Looking for an alternative to email for marketing and service communications?

As more users subscribe to RSS (Rich Site Summary or Really Simple Syndication) or XML feeds to automate the process of reading online news, blogs, and other information, they will expect their financial institution to support this communications technique.

The only bank XML feed we’ve seen so far is Bank of Montreal, which publishes its Online Banking News as an XML feed. Bank of Montreal has published 15 items since the feed became available in early March, including interest rate changes, usage tips, and security warnings (click on the thumbnail left to see all 15 items published).

The bank pubicizes the feed on its online banking login page (see inset right).

Analysis
According to the Pew Internet Project, only six million U.S. users were receiving RSS feeds in November, 2004, approximately 5% of total Internet users. Even if that number has doubled by now, it still a small minority of users.

However, now that Firefox and Apple’s Safari browser contain built-in RSS readers, it’s only a matter of time before Internet Explorer supports this feature. IE users can still use RSS feeds, but they must download a toolbar add-in such as Feed Scout (www.bytescout.com), use an aggregation site such as BlogLines (www.bloglines.com), or download a standalone newsreader such as Feed Demon (www.download.com). 

Once newsreaders become incorporated in most browsers, we expect usage to skyrocket. Most ecommerce players are expected to published feeds to support customer service and sales. For example, Amazon already offers XML feeds in more than 100 categories, updating users on new items in everything from mystery books, to hip-hop CDs, and action-figure toys.

Banks looking to project a modern image might as well get ahead of the curve and start sending service messages via XML feeds in 2005. It’s a good way to get information out to users who no longer receive or trust your email messages. Producing an XML feed is a relatively inexpensive project with little downside. If resources are too tight, make sure you add it to your 2006 plan.

For more information:
Wikipedia definition
Walt Mossberg’s Personal Technology column (5/5/05 Wall Street Journal)

—JB