Banking

9 posts categorized

January 05, 2015

Mobile Marketing for Finance Products and Services

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It’s near impossible to argue the benefits mobile marketing offers a wide variety of industries, including finance. Over a third of major U.S. bank customers regularly turn to mobile banking, and as such it’s essential that marketers take full advantage of what this ever-evolving channel provides. Chase has some 12 million customers moving an astounding $6.5 billion through mobile platforms each month, and that’s just one example. 

“For us, mobile is a critical channel, the fastest growing channel we have, and one that uniquely makes banking a lot more convenient,” says Robert Tas, Managing Director, Head of Digital Marketing at JP Morgan Chase. Tas understands full well the convenience mobile offers customers. “If I don’t have to get into my car and drive to an ATM to deposit a check, you could have saved me 30 minutes to an hour,” he says. 

Let’s take a deeper look at the many benefits mobile marketing offers the finance industry: 

Customer Loyalty

Mobile marketing functions as a true gift to finance, as late-arriving low-balance alerts are just one of the ways to create seriously unhappy customers. A simple text message notification warning customers of their account situation, however? The loyalty such messages provide banks is invaluable. 

And that’s just one way mobile ensures bank customer loyalty. SMS notifications regarding shady transactions is yet another way, as fraud and low-balance notifications are highly time-sensitive. Text also wins over email like nobody’s business, as send-to-open time for texts is 14 minutes, and email 6.4 hours. That’s one enormous difference. 

Increased Communication

Nearly 90% of American adults own mobile phones, and 75% of those send and receive text messages quite regularly. And unlike apps, text messages are compatible with every mobile device under our sun, and most open and read every single text that comes their way—95% of incoming texts are read, compared to 10% of emails. It’s therefore not a stretch to say text messaging is the best and most reliable form of mass communication currently in existence. 

Return on Investment

For companies still on the proverbial fence in regards to mobile marketing, take note: texting equals profit. The technology’s cheap and easy to use, and the average SMS user makes more transactions, has bigger “basket size,” and revolves balances, resulting in that much more income for card issuers. As a bonus, the cost of sending promotions via text is much lower than other marketing means. 

As Tracy Weber, the managing director for Consumer Interest and Mobile Banking in North America for Citi Bank notes, “To be able to delight them [customers] and provide things that really add value to their lives absolutely can go a long way in how they feel about this [mobile] category.” 

It follows that the only question left to bankers who haven’t utilized this strategy is, “Why ever not?” 

 

 

December 25, 2014

Amex Takes Mobile to Another Level

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It’s no secret that people are “addicted” to their smartphones, and that mobile advertising has eclipsed many traditional ad forms as a way to reach consumers. American Express believed the “quality and content” of ads was “not keeping pace,” resulting in a partnership with Zumobi that began in 2012. 

Zumobi offers “the very best mobile apps and advertising experiences through an array of advanced platforms for media companies.” The company’s mobile campaigns have aimed to “shake up the mobile platform norm,” and create wondrous experiences for smartphone users customized to interests and spending habits. This was accomplished via social media, video, and user-generated content. Campaigns also created “tailored timelines” of images for each user, who may also put together personalized panoramas geared towards interests such as dining, electronics, shopping, and travel. 

“We are thrilled to be tapping into Zumobi’s incredible creativity and expertise in developing innovative mobile ads that make full use of smartphones’ native capabilities across their Brand Integration (ZBi) ad platform,” Louis Paskalis, Vice President of Global Media, Content Development and Mobile Marketing, American Express, remarked at the time of the partnership.  “They are enabling us to truly bring The Membership Effect campaign to life by creating a highly interactive and personalized brand experience for card members.”

Zumobi CEO Ken Willner also noted that “this campaign is really about creating personalized and meaningful connections between American Express and its card members.”

Another appealing aspect of the AMEX-Zumobi partnership is providing cardholders with exclusive discounts and deals to restaurants and retail stores when they sync their cards with their Twitter, Facebook or Foursquare accounts. The companies elected comedian Aziz Ansari to star in their television ads, which likely enticed young people. 

American Express made a smart decision by harnessing the power of mobile ads and offering members the chance to enjoy even more discounts and opportunities when using their cards on mobile platforms. Marketing Land predicted a mobile advertising spike of between $2.5 and $3.0 billion dollars in 2012, and that number has only increased.

AMEX, Zumobi and similar companies continue to find new ways of attracting consumers through mobile means, something that will undoubtedly reap serious rewards. If in doubt, simply look around—how many people are immersed in their smartphones? Phones are no longer simply for calling and texting; smartphone use now shapes how consumers shop and how credit card companies, retailers, and other businesses appeal to their target audiences.

 

 

August 21, 2014

Mortgages Go Mobile

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The mortgage lending market is updating the way it does business. Primarily a person-to-person industry, mortgage lenders typically meet with customers directly to offer a variety of packages suitable for their clients. With the influx of mobile users in the past decade, however, the big players in this business are readying to go mobile.

