Author: Jim Bruene

Out of the Inbox: Upbeat Customer Email Message from Umpqua Bank

By Jim Bruene Posted on
Categories: Email Marketing, Email Samples, Public Relations, Small Business, Twitter

image I recently opted in to the Umpqua Bank email list. And even though I’m not a customer, I received an upbeat message this morning from bank president Ray Davis (screenshot below).

This email appears to be geared towards businesses (see the closing line below). And that makes sense because I’d recently been looking into its business social network (note 1). But the message is on-target for consumers as well.

The well-written 185-word letter covers three main topics:

  • A cautiously optimistic message about the overall economy
  • Some tangible evidence (new banking division, new lending teams, new capital, and 20,000 hours of community service) that the bank is a forward-moving survivor
  • Reassurances to customers that they were well-capitalized and moving closer to repaying TARP money

The tone was completely soft sell. There is a link to its online switch kit at the bottom and links to its LocalSpace business social network and Twitter feed (note 2) on the right. It’s more “we’re in this together” than sales pitch and closes with this wonderful line:

As we wrap up 2009 and look ahead, I encourage you to commit to the spirit of recovery and take action that positions you for the future.

We recommend that every other well-capitalized bank and credit union send a similar message before the holidays. We are about to move into the annual “year in review” exercise in the media, and this year’s 100+ U.S. bank failures will be high on the list. Remind your customers, members, employees that you are still a vital member of the community. And that for every financial institution that went under, there were a 100 like yourself that did not. 

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Notes:
1. For more info on the small-business market, see our latest Online Banking Report: Small Business Online & Mobile Banking.
2. Umpqua dreamed up one of the most compelling reasons we’ve seen to follow a bank, or any company for that matter, on Twitter (with the possible exception of the tweeting bakery): updates on its truck handing out free ice cream (Umpqua Twitter page).

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New Online Banking Report Published: Serving Small Businesses with Online & Mobile Banking

By Jim Bruene Posted on
Categories: Online Banking Report, Small Business, Strategies

image Since we began publishing Online Banking Report in 1995, we’ve taken a deep dive into the small- and micro-business online banking market five times. The latest was published yesterday (here). Online Banking Report subscribers can access it now as part of your subscription  (note 1). Others may purchase it for US$495 (abstract here).

Small business banking is one of my favorite subjects. It’s near-and-dear to our hearts because we’ve experienced first-hand the frustration of trying to manage our business with neither the resources, nor frankly the interest, to tap sophisticated business-management tools.

So, we’ve hobbled along over the years using Word, ACT, Excel, Microsoft Money, a hand-written ledger, and a moderately customized ecommerce back-end on our website. But we’ve clearly paid a price (note 2) for our lackadaisical approach to business finance.  

The reason I share our foibles is to point out the need for banks (note 3) and others to look at the opportunity more broadly. You can do so much more than simply help small businesses manage their checking accounts and credit lines. It’s the day-to-day business drudgery, billing, account receivables, record-keeping, tax prep, payroll, compliance, and so on, where small and micro businesses really need help.

As I’ve said many times over the past decade, I’d gladly pay $500 per MONTH for an online, small-business financial management service that handled ALL our needs. Ultimately, it would save us thousands per year, while delivering much more timely info about the health of our business.

Our latest report is a true product-manager’s guide to small-business product/service development with 76 pages of ideas plus examples from leading banks worldwide. We tie it all together with detailed descriptions of four levels of small-business package accounts (starting on p. 45 in the OBR Small Business Report; note 4):

  • Virtual Checking Account: A transaction-oriented service priced at $25 or so per month
  • Virtual Business Manager: Organizes most financial management duties for $50 to $100 per month
  • Virtual CPA: Handles most business-management functions including customer relationship management and billings for a monthly fee of $100 to $250
  • Virtual CFO: The works for $500+ per month

The report also includes data on the size of the U.S. market and a forecast for online banking usage for the next 10 years.

Notes:
1. Printed copies will be mailed late next week.
2. According to our accountant, we’ve spent well into five-figures more than necessary, mostly in extra taxes. Then again, we’ve avoided paying bookkeeping and software expenses that could have been just as high. 
3. Why do I think this is an opportunity for banks and credit unions, when it is outside of their core deposit and credit offerings? Very small businesses have neither the time nor resources to search for solutions, and then perform the due diligence necessary to determine whether the solution provider or professional services firm is trustworthy. On the other hand, while business owners may not always hold their bank in the highest regard, they at least trust them to safeguard their info. An army of regulators and class-action lawyers makes sure that the bank does not take its fiduciary responsibilities lightly. 

