- What exactly is a small business and how do we segment our small business customers?
- Where does small business sit in the banking organization? Who is responsible for it? Should it be retail banking, corporate banking, something else?
- What should be done with small businesses who are being treated as consumers (from a product and servicing perspective)?
- What should we be asking small business customers about when we survey them and speak to them? How do we ascertain their needs?
- Reassure and communicate regularly with the public. This was a serious issue when Chase had a major web site outage last year. Tweet, get onto Facebook, reply directly to customers. Don’t just listen, watch, or provide generic replies with basic info. Address customers, point them to channels that do work, direct them to nearby branches, have customer service reps call them. This is easier said than done as call centers are overloaded. PNC, the latest bank to come under attack has but a handful of tweets today – all very generic.
- Be prepared for round two. Right now these attacks appear to be concentrating on bank web sites. Could a completely different type of attack (e.g. a data breach) take place in the next round of cyberwarfare? Banks definitely have to be on the lookout for this. It wouldn’t surprise me to see hands try to enter the cookie jar in an attempt to steal customer information and/or assets. This isn’t happening right now, but banks have to be prepared for what could happen next.
No matter how you look at this, these attacks are terrible. We live in a world where consumers have come to rely on digital transactions (and they should). Attacks like these shake consumer confidence, and eat up precious bank IT dollars that are already quite scarce. Please feel free to chime in with your comments.
C.K. Mack. An online investment tool that allows users to invest in real estate income properties. I really love that this is different, but I actually dislike it from an investment angle (per my tweet):
Most Overrated Demo:
MoneyDesktop. This PFM player caters to smaller institutions via a range of partners. To be fair, I really like the MoneyDesktop solution and user experience. I especially like that they have synchronized their solution across online, tablet, and mobile. What I didn’t like was the “bubble budgets” that everyone at the show was raving about:
I got a lot of flack from others about this comment, but hey, to each his own. There is so much more to PFM and what should be encompassed in next gen PFM and online banking. MoneyDesktop has some of that going on, but the demo focused on these bubbles complete with dueling iPads – highly entertaining, but not what I would call innovative or game changing. If you want to learn more about next generation PFM and online banking, come out to my BAI Retail Delivery session on this topic.
Thanks to Jim, Eric, and team for another great Finovate event.
- Can banks dominate the P2P payments landscape? Will customers go to banks or alternative payments providers?
- Is there really a difference to the customer between a “P2P” payment or a bill payment (a payment is a payment)?
- How do mobile and tablet devices factor into the picture?
There are going to be some significant changes over the next few years to the consumer payment options offered by financial institutions. I’m going to address these questions and more in an upcoming report – stay tuned! In the meantime, please weigh in with your comments and questions.
- Are social rewards a passing fad? While this Amex/Twitter hookup received a fair bit of attention is it going to stick? It reminds me of a SPG promo announced about a year ago that offered 250 Starwood points for every Foursquare checkin during a hotel stay. Being a regular traveller, I tried this a few times and received some bonus points. I’ve since totally forgotten about it, and I am a points junkie! I don’t have any hard stats but I’d wager that usage of this promo has dropped off. Will the Amex/Twitter offers follow the same fate? There are hard dollars and a larger number of merchants involved here (see list of Twitter offers here) so it’s a tad different.
- Do social rewards increase brand loyalty? Everyone likes a good deal these days but how much loyalty is this actually creating? Would you, for example, switch to McDonald’s from Burger King in order to cash in? Would this create additional loyalty towards Burger King?
- Will social rewards drive folks to regularly transact using Amex cards (over another payments vehicle)? There is a battle brewing between merchant rewards online banking solutions and American Express. As Zil noted, there are quite a number of vendors in this space. Cardlytics in particular has been successful at penetrating the large bank market and has also formed partnerships to deploy via Intuit and Fiserv. The Amex/Twitter program is a direct attack against online banking merchant rewards. It’s but a blow in what is going to be a drawn out battle to own the transaction.
There are lots of questions for the moment and not a lot of answers given the immaturity of this space. I welcome your thoughts and comments.
- Bottomline acquires Intuit Financial Services commercial banking business for $20 million
- The two firms have formed a partnership and will work together “through cross promotions, referrals and joint sales efforts to deliver innovative solutions for financial institutions of all sizes.”
Several Celent clients have contacted us to gain a better understanding of this deal and what it means for the market. I interpret this in a very straightforward manner:
- Bottomline has lacked a small business offering and now they have one. This now allows them to attack an additional segment of the business market. It also allows them to move downstream to work with smaller financial institutions and their small business clients
- Intuit is a small business powerhouse, and although they sold off their “commercial banking” business I have no doubt they will continue to tackle the small business market. What’s interesting here is that although the assets they sold have been labelled “commercial” and have some commercial capabilities, they are in fact being used by plenty of small businesses. Celent has reviewed Intuit’s solution as a small business solution, based on the size and nature of their current bank customers. It will be interesting to see how Intuit’s consumer online banking solution will evolve in order to serve micro and small businesses. I see Intuit paying extra attention to the small business market moving forward, so even though they sold off some assets this is still a player to watch.
- ZashPay User Impressions
- U.S. Bank Deposit Point: Doing Right Things Right
- Tablet Wars: Online/Mobile Banking Will Never be The Same
- New ATM Rules on the Block
- Will Tablets Change Banking?
- Bank IT Spending and Trends: What Does 2011 Look Like?
- Celent Model Bank Awards 2011
- Is PFM The Future of Online Banking?
- U.S. Bank Deposit Point II: Will Pay-for-Deposit Last?
- Chase Website – Down Again