- Next generation online cash management solutions are here. Bank of America, Citi, and some of the software vendors showed off some great online cash management solutions. For more info see my recent blog post, Peeking Out From Under The Hood – Next Generation Online Cash Management.
- Online cash management will continue to evolve. Analytics, social media (primarily closed groups for corporate clients), interactive online training/education, desktop and online widgets, and MUCH more will start to peek out in 2010. I will cover some of these trends in the next iteration of our IT Spending report (due out in January 2010) as well as a future cash management report.
- Payment hubs are transitioning from concept to reality. There has been lots of talk about payment hubs over the years, with few compelling live examples. Solutions that clean up the mess of back-end systems coupled with clean, simple and intuitive front ends are on the horizon.
Any other trends worthy of noting? Please feel free to chime in, your comments are welcome.
- Banks must emphasize innovation. In order to remain competitive and take a leadership position, banks need to work on innovation. It is important to recognize customer requirements, and stay one step ahead of them.
- Banks need to focus on customer experience. Innovative banks are on a path to improve the overall online customer experience of their core cash management products. Cash management features are mature for the most part. Customer experience and ease of use is where the real challenge lies.
- Banks must embrace online trends, not shy away from them. The online world moves at lighting speed and banks need to keep up with some of the trends. A great example is the use of media (e.g. video, blogs) to further knowledge and emphasize education.
Citi wasn’t the only bank to come out with interesting news at SIBOS. Bank of America signed a deal with Fundtech for its Global PayPlus platform. The goal is to create a payments hub that will be part of BofA’s next generation cash management solution. It’s all about efficiencies, and when everything is said and done, Bank of America will have a single payments processing platform. The payments hub will support payments initiated across all channels. It sounds pretty impressive and I look forward to learning more about this when it goes live (target is second half of 2010).
American Banker published a good article that highlights both of these initiatives.
Further details and some screenshots can be seen in the following video clip with Gary Greenwald (Chief Innovation Officer at Citi). Gary Greenwald’s efforts have not gone unnoticed – he was named yesterday to the Bank Systems & Technology Elite 8.
- Banks should implement a transaction monitoring solution (if they have not done so already)
- Banks should adopt out of band authentication solutions (e.g. replace traditional token by sending a one-time password to a mobile phone via SMS)
- Banks should consider offering mobile soft tokens (e.g. an application on an iPhone or Blackberry that provides a one-time password). For more details see the following Celent blog entry, “Move Over Token, My iPhone Can do The Trick“
- Banks should revise certain policies and procedures (e.g. require a token, more frequent password resets)
- Banks should emphasize new customer education tools (e.g. training videos / blogs / podcasts on online risks, importance of virus protection, etc.)
- Online corporate cash management is taking center stage this year in the wholesale banking space.It is receiving increased attention as banks look to upgrade or augment their aging platforms to woo additional business. Growing corporate relationships is a major theme as banks aim to offset the lackluster growth on the retail side and focus on higher margin businesses that contribute to noninterest income. In fact, spending growth on online corporate cash management solutions by far exceeds IT spending growth of the overall banking industry.
- Celent believes that a great opportunity exists for one or more vendors to stand out from the pack by demonstrating a differentiated Web 2.0 user experience. This has already started as a handful of the vendors we evaluated showed off differentiated experiences using Web 2.0 elements. Dashboards, interactive reporting, and improved user interfaces are starting to pop up as the vendors recognize the need for change and improvement.