But few financial institutions will look to build sophisticated financial management features in house. Most will look to outsiders, both startups such Outright.com and established bank-tech firms such as Intuit, to build and maintain the business-management features.
4. See also, our recent post on small-business dashboards. 

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myFICO Forum Wins 2009 Forrester Groundswell Award

By Jim Bruene Posted on
Categories: Bank 2.0, Bank of America, Intuit, Social Media

image Fair Isaac’s popular forum (powered by Lithium; screenshot below) which supports its myFICO retail credit score/report unit, took first prize among 16 entrants in the Business-to-Consumer Supporting category in the recent Forrester Groundswell awards (winners list).

The Groundswell awards are based on business results using various social technologies. In total there are 16 categories.

The myFICO forum is currently receiving:

  • 120,000 unique visitors in Sep 2009, up almost three-fold from a year ago (see chart below)
  • 20,000 new posts added each month…with more than 500,000 posts archived
  • 400,000 searches per month
  • 10,000 new registered users per month

image According to information supplied with the application, the forum is helping Fair Isaac in the following ways:

  • Lowering call-center volumes: Total call center volume was down 1% in 2008 compared to a 23% gain the prior year.
  • Reducing call-center talk time: 10% of callers are referred to the forum for more information and/or help from other users.
  • Driving traffic: Traffic to myFICO.com from the forum equals about 40% of the volume from search engines.
  • Improving sales: The average amount spent by a customer grows by two-thirds after they join the forum and 13% of all myFICO sales online involve a forum view.

While myFICO was the only financial services winner, Bank of America was one of four finalists among 23 entries in the B2C Talking category for its Morris on Campus student-banking campaign as was MasterCard Brazil for What’s Priceless to You? 

Significance to Netbankers: myFICO’s busy forum shows that despite the proliferation of blogs and social media, an old-school online forum is a good way to build a community and off-load the tech support burden. Of course, forums don’t run themselves, and you’ll spend a considerable time moderating them. But considering the alternative, it’s an expense worth considering, especially if community-building is part of your strategic goals. Intuit has also had great success with its community forums, attracting 130,000 monthly unique users (see chart below).

myFICO forums (link, 29 Oct 2009)

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Website traffic for myFICO and Intuit forums from Compete (link, 29 Oct 2009)

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For more info:

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The Missing Link for Small Businesses: Banking, Finance & CRM Dashboard

By Jim Bruene Posted on
Categories: Personal Financial Management, Small Business, Website Usability & Design

I finally finished our latest report on small business online banking last night. Just as I was about to upload it, I realized there was something missing in the “dream online banking solution” for small businesses.

So I stopped the “presses” and added it to the report. What was the missing piece? A financial and business management dashboard integrated with online banking.

I poked around the web today and found a few interesting products (see update below), none of which were quite what I was looking for, and had no direct connection to financial institutions:

  • image MyBizHomepage has a dashboard that integrates with QuickBooks and sounds pretty slick. But there website hasn’t been updated for more than a year, so not sure if this is a viable business or just a hobby site. I have an inquiry in to the owner.
  • image DreamFactory Software also offers QuickBooks-integrated dashboards. I found it in the new Intuit App Center for QuickBooks add-ins (here). It’s a powerful program, but not the kind of plug-and-play dashboard I’m looking for.
  • image iDashboards: Has impressive sample dashboards to view. None integrate directly with online banking, but many include financial data (see screenshot below).

So I’m still looking for financial institution examples. Know any? Comment below or email me. It’s too late to make our report, but we’ll report it here.

iDashboards mockup of a healthcare “billing scorecard” (link, 28 Oct 2009)

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Update (29 Oct 2009):

Here’s another QuickBooks dashboard from QuickGauge.com:

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Peer-to-Peer Marketplaces Join Forces to Influence Lawmakers with the "Coalition for New Credit Models"

By Jim Bruene Posted on
Categories: Lending Club, P2P Lending, Prosper

image Caught up in the regulatory crackdown in all things financial, new models that would transparently originate consumer and small business loans between individuals, the so-called P2P marketplaces, have struggled mightily to satisfy SEC requirements (my feelings about that). In fact, all three peer-to-peer U.S. lenders had to shut down for extended periods in 2008/2009 to reengineer their marketplaces. See our previous coverage here (note 1).

