Blog - Page 1157 of 1217

Zopa’s International Expansion

By Jim Bruene Posted on August 25, 2007
Categories: Loans & Credit, P2P Lending, Zopa

I think I understand Zopa’s delayed U.S. launch a bit better now. Apparently, the company is looking to expand not just in the U.S. but in Asia as well (along with the previously announced Italian licensee).

Here’s a quote from a recent blog entry

“…we have had over 100 different teams in over 40 countries get in touch with with us, looking to launch a version of Zopa locally. These have ranged in distance from France to New Zealand, and included countries as diverse as Brazil, Mexico, Canada, India, Japan, Korea, Taiwan, Australia, South Africa, Ghana, Turkey, Spain, Germany, The Netherlands, Poland, Slovakia, Lithuania and Romania.”

We’ve seen that interest at Online Banking Report as well. Our Feb. 2006 report on Prosper and P2P lending was our best selling issue of all time. We’re planning an update later this year, hopefully with an analysis of Zopa’s U.S. version, which the company still says is coming this year.

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Password Reset Alert from American Express

By Jim Bruene Posted on August 25, 2007
Categories: Alerts & Messaging, American Express, Credit/Debit Cards, Email Samples, Security & Privacy

I received an email from American Express late last night after resetting my password earlier in the day (see screenshot below). I can never remember my AmEx password, because I can't use my usual one due to the company's surprisingly short field of just 8 characters that also doesn't support special characters. I have it written down somewhere, but I can never find that either.

I went online late Friday afternoon to pay my overdue bill at AmericanExpress.com. I was pretty sure it was one of three possibilities, but after two unsuccessful attempts, and with the website warning me the third attempt would cause a lockout (note 1), I decided to go through the online reset process instead.

That was easy. I just needed the card number, the code on the front of the card, and the answer to a security question. At that point, AmEx displayed my username and let me reset the password. It's one of the easier reset processes I've tested. That's a benefit to customers and helps cut customer service costs for AmEx.

But the thing I liked most was the email message sent later that night informing me of the password reset (screenshot below). But I don't understand why it was sent more than six hours later. Why not send it right away? That would be way more impressive to customers, and would help reduce any potential fraud or privacy violations. Better yet, send a text message right to the customer's mobile, so they have real-time knowledge of the account changes.

Email Critique
Personalization: The company uses two pieces of personalization, cardmember name and the last five digits of the account number, to differentiate this message from the average phish. Excellent.

Subject line: Your American Express Forgotten User ID is good and right to the point

From: "American Express" using an American Express email address. Good.

Headline: Verify Your Account Transaction is a little confusing. All I did was reset my password. I'm not sure that average person views that as a "transaction."

Copy: The copy is short and to the point, but it could use a little editing for clarity. The third sentence, "If you did contact us…." seems unnecessary. And "If you did not complete the retrieval…." is not very user friendly language.

Design & Layout: Excellent.

Overall Grade: A- for the message, B- for timeliness

Note:

1. We recommend allowing more than three attempts before lockout. It's pretty easy to forget a digit or make a typing mistake. See our Online Banking Report on Security (#119) for more information.

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FINOVATE 2007 to Showcase the Future of Mobile Finance

By Jim Bruene Posted on August 20, 2007
Categories: Conferences, Finovate, FINOVATE Conference

You may have noticed that the blogging machine has slowed down a bit during the past few weeks (see note 1). It's not because of a lack of industry movement. Far from it. It's because we've been putting together a scorching hot conference, our first ever!

But it will all pay off on Oct. 2 when twenty of the most innovative companies in the financial, banking and lending industries gather in New York City to offer a glimpse of the future of online and mobile banking at FINOVATE 2007: DEMOing the Future of Financial Services.

Following the popular format pioneered by DEMO, FINOVATE 2007 will provide companies with a mere seven minutes to “wow!” an audience of 200 leading executives, investors, analysts, members of the press and bloggers with actual demonstrations of their latest and greatest products and services (no Powerpoint allowed!). The demos will be followed by intimate networking sessions where attendees will be granted unprecedented access to these innovative companies and their executives.

Many of the twenty presenters have mobile solutions, but five are focused entirely on the mobile space (see note 2 for the full presenter list):

ClairMail, Firethorn, mFoundry, MShift, and Monitise

General admission tickets for the event are extremely limited (fewer than 100 remain!). And with only 44 shopping days left, you'll want to get yours today and qualify for the early-bird rate of under $500. To register, visit our registration page at finovate.com or call us at +1 (206) 517-5021. Don’t miss out on your chance to see what’s next in P2P lending, online account opening, bill payments, mobile banking, social personal finance and more!

(Member of the press or industry blogger? Email us at [email protected] to request a press pass.)

