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

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)

image 

Update (29 Oct 2009):

Here’s another QuickBooks dashboard from QuickGauge.com:

image

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

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. 
  • ProsperThe 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.

Bank of America App Shown in Sprint Android Microsite

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)

image

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

image

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

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

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)

image

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)

image

Same offer on BofA website (link)

image

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)

Cascade Bank Has a Business Banker Directory on its Website

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)

image 

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.

Many Thanks to our NetBanker.com October Sponsors

It’s time again to thank our sponsors for helping us keep NetBanker the high-quality and free resource that you read and trust.

Please support our sponsors (listed below in alphabetical order) so that they continue to support NetBanker:

  • Digital Insight, an Intuit company — Showcasing their FinanceWorks (Online Banking + Quicken) solution. Please consider registering for their complimentary webinar on Tuesday, October 20, 9AM Pacific, to find out more.
  • Trusteer — Complimentary white paper on “Addressing Customers’ [Security] Concerns from Financial Trojans”. Download it for free and see how banks like ING Direct use Trusteer to protect their customers from malware.
  • Worklight — Complimentary report/roadmap for “Web 2.0 Financial Services Online and Mobile Widget Strategy” that answers the “Top 7 Questions for Successful Widget Project” and includes a case study. Download it for free.
  • Yodlee — Free webinar October 29, 11AM PDT, 2PM EDT, about “New Strategies to Make Bill Pay Pay You Back”. Register now and check it out.  

Now, back to the regularly scheduled blogging.

P.S. If you’d like to join these companies in supporting NetBanker, please drop me an email at [email protected].


ericphoto.jpgEric 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 [email protected].

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

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)

image

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

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:

 image

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. 

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

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)

image

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.

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

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)

image

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

image

Twitter integration

image

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

image

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. 

The Impact of Always-On Mobile Banking

image

There was an interesting piece by Jessica Vascellaro in the Technology supplement of today’s Wall Street Journal. The title says it all, “Why Email No Longer Rules….and what that means for the way we communicate.”

The primary thesis:

  • Old-school email is a passive way to communicate, more like a letter, and has been overrun by more information than the technology can manage.
  • It will be replaced by more active services (e.g., Twitter, Facebook) that are akin to a conversation with filtering technology to keep noise levels down.

But Techcrunch’s MG Siegler’s take on the matter is even more profound. He argues that the winning technology will be something that combines both active and passive communication, such as Google Wave (see inset; short video explanation here). Users will be able to choose between active or passive, or anything in between, depending on the situation.

Relevance for Netbankers
The passive vs. active communication metaphor is a good one for banking too. Passive banking is the old way of doing things. We waited for our monthly statement, balanced the account, and walked in to the branch or called customer service if there was a problem, usually many weeks after the fact.

Passive banking is not a bad thing. As long as there are no problems or financial shortfalls, it’s the desired state for most customers. 

Telephone banking, then online banking, made it much easier to keep closer tabs on your account. Instead of reviewing transaction activity once per month, most users log in at least once per week to review activity. This helps ease anxiety during the intervals between looking at your data.  

But it’s still passive in the sense that a user deals with banking only when the choice is made to log in. And that passive nature limits the usefulness of online banking in situations where a user needs to pay attention NOW! For example, security issues, low-balance alerts, over-budget warnings, and so on.

Enter mobile banking. With text messages or direct-to-the-phone alerts, users can have an always-on, or active, connection to their accounts. This is great for those infrequent, yet urgent, events such as authorizing an unusual card transaction.

But most users will want to be in active banking mode as little as possible. So the challenge for financial institutions will be to make it easy for mobile users to balance “active banking” (alerts, warnings) with “passive banking” (logging in, requesting more data, changing settings and preferences).

Ultimately, companies that well manage this communication challenge will have customers for life.

Notes: For more info on mobile banking, see our Online Banking Report: Mobile Banking via iPhone (March 2009) as well as our earlier reports on Mobile Banking (Feb 2007) and Mobile Payments (April 2007).

BB&T Pushes Online Statements on Homepage

image Most major financial institutions have been pushing estatements for several years (see previous coverage). The appeal of shaving $10 to $20 off the annual servicing cost for every account is an attractive payoff.

Yet, you rarely see estatement appeals elevated to the homepage. BB&T bucks convention with this attractive graphic with the big-three benefits: security, convenience, accessibility (see first screenshot). The green button leads to a landing page reiterating these three benefits plus adding the environmental message.

Bottom line: It’s a good, educational effort. But with most consumers already aware of online statements, there’s little motivation to change something that’s worked fine for the past 10, 20, 30 or more years. 

If you are serious about reducing paper and postage expense, give your customers a reason to change their behavior:

  • Low-cost gifts, such as a pair of movie tickets, 2-for-1 meal, $10 Starbucks card, etc.
  • Sweepstakes (one-time or ongoing; see Wells Fargo example below)
  • Extra online services such as increased archives or an electronic vault
  • Enhanced security guarantee
  • Discounts on other services

But whatever you do, don’t introduce a fee for paper statements unless you want to get T-Mobiled.

BB&T homepage promotes online statements (7 Oct 2009)
Access via Seattle IP address; we do not have any accounts at the bank

image

Landing page (link)

image

Wells Fargo $60,000 estatement sweepstakes landing page (link)

image

Note:
For more information, see our Online Banking Report: Lifetime Statement Archives (June 2005)