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Gmail’s New Priority Inbox Should Inspire Banks to Do the Same with Electronic Statements

By Jim Bruene Posted on September 1, 2010
Categories: Alerts & Messaging, Electronic Statements, Google

I’ve been on a bit of a campaign this summer (writing in Online Banking Report here and here), about the need to move beyond the static online “data dump” model to a more measured approach in delivering precise financial info when and where the customer needs it.

We mostly looked at outbound messaging and streaming systems: email, text, RSS and third-parties such as Blippy and Swipely. But the same logic can be used to improve the financial home base, the online statement.

Google’s new email option, Priority Inbox (aka Magic Inbox), introduced to Gmail users this week (note 1), is a great example of how this could work. Instead of always displaying email (or transactions) in chronologic or reverse-chronologic order, use algorithms to show items in order of importance (see screenshot below).

The bank-transaction importance-ranking would obviously include the size of the item. But it would also position unusual payments of any size at the top of the list so that users could more quickly identify fraud or errors. And, as with Gmail, users should be able to label and flag transactions for future reference (note 2).

A service like this would have saved me hundreds of dollars this year, by alerting me immediately that my cell phone bill had mushroomed, and that I needed to switch to an unlimited-minutes plan.

Gmail Priority Inbox (1 Sep 2010)
Note: There are no messages in the top priority area called “Important and unread” because I’d read them all. Google provides a little note of congratulations for clearing out that portion of the inbox.

Notes:
1. Google has offered similar algorithm-based ordering in its RSS reader for some time. I’ve been using it for almost a year and am a big fan. It really helps lift the best posts to the top of the 600 or so I get each day. I will use Twitter a lot more when it offers the same type of functionality (Does anyone know of a Twitter client that arranges tweets by importance?)
2. And like Google, banking users should be able to store their transactions for as long as they are customers. See our Online Banking Report on Lifetime Statements for more info.

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Rearranging the Deck Chairs on the Titanic Branch

By Jim Bruene Posted on August 31, 2010
Categories: Branch Banking

Today’s Financial Brand post by Jeffry Pilcher is the best article I’ve ever read on branch design. If you are building or remodeling mega-branches, it’s an absolute must-read.

But as I read it, I couldn’t help thinking about that old saying about the deck chairs on the Titanic. Sure, IF valuable customers continue to visit branches, and IF those customers are willing to be pitched products as they rush through their errands, and IF you train/compensate your staff to effectively sell, and IF you can still afford the half-mil or more it costs to run each one, then by all means build U-shaped branches to maximize sales interactions, hire world-class greeters, and install engaging merchandising displays along the snaking path to the teller windows in the back.

But no matter how many design awards your branch receives, it won’t change the megatrend: the future of financial services is outside the branch. Nearly every profitable business line is already sold direct: credit cards, prepaid cards, insurance, mutual funds/investments, car loans, mortgages, commercial loans, and, more recently, even savings/CDs and checking accounts.

And now that ATMs, PC scanners and mobile phones handle deposit-taking better than the friendliest teller (note 1), the traditional branch has no business case. Sure, spacious and attractive branches in high-traffic areas are great marketing tools. They reinforce your brand, show your stability, and I’ll have to admit, they are mighty convenient for dropping off paper checks and getting free cookies.

But that model is too expensive. I agree with Mr. Pilcher that branches are far from dead. But the future branch is likely to look more like an Edward Jones or Allstate office, not the thing of beauty shown here. There may even be more of them (Edward Jones tallies more than 10,000), but they won’t look like these pictures.

The bank/CU branch will morph into small storefronts sprinkled throughout the community staffed with a few people heavily incented to produce revenue. Routine transactions will be handled by (mostly) self-service ATM/kiosks. Unlike the Titanic, the sinking of the mega-branch model will be slow. And the ultimate brick-and-mortar mix will be much more complicated than my simplistic take on it here. But branches will shrink, tellers will be phased out, and the online/email/mobile channels will handle just about everything. Just ask USAA.