Notes:

1. Special thanks to guest blogger Brandon McGee for keeping the spiderwebs from accumulating the last two weeks.

2. Full presenter list (in alphabetical order): Andera, Billeo Inc, CheckFree, ClairMail, Firethorn, Digital Insight (an Intuit company), Identity Theft 911, iPay Technologies, Jwaala, Lending Club, Metavante, mFoundry, Mint, Monitise, MortgageBot, MShift, Online Resources, Prosper Marketplace, and Yodlee.

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US Bank Pitches Electronic Statements at Login

By Jim Bruene Posted on August 20, 2007
Categories: Advertising & Promotion, Electronic Statements, US Bank

Using a splash screen after logging in to online banking (see screenshot below), U.S. Bank is asking customers to move to electronic statements, specifically for credit card and loan accounts, although the online-only option is also available for checking accounts. I saw the message, dated Aug. 20, for the first time today. I've been a customer of U.S. Bank through the entire online era (note 1) and this is the first time I recall being asked at login to go paperless. Unlike PayPal, BofA, and others, U.S. Bank rarely uses the login splash screen technique.

Let's look closer at the bank's pitch:

Title: Internet Banking Updates
NetBanker comments: OK…but would be more effective if it directly mentioned the purpose of the message

Opening line: U.S. Bank Internet Banking just keeps getting better!
NB comment: That's a bad opening line. This is not a new feature. Some U.S. Bank customers have had electronic statements available for 13 years now. Everyone customer has had them for at least 9 or 10 years. The only new thing is that you stop receiving paper statement, hardly the "bank getting better." Most customers know this is a cost savings move for the bank.

Benefit statement (bullets): Online Statements Only help you: Deter fraud, Reduce clutter, Manage your account online….
NB comments: Beside the grammatically challenged opening, the bank did a good job getting the anti-fraud message into the first bullet. The second bullet, "reduce clutter," is OK, but the third is pretty weak. Why are you telling online banking customers they will benefit from "managing your account online?" And only 18 months of archives is hardly going to give customers a good feeling about doing away with their paper statement.

Call to action: The bank provides specific instructions on how to turn off the paper statement.
NB comments: The specific instructions are good, but a small graphic of where to click would be more powerful (see the example at right). Also, the choice to view the message later is a user-friendly option.

Overall graphic design: The splash screen is laid out like a letter.
NB comments: That's OK, but a graphic image or two would give it a more modern and professional image.

Overall grade: C
NB comments: The bank does a good job getting right to the point. But the overall look and feel along with some of the specific copy points lower the score. This would have been an A- in 1997, but a decade later, Internet users expect and deserve a more sophisticated message.

Note:

1. Full disclosure: I was the lead product developer on U.S. Bank's online banking system launched in 1994.

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New Online Banking Report Now Available: A Look at Online Delivery of Credit Report Monitoring Services

By Jim Bruene Posted on August 16, 2007
Categories: Credit Reports & ID Theft Protection, Online Banking Report

Just a quick note to let you know that the latest Online Banking Report has just been uploaded to our website. It’s title: Online Credit Monitoring Services: The robust business case for financial institution distribution. I’ll post some conclusions from the report later, but you can read the abstract here.

Subscribers, you can download it now (here) free of charge. Everyone else, it’s US$595 on its own, or for “just” $500 more you get the new report plus a stack of others, including our report on Social Personal Finance, Mobile Banking, Mobile Payments, the latest online banking forecast and more.

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FINOVATE 2007 Conference to Showcase the Future of Online Personal Finance, Banking and Lending in Fast-paced Demo Format

By Jim Bruene Posted on August 15, 2007
Categories: Conference Calendar, Finovate

If you've wondered why the NetBanker blogging machine has slowed down, it's not because we've wilted in the summertime heat. No, it's because we've been putting together a scorching hot conference, our first ever! I can't begin to tell you how much fun we've had negotiating for a NYC venue, finding a top-notch A/V crew, and building a website on short notice!

Following the popular format pioneered by DEMO, FINOVATE 2007 will provide companies with a mere seven minutes to “wow!” an audience of 200 leading executives, investors, analysts, members of the press and bloggers with actual demonstrations of their latest & greatest products and services (no powerpoint allowed!). The demos will be followed by intimate networking sessions where attendees will be granted unprecedented access to these innovative companies and their executives.

The presenter list includes (in alphabetical order): Andera, Billeo Inc, CheckFree, ClairMail, Firethorn, Geezeo, Digital Insight (an Intuit company), Identity Theft 911, iPay Technologies, Jwaala, Lending Club, Metavante, mFoundry, Mint, Monitise, MortgageBot, MShift, Online Resources, Prosper Marketplace, and Yodlee.

