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Bryan Yurcan
"leave room to scale" is perhaps the most important point of all. As we're seeing over the last 5-10 years, channels people don't even know exist now may become commonplace not too far down the road.
3 2 hours ago
Kathy Burger
That is very true. This isn't exactly the same thing, but I just read an article in the Financial Times that people in Africa essentially pay a "remittance tax" of almost $2 billion/year because of the higher-than-average cost of sending money there. That's partly becasue 2 companies (Western Union and MoneyGram) dominate the business, according to the Overseas Development Institute. Not quite the same as SWIFT payments, but shows how much room for improvement there is still in the payments system.
5 19 hours ago
Kathy Burger
Just continuing my comments, which got cut off. Im definitely not hearing as much discussion about core transformation as I did 4 or 5 years ago. Is that an impediment to achieving real omnichannel success?
3 19 hours ago
Kathy Burger
Ross -- I think this is an excellent summary of the reality and challenges around delivering omnichannel. My sense is that most banks today recognize and are committed to the value and need of offering banking products and services via multiple channels, but that it's still more about launching/supporting the channels and not so much about integrating them, not to mention addressing the data aspect that you discussed. Also, the issue of the core systems in enabling or impeding true omnichannel seems very important and I think isn't always part of this discussion. WI definitely am not hearing
3 19 hours ago
Jonathan_Camhi
There are some companies already working on video banking via mobile and online devices. Video banking could be a big plus for the branch, but if it moves to these other channels, then that's one less reason to invest in branches.
4 20 hours ago
Jonathan_Camhi
The speed of delivery of the payment is also important to note. I think that international payments are an area where the customer experience is so poor that it would be easy for a new player to enter the market and take customers away if it can provide better speed and price. Deutsche seems to be getting ahead of the curve on that.
5 20 hours ago
Jonathan_Camhi
Absolutely Chip. Many people aren't aware of all of the friction in cross-border payments because they don't send money internationally. But it's a huge hangup in improving global commerce and is also a step in the right direction in terms of banks being more transparent about their fees.
5 20 hours ago
Jonathan_Camhi
We're just starting to see the impact of attacks in mobile, and it's something that banks are still learning their way through. So until banks have more experience with the unique challenges and threats in mobile, I think treating every device as if it were compromised is pretty good advice.
2 20 hours ago
Jonathan_Camhi
If they start to develop a customer base that has a preference for the video banking channel then they'll definitely be able to build on that in terms of using the branch as a cross-selling channel.
4 20 hours ago
Kathy Burger
Very interesting insights from Jim, especially the thinking on "assume every device is compromised" -- that's probably the only way to get consumers, employees and management to adopt and consistently practice appropriate security procedures. Banks clearly cannot push the burden of compliance to their customers (consumer or corporate) -- that simply is not realistic.It will be interesting to get more of Jim's thoughts on what banks should be doing to address mobile security, and BITS's role in that at the May 14 Mobile Disruption Forum [link]
2 22 hours ago
Kelly Sheridan
Looks like combining the traditional branch with today's tech was a good move on UMB's part, and a smart way to get older customers involved with digital banking. I, too, am interested to see what will happen to the branch as these customers become more accustomed to self-service and digital channels.
4 22 hours ago
Ivy Schmerken
Facebook is serious about becoming a leader in social payments. With 'passporting' in the EU it could mean that Facebook can allow users from all the other member countries to store money on the site. Even though this will appeal to the younger generation/millenials who have grown up with Facebook, I can see older consumers being drawn to use Facebook to transfer money or buy gifts for their teens, friends, relatives who are also on Facebook.
4 1 day ago
Bryan Yurcan
That is very true. While consumers generally do want the convenience of digital channels (except my great aunt, who still goes to the branch to buy CDs) they may not want or like every latest cutting edge thing the 'experts' say they want.
5 1 day ago
craytek
So true. There's often an assumption that customers already fully understand all the product nuance (they don't) and that certain online or mobile conventions are intuitive (often they're not). Being confused by a few product issues and a few technology issues can be a lethal combination, or enough to abandon transactions and go back to conventional channels. Thanks, Jonathan
5 1 day ago
craytek
Thanks, Kelly. Yes, what we're seeing is often a solid first attempt to improve communications and leverage new tech. However, like most communications, they evolve, change, and even become more complicated -- as do the products and services offered by companies. What's needed is a keen, ongoing focus to balance the content and the technology. It can't be a one-and-done approach. Maximizing, as you point out, is an iterative process.