Notes:
1. Remote/ATM deposit capture is superior to most teller-assisted deposits because you not only save a trip to the branch, but also get immediate real-time confirmation that the deposit has been properly recorded. You can make the deposit earlier (as soon as you receive the check), you get a copy of the image to store indefinitely, and in the case of remote capture, you can even hold on to the original check as proof of deposit.
2. We wrote about the Demise of the Branch in 2006 (OBR subscription required).
3. Photo credits: EHS Design.

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USAA is Amazing

By Jim Bruene Posted on August 27, 2010
Categories: Service, USAA, User-Generated Content, Website Usability & Design

How did USAA become the most innovative bank in America? I guess its big-bank competitors have been kind of preoccupied with other matters the past few years. And because USAA serves most of its 5 million banking customers remotely, it stands to profit from pushing the envelope in online/mobile delivery.

The latest proof that the bank is both innovative and adored? Posting user reviews right in the middle of the homepage, an inventive and unique approach. And with an average score of 4.7 out of 5 for both checking and auto insurance, the reviews serve as a transparent and effective mass endorsement.

Here’s the breakdown of scores received on 6,350 total reviews for USAA’s free checking account (as of 12 Aug 2010):

     5 stars (excellent) >>> 5,550 (87% of total)
     4 stars (good) >>>>>>    329 (5%)
     3 stars (average) >>>> 154   (2%)
     2 stars (fair) >>>>>>> 110   (2%)
     1 star (poor) >>>>>>>     214 (3%)

Relevance for Netbankers: Frankly, I never thought I’d see user reviews posted anywhere on a bank site, let alone the homepage (note 1). If your customers love you, I mean really love you, customer reviews posted directly to an in-house site is a great way to prove it (note 2).

USAA homepage (12 August 2010)
Note: Ad on top for its new Auto Circle car-buying service, complete with its own iPhone app.

Notes:
1. Bank of America also posted user reviews on its site, but the feature appears to have been discontinued a while ago. The last reference I could find on Google about the reviews was in Jan. 2008.
2. This would not be an easy project and would require a significant investment in ongoing monitoring and maintenance. More importantly, it requires a thick skin; your organization would have to be comfortable with a certain amount of complaints being posted. As good as USAA’s overall score is, there are still 314 poor reviews posted, 3% of the total. But allowing customers a salient vent-fest on your website may keep them from doing so in more public venues such as Twitter. It also gives you a chance to respond to and resolve posted problems.

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In Gratitude to Our August NetBanker Sponsors

By Eric Mattson Posted on August 27, 2010
Categories: About Netbanker

We want to pause in our usual blogging activities to show our gratitude to the sponsors whose generous support keeps NetBanker a free and high-quality resource for the industry.

Please take a moment to check out our sponsors (listed below, in alphabetical order):

Backbase — They’re promoting their fast-to-implement portal software for financial companies including Web 2.0 personalization and online marketing functionality. You can get more information or watch a demo here.

IntelliResponse — Get a complimentary whitepaper on how self-service via the mobile channel can improve your customer service and benefit your business. Download it now!

Intuit — Intuit is promoting their FinanceWorks platform. They’ve got a number of on-demand webinars that are worth checking out.

MyBankTracker — MBT is a new financial community built by avid fans of the banking world. Check out how they’re innovating at MyBankTracker.com.

WorkLight — Offering (complimentary) results of a new survey on consumer satisfaction and concerns regarding banking applications for the iPhone, BlackBerry and Android. If you’re trying to understand the smartphone trend, it’s worth accessing the results.

Yodlee — Check out Yodlee’s new free whitepaper on how Personal Financial Management can be a platform for customer engagement. Download it now!

Thanks for taking a moment to check out our sponsors. Please let us know if you ever have any feedback on these companies or our blogging.

P.S. If you want to join these companies in supporting NetBanker, please drop me an email at eric@netbanker.com.

Eric Mattson is CEO of Online Financial Innovations, the parent company of NetBanker, Online Banking Report and the Finovate Conference Series. He can be reached at eric@netbanker.com.

