Banks are underutilizing the potential for selling emerging financial services to their customers. This is an advance finding from a consumer study currently being conducted by Market Rates Insight. The study found that, on average, only 14% of bank customers currently have any type of emerging financial services, yet 57% of current bank customers indicated that such Read More
Building out or improving remote delivery channels, such as online banking, mobile banking and electronic bill pay, with new products and systems represents one of the greatest opportunities a bank can face – and one of the greatest challenges, as well. Relying too heavily on vendor expertise has meant a missed opportunity for many institutions. While vendors Read More
2012 saw the most bank mergers since 2007 as beleaguered institutions look for a way out. Rising competitive pressure has tempered organic growth while tougher regulations have continued to dampen banks’ long-term earning power. These trends, in combination with a soft economy, suggest that the appetite for merger activities in 2013 will be just as strong. But Read More
Bankers have grown accustomed over past decades to a plentiful supply of low-cost time deposits from senior citizens that help to properly fund fixed-rate long-term loans. This need for seniors to invest conservatively is timeless. The specifics, however, of what kind of deposits the older generation will embrace is changing. When we speak about the “older generation” Read More
Branch closures are never easy work, but U.S. banks had an obvious place to start as they tightened up following the recession. By focusing on hopeless units, the industry closed more than 7,000 branches between mid-2009 and mid-2012. Now, however, it appears that continuing expense pressures will require still more closures, raising the question of how to Read More
As the hype around mobile wallets continues to build, many banks find themselves at a crossroads in their strategic thinking. On the one hand, a mobile wallet represents a valuable communications channel through which banks can deepen customer relationships, gain valuable insight into spending habits and a clearer understanding of customer attitudes toward new products and services. Read More
Product bundling is a successful and profitable concept in some industries, such as cable television. But can it be utilized in the banking industry? Our view is that it can, based on a recent conference presentation and our own analysis of nationwide data. In a session entitled “Generating New Revenue Opportunities” at the recent BAI Retail Delivery Read More
Where there’s innovation, there’s often danger, a phenomenon well-recognized by the financial services industry as it ventures into the emerging technologies of mobile banking and payments. Fraud and security issues have the potential to derail promising initiatives unless financial institutions protect their use of these technologies in an aggressive, proactive manner. One individual tasked with helping the Read More
When bankers sit down to design new products in this new regulatory era, they should bring their compliance experts in at the start of the conversation rather than at the end. That’s the advice from David Silberman, assistant director, deposit and payment markets, at the Consumer Financial Protection Bureau (CFPB). “Compliance is not something that happens at Read More
One result of the recent and continuing rash of government regulations is a renewed desire on the part of banks and credit unions to drive new sources of revenue and profitability. Yet, where can these be found in today’s sluggish economy? Inevitably, banks are looking at their existing customer base with a renewed interest in cross-selling to Read More
The recent financial crisis and continuing impact of a slow growth economy and increased regulation has focused financial institutions on the need to be more agile and innovative. This requires greater flexibility from the technology that underpins card services and other payment processes. Banks need platforms that improve their ability to anticipate changes, respond quickly and ensure Read More
Over the last year, almost every strategic technology planning discussion or project in which I participated focused in large part on alternative delivery planning. Most banks are asking a variant of two questions: How do we decide which technology to deploy, and in what order, to generate the greatest positive impact to our current business model? And, Read More
Let’s face it, consumers are not rational in their purchase and use of checking accounts. Instead, they make decisions affected by their emotional needs, particularly concerning simplicity, acceptance and immediate gratification. While some of us may not find it surprising that emotions drive consumer behavior in addition to logic, it appears that many retail bank executives developing Read More
