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How Apple Watch Could Change Banking

Depending on whom you ask, the recently announced Apple Watch will either catapult wearable computers into the mainstream or meet the same indifference as other interactive objects.

If the former comes true, the Apple Watch could also present a new way for consumers to interact with their finances, and banks will be tasked to reimagine the way they provide service features to their customers.

"Imagine being able to check your balance right from your wrist, without reaching for your phone," said Matt Krogstad, vice president of mobile banking and payments at Bank of The West. "I think it's an awesome use case."

His San Francisco bank, a unit of BNP Paribas, is interested in making its quick balance feature, which lets people check their balances without signing in, available on Apple Watch. The user could glance at a watch and touch the crown dial to see an account balance and other "snack-size" data.

The $69 billion-asset Bank of the West said it knows demand will be there, as customers already do an average of 21 quick balance views per month. By comparison, customers log in to their mobile apps seven times a month to get the balance.

A killer banking use case has yet to be uncovered for wearable devices. However, curiosity is there among banks that want to be prepared for when one resonates with the everyday consumer.

Wells Fargo & Co., U.S. Bank and Tangerine Bank (formerly ING direct) have been working on apps for the Samsung smart watch and Adroid Wear, for example. Bendigo and Adelaide Bank in Australia has created a payment app for the Samsung Gear 2 watch that is already live in production. And another bank in Australia created a suit prototype so wearers could pay with a wave of the sleeve.

The Apple Watch will come with a reimagined user interface that includes a digital crown to let consumers scroll, zoom, navigate, access the Siri app, and share their heartbeats with one another. The device will also include a built-in speaker and a so-called Taptic Engine that will alert a wearer via a vibration meant to feel like a gentle tap on the wrist. This could conceivably become a way to let users know they have messages from their bank. And the watch will have Apple's mobile payment capabilities.

Charaka Kithulegoda, chief information officer of Tangerine, said he hopes Apple "will push the industry to the next frontier of the user interface in wearable."

At first blush, Kithulegoda envisions the device serving as a window through which wearers could request basic banking information by voice and receive timely alerts that would only require a glance — instead of pulling out a tablet or phone. Such a capability is particularly valuable, say, when someone is wearing gloves and struggling to use the phone.

The Apple Watch, which costs $349, must pair with an iPhone. However, Kithulegoda said, "the phone is almost going to take a backseat to how you interact with the technology."

"The potential in wearables is really big," said. "Today, there is a fairly restricted definition of what mobile is. But when you think about it, wearable will change the definition of what we mean by mobile."

Mark Schwanhausser, director of omnichannel of financial services at Javelin Strategy & Research, agreed with that prediction.

"There is a day — somewhat of a distant day — when we will look at smartphone in the same way we look at the pager," he said.

Acceptance, of course, remains to be seen for the smart watch that Apple announced this month but won't be available until early 2015.

"Will everyone wear Apple Watch? Maybe or maybe not," said Stessa Cohen, a research director at Gartner. "I want a Pebble Watch. …I like the colors."

Indeed, one of the factors that will dictate the popularity of this technology is the look, which probably explains why Apple is offering its watch in three styles and allowing consumers to customize the timepiece's face.

"The trick with wearables is it has to be something someone wants to wear," said Ben Jackson, director of prepaid advisory service at Mercator Advisory Services. "Function has to meet fashion."

Source: http://www.americanbanker.com/issues/179_182/how-apple-watch-could-change-banking-1070118-1.html

#technology

Banks offer home loan enticements as property market hots up

Banks have started to throw cash at customers again in an effort to win business as spring fever hits the property market and house prices soar.

National Australia Bank will on Monday start giving borrowers $1000 in an unapologetic marketing tactic aimed at increasing its share of Australia's $1.3 trillion mortgage market without cutting interest rates, which are at historic lows.

It comes as Treasurer Joe Hockey said he was "hesitant" for the government to take action to rein in spiralling property prices, with the median Australian home price surging 11 per cent in the past year. Instead, he said it was up to the Reserve Bank and bank regulator, the Australian Prudential Regulatory Authority, to adopt limits on mortgage lending to cool an overheating property market.

"I am naturally hesitant to have government in any way interfere in the market. But, of course, we are in some challenging times when it comes to monetary policy," Mr Hockey said. "The Reserve Bank needs to be mindful of some of the domestic challenges, and the quite limited massive growth in real estate prices in parts of Australia. I say that because it's primarily in pockets of Sydney, pockets of Melbourne and, to a lesser degree, in Brisbane."

New Zealand and Canada have been forced to apply restrictions on their housing markets – commonly termed macro-prudential tools – because their high currencies made it difficult to raise interest rates from record low levels without causing fallout across their trade-exposed sectors.

