billQ Named Best of the Web by Online Banking Report

Bestofweblogo_2In the latest from Online Banking Report, "Personal Finance Features for Online Banking," we've awarded an OBR Best of the Web 2006 to a new Web-based bill management service. It's the third winner of the year,* and 53rd since the first recipient in 1997 (here's the list).

And the winner is, drum roll please, billQ <mybillq.com> a new Web 2.0-inspired bill manager from Seen Creative Group <weareseencreative.com>, a relatively new website-design firm based in Rochester, NY. The company was chosen for raising the bar in three areas:

  • User-interface design (click on screenshot below for closeup; see more screenshots by clicking the continuation link at the bottom of this article)
  • "Add this bill" browser-toolbar button
  • Publishing bills through RSS and iCalendar feeds

Billq_billsdue

Read the entire review, along with a look at a dozen other online personal finance applications, in this month's Online Banking Report (#131/132).

JB

*Previous 2006 winners include E*Trade Bank for its Mileage Maximizer airline card mile aggregator (NB 7 Dec 2005) and Prosper for its person-to-person lending platform (NB Feb. 5 and others).

Appendix

Welcome screen prior to setting up bills (see above for main screen after bills have been enabled)

Billq_welcome_1

Set-up reminders

Billq_reminders

Set-up feeds

Billq_feeds

Set-up feeds

Bank of Internet Launches MyRVBank

Bofi_rvbank_logo Bank of Internet <bofi.com>, has launched its second niche, direct-bank brand, MyRVBank. This one is targeted to the 8 million U.S. households with recreational vehicles. The site is virtually identical to its Senior Bank <seniorbofi.com>. The only differences, aside from the URL, are the homepage picture, different button designs, a few unique links in the Community Center and the blog. Click on the screenshots below for closeups (follow the continuation link at the bottom of the article to see a comparison of the product pages).

Bofi_rvbank_home  Bofi_seniorbank_home

Analysis
Creating microsites for market niches is a good strategy. The RV market has been targeted by at least two banks in the past, Chase Bank in 1997 and Affinity Bank. Neither of those programs is still in operation.

Bank of Internet shows how to do niche marketing on a shoestring budget, basically re-purposing its existing Seniors' website. The bank said it spends less than $100,000 on the niche site. From the looks of it, I'd estimate it's quite a bit less than $100,000.

The only content differences are in the Community Center which contains several links to blogs and other resources of interest to RVers. The bank also sponsors a blog, MyRVBank Blog, hosted on Google's free Blogger site <myrvbank.blogspot.com>.

Blogging is a great idea, and we think every financial institution will eventually host a blog (see NB Aug. 29); however, the bank's RV blog is bad. It's designed to demonstrate the joys and pitfalls of life on the road, with a hired guest blogger, Tim McWhorter, chronicling his year-long trip with his wife and four kids across the country.

Here are a few of the problems with the blog:

  1. No pictures: Travel blogs MUST have pictures at least every once in a while
  2. Small type: The font is small and the text-only postings have almost 25 words per line, an uncomfortable read for most users, especially the seniors they are trying to attract.
  3. Poor layout: The blog doesn't even use many of the free tools available to make it more visually interesting; for example, entries without dates, no author profiles, no explanations of purpose, no recommended links, no post categories, and no permalink so other blogs can link to specific entries.
  4. No email address: Most blogs provide a means to communicate with the author(s).
  5. No RSS feed: The blog does not allow users to sign up for an RSS feed.
  6. Infrequent posts: There are seven posts since the supposedly grand RV adventure started June 24; only three about the trip and four generic posts about fuel economy, buying an RV, and so on.
  7. Boring: It's just as well that there are few posts, because what's there is mind-numbing dull. Here's an excerpt about the trip:

When we came back outside, the sky had darkened and thunder was easily heard off in the distance. We had five miles to get back to our car with several large uphill climbs ahead of us! Yikes! We made it back to the car and loaded up the bikes. We did not even make it out of the parking lot before it started pouring down rain! We were very relieved to make it back before the storm which was also accompanied by high winds and lots of lightning.

Bank of Internet has the right idea here, but they need to invest a bit more in design and content to make its niche marketing effort more appealing. In addition to sprucing up the blog, the bank should work with marketing partners such as KOA to provide more RV-related value adds. The bank should also do a better job highlighting features of interest to frequent travelers, such as the $10 month in ATM surcharge rebates.