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New Online Banking Report Published: Email Banking – Revitalizing the Channel

By Jim Bruene Posted on August 23, 2010
Categories: Alerts & Messaging, Electronic Statements, Launches, Online Banking Report

Each day, the typical consumer household completes several banking and credit/debit card transactions. And 99% of the time, the transactions require little extra attention other than mentally checking them off to ensure you aren’t a victim of fraud, or more likely, human error.

But to stay on top of that routine activity, Americans collectively make hundreds of millions of visits to banking websites each month. This, my friends, is not an efficient use of time.

And it’s mostly unnecessary. There’s really no reason to log in every week to manage my accounts. All the info I really need could be sent to me via email.

That would eliminate the need for most website visits. And if I could initiate transactions right from the email, I’d only need to visit the website every few months to tweak my settings (even that could potentially be done through email interactions).

But as pervasive as email (and text) alerts have become, they are often cryptic messages that make you feel less certain of your finances, creating more anxiety and more website visits (see note 1). This is not what you want from financial providers.

What’s missing is a rich email experience, where a balance summary message can be expanded into a full statement with the click of a link. Where key supporting actions, such as paying a bill, are imbedded in the message. And where it’s easy to resolve issues immediately while you are thinking about them, rather than moving to another channel later on.

That’s the promise of Email Banking that we explore in the current report (see below). We also look at a new Israeli startup, ActivePath, that is delivering much of this vision with its new email banking service launching in the U.S. later this year (note 2). The screenshot below shows how a password-protected daily account-summary email can become a full-featured account-management tool with numerous links to act on the information presented.

Finally, in an addendum to last month’s report on email/text alerts, we look at the alert-control panels at five major banks: Bank of America, Capital One, Chase, U.S. Bank and Wells Fargo.

About the report:

———————————————————————————————-

Email banking: revitalizing the channel (link)
New technologies and more thoughtful design could elevate email
to a central role in account management

Author: Jim Bruene, Editor & Founder

Published: 19 Aug 2010

Length: 40 pages

Cost: No extra charge to OBR subscribers, $395 for others here

———————————————————————————————-

Daily account summary email from ActivePath
Note: Embedded buttons to a.) view transactions, b.) role money into a CD,
c.) transfer funds, d.) view transaction detail, e.) chat with customer service

Notes:
1. For more on email alerts, see last month’s Online Banking Report: Email Alerts & Transaction Streaming.
2. See ActivePath, along with 55 other innovators, at FinovateFall, Oct. 4/5 in NYC.

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Bank of America Redesigns Email Alerts

By Jim Bruene Posted on August 22, 2010
Categories: Alerts & Messaging, Bank of America

On August 9, Bank of America redesigned its email alerts (note 1). The biggest change came in repositioning, renaming, and highlighting a security feature, “last login time.” The info is now in a prominent gray box at the top called the Security Checkpoint. Previously, it was buried in the middle of the left-hand column (see Before screenshot below).

While the Security Checkpoint is a nice bit of security marketing (note 2), I’m not sure how much additional fraud it will thwart, if any. But it’s good for the bank to appear to be doing all it can to protect customers.

Bank of America already had one of the best alerts in the business, earning an A in our most recent report (note 3). So I’m not sure why they needed a new design; perhaps, it’s just to keep things fresh. However, the redesign did nothing to fix our one criticism of the bank’s alert, the lack of meaningful info in the preview line.

After: New Bank of America email alert design (17 Aug 2010)

Before: Previous email alert design (8 Aug 2010)

Notes:
1. At least, that’s the first day the new style landed in my inbox.
2. For more info, see Online Banking Report: Marketing Security.
3. For more on email alerts, see last month’s Online Banking Report: Email Alerts & Transaction Streaming.

