Webby Award Deadline Oct. 27

Webby_logoThe 11th annual website beauty contest, The Webby Awards, is accepting entries for the best websites and interactive advertising campaigns. Financial institutions may compete in any of the advertising categories, or one of the three website categories:

  • Best Banking/Bill Pay
  • Insurance
  • Financial services (everything other than banking or insurance)

Allstate_nowwhat_1Last year the winners were Bank of America in Banking/Bill Pay; PayPal in Financial Services; and Allstate's nowwhat.com in the Insurance category (see inset).

Early entry deadline is Oct. 27. Fee is US$125.

Automobile Title Insurance has Fee Income Potential

When it comes to generating incremental fee income, it's difficult to find new ideas. One you may not have considered is automobile title insurance.

Although we've purchased two used cars on eBay, we'd never heard of title insurance for autos until we read about it in the Wall Street Journal today. For a one-time fee of $50 to $60, consumers can buy insurance that protects them against fraudulent titles, including instances where a salvaged auto has had its title wiped clean by registering the vehicle in a state with more liberal salvage rules.

Firstam_titleguard_logoAccording to First American Corporation, which markets a $49.95 policy in a joint venture with Experian Automotive, 20% of salvaged autos end up with clean titles. The product is called TitleGuard Vehicle Title Insurance and is sold through a stand-alone website <autotitleguard.com> and through resellers such as Credit Union Direct Lending and Escrow.com.

Financial institution opportunities
There are two ways financial institutions could use title insurance:

  1. Education: In your auto-loans area, explain the ways that car titles can be manipulated with links to outside informational sources.
  2. Resell title insurance: Title insurance is most needed when purchasing vehicles from unknown private parties. Even if you don't finance such transactions, you could earn commissions on customers referred to third parties for title insurance.
  3. Bundle title insurance with loans: If you offer financing for private transactions, you could bundle title insurance with your loan to help differentiate your product and help justify premium pricing. The title insurance could be mandatory or optional and either way could be priced as a fee-based add-on or included in the regular loan-origination fee.

PayPal’s 30-Second Credit Card Application

Paypal_card_ad_1 PayPal is advertising its PayPal Plus card with this box located in the upper-right of the main account start-page within the secure area (click screenshot below for a closeup).

With the falloff in response to traditional direct mail raising acquisition costs to $200 or more, a pitch delivered within an online banking session can be far less expensive. And with online banking users typically wanting to get in and out quickly, the 30-second response shows that the company is sensitive to the time constraints of its customers (notice they did NOT say that it was a 30-second process).

Paypal_pluscardThe PayPal card is issued by GE Money Bank, the same company behind PayPal Buyers Credit used by sellers to offer longer-term financing of major eBay purchases. The Plus card includes a free rewards program offering 1 point per dollar purchased. The current rewards structure includes three levels:

  • 1,000 points – Free shipping up to $7 on a PayPal purchase
  • 2,500 points – $25 voucher (for merchandise at most PayPal merchants)
  • 9,500 points – $100 voucher (for merchandise at most PayPal merchants)

The card carries a variable rate from 14.24% to 24.24% and has no annual fee.

Here's the main account page displayed after login:

Paypal_card_ad

Here's the landing page displayed after clicking on the apply button:

Paypal_card_ad_landing

billQ Bill Payment Mac Widget Released

Billq_widgetOur most recent OBR Best of the Web winner (NB Sep 1), Seen Creative's billQ, has achieved another industry first, a bill payment-tracking widget for Apple Mac users (here's where you can download it from Apple's site).

The widget allows Mac users to drop a small billQ screen right onto their desktop (see NB 2 May 2005). It allows users to see what bills are due and mark them as paid without ever leaving their desktop.

The widget can also be downloaded at billQ's website <mybillq.com>.

Forrester Says 24% of Gen Y Reading Blogs

In a new Forrester study on Gen Y consumers (must be a Forrester client to access), Analyst Charlene Li tracks the growing influence of blogs. The company's research shows that one in four Gen Yers regularly reads one. Here's blog readership by generation:

24% Gen Y (ages 18 to 26)
12% Gen X (ages 27 to 40)
7% Young Boomers (ages 41 to 50)

Blog_symbol
We've seen studies that show even higher usage; it depends on whether you count social networks such as MySpace as a "blog." The influential Pew Internet & American Life Project <www.pewtrusts.org> released a blogging report this summer. In that study fielded in January, Pew found that 39% of Internet users, or 57 million, were reading blogs and 9%, or 12 million, were writing them.