General admission tickets for the event are extremely limited (there are less than 100 left!). And with only 47 shopping days left, get yours today and qualify for the early-bird rate of under $500. To register, visit our registration page at finovate.com or call us at +1 (206) 517-5021. Don’t miss out on your chance to see what’s next in P2P lending, online account opening, bill payments, mobile banking, social personal finance and more!

(Member of the press or industry blogger? Email us at [email protected] to request a press pass.)

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Green (Hybrid) Auto Loans from Star One Credit Union

By Jim Bruene Posted on August 10, 2007
Categories: Advertising & Promotion, Credit Unions, Green Marketing, Loans & Credit

In many ways, hybrid vehicles are the perfect antidote for guilt about our 21st century high-consumption lifestyle. Buy a Prius, and instantly feel better coasting around the city on self-generated battery power. Yet you still get to motor about in a relatively large, well-appointed and air-conditioned steel box (note 1).

That's why politicians have jumped on this bandwagon in droves. And why it makes a great marketing statement to support energy-saving and/or low-emission alternatives with loan discounts. Not only does it position you as caring about the larger environment, there is a very real environmental education benefit to the efforts.

The most recent example—Star One Credit Union <starone.org>, a $3 billion (assets), 71,000 member CU based in Sunnyvale, California—has a link on its homepage to its hybrid offer. Customers financing a new or used hybrid vehicle save 0.25% on their loan rate. On a $20,000 5-year loan, $139 is saved, enough to fill the tank three, maybe four times. The offer is spelled out here (screenshot below).

Other financial institutions offering hybrid car loans:

UCB Bank (Miami, FL): no payments for 3 months offer here
Deedham Savings (Deedham, MA): offer here
Sound Credit Union (Tacoma, WA): 0.50% discount offer here
Tech CU (San Jose, CA): 0.25% discount offer here
Vancity (Vancouver, BC, Canada): Prime rate for low-emission vehicles here

Note:

(1) I'm not trying to be cynical here. As a former engineer, I think hybrid technology is fantastic. Using waste energy to fuel the car is both elegant and efficient, and I look forward to driving one soon.

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PayPal Unveils New Homepage (beta)

By Jim Bruene Posted on August 9, 2007
Categories: PayPal, Website Usability & Design

PayPal is offering visitors the option of using a newly designed homepage, calling it a beta version. A small link notched into the top of the screen handily allows users to switch back to the original look.

The design change was needed. PayPal's homepage, which had been so good I often used it as an example of how to focus on user needs, became cluttered over the years. The company now uses "personal" and "business" tabs, a common banking convention that allows the very different constituencies to more easily find what they need.

The new homepage (below) is dominated by a safety theme, with a large blurred image of a credit card number meant to reinforce its point of being a "safer, easier way to pay without exposing your credit card number." It's a good idea, but the huge blurred image makes me feel like I'm having eye trouble.

PayPal has also pulled the credit card logos out of the main graphic and put them on their own line. They are easier to see now and will help new users understand they can use PayPal with their existing payment cards.

They also made two subtle changes in the login area:

Changed the wording from "member login" to "account login," a more accepted phrase. Most people don't really feel a membership bond from their payment device, and it probably confused a few infrequent users.
Added "PayPal" in front of "password," again to make it more obvious to novice users as to what to enter here.

Finally, PayPal finally added a search box (top right), ending its reign as one of the last major holdouts for this common website utility.

Overall, it's a great improvement. And should help with navigation, sales, and support. Given its position as one of the busiest financial destinations on the Internet, we recommend taking a look and comparing it to your own website design.

For more info on financial institution homepage design, see our Online Banking Report on the subject here.

New PayPal homepage (beta)

Current PayPal homepage

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ING Direct Launching in Seattle

By Jim Bruene Posted on August 7, 2007
Categories: Deposits, Checking, Savings, CDs, Direct Mail, ING Direct

I received a mailer yesterday at my Seattle home address announcing ING Direct's upcoming launch in Seattle (see scan below). This version at least was sent only to existing ING Direct customers. Note the inside headline with an appropriate local touch, "Seattle's Getting More Bean for its Buck."

There are not many specifics in the orange self-mailer, other than "You'll soon be seeing us all over the city—from Puget Sound to Lake Washington— spreading the savings message." I'll keep my camera handy to capture big orange visuals as the company arrives on the scene.

So, it doesn't sound as if we're getting a famous ING Cafe (see inset, the newest one in Chicago). However, I do have the opportunity to earn a $10 referral bonus by handing out the two detachable cards that came with the mailer (see note 1). The new account holder also earns a $25 bonus. Customers can sign up through the mail using the card, or go online to a special landing page <ingdirect.com/seattle> (see screenshot below).

Seattle mailer front

Seattle mailer back

Landing page for Seattle offer <ingdirect.com/seattle>

Note:

1. On the above scan, you can only see the top portion of one of two identical perforated referral cards designed to be given to family and friends. Sorry, my 8.5 x 14 scanner didn't capture the entire self-mailer.

