "Your checking account balance has fallen below $100. Would you like to transfer funds from Savings? Reply ‘T’ to move $100.” The customer replies “T”, and receives a subsequent text message: “Thank you. $100 has been transferred from Savings to Checking. To learn more about our overdraft protection service, reply ‘O’.”
Clairmail has built a great management team and we do a better job of getting users and delivering value to those users. Some vendors are positioning themselves for a “quick flip” but Clairmail is building a business. We are focused on the customer, and we ask ourselves everyday, “What should we do for the client?”
We are working to:
• Driving adoption
• Make implementation quick and easy
• Create value at both the business and technology level
• Make the product scalable
Q: Who are your key clients?
A: We have over 40 mobile banking customers and we of course consider all of them as key. They include BB&T, PNC, Bank of Stockton and various others including 6 of the top 10 banks.
Q: Who are you key partners?
A: Diebold, Fidelity, and Telus (Canadian Carrier) just to name a few.
Q: Budget season is just around the corner, and the #1 question bankers want to ask is – What’s it going to cost me?
A: The cost of a mobile banking solution is a few hundred thousand dollars, and as long as the FI is sensible with their contract and implements the correct way it should break even in 6 months—for some it has been much faster.
Q: What components of your ROI model have begun to materialize?
A: We have witnessed meaningful expense reductions by eliminating calls to the call center. In fact, the 6 month break even I mentioned previously only takes into consideration the call reduction component. However, there are additional benefits from asset retention, cross-sell and up-sell potential.
The best, most efficient and engaging way to proactively reach the client is with multi-level alerts. Customers no longer respond to email, snail-mail, or phone calls.
Q: How many active users do you have across all FI’s?
A: The ClairMail mobile banking solution, has experienced a 700 percent year-over-year increase in monthly mobile banking transactions, and a 200 percent year-over-year revenue increase for the second quarter of 2009.
Q: What’s your highest client adoption %
A: Bank of Stockton is at 10% of their total customer base and growing very quickly. Other vendors tend to report adoption numbers as a percentage of online banking customers, not all customers. That is misleading and doesn't take into account that mobile banking adoption is growing independently of online banking (as it should be) and will quickly eclipse its marketshare. We have various customers on their way toward 60% or more adoption and eventually we expect to see these numbers to be closer to 100%.
Q: What’s your lowest client adoption %
A: There are banks that have experienced a change in leadership and/or focus and there adoption has not been as successful. Mobile banking can be very valuable, but it should not be a check-box solution. In 2009 we’re really starting to see an uptick that will grow exponentially over the next few years.
Q: What do the demographics of your users look like?
A: For the young generations that send thousands of messages per month mobile banking is required. For the 35-55 demographic - it’s expected. They need access to multiple cards, accounts, loans, and lines of credit. Yet, it’s not completely driven by age. For instance, Bank of Stockton has a slightly older demographic but due to the nature of their client base they have the highest adoption.
Smartphones are also pushing growth and adoption. Initially, usage was focused on the East and West coast, but now it’s spreading nation wide. At Clairmail, we focus on a suite of offerings that allow banks to bring their customers valuable mobile banking services regardless of their handset type. Our opinion is that SMS is the most important with mobile browser as second and the third most popular channel is the app. The application is a key growth offering for the future, but really has to be delivered in a smart way that takes into account the customers needs.
Q: What do the usage patterns look like? Balance, History, Transfers, BP, Locator?
A: Mobile 1.0 was all the simple stuff like: balances, account history and transfers. Now that banks have a better understanding of the possibilities they’re looking to provide more value in the form of multi-level alerts, payments, fraud prevention, and NFC.
Q: What security elements are incorporated into your application?
A: If someone losses their credit card it takes 3 days to notice, but losing a cell phone only requires 10 minutes. Plus, new services now allow you to call and remotely wipe a device with the touch of a button.
Q: How likely are biometrics to become a component?
A: We have a long way to go before they would be main-stream in the U.S.
Q: How has the iPhone changed your approach to the business?
A: The operating system makes stuff easier and can be performed in less time, but the iPhone hasn’t really changed our approach. It has become a showcase for the current and future possibilities of how applications can work on all handsets. The key thing to remember is that on an iPhone or any other handset alerts/text messaging is the #1 interaction.
Q: What has been your biggest surprise/lesson-learned over the last couple of years?
A: I’ve been the CEO of Clairmail for 6-7 months and there haven’t been any big surprises. However, I am gratified by the industry’s hearty appetite for the addition of mobile banking services even when budgets are tight and new project initiatives are scrutinized closely.
Q: What big industry development should we expect within the next 12 months?