Financial institutions thinking of starting a blog might want to tune into Charlene's teleconference next week (Sept. 22, 1:00 PM Eastern; cost = $250) when she looks at the criteria companies should use when choosing a blogging platform, including a review of nine providers.

She's also summarized the vendor comparisons in a $995 report which looks at Drupal, iUpload's Customer Conversation System, Roller, Six Apart's Movable Type and TypePad, Telligent Systems' Community Server, Traction Software's TeamPage, UserLand Software's Manila, and WordPress. Her report abstract names iUpload as her favorite.

Zopa Courting U.S. Credit Unions

Zopa_logo_2According to OpenSourceCU, a blog operated by website designer Trabian, person-to-person lender Zopa is actively soliciting credit unions to partner with the U.S. version of its service scheduled to open later this year (see NB Sep 7). One idea floated by Zopa's Wade Lagrone to attendees of the Taps Lending Symposium put on by Forum Solutions, was requiring Zopa borrowers to join a credit union in order to participate.

Longtail_chartIt's not as far-fetched as it sounds. In our analysis of peer-to-peer lending published in March (see Online Banking Report #127), we identified a number of ways financial institutions could benefit by referring customers to competitive loan marketplaces. It helps you serve the "long tail" of borrowing, those specific situations that your underwriting cannot accommodate, but where you still want to satisfy the customer to retain their other banking business.   

BudgetSnap Launches Full-Service Multi-Language Personal Finance App

Budgetsnap_logoJust when we thought we'd found all the online personal finance applications (see Online Banking Report #131/132), another one pops up, BudgetSnap <budgetsnap.com> from Walton, NY-based BudgetSnap LLC.

Budgetsnap_mobileFeature-wise, it's a winner with support for not only budgeting, but also for tracking investments, credit accounts, bills and so on (see screenshot below). And right out of the gate it supports local currency and language across 14 countries and six languages (English, French, German, Spanish, Portuguese, and Japanese). There is also a mobile version in the works (see inset).

The company has filed for patent protection, but we haven't heard back on what portions of its service they are seeking to protect.

As with other standalone, personal finance apps (see previous NB articles), we have serious doubts as to whether BudgetSnap can attract a critical mass of users without financial institution connectivity. The company appears to recognize this limitation and is actively pursuing partner relationships as evidenced by this statement tacked on to the bottom of its price list:

Educational, co-brand and white-label discounts available for qualified institutions. Please call (917) 865-4896 for more details.

Pricing
The company is offering a 90-day free trial plus price incentives (prices good through year-end):

1 Month @ $9.95 $7.96 – Save 20%!
3 Months @ $24.95 $19.96 – save 33%
6 Months @ $47.95 $33.57 – save 44%
12 Months @ $89.95 $62.97 – save 47%
24 Months @ $149.95 $89.97 – save 62%

The company has an additional incentive for two-year subscriptions, The Money Book for the Young, Fabulous & Broke by Suze Orman. Finally, students/seniors qualify for an additional 15% discount.

Budgetsnap_main

Endnote: BudgetSnap's homepage can be instantly translated into six different languages using the country flag icons at the bottom (see screenshot below).

Budgetsnap_home

MBNA’s Big & Ugly Card Application

In direct mail, sometimes "big & ugly" beats "short & sweet." But when it comes to preapproved credit card applications, we're pretty sure the 8-screen form posted by Bank of America's FIA Card Services (formerly MBNA) isn't going to help improve response rates (see the full form by clicking the continue link below).

My wife received a preapproved, direct-mail offer from Fidelity Investments where she has an investment account. The solicitation included the usual one-third sheet mail-back "acceptance form." Recipients could also either call a toll-free number, or go online to www.ibscredit.com.

Fidelity_mbna_cardapp_firstThose that went online were greeted with this almost-blank screen operating under a different URL www.applyforcreditnow.com and had no reassuring message or graphics to assure users they had not arrived at a phishing site.

Fidelity_mbna_cardapp_subsetAfter entering the 6-digit code from the mailing, prospective cardholders are transported to this boring form, which surprisingly includes MORE fields than its paper-based counterpart (click on inset for closeup; click on continuation below to see the full 800 x 5200 screenshot). For example, it contains a section to be completed by students, who are unlikely to be receiving this particular Fidelity Investments WorldPoints Visa card with no preset spending limits.