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Citi Mobile Makes the Homepage

By Jim Bruene Posted on August 7, 2007
Categories: Advertising & Promotion, Citi Mobile, Citibank

Citibank continues to press its lead in mobile banking services. The banking giant not only runs print and television ads, but also claims valuable left-side real estate on Citi's homepage (see inset for closeup of section; see screenshot below for context; and see note 1).

Since Citi's homepage is relatively cluttered with banner ads, the New & Noteworthy section supported by a small mobile phone graphic should grab a significant number of clicks. The landing page is the same as reported earlier (see previous coverage here).

Note:

1. Citibank's homepage as viewed from a Seattle IP address, Aug 7, 3 PM Pacific, from a laptop that has previously visited Citibank.com but that has not accessed a Citi account.

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Buxfer is First Banking App to Tap Amazon Flexible Payments System

By Jim Bruene Posted on August 3, 2007
Categories: Amazon.com, Buxfer, Electronic Bill Payment & Presentment, Personal Financial Management

Today, Buxfer added funds-transfer capabilities to its online personal finance app (see announcement here, previous coverage here). The service is free through the end of August, but could eventually carry 1% to 2% fees to cover transaction costs.

Buxfer co-founder Shashank Pandit has been dangling this bit of news in front of me for the past two weeks. But he would only tell me that they were partnering with a big player to enable funds transfer (note to Amazon attorneys, he did NOT violate the NDA). I figured it would be Chase, Wells Fargo, or perhaps PayPal. Even with the rumors this week of Amazon's new payment services, I hadn't put 2 and 2 together.

This morning it all makes sense. Amazon.com announced a potentially disruptive payment service, aptly called Flexible Payment System (FPS). And it's announced, in what else, a lengthy blog post at the Amazon Web Services blog (see note 1). The FPS website is here. The company even built an FPS Sandbox where users (see screenshot below), both individuals and companies, can play with the service without moving actual money around.

Buxfer is using Amazon Payments to allow users to settle their debts electronically, a vital piece of a social personal finance app. Online personal finance without payment capabilities is like the Internet without email. Even if the company ends up charging a small fee, the convenience would be worth it for many users.

Implications
The Amazon service potentially makes it easier for smaller Web-based companies to take on traditional financial institutions. It won't alter the payments landscape overnight, like PayPal did in 2000, but it could usher in a rash of new entrants competing with banks and credit unions for the high-end personal finance customer (note 2). But the big stumbling block: consumer trust still favors incumbent financial institutions. In any event, the game just became more interesting. For more information, see Online Banking Report: Social Personal Finance.

Buxfer homepage noting Amazon Payments

My default account page at Amazon's payments sandbox (I have not made any transactions, so the ledger is empty)

Note:

1. The post is signed by Jeff, which is Amazon evangelist Jeff Barr, not the slightly more famous other Jeff (Bezos).

2. Another company using Amazon Payments is FreshBooks, a small-business billing service.

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June Online Financial Services Scorecard from Compete

By Jim Bruene Posted on August 2, 2007
Categories: Compete, Market Research & Metrics

Compete June scorecard

In April, we introduced the Financial Services Monthly Performance scorecard produced by Compete. It summarizes the overall performance of 23 large U.S. financial institutions and lead-generation sites. Refer here for the detailed methodology as well as companies tracked.

Overall June highlights:

Traffic of financial shoppers was up across all product types except high-yield savings which dropped 2%.
More important, applications were up across all products ranging from 3% in savings to 26% in mortgage refinance.
A total of 2.9 million product applications were booked; 200,000 more than the 2.7 million last month.

Specific financial institution performance:

Bank of America improved its credit card conversion rates dramatically, booking a 30% increase in applications despite only 10% growth in shopping traffic.
In checking accounts ING Direct, WaMu, and Wells Fargo all increased the volume of prospects looking at checking account options.
Emigrant, HSBC and ING Direct were all able to increase application volumes despite a flat or declining volume of potential prospects.
Home equity prospect traffic grew at 12 of 16 providers and conversion rates were improved at 10 of 16. Bank of America, Citibank, Countrywide and Low.com had the largest month-over-month percentage gains in both prospect and application volume (note 1).
In home-purchase mortgages, Low.com nearly doubled its prospect traffic compared to May, while significantly improving lead conversion.
In mortgage refinance, Low.com also posted the largest percentage gain in prospects but grew applications at a lower rate, resulting in a significant decline in conversion. Quicken Loans showed greater efficiency, almost doubling application volume with roughly the same number of prospects as in May.

Note:

1. For loan products, leads from lead-generation sites such as Low.com are combined with actual applications at financial institutions into a single "lead/application" category shown in the table.

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