But Mr Hockey said many parts of Australia had experienced no significant increase in property prices, therefore any action to cool the market must be "very targeted and it needs to have some capacity to be time-limited".

Australia's big banks have tried to entice borrowers with cash payments worth $1000 or more in the past 12 months in effort to grow market share.

But NAB says its latest strategy is different because it is not a rebate, which is quickly lost in mortgages totalling hundreds of thousands of dollars. Instead, it will give customers $1000 on an eftpos card to spend however they choose.

"An extra $1000 in the pocket this spring can help cover any unexpected costs that can crop up in the process of moving," NAB group executive for product and markets Antony Cahill said.

It comes after NAB tried to poach customers from its competitors last September when it offered $1000 if they switched their home loan to the bank by the end of that month.

Soon after, Westpac topped that offer, giving customers a $1500 cash rebate if they borrowed $500,000 or more.

A string of other offers followed, with Commonwealth Bank giving first home buyers a $1000 rebate and Westpac-owned St George, Bank of Melbourne and BankSA offering $1250 to new customers.

ANZ, meanwhile, said its branch managers had discretion to pay up to $1000 to customers who switched banks with a loan of more than $1 million to help them cover costs.

The latest NAB offer aims to capture a variety of borrowers, including first home buyers, and is available for home loans of at least $300,000.

Mr Cahill said the tactic was aimed at growing market share in what is traditionally the busiest time of the year for home buying.

He said the bank has signed more than 117,000 mortgages in the past 10 months, and that NAB home lending has been growing for 18 consecutive months.

The offer is open to borrowers who take out principal and interest loans until October 31 and draw down by January 30 next year.

Source: http://www.smh.com.au/business/banks-offer-home-loan-enticements-as-property-market-hots-up-20140921-10jy3i.html

#culture

New mortgage site allows lenders to 'bid' for home loans

A new mortgage website launched today sees lenders “bid” against each other to win home loans straight from the consumer. The new site aims to provide a way for consumers to seek out and compare a range of mortgage deals, claiming it isn't ‘biased’ by broker commissions.

The Australian-developed and owned mortgage site, flongle (www.flongle.com.au) allows borrowers to anonymously post what they’re looking for in an ideal mortgage and invite an open market of banks, non-bank lenders and brokers to “bid” to win their loan.

The site’s creator, Michael Lee, says it works like a mortgage broker, but unlike a broker, does not accept commissions from lenders – which he claimed means it remains totally unbiased.

“There is a fallacy that mortgage brokers don’t cost the borrower anything because their commissions are paid out by the lender, but the reality is, a broker’s bias can end up costing you thousands if earning their commission comes ahead of genuinely finding the best deal for you. After all, anything from the loan amount, term and the features you choose can all mean more money for them,” he said. “This is why we think flongle will be a game-changer. With flongle, there’s nowhere to hide, just the hard facts in front of you – who’s offering you the best loan for your needs at the best overall price.”

But the service comes at a significant price. Consumers pay a once off fee of $399 to post their business, or they can have a flongle mortgage expert to guide them from start to finish for a fee of $799. Each flongle bidding war runs for up to seven days. The site then matches, ranks and filters all incoming bids according to cost and how well they match the borrower’s requirements.

Source: http://www.brokernews.com.au/news/breaking-news/new-mortgage-site-allows-lenders-to-bid-for-home-loans-191965.aspx

#culture

Square Cash: Text or Email Money for Free

Updated release of app redefining mobile payment services

Cash is free to use in all 50 states. The Cash App, that is, a product by Square Inc. which makes it easy to send and request money from friends or colleagues. The app, like many mobile-payment services that will eventually endanger the wallet, makes transferring money online fast and simple. It allows people to text or email money without even setting up a username or password. With Paypal and Venmo as payment sharing competitors, Cash seems to be the most efficient, all-in-one system to use.

Square Inc., the San Francisco-based company founded by Twitter co-founder/creator Jack Dorsey in 2009, has transferred hundreds of millions of dollars from customers within under twelve months.

To process a payment with Cash App, users simply need to link up their debit card information to the app, and enter the amount they’d like to pay or receive. Although the recipient doesn’t need the app to get a notification, they must also enter their banking information for the transfer to work. Once both people are in the system, the money should transfer through to their bank account within minutes. Depending on the banks services, however, it could take more time to process.

Sending Square Cash

Once your entire network of friends join the system, the dread of splitting bills and cab rides will cease to exist. Cash streamlines the payment collection process into one step for individual payments up to 25 people. If you need to get your money back on a bill you accidentally overpaid, you can always issue or request a refund. In that case, it’s up to the original sender to transfer the money back once they’ve received the notification.