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Launching: Doxo Looks to Dramatically Improve the Ebilling Experience

By Jim Bruene Posted on August 19, 2010
Categories: Doxo, Electronic Bill Payment & Presentment, Electronic Statements, Launches

Two significant Seattle-based financial startups are gearing up for launch, something I haven’t been able to say since the bubble days. We looked at location-based transaction monitoring company Finsphere last week. Today, we take a peek at Doxo, which is looking to disrupt the ebilling market and bring transactional paper mail into the 21st century.

I met with CEO Steve Shivers and Marketing VP Kevin Frisch last week in their new Pioneer Square office, a nifty location recently vacated by Microsoft. While public details are limited, I’ve had two briefings with the firm and can say that if it works, it could be one of the biggest financial plays in many, many years. Like Finsphere, Doxo is backed by Mohr Davidow Ventures and Bezos Expeditions.

Of course, the ebilling space is littered with failures including many well-funded ventures that pretty much all ended up being acquired by CheckFree (now Fiserv): MSFDC/TransPoint (Microsoft, First Data, and Citibank), Spectrum (Wells Fargo, First Union, and Chase) and Integrion (IBM and 17 banks) to name just a few. And the ebilling service at Fiserv isn’t exactly blowing the doors off, delivering 320 million bills each year (2009), just a sliver of the 40 to 50 billion sent annually in the United States.

All I can say about the startup is that they are creating an online hub where billers can send bills and communicate with customers in a much better way than through snail mail. It’s put together in a way that could really speed estatement adoption. And it’s funded by the billers, who save money immediately by eliminating paper statements to participants.

As demonstrated by the history of failed ebilling ventures, there are huge obstacles to overcome. But the time may be right for ebilling to finally take off. Billers are frustrated with low levels of estatement adoption, consumers are fed up with redundant email and paper communications, and no one wants to waste natural resources (and money) if there’s a viable alternative.

No one has yet figured out how to solve it. Doxo may have the answer. Stay tuned.

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FinovateFall 2010 Demo Lineup Revealed

By Eric Mattson Posted on August 17, 2010
Categories: ActivePath, Backbase, Betterment, billFLO, BillFloat, BillShrink, Blaze Mobile, Bling Nation, Bundle, Capital Access Network, CashEdge, ClairMail, Credit Sesame, Emue Technologies, FinovateFall 2010, Finsphere, FIS, Fiserv, Guardian Analytics, Hidden Levers, Ixaris, Jack Henry, Kapitall, Kashoo, Kiboo, Kony Solutions, Leadfusion, MatchFund, Micronotes, moneyStrands, Mortgagebot, mShift, oFlows, Optirate, Pageonce, PayNearMe, Plantly, Plastyc, Receivables Exchange, SapientNitro, Seeking Alpha, Segmint, Silver Tail Systems, SmartyPig, Standard Chartered Bank, Thwakk, TouMetis, Unience, Wonga, Worklight, Yodlee

We’re very excited to reveal the 56 cutting-edge companies that have been selected to demo their latest technology innovations on October 4 and 5 in New York City at FinovateFall.

Over the show’s two days, attendees will get to watch the future of fintech and banktech unfold on stage via fast-paced demos (28 each day) from these innovators. And then have a chance to interact with top executives from each of the demo companies during intimate networking sessions.

Without further delay, here’s the list of companies we’re excited to showcase:

If you’re interested in attending the conference, registering now will save you $100 on your ticket via the early-bird discount and reserve your spot (space is limited and we’re expecting to sell out). We’ll see you in New York!

Eric Mattson is CEO of Online Financial Innovations, the parent company of NetBanker, Online Banking Report and the Finovate Conference Series. He can be reached at eric@netbanker.com.

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FinovateFall 2010 Demo Lineup Revealed

By Eric Mattson Posted on August 17, 2010
Categories: Finovate

We’re very excited to reveal the 56 cutting-edge companies that have been selected to demo their latest technology innovations on October 4 and 5 in New York City at FinovateFall.

Without further delay, here’s the list of companies we’re excited to showcase:

Eric Mattson is CEO of Online Financial Innovations, the parent company of NetBanker, Online Banking Report and the Finovate Conference Series. He can be reached at eric@netbanker.com.