Not only are the layout and design dull, but also two major design flaws are readily apparent:

  1. No reinforcement of product benefits above the fold, especially the "0% through Nov. 2007" offer
  2. No division into smaller segments, the first of which should gather the email address

See Online Banking Report #104 for more on application design.

— JB

Endnote: Full online application (820 x 5200)

Fidelity_mbna_cardapp_long

Facebook Launches MoochSpot, a “Social Loan” Tracker

Facebook_moochspot_logo_1 In mid-August, Facebook, the popular social networking site aimed at college students, alums, and now a few select corporations has released a simple personal finance application. The original name was FaceBank (see screenshot at bottom of article), but recently it was renamed MoochSpot (click on screenshot below for closeup).

MoochSpot allows Facebook users to loan (i.e., spot), borrow (mooch), and settle debts with other Facebook users. At this point there is no payment capabilities, so the money must change hands through other methods.

Here's how it works:

  1. Create a "piggy bank" to track the funds
  2. Select a Facebook friend from the list that automatically shows in the MoochSpot list (note, in our screenshot below, we don't have any predesignated friends, so the list is empty)
  3. Enter the amount of the loan
  4. (Optional) Enter a reason for the loan

Facebook_moochspot_main

Analysis
MoochSpot was developed, not because of huge user demand to track personal debts, but to showcase the type of application that can be built by outside developers using the recently released Facebook APIs. MoochSpot is highlighted on the Facebook developer's page <developers.facebook.com>.

Billmonk_facebookBillMonk, the self-proclaimed "social money" site which allows debts to be split and tracked via website or mobile phone (see NB Apr 30), is the first financial services provider to jump on the bandwagon and create Facebook integration (in inset, see Facebook login in lower-right of BillMonk's homepage). We tried on several computers to get it to work and were unable to get past the Facebook login. We'll check back in a few days to see if they have the bugs worked out.

Financial institutions looking to create online banking sites that click with college students should pay close attention to BillMonk and MoochSpot. It would be relatively simple for a bank to use the Facebook API to develop even more powerful payment applications that combine the loan-tracking benefits of MoochSpot with actual epayment capabilities to move money back and forth among friends. While it wouldn't do anything that Paypal doesn't do today, the integration within online banking is important.

But the biggest reason to integrate with Facebook, MySpace, or any other 20-something social network is because it positions yourself as a bank or CU that understands the younger generation. And make sure you have genuine 20-somethings designing the marketing and writing the blog copy.

Appendix:

Below is the original FaceBank application prior to changing the name to MoochSpot:

Facebank_lend

Facebank_borrow

Update on Zopa’s U.S. Release Date

Zopa_usnewsletter1Zopa <zopa.com> continues to work towards a 2006 launch of the U.S. version of its person-to-person lending exchange. The company is trying to spur a bit of word-of-mouth in advance of its launch by buying a case of beer for anyone sponsoring a Zopa barbecue this summer.

The company website also contains a newsletter-like posting <www.zopa.com/ZopaWeb/ promo/newsletter/ us/issue1/> with info on the U.S. division (click on inset for closeup).

Beside promoting the free beer offer, the newsletter profiles Bruce Brenkus, VP Credit and Risk at Zopa U.S., an excellent choice of subject matter since credit management is the biggest concern for prospective Zopa lenders.

Wells Fargo Launches a New Blog, The Student LoanDown

Wells_blog_studentloan Wells Fargo launched its second blog today, The Student LoanDown  <blog.wellsfargo.com/ StudentLoanDown>. The site, which is not yet mentioned on the main Wells Fargo site, is designed to offer guidance on the student loan process (click on inset for closeup).

The first post claims they won't try to sell anything. It's a claim not technically accurate since there are several links to the corporate lending site, and a position that's not really necessary. As long as you are upfront about the corporate affiliation, it's OK to highlight your own products and services PROVIDED it's done in a way that is both interesting and useful.

The website is powered by Six Apart's Moveable Type and launched with just a single post from two of its four listed authors. Wells Fargo joined the so-called blogosphere back in March when it launched an odd site called Guided by History, a look back at the 1906 San Francisco earthquake and what we can do today to be better prepared for natural disasters.

While that site is pure community service, The Student LoanDown hopes to educate students and parents while driving more business to its student loan unit. Live less than 24 hours, it's too early to give it a full grade, but here are our first impressions.