A: I expect there will be more activity around mobile payments. It’s a great story and focused on moving dollars around at the bank. As for NFC, there are only 3 devices in the U.S. that can support the service, and nothing will happen overnight. We need lots of standards and they will evolve very slowly over time.
Q: What can banks do a better job of to facilitate adoption?
A: Our customers are experiencing strong adoption. However, banks that do receive low adoption simply need to do more to facilitate enrollment throughout their business.
There are really two keys:
1) Banks need to see mobile banking as a “game-changing” channel. Smartphones are evolving quickly and the opportunity is larger than online banking.
2) Vendors need to do a better job of teaching bankers how to drive adoption.
This article is the third in a series of eight interviews I conducted with CEOs/Directors of the most popular mobile banking vendors in the U.S. Click either of these links to view the previous articles on Scott Moeller (MShift) or Adam Clark (MCOM).
Q: What’s your differentiator? What sets your mobile banking solution apart from the competition?
A: Ultimately, Clairmail has a mobile banking platform that will give you more adoption and a higher volume and depth of engagement than any other vendor. Our platform allows clients to proactively interact with their customers rather than just waiting for the customer to reach out to the bank.
What’s in it for the bank?
Bankers are continually looking to improve the cost structure of the interaction while improving the level of service; and, this is particularly true for high volume/low value requests such as balance and history. Banks need to deepen the relationship to reduce churn, and multi-level alerts can help accomplish this task.
Here are a few low balance alert examples:
• Informational Alert: "Your checking account balance has fallen below $100."
• Actionable Alert: "Your checking account balance has fallen below $100. Would you like to transfer funds from Savings? Reply ‘T’ to move $100.”
• Conversational Alerts: "Your checking account balance has fallen below $100. Would you like to transfer funds from Savings? Reply ‘T’ to move $100.” The customer replies “T”, and receives a subsequent text message: “Thank you. $100 has been transferred from Savings to Checking. To learn more about our overdraft protection service, reply ‘O’.”
Clairmail has built a great management team and we do a better job of getting users and delivering value to those users. Some vendors are positioning themselves for a “quick flip” but Clairmail is building a business. We are focused on the customer, and we ask ourselves everyday, “What should we do for the client?”
We are working to:
• Driving adoption
• Make implementation quick and easy
• Create value at both the business and technology level
• Make the product scalable
Q: Who are your key clients?
A: We have over 40 mobile banking customers and we of course consider all of them as key. They include BB&T, PNC, Bank of Stockton and various others including 6 of the top 10 banks.
Q: Who are you key partners?
A: Diebold, Fidelity, and Telus (Canadian Carrier) just to name a few.
Q: Budget season is just around the corner, and the #1 question bankers want to ask is – What’s it going to cost me?
A: The cost of a mobile banking solution is a few hundred thousand dollars, and as long as the FI is sensible with their contract and implements the correct way it should break even in 6 months—for some it has been much faster.
Q: What components of your ROI model have begun to materialize?
A: We have witnessed meaningful expense reductions by eliminating calls to the call center. In fact, the 6 month break even I mentioned previously only takes into consideration the call reduction component. However, there are additional benefits from asset retention, cross-sell and up-sell potential.
The best, most efficient and engaging way to proactively reach the client is with multi-level alerts. Customers no longer respond to email, snail-mail, or phone calls.
Q: How many active users do you have across all FI’s?
A: The ClairMail mobile banking solution, has experienced a 700 percent year-over-year increase in monthly mobile banking transactions, and a 200 percent year-over-year revenue increase for the second quarter of 2009.
Q: What’s your highest client adoption %
A: Bank of Stockton is at 10% of their total customer base and growing very quickly. Other vendors tend to report adoption numbers as a percentage of online banking customers, not all customers. That is misleading and doesn't take into account that mobile banking adoption is growing independently of online banking (as it should be) and will quickly eclipse its marketshare. We have various customers on their way toward 60% or more adoption and eventually we expect to see these numbers to be closer to 100%.
Q: What’s your lowest client adoption %
A: There are banks that have experienced a change in leadership and/or focus and there adoption has not been as successful. Mobile banking can be very valuable, but it should not be a check-box solution. In 2009 we’re really starting to see an uptick that will grow exponentially over the next few years.
Q: What do the demographics of your users look like?
A: For the young generations that send thousands of messages per month mobile banking is required. For the 35-55 demographic - it’s expected. They need access to multiple cards, accounts, loans, and lines of credit. Yet, it’s not completely driven by age. For instance, Bank of Stockton has a slightly older demographic but due to the nature of their client base they have the highest adoption.