JB

Appendix: Product page comparison, Senior Bank vs. MyRVBank (click for closeups)

Bofi_seniorbank_products  Bofi_rvbank_products

Lower East Side Federal Credit Union to Embrace Web 2.0

According to Web-design firm Trabian <trabian.com>, one of its clients, Lower East Side People's Federal Credit Union <lespfcu.org>, is redesigning its website to include many so-called Web 2.0 features including RSS, blogging, and integration with the photo-website Flickr and Upcoming.org, a user-fed events calendar owned by Yahoo.

Northshorecu_rss_rates

So far, the most common Web 2.0 feature is an RSS feed, since it requires minimal programming or repurposing of content. Just about any timely content posted online can be delivered directly to the user's browser or newsreader through RSS techniques. For example, in Uwcu_rssfeed_menuCanada, Vancouver's North Shore Credit Union <nscu.com> now publishes rate updates through RSS (see above), and Madison, WI-based UW Credit Union <uwcu.org> offers 10 different feeds in its education area (see inset).

Analysis
It's encouraging to see financial institutions begin to embrace newer collaborative technologies available online. We are not surprised to see credit unions lead the way. During the very early days, circa 1995/1996, many of the online pioneers were credit unions, notably Stanford FCU <sfcu.org> which posted account information online in 1994 and Boeing Employees Credit Union <becu.org>, which had the tenth largest online banking-user base in the world in early 1996.

While financial institutions still need to act like "grownups" on the Web (see note 1), younger banking customers in the "MySpace generation" (15- to 24-year olds) will grow up expecting certain things from the businesses they choose to patronize. For example:

  • Instant-messaging access to customer service
  • RSS feeds for service-related messages, such as holiday closures or systems maintenance
  • RSS feeds for bill reminders and other alerts
  • Open forums to post questions and review answers to others' questions
  • Aggregating content from other sites, including competitors'
  • A modern Web 2.0 design (see note 2)

Endnotes:

  1. That's why we don't think it's such a great idea for financial institutions to post profiles on MySpace (e.g., Land of Lincoln Credit Union <myspace.com/llcu>). To prospective customers over 30, it looks rather silly. To those under 30, I suspect it looks incredibly lame. 
  2. According to Seen Creative Group's <areyouseen.com> Nick Adams, a Web 2.0 look includes "large fonts, lots of white space, and big shiny buttons."
  3. See also, Banking the MySpace Generation, (NB Mar. 16)

Verity Credit Union’s Blog

Veritycu_logo Verity CU <veritycu.com>, a large Seattle-based credit union with a field of membership spanning the entire state, has been operating a public blog using Google's Blogger since December 2004 (click on inset for closeup), making it perhaps the oldest-running financial institution blog (let me know if you have one that started prior to Dec. 13, 2004). Veritycu_blog

Fourteen contributers are listed, more than 10% of the 105-person employee base. Each author has a profile posted online, making it a great way for members to get a better understanding of the behind-the-scenes activity.

Posting activity varies. In recent months, we've seen four or five lengthy entries. This month, there are 17 articles so far. Subject matter varies from the personal ("My trip to the dentist") to more salesy stuff about the credit union.

Comments are open, but little used. There were only two non-employee comments left in August.

The website counter shows 6,613 visitors.

Analysis
Offering a blog is an excellent way to show that you care about customers/members and that you are Web-savvy. We applaud Verity for their pioneering efforts over the past 18 months. But it's time for the CU to upgrade its blog.

  1. Improve the design with a masthead, better archive options, and graphic images that link back to the CU. Users expect more than the basic free blogger template from their credit union.
  2. Shorten the entries and add graphics and pictures.
  3. Keep the postings relevant. It's OK to have the occasional rant about Seattle traffic, but stick to things that matter to the reader. Most come to your financial institution to learn more about your company or your products. Let them go to a million other blogs for entertainment.
  4. Highlight the author of each entry. Currently, the Verity author is listed in small, faint type near the bottom of each posting. You want readers to get a sense of the people doing the writing, so it's important they see the name at the top of the posting.
  5. Improve the author profile info. Some author-profiles are quite skimpy. If you want credibility, the authors need to fully disclose their role at the credit union.
  6. Close the comments. Blog-comment areas are fine if they are used; however, a big ZERO down there just makes it look like you're visiting a ghost blog. If you do use them, make sure they are fully moderated, i.e., no comment goes live until approved by the blog administrator.