Earlier this year, Lending Club spearheaded a largely marketing-oriented campaign called UnCrunch America, which brought together several companies including Credit Karma, Virgin Money, Geezeo and On Deck Capital to publicize alternative lending. You can see our previous coverage, but that program appears shuttered with the URL redirecting to Lending Club.

This week, a new multi-company effort called, Coalition for New Credit Models, officially launched (press release). This group is spearheaded by rival loan marketplace Prosper, whose founder Chris Larsen has spent considerable time lobbying federal and state legislators during the past year.

The coalition’s stated goals are largely political, hoping to influence legislators to reverse the SEC ruling that classified P2P loans as security offerings as well as adopt new programs to help support new methods for consumers and businesses to access capital.

Chris Larsen’s quote in the press release compares the need for financial innovation to that needed to solve energy problems:

This country has been in an energy crisis for years, and we are now in a financial crisis. America’s economic future depends on new and alternative credit models being embraced in the same way green technologies are being nurtured by policy leaders to help solve the energy crisis.

It’s a worthy effort, and we hope their voices will be heard on Capital Hill. With traditional bank financing still a pipe dream for many small businesses, this is an ideal time to test new methods of getting capital to entrepreneurs who can productively put it to use. 

About the coalition members
We are proud that five of the seven (Credit Karma, Loanio, Prosper, The Receivables Exchange, and SecondMarket) have appeared on stage at FinovateStartup and three of those (Prosper, Credit Karma, and Loanio) have also presented at Finovate in NYC (note 2).

Here they are in alphabetic order:

  • Credit Karma: The San Francisco-based Finovate alum (video) launched in 2008, displays free credit scores and credit report info in an ad-supported business model. 
  • Loanio: This Nanuet, NY-based peer-to-peer lender launched at Finovate 2008 in October 2008 (video). However, it suspended business activities a few weeks later to register its securities with the SEC. It has yet to reopen.
  • ProFounder: The Palo Alto, CA-based startup provides a platform where entrepreneurs raise seed funding from their social network and affiliates.
  • Progreso Financiero: The Mountain View, CA-based firm provides loans to underbanked Hispanic families using a proprietary credit score enabling it to make loans to families without FICO scores. 
  • Prosper:  The San Francisco-based startup, which presented at the inaugural Finovate in 2007 (video), has facilitated $180 million in p2p loans since launching Feb. 2006.
  • The Receivables Exchange: The New Orleans-based startup showed its account receivable marketplace at FinovateStartup this past April (video).  
  • SecondMarket: The NYC startup and FinovateStartup alum (video) is the largest centralized marketplace for illiquid assets such as auction-rate securities, bankruptcy claims, CDOs, private-company stock, whole loans, and more.

Notes:
1. For more on peer-to-peer lending, see our Online Banking Report: Peer-to-Peer Lending (Dec. 2007)
2. Uncrunch America members Lending Club and On Deck Capital are also Finovate alums.

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Bank of America App Shown in Sprint Android Microsite

By Jim Bruene Posted on
Categories: Android, Google, Mobile Banking

image Once again, the first mover gets the attention. Bank of America, long a fixture in Apple iPhone advertising, now figures prominently in Sprint’s marketing for the Google’s Android marketplace.

In a whirling dervish of apps on the Sprint microsite, Bank of America’s mobile banking app appears in the second set of four apps displayed (see screenshot below). 

Spring microsite featuring BofA app (link, 21 Oct 2009)

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Android market has BofA mobile banking on the second page of top free apps (link)

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Note: For more info on mobile banking via apps, see our Online Banking Report: Mobile Banking via iPhone (March 2009)

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Bank of America Offering 1 Year Free McAfee Internet Security at Online Banking Logout

By Jim Bruene Posted on
Categories: Advertising & Promotion, Bank of America, Login/logoff marketing, Security & Privacy

image This is one of the most valuable freebies I’ve ever been offered simply for being a customer. Bank of America online banking customers, new or existing, are being given a one-year free subscription to McAfee, worth $70 at retail.

The fine print is relatively clear (reprinted below, after the screenshot). The main “catches:”

  • Must not have a current McAfee subscription (see Results below)
  • The subscription auto-renews at $34.98/yr, a 50% discount
  • While in progress, the BofA offer never mentions number of users covered (the normal $69.99 subscription from McAfee covers three users, see note 1); however, during checkout, after accepting BofA’s offer, the product description confirms three users are covered with the subscription

Bank of America is also publicizing the offer on its main website (here). To accept, users must log in to online banking first.