Pros:

  • A bank that blogs, and one that will provide good PR, regardless of whether students like it
  • Even if it looks a bit hokey, you can tell the bank put an effort into the design, unlike Bank of Internet (see NetBanker Aug. 31)
  • A good cross-section of authors, one from marketing, one who's a May college graduate, one communications consultant, and a bank-sponsored, literacy-program manager (where are the guys though?)
  • Full bios and pictures of the authors
  • Comments are open (but moderated of course), which is a good feature provided the function is used. The bank will probably have to do some subtle encouragement, perhaps with employees, to get some Q&A started

Cons:

  • There are only two postings, neither of which offered anything useful or interesting; try to launch with something interesting, even if it's a blatantly commercial sweepstakes
  • The design is a bit hokey; Trey Reeme over at OpenSourceCU called it, "a little on the MySpace side with a WF feel" (hint: that is not meant as a compliment)
  • The content needs more pizazz

–JB

StopPong.com from American Express

Amex_mylifemycard_logo If you watched any U.S. Open tennis over the holiday weekend, you couldn't miss the American Express tie-ins. My favorite commercial showed Andy Roddick exchanging ground strokes with a white bar designed to look like the early video game, Pong. It has nostalgic appeal to younger baby boomers who played the orginal Atari game in the late 1970s, and it was funny enough to get the attention of younger consumers.

The commercial ended with a tie-in to a special website, <stoppong.com>, where the game can be played online. It's much like the original, not surprising given the site was built by Atari Interactive. With the mouse, the user operates Roddick who bats the ball back to the white bar. Like the original, the game speeds up the longer the ball stays in play. In a modern twist, you can choose either 3-D or 2-D version. The top 100 scores are listed to help stoke the competitive spirit.

Amex_stoppong

Analysis
Overall, it's a good campaign with engaging broadcast advertising driving customers to a good website with viral hooks. We do have a few suggestions:

  1. Add Google support: The first step for the majority of Internet users will be to enter "stop pong" or something similar into Google. Luckily, the Stop Pong microsite is in first position in the organic results, so it's relatively easy to find. However, numerous first-page blog-listings could snag the traffic before they ever get to the genuine site. American Express should support the expensive campaign with a relatively inexpensive Google AdWords buy on the relevant terms, "American Express Roddick," "American Express pong," "stop pong" and so on.  On a 10-point scale, the company is docked half a point for this.
  2. Personalize it: There should be some way for users to add their name to be shown on the screen during play. Even more important, it should track each user's high score during the session.
  3. Grab leads: In addition to personalization, users should have the option of saving their high score(s) by registering with a username, password, and valid email address. Give registrants the ability to opt-in for future marketing messages.
  4. Make it viral: Offering the HTML code in the lower left is a good viral marketing move. An even better one, because anyone can do it, is to provide an email-your-friend option. Even better: allow friends to email their scores to others as a challenge.
  5. Offer player rewards: Another way to increase word-of-mouth is to offer prizes, not for scoring high, which might run afoul of gaming regulations, but at random simply for playing the game. 
  6. Allow the sound to be turned off (on screen): Obviously the designers have never worked in a "real office" where the sound of a pong game coming out of your cubicle is not exactly what the boss had in mind when he/she asked you to "serve up some ideas for the next project meeting." Whenever you add audio to your website, make sure you have a visible on-screen mute button.
  7. Support the campaign on landing pages: Neither of the landing pages accessible through the microsite are customized for the Pong campaign. However, the main "My Life. My Card" page <mylifemycard.com>  (see screenshot by clicking "continue" below), reached by clicking on the banner in the upper left, includes "play pong" superimposed on a small picture of Roddick. But the main clickthrough spot, the banner in the lower right, leads to the regular "My Life. My Card" selector tool with no mention of Pong, tennis, or the U.S. Open.

Overall Grade
Even though we think American Express could do a better job capturing leads, it's probably better to err on the side of a too-soft sell instead of too-hard, especially if the goal is to have the online game grow virally thorough blog and other media mentions.   

We'll give it an A for creative and B+ for execution.

JB

Appendix
Here's the main "My Life. My Card" site reached by clicking on the logo in the upper left of the Stop Pong site:

Amex_mylifemycard_home

Here's the card selector reached from the banner in the lower right of the Stop Pong page:

Amex_mylifemycard_selector