From aggregated user data, Square saw Cash payments occurring across cities nationwide, which suggest people use the app for large scale payments. In a world where families exist on opposite ends of the country and holidays are planned months in advance, Cash could prove to be the best option to make the ‘I Owe You’ obsolete.

If you owe someone a dollar, Square will text you one to try out the service.

Source: http://www.psfk.com/2014/09/square-cash-app-text-email-money-free.html

#culture

Ex-Goldman banker floats big four break-up

Goldman Sachs co-chairman Alastair Walton says policymakers should consider breaking up the big four banks, as part of a radical overhaul aimed at boosting competition and improving stability.

In a lecture he described as "heretical", Mr Walton on Thursday night argued the sheer sizes of the Commonwealth Bank, Westpac, NAB and ANZ meant Australia would ultimately face a "day of reckoning" when the next financial crisis struck.

At the same time, he argued the banking oligopoly allowed the major lenders to focus on home lending but neglect financing innovative businesses that would be critical for future prosperity.

Instead of tweaking the capital rules, as the financial system inquiry is considering, he said regulators and politicians should be asking a more fundamental question.

"Would Australia as a whole be better off with 8 to 10 banks each of which are rated A (like almost every other bank in the OECD) and primarily rely on domestic deposits to fund their lending activities," he said.

"Or continue infinitum with four 'too big to fail' banks each of which are rated AA-, and utilise the sovereign support of the Australian Government (either implicitly or explicitly with a guarantee fee) to access high levels of low-cost offshore funding to support their domestic lending activities," he said in a lecture at the Australian National University in Canberra.

Mr Walton, a prominent investment banker, was a co-chairman of Goldman Sachs Australia and he now chairs boutique investment bank BKK Partners. He has worked extensively advising banks.

In the lecture, he emphasised the problems created by the huge size of the big four, which are among the 20 largest banks in the world.

Mr Walton argued the lenders' size gave them a "call option" on the taxpayer, because investors lending them money assumed they would be bailed out in the event of a crisis. He said this had not only boosted bank profits, but meant any future banking crisis would be more severe than in the past.

"Given the inevitability of future shocks to the global financial system, unless something is done to significantly change the current structure of the Australian financial system, there will come a day of reckoning as has happened in the United Kingdom," Mr Walton said.

Helped by their systemic importance, banks had effectively "captured" the regulators, which needed banks to remain profitable so they could access funding, Mr Walton said. This meant there was an inadequate focus on competition.

In response, he argued that the Council of Financial Regulators - currently made up of the Reserve Bank, Treasury, the Australian Securities and Investments Commission, and the Australian Prudential Regulation Authority - should also include the Australian Competition and Consumer Commission.

The council should also have a charter of national objectives, he said, including "ridding the economy of all 'too big to fail' financial institutions."

"Creating a highly competitive financial sector is going to require breaking a few eggs and taking on powerful vested interests," he said. "So we need to turn to the people with the power and authority to get things done and that, frankly, is the Council of Financial Regulators and the Treasurer."

The comments come as the financial system inquiry, being chaired by former Commonwealth Bank chief David Murray, grapples with how to curb the moral hazard created by Australia's "too big to fail" major banks.

The chief executive of the Australian Bankers' Association, Steven Munchenberg, said addressing "too big to fail" remained a key priority, but talked down the chances of banks being broken up.

"I don't know that anybody is seriously considering as dramatic a move as breaking up the existing banks, but there's ongoing discussion about what can be done to minimise risks associated with these large institutions," Mr Munchenberg said.

Even so, the United Kingdom's four major banks are under investigation by the competition watchdog, sparking calls it could recommend a break-up. Mr Murray's interim report also sought feedback on "ring-fencing" the deposit-taking parts of Australia's banks.

Source: http://www.smh.com.au/business/banking-and-finance/exgoldman-banker-floats-big-four-breakup-20140918-10ip0i.html

#category

NAB: Most Australians say they’re good at managing money but one in five are living pay to pay

Almost 20% of Australian adults are living pay to pay despite 70% believing they are good at managing money, a survey by National Australia Bank (NAB) has revealed.

While one in five people, “rarely or never have any money left at the end of a pay cycle”, many are turning to their savings (70%), credit cards (40%), or even selling their possessions (16.4%).

The study found those living in regional areas more likely than those in capital cities to struggle at the end of a pay period (22.7% compared with 16.4%).

The most common unexpected expenses were dental or medical bills (46.1%), higher than expected household bills (42.3%) and car repairs (40.3%).

‘Stop Small Problems Getting Big’ campaign

NAB has released the results of the survey to coincide with the release of its ‘Stop Small Problems Getting Big’ campaign in conjunction with Good Shepherd Microfinance.

