Google, Apple, Facebook and Amazon Should Terrify Banking
The Financial Brand’s @Jim Marous pits the finance industry against the tech world and explains the threats to banks and credit unions.
“On one side of the table are the legacy ‘career’ bankers or credit union executives, who realize that becoming a ‘bank’ is much harder than simply hanging a shingle with the words ‘Google Bank’ or ‘Facebook Financial.’ On the other side of the table are the younger bankers who realize that, with new technology and without the need for bricks and mortar, the barriers to entry for many banking services, such as payments, are lower than ever. So, who is right in this argument? Are the fears (or complacency) justified?”
“The Bank of the Future is all about engagement and relevance. A branch of the future strategy is an effort to retain relevance, but it misses the key point that engagement in-branch is in decline for other reasons. Beyond a spike when a new branch layout is launched, I've not seen any data that shows significant improved engagement over time - you can bet if we were seeing this trend then the branch of the future enthusiasts would be yelling it from the rooftops.”
“Banks should play to their strengths. They will struggle to be as nimble and agile as a start-up in the financial technology sector, but equally, many of their competitors do not have their wealth of experience and expertise. While trust in the banking sector may still be low, millennials aren’t naive when it comes to money – and it’s certainly important to them. Many will have received warnings over their on-line accounts being compromised (recent high profile examples include a gaming company to an online auction site) and they should respond positively to messages around security and good financial practice. Banks should look to invest or partner where they are weak in terms of service provision but equally they should not be shy in promoting their strengths.”
Digital Banking Trends for 2014: A Synopsis of 4 Surveys
Money Summit’s @Jon Ogden boils down reports from Accenture, American Banker, Ernst & Young and PwC to the key takeaways.
“In their survey of bankers across the nation, American Banker Magazine found that spending on mobile banking software has skyrocketed in 2014. Of the bankers surveyed:
- 68 percent said they're spending more on mobile banking this year than they did last year
- 20 percent say they've increased spending by more than 50 percent
- 33 percent have increased their mobile banking budget by 11 percent to 50 percent
Is there another area that’s growing so quickly in the financial industry? Can you imagine if 20 percent of banks had increased spending on branches by more than 50 percent in 2014? Mobile banking is the way of the future, and the increasing shift in bankers’ budgets only goes to show how quickly things are changing.”
5 pitfalls banks must avoid as they offer mobile service
Mobile Commerce Daily’s @Klaus Enzenhofer offers suggested best practices to combat common mobile mistakes.
“Pitfall #5: Standing Still
In today’s ultra-competitive marketplace, one of the biggest mistakes that a bank can make is playing it too safe – defaulting to keeping things the way they are and avoiding innovation.
The mobile opportunities for forward-thinking banks are endless.
After all, who would have thought a few years ago that a camera on a smartphone would be used to enable check depositing apps?”
Banks Find It Tough to Attract Top-Tech Industry Talent
American Banker’s @David Heun talk’s with Aite Group research director Christine Barry about design and technology in the finance industry
“Most banking technology looks ‘archaic’ compared to what is being offered by tech companies, [Barry] added.
‘If banks want to position themselves for future success and to win the business of young people, they have to start adopting some of the practices of tech companies that encourage greater creativity.’"