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US Bank Adds Remote Deposit Capture to Online Banking Menu

By Jim Bruene Posted on August 16, 2010
Categories: PayPal, Remote Deposit Capture, US Bank

I saw a new option today when I logged in to my U.S. Bank account:

Make a Deposit

Clicking on the link brings up a screen (see below) promising that DepositPoint, a desktop-scanner-based service, is “Coming Soon!”

From the little info provided, I can see that it’s targeted to home users using existing equipment (all-in-one printer/scanners) and allows checks to be deposited through 6 PM central time for (I assume) same-day credit.

The webpage shown below is the only info available. There’s nothing posted on pricing, when it will launch, or other terms and conditions. And a search for “depositpoint” on the main website comes up empty. Interested customers are asked to “please stay tuned to this page for more exciting information!” While not exactly state-of-the-art lead capture, at least the bank is getting the word out (note 1).

In other news, PayPal moved one step closer to becoming a bank/credit union replacement with the revelation that it will add remote deposit capture to its iPhone app later this year.

U.S. Bank online banking primary navigation (16 August 2010)

Note:
1. I’m putting this in the footnote since it’s not the focus of this post. But seriously, U.S. Bank, this is the best you could come up with from a design and copywriting standpoint? It looks like a webpage from 1996. All that’s missing is the “under construction” sign. How about some color? Graphics? Links to an FAQ? This is a great development, but the customers drawn to this page from the “NEW” button are unlikely to be impressed.

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BankSimple Provides Sneak Peek of User Interface on iPad App

By Jim Bruene Posted on August 12, 2010
Categories: iPad, iPhone, Simple, Website Usability & Design

The bank that everyone’s talking about, and no one is using, finally released a few peeks at its user interface. Based on these screenshots posted on the bank’s homepage (see last screenshot), it looks like a killer iPad app (note iPad logo in upper left of first screenshot).

The startup also unveiled a new logo, moving from the trendy gray/red (left) to a bolder font in a very bank-like and comforting blue.

Finally, the startup has purchased the .com version of their URL, an important, albeit expensive, pre-launch move. Currently, banksimple.com redirects to the old .net version.

Screenshots

1. Safe-to-spend balance appears to incorporate future scheduled payments and displays goals to help users keep the bigger picture in mind, rather than spending the $1,208 on drinks and dinner out.

2. The bank’s customer service focus illustrated in chat screen with co-founder Alex Payne. On the right you can get a glimpse of the transaction flow.

3. My favorite screenshot. It indicates the bank will use out-of-band authentication, a must-have these days. It also demonstrates that BankSimple is really thinking through the UI. Instead of tiny little digits requiring reading glasses, the bank provides the 5-digit code in big, bold numbers. They are also rendered in an attractive flipboard style.

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Note: HT to Keith Caswell @kthcswll for the tip.

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Innovations Don’t Always Work: PayPal to Discontinue Browser Plug-in

By Jim Bruene Posted on August 12, 2010
Categories: Alt Payments, Credit/Debit Cards, Desktop Presence, PayPal

For years I’ve longed for a financial institution-delivered browser plugin that would help manage receipts, verify available funds, complete online forms, and provide secure payment options at legitimate ecommerce sites. The PayPal browser plugin, launched less than three years ago, offered most of that, in theory.

I used it successfully a few times, but too often it popped up offering assistance when I didn’t need it. So I disabled it. Evidently, I wasn’t the only one who found it not worth the hassle (for more insight into the problems, read the comment thread and updates to the original announcement post). The company is pulling the plug on the service next month.

Now that PayPal’s plugin is off my computer, it’s time to give Billeo’s another try. I used previous versions in the past, but hadn’t given it a thorough test since I moved to a Mac for most Internet browsing.

PayPal login splash screen (link, 9 August 2010)

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Note: We wrote about plugins, toolbars, and tools in Online Banking Report: Grabbing Desktop Mindshare (published Aug. 2002).

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