Blog address: veritycu.blogspot.com

HSBC Teams with Marriott to Give New Customers Free Lodging

Hsbc_smartoffer_home HSBC <us.hsbc.com> is offering new Smart Idea checking customers a free night at participating Marriott hotels, and are even tossing in breakfast for two. The only major requirement, as outlined in the relatively scant fine print (click on continuation link at the bottom of this article), is a direct-deposit relationship or $3,000 deposited by the end of September. The screenshot right shows the offer on the bank's homepage (click to enlarge).

Here's the landing page for the offer (first click off the homepage):

Hsbc_marriot_freenight

Analysis
This is a good offer because the perceived value of $200+ is likely far less than what HSBC is paying for it, which we estimate is considerably less than $100 due to the exposure Marriott receives. While it may not appeal to the stay-at-home crowd, they are not the target market for HSBC's premium checking account.

We also like the alternative to dropping $3 grand in the account in lieu of direct deposit. That appeals to small business owners and the self-employed who often are ineligible to participate in many bank premium offers  that require direct deposit. However, the bank should work with the single-deposit customers to get some electronic hooks into the account as soon as possible, either electronic bill payments, pre-authorized debits, or an integrated credit line with automatic payments from checking.

JB

Notes:

Fine print for HSBC's offer:
* Minimum balance to avoid monthly maintenance fee applies if direct deposit ceases. To receive the Marriott award, customers must open an Interest Checking account by 9/30/06 and either set up direct deposit or deposit at least $3,000 by 10/31/06. Interest Checking Account has 0.15% Annual Percentage Yield (APY), which is accurate as of 8/1/06 on balances of $5 or more. APY is variable and subject to change after opening. Charges and fees may reduce earnings. HSBC reserves the right to charge your Interest Checking account an amount equal to the bonus if your account does not remain active for at least 180 days. Hotel redemption forms will be sent to qualifying customers by 12/31/06. Hotel award includes accommodations for a one (1) night stay, including breakfast for two and room tax, at participating Marriott properties in North, South and Central America, Hawaii and the Caribbean, subject to availability. Breakfast not included at SpringHill Suites and TownePlace Suites properties. Hotel reservations must be booked and used by 1/1/08. Limit of one hotel award per customer. Cost of gift will be reported on IRS Form 1099.

** The Introductory APR does not apply to cash advances. After the Introductory Period or if during the first 12 billing cycles of your Account, whichever is earlier, your Minimum Payment (or any greater amount) is late or you exceed your credit limit twice, the Introductory APR will increase to the Customary APR. The variable Customary APR is 11.99%, 15.99% or 18.99% (as of 8/1/06), depending upon your creditworthiness. There is no balance transfer fee for balance transfers that post to your Account within 90 days of your Account opening; otherwise a 3% ($5 minimum, $50 maximum) balance transfer fee will apply, unless otherwise disclosed. We apply payments to lower APR balances before higher APR balances. We have the right to change your APRs, fees, and other terms at any time, for any reason including, but not limited to, any change in your credit history, credit obligations, Account performance, use of your credit lines with us or any creditor, or our financial return. Any changes will be in accordance with your Cardmember Agreement and applicable law.

US Bank Introduces Email Alerts 2.0

Friday, US Bank <usbank.com> began using a new design for its email alerts. It has a softer, more modern look to it (see before and after screenshots below). The layout and copy are identical to the previous version.

The new look arrived about the time we intended to post a rant about the lack of creativity in bank messaging. One of our examples was US Bank, which had sent us the same basic confirmation message more than 1,000 times over the past three years.

While it's good to see an improved design, it's still pertinent to note that there is more to the lack-of-creativity argument than just the font and background colors. The problem with email alerts is that after receiving them two or three times per week for several years, many users may ignore them. To keep that from happening, financial institutions need to upgrade their messaging system; let's call it Alerts 2.0.

Here are some important features of Alerts 2.0 (for a detailed look at bank messaging, see Online Banking Report #91/92) :

  • Educate about preference changes: Once or twice per year, perhaps more frequently for those receiving a large number of alerts, remind customers about the types of alerts available and how to change them.
  • Provide periodic summaries: Someone getting six alerts each week would likely appreciate a weekly summary of all changes.
  • Change the "look & feel" periodically: Don't wait three years to change the design. Create a template so that the alert design can easily be changed to fit the season or holiday.
  • Gently cross-sell: Alerts should be kept primarily factual. But every once in a while, most of your customers would appreciate a low-key "reminder" of relevant services, such as overdraft protection, credit report monitoring, and so on.
  • Give thanks: As trite as it sounds, don't forget to thank the customer, at least every once in a while. For example, you might add a thank-you when receiving a large deposit (or ANY deposit for that matter). Also, a periodic "thanks for participating in online banking" and/or email alerts would be appropriate. This would also be a good time to ask for feedback on the service.