5 1 day ago
Chip Wickenden
This is a very interesting development; especially as it matures bilaterally between China and the U.S. and as it moves outward to include more countries and currencies. It has the potential to remove a great deal of friction from global commerce.
5 1 day ago
Kathy Burger
The transparency theme is interesting here and it reflects not just the needs of the Bank of China, but also the expectations of corporate customers (regardless of where they are based) that they are getting the best prices and most competitive services from their banks.
5 1 day ago
Kathy Burger
As one of the early players in mobile banking, Citi knows as well as any bank about the fact it is a "constantly evolving channel" -- It will be interesting to hear Melissa talk at BS&T's Mobile Disruption Forum about "lessons learned" about mobile banking and how Citi is building on those. Also, as a global bank, I am interested in her insights about how mobile banking is playing out in different markets. And it will be interesting to hear at the May 14 event about the response so far to City Mobile Snapshot. For more info about the Mobile Disruption Forum click here: [link]
1 1 day ago
Bryan Yurcan
Yes, I think the millennial generation, that has grown up with social media and mobile phones as second nature, will take to these kind of payments. RBC said when I interviewed them their Facebook p2p service was already becoming popular.
4 2 days ago
Kathy Burger
This is further evidence that the payments business overall is ripe for disruption -- what with new forms of payments, virtual currencies, mobile payments, new players involved in processing, not to mention continued fraud and security breaches. It's exciting to see the innovation and activity, but it's discouraging from a banking perspective to see the innovation coming from nonbank players. What do banks need to do to avoid being marginalized in payments?
4 2 days ago
Kathy Burger
Self-service channels = online, mobile, ATM? Others? The bank's strategy is really interesting and the concept of using the branch as a springboard to educate customers about other channels seems kind of genius, so to speak. It will be interesting down the line to see how the inevitable migration to digital channels will shape the role of branches at UMB long-term. It also will be interesting to see how the bank is able to adapt the lessons its learning about teleconferencing to how it uses video on the online and mobile platforms.
4 2 days ago
Bryan Yurcan
Videoconferencing is definitely going to be a bigger part of the "branch of the future" going forward.
1 2 days ago
Kelly Sheridan
While I'm not sure this is something that would appeal to older consumers, I think you're right in implying that the upcoming generation of banking customers will be more likely to try social payments. I already see more and more people using services like Venmo to transfer funds.
4 2 days ago
Bryan Yurcan
Yes, it was a very interesting discussion. As noted by both the speakers, the days of banks pouring money just to have something of their own that doesn't offer any real differentiation and that someone else may do better may be changing.
2 5 days ago
Bryan Yurcan
Yes, it is definitely a good move, will hopefully allow smaller-mid size banks also compete in this area
2 5 days ago
Kathy Burger
This is especially timely advice given the likely onslaught of competition and challenges from non-bank players -- to compete with the likes of Google, Apple, Amazon, banks probably will have to team up and collaborate on initiatives around mobile payments, etc.
2 5 days ago
Kelly Sheridan
I'm in that party - The few times that I've purchased via phone have been because of mobile offers. Granted, those transactions happened at Dunkin Donuts and Starbucks, but I'd be willing to see what kind of coupons my bank is offering as well. I think banks just need to spread awareness of those offers.
3 5 days ago
Jonathan_Camhi
Yeah we've seen instances where banks might roll out something new and innovative and it takes a while for customers to adopt it because they don't understand the tool. The banks need to be conscious of that all the time.
5 5 days ago
Jonathan_Camhi
I think this is a good move for a vendor. It's important to recognize how competition is driving the mobile space. For instance, brick and mortar retailers would be happy to hop on a mobile payments solution that could actually improve the purchasing experience because those retailers need to compete with the seamless online shopping experience that Amazon and others provide. The same is true in financial services. Banks need to compete with the customer experience of Simple, PayPal and other innovative players.
2 5 days ago
Jonathan_Camhi
Yeah I thought that the statistic about consumers buying things they hadn't planned to because of offers was interesting. It shows that there's a sizeable group of consumers who can be swayed with good offers. Banks should take note.
3 5 days ago