Results: I signed up for the account this morning and was surprised to find that you are not required to use Bank of America for payment. In fact, BofA is never mentioned again after leaving the original landing page (see second screenshot). The McAfee cart offered the usual choice of Visa, MasterCard, American Express, PayPal and others. 

Opportunity for financial institutions: Assuming you can swing a deal with McAfee that requires no out-of-pocket expense, offering your customers a year’s worth of anti-virus protection is a win-win. The primary downsides are a few extra calls to customer service and a few irritated existing McAfee customers who do not qualify for the freebie.

Bank of America logout screen (21 Oct 2009; 7 AM Pacific)

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Fine print on bottom of page above:
This exclusive offer is available only to Bank of America Online Banking customers. Online Banking customers receive McAfee Internet Security for PC free for 12 months, a $69.99 value. At the end of the 12-month period, Online Banking customers are eligible to renew for another 12-month period at 50% off MSRP or $34.98. Customers with a current McAfee subscription are not eligible for this offer. Bank of America reserves the right to modify this offer and eligibility requirements at its discretion.

Landing page (link)

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Same offer on BofA website (link)

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Notes:
1. The service is currently offered at a discount at Intel’s software store for $32.95 for one year for three users. Intel’s offer was positioned via paid ad at the number-one position on a Google search for “McAfee Internet security.”
2. For more information on online banking security, see Online Banking Report: New Security Techniques (Sep 2008)

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Cascade Bank Has a Business Banker Directory on its Website

By Jim Bruene Posted on
Categories: Advertising & Promotion, Small Business, Website Usability & Design

image Isn’t business banking supposed to be all about the people? Then why don’t financial institutions use their websites to publicize their business banking talent? None of the several dozen business banking sites I recently reviewed allows prospective business clients to connect with an actual human being in advance of calling or emailing a general number for more info.

The only bank I’m aware of that actually puts its business bankers on its website is Cascade Bank headquartered in Everett, WA, a few miles north of Seattle. The bank has posted the following info for years (see screenshot below):

  • Headshot
  • Name, title, location
  • Short mission statement/bio (note 1)
  • Phone number and email address

That’s a respectable start. But with today’s virtually free Web-based tools such as Twitter, blogs, and Linked:In (note 2), every business banker should have their own online presence. Sure, the bank or credit union will need to provide guidance and oversight, but it’s not like these sales folks don’t know how to put their best foot forward.

Cascade Bank Commercial Banker Directory (link, 20 Oct 2009)

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Notes:
1. Unfortunately, the bio area is blank for 3 of the 12 business bankers listed. That looks pretty bad, especially with 2 of the first 3 blank. Come on Lar, Cynthia and Patrick, get those bios over to marketing ASAP.
2. Those Cascade listings would look much more impressive with Linked:in links by each name.

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Bank of America Cleaning Up its Customer Records at Login, but Why the Phone Call?

By Jim Bruene Posted on
Categories: Bank of America, Customer/Tech Support, Login/logoff marketing, Security

This is a somewhat perplexing message to receive after logging in to online banking. It seems almost phish-like (especially with that old-school corded phone in the picture):

A recent review of your account indicated that we are missing your date of birth. We use this information to help verify your identity. Please call us at the 1.800 Customer Service number on the back of your credit card so we can update your file.

I guess I can understand the bank wanting my birth date, but it brings to mind several questions:

  1. Why are they asking me now? I’ve three accounts there, with one dating back to the 1980s. Is something wrong? Has my account been accessed by someone else? Then my more cynical side thinks, did this request come from the marketing dept. or the security folk?  Bottom line: the bank should provide a more detailed explanation via a “more info” link.
  2. I have to CALL, really? Why can’t I do this online? Will I have to endure a cross-selling session when I make the call? Will I have to go through the entire phone tree to get to an operator? The least the bank could do is provide a direct line for the task.

The whole thing seems like a ridiculous waste of time. A five or ten-minute journey through call center menus in order to provide six numbers to a live operator. Plus, won’t this extra call-in requirement drastically reduce user response? 

Bank of America interstitial after logging in to online banking (14 Oct 2009, 5 PM Pacific)

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Last Day to File Extended U.S. Income Tax Returns, Why Doesn’t Anyone Remind Me?

By Jim Bruene Posted on
Categories: Alerts & Messaging, Small Business, Tax Prep

image If you are like me, you put off filing the dreaded 1040 as long as possible, and may often have no clue that the final due date (for extended returns) has snuck up on you once again. Then there are those quarterly filing dates that aren’t spaced three months apart (see screenshot; note 1). 