The campaign aims to present to people facing hardship a safe and affordable financial lending alternative to high-cost fringe lenders.

Good Shepherd Microfinance CEO Adam Mooney said taking out high cost loans in times of financial difficulty often led to problems escalating in the long-term.

“When people have no buffer to cope with unexpected expenses like a car or washing machine breaking down, or a change in personal circumstances such as an illness or divorce, problems can quickly build up and become a significant financial and emotional burden.”

NAB and Good Shepherd Microfinance partnership

The campaign will draw attention to the two organisations’ partnership since 2003, which is aiming to improve financial inclusion for a million low-income Australians by 2018.

So far the partnership has provided more than 100,000 no or low interest loans to those on low incomes, many of which are unable to access mainstream finance.

NAB Group CEO Andrew Thorburn said the bank had committed $130 million in loan capital to microfinance – “Not just because it’s doing the right thing. We believe in helping more people to become financially successful and through this, supporting our nation to prosper.

“This small hand up can disrupt the cycle of disadvantage and lead to real and positive change.”

Source: http://www.marketingmag.com.au/news/nab-most-australians-say-theyre-good-at-managing-money-but-one-in-five-are-living-pay-to-pay-56695/

#culture

Russia’s Biggest Bank Gives Free Cats To Mortgage Customers

Russia's largest bank is loaning out cats to customers who get a home loan. The only catch: you can't keep the cute kitten.

Not long ago, banks gave away toasters to new customers. Then iPods were vogue. Now it’s cats… at least in Russia.

Sberbank, the largest bank in Russia, is letting its mortgage customers borrow a cat for their housewarming party. As random as it may sound to lend cats with home loans, there’s actually a reasonable cultural explanation. You see, Russians believe that letting a cat walk through your new home before you move in brings good luck.

“Order a cat for your housewarming, and bring happiness and luck to your home,” the state-run bank says on a special Cat Delivery Service website it set up to promote the campaign.

Customers can choose from one of 10 breeds, including tabbies, Siamese, and an exotic hairless cat resembling a sphinx. Some of the cats are owned by Sberbank employees, “who agreed to let their pets participate in special projects,” Anastasia Vakhlamova, a bank spokeswoman, told Bloomberg Businessweek.

Customers picked to receive the feline blessing call to have schedule an appointment. On the designated day, a two Sberbank employees deliver the preferred pet in a branded van sporting a giant cat logo. The customer then has two hours to let the cat cross the threshold, smear all its kitty goodness around, and snap a few photos.

There are other conditions on the cat offer, spelled out in an eight-page disclaimer on the bank’s microsite (apparently Russian banks face similar legal and regulatory hurdles as their Western counterparts). Free cats will be limited to only the first 30 mortgage customers who take out home loans of a minimum $116,000 — 15 from Moscow, and 15 in other parts of the country.

If you speak Russian, you might enjoy this short two-minute video showing some cats delivered by Sberbank staffer to new home owners.

This isn’t the first cat campaign run by the bank. Previously Sberbank created a test that helped customers determine what kind of cat personality they have — again tied to a special mortgage offer.

Don’t Poo Poo This As Some Dumb Cat Trick

You might be tempted to snicker quietly while dismissing the concept of free cats as something uniquely quaint — “Only in Russia…” But if all you get from this story is a chuckle, then you’re missing the point. With nothing more than 10 cats, 30 house calls lasting two hours, and a one page microsite, the Russian banking giant has generated hundreds — possibly thousands — of articles in publications around the world. It is a public relations coup d’état that probably cost under a million rubles (that’s roughly USD $25,000), and your financial institution could pull off something similar for far less than that.

If you were a small community bank or credit union that wanted to get the word out about your mortgage business, you could talk to a dozen PR firms that would all have the same, uninspired ideas (e.g., “Let’s pump out a bunch of press releases that brag about how much your institution loans in our community every year, and we’ll send the CEO out to talk to local reporters). Yawn… But with a little creativity and PR ingenuity, you too could be reading article after article about your home lending operations.

If you want free press, all you have to do is muster up the courage to find your own version of “free cats.”

And for Sberbank, the cat promotion represents much more than just a cute gimmick; it’s serious business. International sanctions triggered by the crisis in Ukraine are raining down on the Russian financial sector, causing the ruble to crash. Russians are racing to dump their savings into real estate before their cash crumbles in value. This is radically intensified the competition — and marketing noise — surrounding home loans in Russian markets. Sberbank’s simple cat promotion is actually a clever way to through all this clutter.