US Bank email alerts redesign (click on images to enlarge):
New  Usbank_alert_new_1 Old Usbank_alert_old_1

–JB

Bank Branding – What’s in aName?

Two data points:

  1. A front-page story in today's Seattle Times reveals Washington Mutual's dTomatobank_logoecision to change their brand name to WaMu.
  2. Monday's American Banker told of Alhambra, CA-based InterBusiness Bank name change to Tomato Bank.   

Two name changes among 8,000 U.S. banks is hardly a trend. But as the Internet becomes more and more important to your new account acquisition (see Online Banking Report 128, "The Demise of the Branch"), you must consider how your name works online. First National Bank and Trust looks good on a main-street signpost, but when translated to cyberspace it loses much, if not all, of its appeal. The problems?

  • Not memorable: Too many generic words strung together make a name difficult to recall when potential customers return to their computers.
  • Not searchable: Again, too many generic words makes it hard to even find in a search engine.
  • No domain name available: The domain names containing first, national, and bank have long been snatched up by early adopters in 1995 and 1996. Many banks have had to resort to hard-to-remember domains such as <ibankfnb.com> from First National Bank of Hudson
  • Not a modern brand: While it's nice to have your name create a feeling of trust and security, generic names reinforce the impression that the bank is not modern and technologically savvy, not good positioning for attracting customers online.

A name change is one of the biggest decisions a company will make, so we won't presume to give you advice on that point. However, you must consider the effectiveness of your brand online, both in recall, search, and overall company image.

JB

Web-Based Calendar Company for Sale

Kiko_calendar_home In Online Banking Report, we've looked at online calendars as nice-to-have additions to banking websites. They fulfill a personal financial-management role by tracking and sending reminders of bill payment and other deadlines.

If you are interested in adding a calendar to your user interface, there is a unique opportunity to purchase a turn-key calendar website, that provides not only the code, done in a Web 2.0-like look, but also 40,000 monthly visitors. You could potentially pick up some customers from the existing user base as well.

The site, Kiko.com, is for sale in an eBay auction that ends on Aug. 26. Opening bid = $50,000.

Thanks to TechCrunch for the tip.

Washington Mutual Joins High-Rate Savings Game

Reports first surfaced Saturday (Aug. 12) that Washington Mutual was offering 4.75% on a no-minimum deposit savings account. But don't try to find it on their website. The offer is only visible after you begin the application process for one of the highly promoted free checking accounts (see NB July 20).

We searched the WAMU website using a variety of states and did not see any mention of the high rate. However, the bank could be using cookies or other methods to serve the banners to select customers (see Citibank, NB May 10). In our tests (from a Seattle IP address), users are first introduced to the savings offer on the first page of the online checking account application (click on screenshot below for a closeup).

Wamu_savings_xsell_1

Like Citibank's e-Savings Account, Washington Mutual is requiring a checking account to take advantage of the offer. However, WAMU's checking account is completely fee-free regardless of balance and with no direct-deposit requirement. Current WAMU customers can take advantage of the high rate, which is 12 times higher than the current 0.4% rate, only by opening a new checking account.

Analysis
WAMU is attempting to minimize deposit cannibalization by keeping the offer off the website. They are attempting to leverage their free checking campaign by upselling new customers at the point of sale. For a bank with a major branch presence, that's not a bad approach; however, it's not going to bring in deposits at the same rate as Citi or HSBC.

It will also be interesting to see how the bank deals with the inherent channel conflicts. If the high-rate deposits are credited to the Internet channel only, branches will be up in arms over the 12x rate advantage offered online. But if branches do get credit for the deposits, they will be converting their biggest customers into the new accounts as fast as possible (unless WAMU rewards branches by account profitability).

–JB

FFIEC Releases FAQ on Enhanced Security Requirements

Ffiec_logo Today, the Federal Financial Institutions Examination Council (FFIEC) issued a 7-page list of questions and answers about its October 12, 2005, bestseller, Authentication in an Internet Banking Environment.

Bankingfraudfordummies_1 The main thing you need to know about the new document is what it does NOT say, that the year-end deadline has been extended (see Timing, Q1, p. 4, reprinted below). However, the answer does appear to provide a bit of wiggle room, saying that banks must "implement risk mitigation activities by year-end 2006." I'm sure many creative interpretations of the precise meaning of that phrase will surface. 