That’s why every financial institution that serves small businesses and the self-employed should do three things:

  • Post the IRS due dates on its website (see screenshot)
  • Provide email/text reminders (opt-in naturally)
  • Blog/Twitter them

Small biz accounting startup Outright.com (a Finovate 2009 presenter) is ahead of the curve with its handy Self-Employment Tax Calendar:

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Note:
1. I’ve been paying quarterly estimated taxes for 15 years, and thanks to the Outright.com calendar, this is the first time I realized they were spaced 3-2-3-4 months apart. No wonder, I can’t remember. 

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Intuit Offers Low-Cost Online Accounting via QuickBooks Free or Basic

By Jim Bruene Posted on
Categories: Intuit, Personal Financial Management, QuickBooks, Small Business

imageI was poking around the various small business online accounting sites today researching our next Online Banking Report and thinking about which service would suit our business, given that Microsoft is pulling the plug on Money.

I was already familiar with Outright.com (a Finovate 2009 presenter; demo video coming soon), FreshBooks, and LessAccounting. But I was completely surprised by one contender in the free category: Intuit QuickBooks Online.

The software giant offers three flavors of online-only accounting (see screenshot below; full comparison here):

  • QuickBooks Online Free: Create and send invoices, print checks, track money flow for up to 20 customers and run basic reports; even includes email support
  • QuickBooks Online Basic: In addition to the above, for $9.95/mo, users can manage an unlimited number of customers, set permissions for others to access data, and choose from a library of 40 standard reports
  • QuickBooks Online Plus: Full-fledged QuickBooks for $34.95/mo, mimics most features of QuickBooks Pro (see comparison here)

Financial institution opportunities:
All four online accounting companies offer free versions and premium fee-based options (note 1). Consider linking to them from your small business resource center. For extra credit, develop a co-branded version you can offer your customers or negotiate discounts for the fee-based versions.

Intuit’s QuickBooks Online product line (14 Oct 2009)

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Notes:
1. Outright.com is currently free for all users, but says it is working on value-added, fee-based options.
2. For more info on the small biz space, see our Online Banking Report: Small & Microbusiness Banking (June 2004). Note: Anyone who purchases the 2004 version now, will automatically receive the newer version when it’s published later this month.

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Donors Choose Checkout Includes Amazon Payments along with Facebook and Twitter Integration

By Jim Bruene Posted on
Categories: Alt Payments, Amazon.com, Facebook, Giving back, Twitter

image I love how the Internet removes friction from everyday tasks, especially payment-related ones. And one of the great success stories of recent years, beginning with Hurricane Katrina relief in August 2005, is how easy it is to make charitable gifts online.

I’ve used the Red Cross site several times. It gets the job done, but not with the flair and superb user experience of Donors Choose (note 1). 

Thanks to Fred Wilson, blogging at A VC, I contributed to the Social Media Challenge last week and got a first-hand look at Donors Choose. The simple checkout process has three features that I’d not seen before:

  • Amazon Payments as a payment choice (along with PayPal, credit card, or check; first screenshot)
  • Automated Facebook wall post integration (second screenshot)
  • Automated Twitter posting with two options:
    — allow Donors Choose to Tweet a thank-you to you referencing your @twittername
    — provides a template for you to make a Tweet from your own Twitter account

If you want to see a state-of-the-art checkout system in action, and support kids in the classroom, check out Donors Choose.

Or if you are looking to add a charitable-giving feature to your banking site for the holidays, you can easily create your own giving page at Donors Choose and run a widget on your website tracking the campaign’s progress (see inset). You can choose which projects to support so long as they fall within the nonprofit’s mission of “helping students in need.”

Donors Choose cart with Amazon Payments and PayPal integration (13 Oct 2009)

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Facebook wall post integration
This screen popped up after I checked out

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Twitter integration

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Donors Choose shout-out page on Twitter (link)
Note: First Tweet was Sep 29. Have done 342 since then (through 13 Oct 2009).

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Note:
1. My first donation via Amazon Payments failed because I accidentally used a canceled credit card number. And evidently there is a bit of a bug in the feedback loop to the Donors Choose site. I got an error message, but when I clicked “next” to re-enter the payment, the site transferred me out to the thank-you page and I was unable to go back and re-do the transaction. I had to start all over again, and now the site shows that I’ve made two donations instead of one. 

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