Source: http://thefinancialbrand.com/41977/sberbank-cat-public-relations-campaign/

#culture

Using Gambling to Entice Low-Income Families to Save

While building up savings offers the best route out of poverty, the glamourless grind of socking away a dollar here and there has a tough time competing with the heady fantasy of a Mega Millions jackpot. But instead of attacking lotteries, a growing number of credit unions and nonprofit groups are using them to encourage low-income families to save.

They offer what are known as prize-linked savings accounts, which essentially treat every deposit as a ticket in a prizewinning raffle. The idea is to offer the thrill of gambling without the risk. Even perennial losers keep their savings.

These accounts have won support from a rare combination of liberal poverty advocates and conservatives who like the private market-based approach and emphasis on personal responsibility. In Congress, bills to modify federal banking laws and permit more financial institutions to offer prize-linked accounts have Republican and Democratic co-sponsors. And several states, including Indiana, Connecticut and New York, have modified their banking laws to allow credit unions to offer such programs.

Stephanie Graham and her son Joey, 7, who live outside Pittsburgh, have saved $700 so far with a prize-linked savings account. CreditJeff Swensen for The New York Times

The accounts make up a small part of the savings universe, but they are slowly gaining traction.

Doorways to Dream, a nonprofit organization based in Massachusetts, helped start Save to Win in Michigan five years ago. It is now the nation’s largest prize-linked savings program, having spread to Nebraska, Washington and North Carolina. The program has created 50,000 accounts that saved a total of $94 million, although not all of them are still open, according to the nonprofit.

With Save to Win, account holders buy shares in one-year certificates of deposit, or C.D.s, at a participating credit union. (Federal law prohibits banks from holding lotteries or raffles.) For every $25 share, they receive an entry in a monthly lottery.

“I didn’t have $500 to start a C.D., and when they said it was only $25, I knew I could do that,” said Cindi Campbell. “I got addicted when I won $100, and I was thrilled to death.” She made those remarks when she was awarded the $30,000 grand prize at North Carolina’s Telco Community Credit Union in February.

One of the goals of such programs is to help change financial habits.

Economists have long complained that lotteries are lopsided taxes that eat away at poor people’s ability to save, noting that those with the least money tend to spend the most on lottery tickets. Yet with few other options, those mired in poverty often see lotteries as the only form of financial planning they have.

Policy makers also worry that saving too little is a problem not only for the poor but also for large numbers of baby boomers who potentially face decades of retirement without sufficient resources. The nation’s current 5.3 percent savings rate — the proportion one saves out of total disposable income — is higher than before the 2008 recession but about half what it was 40 years ago. More than a quarter of Americans have no savings at all.

Save to Win is open to anyone, but the program’s director, Joanna Smith-Ramani, described most depositors as “financially vulnerable,” with either low incomes or no history of savings.

Gail Miller, 73, a retired Piedmont Airlines worker who lives outside Winston-Salem, N.C., said the prospect of winning a prize persuaded her to open a Save to Win account. She makes a $25 deposit 10 times a month — the maximum number of entries — to increase her chance of winning. In May, she won $25. “It was the first time I won,” she said, “but I keep trying.”

People with Save to Win accounts may withdraw money to buy Christmas gifts or fix a broken car, Ms. Smith-Ramani explained, but most then build their balances back up. “That kind of pattern and activity is more important than the total number of account holders,” she said. “People are learning how to save and to forecast. That’s a huge psychological shift.”

Seven credit unions in North Carolina joined the program last year after the State Legislature cleared the legal obstacles. Altogether, they counted 1,908 participants, who saved an average of $1,246 each, for a total of $2.38 million. The lure was 26 monthly prizes ranging from $25 to $100, a few quarterly prizes of $500 to $1,500 and one $30,000 jackpot.

Ms. Campbell, for example, said that before Save to Win, her deposits were mostly $10 or $15, but she raised them to $25 to earn a raffle entry. That pattern is not unusual. Researchers have found that prizes spur people to save at a higher rate.

Prize-linked savings programs, which can be found in about 20 other countries, achieve a “left brain, right brain balance,” a study released last year by the conservative Heritage Foundation reported, complementing “education and financial incentives and tools with approaches that have a more emotional appeal.”

Variations on the theme are emerging.

Doorways to Dream sponsors a prize-linked promotion tied to federal tax refunds; if people direct-deposit their refund, they can enter a sweepstakes. The program, which ran last year in New York and more than a dozen other states, is teaming up with low-income advocacy groups, United Way and credit unions.

A profit-making version of prize-linked savings is offered by Saveup. It links to participants’ retirement savings, credit card and mortgage accounts so that payments to any of those accounts can earn entries to various sweepstakes.