Q-1- What do the Agencies expect institutions to have accomplished by year-end 2006?
A-1– The Agencies expect that institutions will complete the risk assessment and will implement risk-mitigation activities by year-end 2006. The Agencies are not considering any general extension of the timing associated with this guidance.

Good luck to all.

JB

Financial Keyword Frequency from AOL Search Data

Aolsearch_logo The privacy furor that erupted August 6 over the 20-million Web queries posted by AOL has distracted from the useful information contained in the database. While AOL removed it a week ago, numerous search-engine researchers had already downloaded the file and have reposted it with front-ends for research purposes.

SEO Sleuth <seosleuth.com> has posted the top-2000 search terms from the AOL sample. Click the continuation link below to see a list of all banking terms that made the top 2000 list. Here's the first 10 with their overall rank among all search terms:

40. bank of america
86. bankofamerica
114. fidelity
159. bankofamerica.com
170. paypal
174. www.bankofamerica.com
202. free credit report
215. american express
259. wachovia
264. wells fargo

What's striking about the AOL search data is the overwhelming preference to search on brand names rather than product categories. Also, that Bank of America has an extraordinary share of mind with searchers, with its various forms accounting for four of the top six most-searched financial services terms.

JB


Rank/Search Term/Number of Searches/% of Searches that Ended in a Click (to ANY website)
Note: Click on the search term for a list of the websites visited after entering this search term

40 bank of america 5,920 70%
86 bankofamerica 3,450 71%
114 fidelity.com 2,862 77%
159 bankofamerica.com 2,280 53%
170 paypal 2,197 24%
174 www.bankofamerica.com 2,174 45%
202 free credit report 2,007 61%
215 american express 1,931 70%
259 wachovia 1,715 68%
264 wells fargo 1,691 76%
283 capital one 1,620 44%
284 zillow.com 1,616 36%
313 chase.com 1,525 57%
327 wellsfargo.com 1,460 50%
333 chase 1,454 64%
343 mortgage calculator 1,420 62%
382 www.capitalone.com 1,290 18%
391 washington mutual 1,266 78%
448 citibank 1,155 79%
457 wachovia.com 1,135 52%
488 www.wellsfargo.com 1,089 47%
509 capitalone.com 1,041 24%
525 wellsfargo 1,017 62%
528 credit report 1,014 62%
555 capitalone 985 41%
558 wamu.com 983 67%
667 checks 850 75%
674 chase bank 846 72%
689 credit cards 835 42%
708 www.bankofamerica 817 20%
731 mbna 795 78%
732 bank of america.com 795 54%
756 personal loans 775 78%
782 www.wachovia.com 761 39%
807 paypal.com 745 19%
813 zillow 739 50%
819 commerce bank 735 83%
901 wamu 685 71%
910 freecreditreport.com 682 34%
922 fidelity 675 70%
961 usbank 656 77%
984 loans 644 33%
985 providian 644 86%
1058 mypay 612 90%
1085 hsbc 601 51%
1145 usaa 570 75%
1171 americanexpress.com 563 53%
1195 us bank 553 80%
1232 ameritrade 541 60%
1249 discover card 536 65%
1251 etrade 535 65%
1309 auto insurance 518 51%
1319 aetna 516 78%
1333 www.wamu.com 512 71%
1371 www.zillow.com 501 25%
1388 usbank.com 496 63%
1396 orchard bank 493 50%
1425 wells fargo bank 484 75%
1446 payday loans 479 72%
1449 citizens bank 478 74%
1488 bank one 469 73%
1494 suntrust 467 82%
1502 wwwbankofamerica.com 464 21%
1529 www.providian.com 458 76%
1548 www.citicards.com 452 35%
1582 wachovia bank 444 52%
1630 experian 435 57%
1648 americanexpress 431 59%
1655 www.bank of america.com 430 44%
1663 national city bank 427 77%
1693 www.chase.com creditcards 420 52%
1714 bad credit loans 416 80
1715 providian.com 416 79%
1801 credit reports 403 63%
1823 usaa.com 400 62%
1833 citicards.com 397 48%
1873 www.americanexpress.com 392 38%
1879 american express.com 391 30%
1883 annualcreditreport.com 391 62%
1912 bankone 386 75%
1927 life insurance 385 60%
1964 zillo.com 380 17%
1978 countrywide 376 50%