Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below or Tweet @bankingdotcom.
- Majority of Americans Own Smartphones, Pew Survey Finds
Fifty-six percent of U.S. adults own a smartphone of some type — up from 35% of adults two years ago, the Pew Research Center said in a report released Wednesday. The report marks the first time in the two years that Pew has surveyed smartphone adoption that a majority of Americans say their mobile phone is a smartphone or that their phone operates on the iPhone, Android, Windows or BlackBerry platform. The adoption comes amid a surge of shopping, surfing, social media and other activity on mobile phones in recent years. Twenty-eight percent of all mobile phone owners banked with their device in the past 12 months, up from 21% a year earlier, according to a survey released in April by the Federal Reserve Board.
- Mobile Banking Is Mainstream – What About Security, ROI, Payments?
Theodore Iacobuzio had a stern message for bankers: “The train is leaving the station,” said Iacobuzio, a MasterCard executive, referring to the emerging mobile payment economy. “You have to get on.” Earlier that Wednesday, Iacobuzio had spoken on a panel at the Mobile Banking and Commerce Summit in Miami about using data to drive relevant offers to cardholders. After being more than a theory for the past several years, financial services companies have been iterating and tweaking their mobile banking models — offering mobile deposit capture (depositing a check with the snap of a smartphone camera) — for at least the past three.
- Should A Bank Outsource Its Mobile Strategy?
Now more than ever before, banks need to be able to offer their customers innovative digital services, and bank IT spending trends point to this conclusion. According to U.K. analyst group Ovum, mobile banking is the clear IT investment priority in 2013 among the digital channels, as retail banks attempt to capitalize on the features unique to mobile, such as location-based services. According to a report from the firm released earlier this year, spending on digital channels, which includes mobile, will grow 6.7% in North America in 2013 and rise at a compound annual growth rate of 8.2% between 2013 and 2017
- iWallet: What Apple left out of its WWDC presentation
“Mobile payments remains a future opportunity,” wrote Morgan Stanley’s Katy Huberty in her note to clients about Monday’s WWDC keynote. On Tuesday morning the U.S. Patent Office granted Apple (AAPL) 37 patents that included, as Patently Apple reports, an “E-Wallet” patent for parental controls and a “simplified wireless data transfer” patent that would allow an iPhone to make mobile payments without relying on NFC (near field communication) technologies.
- Small Banks Lead the Innovation Agenda
Today, we are witnessing numerous instances of smaller players spawning innovations across social media, self-service channels, mobile banking, pricing, payments etc. to deliver customer delight. So, what is making banking, an industry not often associated with innovation, look for new and innovative ideas? There are lessons on agility, drive for change and customer orientation that larger institutions can imbibe from the smaller banks and replicate them accordingly. With every new technology defining a new way of consuming, sharing and delivering information, the constant question when thinking in the context of money is “Why can’t I do that” and often, the answer is the inability of the bank.
- Big data to drive banks’ mobile wallet strategies – Finextra research
Research from Finextra finds that banks around the world are looking to discounted offers and big data analytics to beat off the competition from telcos and tech start-ups as they battle for control of the consumer mobile wallet. For the research – conducted on behalf of Clear2Pay and NGData – Finextra surveyed more than 183 bankers on the key issues around the monetisation of mobile payments. Respondents were primarily (76 percent) employed by large banks with more than 2500 employees and ranged from C-level executives to business development, IT and marketing strategy management – with a nearly even split between national and international banks.
- Consumers Don’t ‘Like’ Banks in Social Channels
The rapid growth of social media presents an array of ever-expanding opportunities to both consumers and marketers alike; But how does this apply to the relationships consumers want with their bank? To answer this question, The MSR Group examined the social media habits of consumers, asking which companies they follow on social networking sites such as Facebook, LinkedIn, Twitter and YouTube. However, consumer interest in following banks was much lower, with only only about one in every 30 indicating they had ever followed their primary financial institution. When gauging future interest, only 2% of online banking customers said they were very likely to start following their bank.
- Banks turn to tech to cut cost of new regulation
Swiss private banks are hoping to gain a competitive edge by investing in the latest technology for risk management and compliance to keep down the cost of new regulations brought in since the financial crisis. Among the myriad of new international rules, the United States, for example, has brought in the Foreign Account Tax Compliance Act to raise tax revenues from secret accounts held by their citizens. “The cost of risk and compliance has risen a good 30 percent in the last two to three years,” Alexander Classen, CEO of the international business of private bank Coutts, told the Reuters Global Wealth Management Summit in Geneva.
- Apple files ‘iMoney’ patent for virtual currency, digital wallet, and … free stuff
Apple has applied for a patent on a combined virtual currency and digital wallet technology that would allow you to store money in the cloud, make payments with your iPhone, and — just maybe — communicate with point-of-sale terminals via NFC.