During the last school year, Propel Schools, which operates kindergarten through 12th-grade charter schools with 3,400 students in Pittsburgh, opened college savings accounts for every one of its students and raffled off gift cards worth $25 to $40 in places like T. J. Maxx, Red Lobster, Walmart and Giant Eagle supermarkets. Under the program, known as Fund My Future, every $10 deposit earns an entry in the monthly lottery (up to four entries a month).

“Our mantras are ‘Make it fun’ and ‘Make it easy,’ ” said Jeremy Resnick, a founder and the executive director of the Propel Schools Foundation. No one has to go to a bank. Students, most of whom qualify for free or reduced-price school meals, can make deposits every day with the “lunch ladies” in the cafeteria, he said.

These bank accounts carry no fees and do not pay interest. They require no paperwork from parents and do not count against any income-tested benefits. The Propel foundation serves as custodian of the accounts. Local philanthropies, including the Grable Foundation and the Benter Foundation, have put up an initial $450,000 to finance the program for two and a half years.

In the program’s first year, about 15 percent of the students deposited a total of $25,000, Mr. Resnick said. As with other college savings accounts, people can withdraw the money early for emergencies, but there is a penalty.

Propel, like the 62 credit unions in Save to Win, is tinkering with the formula, experimenting with the number and size of the prizes.

Next year, instead of having two to four monthly winners from each school, Propel will choose a single school winner each month and create a $5,000 grand prize raffle at the end of the school year. Bigger payouts create more chatter, which is important for success, Mr. Resnick said.

For Stephanie Graham, enthusiasm is catching on. She and her 7-year-old son Joey have saved $700 so far. “I only make a deposit when he takes the money in, and he loves doing it,” Ms. Graham said.

Source: http://www.nytimes.com/2014/08/31/business/using-gambling-to-entice-low-income-families-to-save.html

#culture

Business satisfaction with Big Four banks highest in four years, Westpac the clear leader

The satisfaction level of the business customers of the four major banks reached 66.7% in July 2014, an increase of 2.4% points since July 2013, and the highest level since 2010. Westpac has retained its top position among the Big Four for business customer satisfaction with 71.4%, well ahead of second-placed NAB on 67.1%, ANZ with 65.8% and CBA at 63.0%. These are the latest findings from the Roy Morgan Research Business Single Source survey.

Business customer satisfaction improving

Over the last year, the ANZ was the biggest improver (up 4.3% points to 65.8%) followed by the NAB (up 4.0% points to 67.1%), Westpac (up 4.0% points to 71.4%) and the CBA, which was down 2.0% points to 63.0%.

While each of the major four banks is competing for top position among their peers, the market leader, Bendigo Bank, remains well ahead of all four with 82.0% satisfaction.

Business Satisfaction with the Big Four Banks

Source: Roy Morgan Research Business Single Source, July 2014, average 6 monthly sample size: n = 6,451.

Business satisfaction with major products improving

Businesses are showing improved satisfaction levels for Transaction/Deposit Accounts, Loans and Relationship Managers/Business Bankers over the last 12 months, which is obviously having an impact on the improvement in overall satisfaction levels. Westpac has the highest satisfaction level of the Big Four for the three areas shown, in line with its top ranking seen earlier. The CBA scores lowest for loans (58.8%) and relationship managers (63.1%), and the ANZ (62.0%) has the lowest rating for transaction/deposit accounts.

Business Satisfaction with Accounts, Loans and Relationship Managers

Source: Roy Morgan Research Business Single Source, January 2014–July 2014, n=3,693

Norman Morris, Industry Communications Director, Roy Morgan Research, says:

“Satisfaction among banks’ business customers is now at record high levels but still well below the satisfaction level of their personal customers. The overall improvement seen over the last 12 months has been partly a result of improvement in satisfaction in most major product areas and also with relationship managers.

“An area still in need of improvement by banks is that they continue to be seen as lacking empathy with their business customers who require more attention and understanding. This is evidenced by the fact that these customers rate their banks very poorly on ‘maintaining regular contact’, ‘following developments in the industry’ and having a ‘good understanding of their business.’

“It is encouraging to see that the satisfaction rating given to relationship managers is improving and as a result we would expect to see this having an impact on improving overall satisfaction levels with business customers."

Source: http://www.roymorgan.com/findings/5734-business-satisfaction-with-big-four-banks-high-201408140234?utm_medium=email&utm_campaign=2014-08-20-AU-MRU&utm_content=2014-08-20-AU-MRU+CID_f738d511ec9139d29b913a700c8aebab&utm_source=Market%20Research%20Update&utm_term=Business%20satisfaction%20with%20Big%20Four%20banks%20highest%20in%20four%20years%20Westpac%20the%20clear%20leader

#category

Bank’s Automatic Thanking Machine (ATM) Strikes Viral Gold

An epic video of an ATM surprising customers with gifts went viral faster than any other promotion in the history of banking. Get your tissues ready. You will cry.