Smartphones are also pushing growth and adoption. Initially, usage was focused on the East and West coast, but now it’s spreading nation wide. At Clairmail, we focus on a suite of offerings that allow banks to bring their customers valuable mobile banking services regardless of their handset type. Our opinion is that SMS is the most important with mobile browser as second and the third most popular channel is the app. The application is a key growth offering for the future, but really has to be delivered in a smart way that takes into account the customers needs.
Q: What do the usage patterns look like? Balance, History, Transfers, BP, Locator?
A: Mobile 1.0 was all the simple stuff like: balances, account history and transfers. Now that banks have a better understanding of the possibilities they’re looking to provide more value in the form of multi-level alerts, payments, fraud prevention, and NFC.
Q: What security elements are incorporated into your application?
A: If someone losses their credit card it takes 3 days to notice, but losing a cell phone only requires 10 minutes. Plus, new services now allow you to call and remotely wipe a device with the touch of a button.
Q: How likely are biometrics to become a component?
A: We have a long way to go before they would be main-stream in the U.S.
Q: How has the iPhone changed your approach to the business?
A: The operating system makes stuff easier and can be performed in less time, but the iPhone hasn’t really changed our approach. It has become a showcase for the current and future possibilities of how applications can work on all handsets. The key thing to remember is that on an iPhone or any other handset alerts/text messaging is the #1 interaction.
Q: What has been your biggest surprise/lesson-learned over the last couple of years?
A: I’ve been the CEO of Clairmail for 6-7 months and there haven’t been any big surprises. However, I am gratified by the industry’s hearty appetite for the addition of mobile banking services even when budgets are tight and new project initiatives are scrutinized closely.
Q: What big industry development should we expect within the next 12 months?
A: I expect there will be more activity around mobile payments. It’s a great story and focused on moving dollars around at the bank. As for NFC, there are only 3 devices in the U.S. that can support the service, and nothing will happen overnight. We need lots of standards and they will evolve very slowly over time.
Q: What can banks do a better job of to facilitate adoption?
A: Our customers are experiencing strong adoption. However, banks that do receive low adoption simply need to do more to facilitate enrollment throughout their business.
There are really two keys:
1) Banks need to see mobile banking as a “game-changing” channel. Smartphones are evolving quickly and the opportunity is larger than online banking.
2) Vendors need to do a better job of teaching bankers how to drive adoption.
This article is the third in a series of eight interviews I conducted with CEOs/Directors of the most popular mobile banking vendors in the U.S. Click either of these links to view the previous articles on Scott Moeller (MShift) or Adam Clark (MCOM).
Thursday, August 13, 2009
Mobile Banking Updates - Aug 13
Consumers Want Person-to-Person Payments Services From Banks
"CashEdge has announced results from its fourth annual Consumer Online Banking Survey saying it 'demonstrated an increasing demand for simple, secure person-to-person (P2P) payment services and the preference by consumers to get these services from their financial institution, rather than an independent service such as PayPal. Conducted annually by CashEdge, the study examines the behavior and preferences of more than 850 consumers nationwide aged 18 years and older who use online banking capabilities.'"
Monitise Strikes Partnership to Extend 'Mobile Money' Across Africa and the Middle East
"Monitise, the world's leading mobile banking services provider, is extending its business further into Africa and the Middle East with a joint venture with Paynet, an electronics payment company. The agreement, signed in principle, combines the strengths of Monitise and Paynet to give millions of people access to banking and financial services on their mobile phones."
Wallet of the future? Your mobile phone
"The mobile phone is staging a coup. Some analysts say that within five years, mobile phones in the United States will be able to make electronic payments, open doors, access subways, clip coupons and possibly act as another form of identification. These futuristic uses for phones are becoming reality in countries like South Korea and Japan, which typically are ahead of the United States when it comes to mobile technology."
Fundamo, Clickatell Partner to Deliver Mobile Banking Solutions to Global Financial Providers
"As emerging economies continue to pioneer the adoption of mobile banking, two leading mobile services providers, Clickatell and Fundamo, have partnered to deliver mobile banking solutions to financial services institutions to help fulfill what will become a US$5 billion opportunity in the next three years, according to McKinsey & Company."
Lots of Fail With CitiBank’s New Mobile Web Site
"Citibank, the fifth largest U.S. bank in deposits, recently launched a mobile web site. Read more about it on the bank’s promotional page. This should be good news. Most of the other big banks launched mobile web based online banking sites a couple years ago."
Mobile banking, what it is and how it works
"Some time ago people could not imagine that they would use wireless handsets to perform banking operations. Today it is something ordinary if you send an SMS message to inquire your account balance at your bank. Mobile banking while not yet available or at least affordable in many countries of the world is wide spread among bank consumers in developed nations."
How can one get excited about an iPhone image of a check?