According to the Pew Research Center, about 90% of U.S. adults carry a cellphone. In addition, the report shows that 58% of Americans carry a smartphone, 42% own a tablet, and 32% have an e-reader. These numbers show that, in this nation alone, owning a mobile device has become a standard. Mortgage lending corporations have begun to roll out marketing campaigns based on these numbers, creating mobile apps and kiosks to change the way they have historically addressed their clientele.

In Wisconsin, a company called Waterstone Mortgage has been one of these pioneers. They have developed a digital platform entitled Mortgage Agility, which allows potential borrowers to apply for loans using their smartphones. The app features the ability to take pictures of the potential clients’ documents, thereby speeding up the approval process. Waterstone’s offices in Florida have started to employ Mortgage Agility, and they are already seeing great results: not only are customers’ information collected in an orderly fashion, but they are able to move into a closing position with greater speed and ease.

Another digital platform, called Apex, has been unveiled by FBC Mortgage LLC. This technology comes to customers as a kiosk located at FBC Mortgage storefronts. Apex allows potential borrowers to streamline the approval process, allowing clients to determine if they are eligible for a loan in less than ten minutes. The technology then sends a correspondence letter to the individual immediately after the pre-approval process.

It is true that the mortgage lending industry has a history of doing business the old-fashioned way. When it comes to loans, it is important that all of a customer’s information is protected and handled with care. But the face-to-face practice of lending requires a great deal of a given client’s time (as well as the lender’s time). Nowadays, Americans use mobile technologies for anything from online purchases and video games, to text messaging and information gathering – and the mortgage lending industry must not lose sight of this. By developing strategies for the lending market that incorporate a mobile user’s smartphone (or an appropriate digital platform), their customers will appreciate the ease-of-use and expediency of mobile technologies.

 

 

May 30, 2014

FT Reaches Out to Young People via Mobile Marketing

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Britain’s premier business and economics broadsheet, the Financial Times (FT), last month launched a digital ad campaign aimed at the next generation of business professionals.

Digital posters are dotted around London train, tube and bus stations, imploring the public to find their ‘personalized Financial Times at FT.com.’ The mobile marketing assault includes video ads optimized for smartphones, while the usual social media suspects spread the word online.

Toni Ellwood, the FT’s boss of acquisition marketing, gave a statement at the unveiling of the campaign:

“Since the launch of our digital media acquisition campaign last year, we have seen that 40 per cent of new readers… were in the 24-34 age group – one we hadn’t specifically targeted previously.”

It’s an interesting development for the paper, which hasn’t always been so keen on the sort of mobile marketing tactics now used by most big businesses. Less than two months before the launch of the digital ad campaign, the FT’s chief technical officer John O’Donovan warned against obsessing over specific platforms, singling out mobile-optimized and responsive sites as examples of myopic tendencies among marketers.

And yet, the site was an early, aggressive adopter of certain online and mobile marketing practices that are now de rigeur among all sorts of enterprise. In 2007, FT.com became the first publisher to use a metered paywall and launch an HTML-5-based browsing experience. According to Donovan, the FT generates more revenue from content descriptions than it does from advertising - a pretty unequivocal endorsement as far as proponents of paid content are concerned.

Back then, Donovan described the FT as ‘pushing boundaries’ in the way it disseminated content through a diverse range of channels. His success cannot be ignored – but neither can the overwhelming power of mobile marketing which, frankly, is more effective than other strategies. After all, smartphone usage keeps growing year on year, and more than 90% of all text messages are opened and read within minutes of being received.

At the very least, Donovan would surely concede the point made by his colleague Ellwood, that nearly ‘half of FT.com traffic now comes from mobile devices.’ Their growing mobile audience appears to confirm the very thing Donovan denies: that a mobile marketing campaign should take precedence over other channels without excluding them altogether. 

May 14, 2014

Twitter Adds SMS Messaging Password Resets

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Twitter has updated its security options to allow users to reset passwords via text or email. The updates were unveiled last week.

In order to implement the SMS messaging option, users must associate a mobile phone number with their Twitter account here. Once the phone is activated, it’s possible to disable any unwanted SMS notifications. To reset a password via email, simply click the ‘forgot password’ link on the front page (the option is available on both desktop and mobile versions of the site, as well as the Android and iPhone apps).

Once the SMS messaging request has been sent, a code is sent to the associated mobile phone; the code must be entered on Twitter’s sign in page, followed by the new password.

The move comes after Twitter promised to ramp up security for their service following a spate of suspicious log in attempts. In addition to the new password reset options, Twitter has started analyzing log in attempts based on location and history, in much the same way banks flag up unusual ATM transactions. If they identify an apparently suspicious log in attempt, Twitter will request verification via email or text.