To show their appreciation for their customers, TD Canada temporarily transformed ATMs inside four separate branch locations across Canada into “Automated Thanking Machines.” The bank used hidden cameras to capture the reactions of customers delighted by an ATM that dispenses gifts.

The resulting YouTube video amassed over 6 million views in under a week, making it the fastest viral mega-hit in any social channel in the financial industry.

TD relied used frontline staffers to recruit around 20 customers as unwitting participants in the ATM ploy. They were told they’d be participating in a focus group to test a new kind of ATM.

When the customers arrived for to give the new ATM a whirl, they had no idea what was in store for them.

The “talking” ATM gave some of its customers flowers.

One got tickets to Trinidad so she could visit her daughter who has cancer and was recently operated on.

Mike Jobin, a huge Blue Jays fan, got his own personalized T-shirt and cap, along with a surprise visit from Blue Jays player José Bautista, and a chance to throw out the first pitch at a Blue Jays game.

Christine Todd, who had never been able to take her two young boys on a trip before, scored an all-expenses trip to Disneyland.

Another 40 customers who just happened to be lucky enough to stumble in got to use the machines too — good for a free cash bonus.

“I look at marketing stuff all day, and I choked up at it,” marketing expert Ann Handley, co-author of the book Content Rules, told TODAY.com. “There’s nothing about it that feels canned. The best marketing doesn’t feel like marketing.”

Several customers cried in gratitude. One said he got goosebumps. Another did a backflip.

The ATM stunt is part of the bank’s broader #TDThanksYou campaign which included giving a green envelope filled with $20 to its customers at 1,100 bank locations as well as $20 deposits to all online customers — 30,000 gifts in all.

Over the years, TD has consistently embraced guerilla tactics in its marketing arsenal. Back in 2008, they undertook a massive customer appreciation campaign involving over 200,000 gifts — part of a major rebranding effort.

This isn’t the first time ATMs have been used for guerilla marketing stunt. In early 2013,an ATM in Spain dispensed free cash to folks under the condition that they do something generous with it. But TD’s “Automatic Thanking Machine” is perhaps the most original and best-executed execution concept involving an ATM thus far.

#TDThanksYou 24-Hour Trend Graph

This graph shows what happened in the 24 hours following the release of TD’s video. Twitter erupted, with over 1,200 tweets per hour at the peak. 97% of all financial institutions on Twitter won’t see 1,200 tweets about them in an entire year.

Serious Fun?

As tempting as it may be for party poopers to dismiss TD’s thanking machine as little more than a glossy PR stunt, there are a couple very poignant lessons in there for financial marketers.

1. PR doesn’t mean “press release.” The overarching goal of PR isn’t to simply to get press coverage. “PR” stands for “public relations,” not “press release.” If you want to build a positive relationship with the public, you have to do more than issue a bunch of releases and give money to charities. You could pump out a thousand press releases and never yield anywhere near the level of exposure and goodwill as TD did with its thanking machine.

2. Interactive ATMs have real potential. TD’s Automatic Thanking Machine may have been staffed by a real, live human being sitting inside the ATM’s cabinetry. The TD rep didn’t read from a script, obviously possessing an uncanny level of empathy, an ability to improvise, and a subtle sense of humor… admittedly a rare combination of traits. But you can clearly see the potential of ATM-based interactions in TD’s video. Consumers don’t mind talking to a real person on the other end of an ATM; quite the contrary, they seem toenjoy it, particularly when the experience is tailored to them. Retail financial institutions have been wrestling with the brick-and-mortar channel for years now — what is the future of branches and ATMs? Watching this video should convince you that ATMs can play a pivotal role as banks and credit unions retool their brick-and-mortar strategies. TD has shown that you don’t have to sacrifice that personal connection with customers when eliminating tellers/branches and shifting to tech-centric solutions in retail channels.

3. Financial relationships are intimate and personal. Financial institutions need to find ways to scale the emotive juice loaded in TD’s ATM into something that can be implemented practically, institutionally on a broader level. For nearly two decades now, there has been big talk about CRM systems that can log every frontline interaction with consumers… if only frontline staff would make the effort to manually (and accurately) record those interactions. In under four minutes, TD shows financial institutions how collecting such data could be leveraged for maximum impact.

Source: http://thefinancialbrand.com/41416/td-bank-automatic-thanking-machine-atm/

#culture

Financial Institutions Lack ‘Personality’ in Social Channels

Banks and credit unions have yet to truly understand one important aspect of social media communications: personality. Who you are can be as important as what you say.