"As part of my job, I am regularly exposed to great innovations in the mobile banking domain. Recently, when I read about the USAA iPhone application (Read here and many, many more places), I first thought someone was pulling my leg."
Credit Union Center Offers Mobile Banking
"CO-OP Mobile allows credit union members to access their accounts using their mobile phone. Utilizing CO-OP’s Next Generation Network, the mobile application provides secure, encrypted transactions without storing personal information on the members phone."
ClairMail Powers Mobile Banking for Veridian Credit Union
"The ClairMail mobile banking solution will enable Veridian Credit Union members to access their accounts via multiple modes on a single device, empowering them with greater control over their personal finances. Members can perform a variety of activities including checking account balances, transferring funds and viewing their transaction history."
Mobile Banking Poised for Rapid Growth
"A new report from IDC Financial Insights emphasizes that banks need to prepare themselves today for the imminent wave of mobile adoption to avoid being left behind by competitors. The study indicates that while current economic conditions may have curtailed both consumers' demand for mobile banking and banks' willingness to invest in it in the short term, things are still moving forward."
"CashEdge has announced results from its fourth annual Consumer Online Banking Survey saying it 'demonstrated an increasing demand for simple, secure person-to-person (P2P) payment services and the preference by consumers to get these services from their financial institution, rather than an independent service such as PayPal. Conducted annually by CashEdge, the study examines the behavior and preferences of more than 850 consumers nationwide aged 18 years and older who use online banking capabilities.'"
Monitise Strikes Partnership to Extend 'Mobile Money' Across Africa and the Middle East
"Monitise, the world's leading mobile banking services provider, is extending its business further into Africa and the Middle East with a joint venture with Paynet, an electronics payment company. The agreement, signed in principle, combines the strengths of Monitise and Paynet to give millions of people access to banking and financial services on their mobile phones."
Wallet of the future? Your mobile phone
"The mobile phone is staging a coup. Some analysts say that within five years, mobile phones in the United States will be able to make electronic payments, open doors, access subways, clip coupons and possibly act as another form of identification. These futuristic uses for phones are becoming reality in countries like South Korea and Japan, which typically are ahead of the United States when it comes to mobile technology."
Fundamo, Clickatell Partner to Deliver Mobile Banking Solutions to Global Financial Providers
"As emerging economies continue to pioneer the adoption of mobile banking, two leading mobile services providers, Clickatell and Fundamo, have partnered to deliver mobile banking solutions to financial services institutions to help fulfill what will become a US$5 billion opportunity in the next three years, according to McKinsey & Company."
Lots of Fail With CitiBank’s New Mobile Web Site
"Citibank, the fifth largest U.S. bank in deposits, recently launched a mobile web site. Read more about it on the bank’s promotional page. This should be good news. Most of the other big banks launched mobile web based online banking sites a couple years ago."
Mobile banking, what it is and how it works
"Some time ago people could not imagine that they would use wireless handsets to perform banking operations. Today it is something ordinary if you send an SMS message to inquire your account balance at your bank. Mobile banking while not yet available or at least affordable in many countries of the world is wide spread among bank consumers in developed nations."
How can one get excited about an iPhone image of a check?
"As part of my job, I am regularly exposed to great innovations in the mobile banking domain. Recently, when I read about the USAA iPhone application (Read here and many, many more places), I first thought someone was pulling my leg."
Credit Union Center Offers Mobile Banking
"CO-OP Mobile allows credit union members to access their accounts using their mobile phone. Utilizing CO-OP’s Next Generation Network, the mobile application provides secure, encrypted transactions without storing personal information on the members phone."
ClairMail Powers Mobile Banking for Veridian Credit Union
"The ClairMail mobile banking solution will enable Veridian Credit Union members to access their accounts via multiple modes on a single device, empowering them with greater control over their personal finances. Members can perform a variety of activities including checking account balances, transferring funds and viewing their transaction history."
Mobile Banking Poised for Rapid Growth
"A new report from IDC Financial Insights emphasizes that banks need to prepare themselves today for the imminent wave of mobile adoption to avoid being left behind by competitors. The study indicates that while current economic conditions may have curtailed both consumers' demand for mobile banking and banks' willingness to invest in it in the short term, things are still moving forward."
Monday, August 10, 2009
USAA Mobile Remote Capture
Bank Will Allow Customers to Deposit Checks by iPhone
"The Internet has taken a lot of the paperwork out of banking, but there is no avoiding paper when someone gives you a check. Now one bank wants to let customers deposit checks immediately — through their phones.
USAA, a privately held bank and insurance company, plans to update its iPhone application this week to introduce the check deposit feature, which requires a customer to photograph both sides of the check with the phone’s camera."
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