Additionally, the process will ask users a secret question about their account prior to granting access, followed by e-mail notifications if an anomaly has been spotted.
Twitter said recently that user security is a  priority concern, and by adding these new steps accounts will be safer than ever before.

The single biggest breach of Twitter’s security manifested as the recent Heartbleed Bug scandal, which compromised the personal data – including bank details - of millions of users. The micro-blogging site hopes the new measures will prevent similar security breaches in future. A statement on their blog said:

“We’re aware that many people reuse the same passwords across multiple sites. And when any of these sites are compromised, stolen passwords could be used to access your account on Twitter.” 

When it comes to tightening preventative procedures to limit third party hijackings, Twitter is somewhat late to the party. Google implemented a raft of similar security measures in 2010, giving users the ability to track log in history and other information so they could keep tabs on their accounts. 

March 17, 2014

Secure Text Banking? It’s All About Checks and Balances

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SMS messaging provides one of the fastest, easiest ways for consumers to stay in touch with businesses. Banking is no exception. Virtually every major US bank now offers some form of text banking.

Text banking is proving popular with a small number of customers who like to stay on top of the finances – and like the fact they don’t need an internet connection to do it. Nonetheless, as many as 51% of cell phone users think mobile banking is not secure, and the number of bank customers who prefer using cell phones to view balances and transactions stood at around 8% in 2012, when the most recent ABA figures were published. 

This reticence to engage with text banking is understandable. Fears about sending account details via text messages are not unfounded. And even just using text as one part of mobile marketing tactics that make no specific reference to an account will make some customers jittery. When it comes to personal finances, some people will always prefer the real-world transactions they’re used to.

For people more concerned about convenience than worst-case scenario cyber-fraud, SMS messaging is one of the best things to happen to banking. Apart from the improved customer service texting can offer, it’s also – whatever detractors tell you – potentially far more secure than other typed of banking. 

In response to security concerns, most banks have recently designed a whole host of precautions enabling them to minimize fraud and identity theft. Customers are now assigned a PIN they must enter to begin any particular SMS messaging session, as well as nicknames for account numbers.

Leading the way in providing greater security for text banking is Wells Fargo, who were the first bank to make the service available to all customers, even those not enrolled in online banking. Their research indicated customers want to check their balances while on the move, so they implemented a number of codes that customers could text to perform certain transactions. ‘BAL ALL’ lets customers check their balance.  ‘ACT’ tells them if a check is deposited. ‘ATM’ points them to the nearest cash machine.

The bank does not send account numbers or passwords, and their Online Security Guarantee promises 100% insurance if unauthorized activity is reported within 60 days.

Other banks have gone further. Both USAA and BOFA allow customers to deposit checks using an iPhone. Not everyone will be comfortable performing such high level transactions remotely. But for those who want that choice, SMS messaging and mobile banking is making life a whole lot easier.

July 21, 2009

Visa Europe Testing SMS Transaction Alerts

If you're a Visa cardholder in Europe you'll soon be able to have an alert sent to your phone whenever you make a purchase. While this could become very annoying, it could also be a great way to find out, immediately, if you're card was stolen:

“With Visa’s mobile alert service, we want to offer cardholders the reassurance of knowing, in real-time, exactly where and when their card is being used. If something looks suspicious, this will give them the power to put a stop to any fraud taking place on their cards.”


Read more @ IntoMobile.

July 13, 2009

Place Buy & Sell Orders On The Nairobi Stock Exchange Via SMS

"Place Buy & Sell Orders On The Nairobi Stock Exchange Via SMS" Sounds like an email scam, doesn't it? Well, it's not. Kenya's stock exchange has just taken a big leap forward:

The Nairobi Stock Exchange continued its technology advance with the introduction of buy and sell orders via mobile phones. Last week, Standard Investment Bank introduced a Short Message Service (SMS) for its clients to place orders.
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James Wangunyu, Executive Chairman of the bank, said the EasyHisa mobile product offers convenient services and comes in response to the call from the Capital Markets Authority to embrace technology.

The Central Depository and Settlement Corporation, which offers custody services, also has an SMS update for investors interested in tracking their shares and following their performance. Several market stakeholders offer online services for placing and executing sale and buy orders from clients, but many retail investors apparently do not have easy Internet access.

Standard Investment Bank assures clients that the SMS service is secure and they provide confirmation within the hour. Trading at the NSE has grown over time and moved from open outcry to a successful automated trading system in 2006, according to a report on afrigrow.com.

Read it @ Africa News

April 18, 2008

Mobile Banking To Jump To 37 Billion In 2011

OnlineMediaDaily reports on an interesting prediction:

Mobile banking transactions worldwide will jump to 37 billion in 2011 from 2.7 billion in 2007, according to a new report by Juniper Research.

A growing variety of mobile financial services including funds transfers, bill payment and account management will help to drive the increase in transactions. Improved security safeguards will also be crucial to the rise of m-banking's expansion.

Read more @ OnlineMediaDaily.