By Carie Schelfhaudt, Director of Digital Marketing at McDougall & Duval Advertising

Marketing directors responsible for social media are often told the type of content they need to post in order to get engagement from their followers, fans and likes across a multitude of platforms. Thousands of digital experts make their advice readily available by sharing research, tips and tricks to explain how brands can utilize social media to communicate unique messages. Because of this, the financial industry has officially caught on to the idea of using social media as a way to showcase community service initiatives, bolster public relations efforts, and offer tips to customers and members. Some social media gurus might even know what time of day will get them the most engagement from their fans.

But is that enough?

No. Financial institutions as a whole, have yet to truly understand an important aspect of social media: Personality.

Consider this scenario…

Imagine you are at a marketing conference. You see that a local expert specializing in your field of work is on the agenda. You’ve heard of him before. He has a reputation for being intelligent, helpful and community-focused. You make the commitment to learn more about his products, so you attend his lecture. You walk into the room and find a seat in the front row. He starts his presentation…

He tells you facts about his company. He tells you how to contact him, how to do better work and shows you all of the great things he is doing in his (and your community). He also tells you about his product. You are bored to tears, so no matter how great, how important or how relevant his information is, you can’t stop yourself from staring at the clock until the session ends. When you raise your hand to ask a question, he gives you a generic response, while referencing a page in his book for more information. He’s pleasant, helpful and informative, yet something is missing: Personality.

Reality Check: This is precisely what financial institutions do on social media every day.

Generally speaking, financial institutions are boring on social channels. They take a captive audience who has shown interest in their content and bore them to death with standard industry posts. While the information might be accurate and even good natured, it doesn’t evoke any sense of feeling, nor does it possess any remarkable qualities, nor increase someone’s odds of sharing with others. Often this is due to how conservative the industry is, and the fearful nature of compliance regulation.

Reality Check: The reach and visibility of social media posts from banks and credit unions suffers severely from a lack of personality.

Back to our example. Would you walk up to the conference speaker after his lecture and engage with him in a conversation? Would you tell others later about how interesting the lecture was? Probably not…

Content delivery is about creating personal relationships and engaging interested parties. It can no longer be delivered through just messaging alone. The same goes for marketing. In order to effectively market in today’s world, you must speak to people how they prefer to be spoken to: authentically and conversationally. In other words: be interesting.

Where to start? Create a brand persona and define your voice

Brand personas are the difference between simply delivering messages and being engaging in your communications. Personas can be useful in marketing as a whole, not just when it comes to social media. But, social media gives brands the opportunity to use their voice in a way that draws the public into a conversation.

To get started with developing a brand persona, take out a piece of paper and list your brand’s attributes. Then, answer the following question as if your bank or credit union was a person. Remember, it’s not about providing answers that make you sound cooler or more interesting than your financial institution really is. It’s about discovering a real, authentic and remarkable voice of your brand by having it personify as a human being.

Is this person (your financial institution) male or female?

How old is this person?

What is this person’s occupation (don’t say banker)?

How was this person trained (formal education or on-the-job)?

What led to this occupation? Is this person an expert in the field?

How about home life — is this person “living” in a city or out in the country? Was that always the case?

Single or married? Children, pets?

List some personality traits.

How tall is this person? What color is his or her hair?

What keeps this person up at night?

What inspires this person?

What is this person’s favorite song?

Name some of this person’s hobbies.

What is his or her passion?

You may want to repeat this exercise with other members of your staff or complete it as a group. Once a single answer is defined with everyone’s input, you can start to put a unique story behind the persona. Start with a name. Referring to the persona by name (first and last) helps make it real. Similarly, it also might help to browse stock photo websites to attach a face to the name.

Review the list of answers again to guide you into writing a story about your person. Where did the person come and where is that person now? What is the person’s short- and long-term goals, and what events from his or her past will help the person achieve them? This is a deep-dive exercise, so be sure to give it the proper time and commitment.

When your persona is complete, share it with others in your organization. Print a poster of your persona (photo included) and put it in a prominent place in your office. Think of your persona as a representative of your brand identity. It is a member of the staff that literally personifies what it means to be your financial institution. Own it.

Putting the ‘social’ back in social media

Take this snippet from a recent brand persona:

“…Tim is a single father of two at the age of 43. People are drawn to him for his level-headedness and warm demeanor. But don’t be mistaken. Tim has a wild sense of humor, which fits his daily life as the Executive Director of the local playhouse. He’s comfortable on stage and in a crowd with a contagious smile that immediately puts his audience at ease. Tim is a supporter of the arts and a prominent figurehead in his community, which helps him maintain a high level of exposure for his non-profit…”

Now, let’s say you are tasked with spreading the word on social media about an event occurring at one of your branches next week. A typical post might be:

This Thursday, ABC Bank will be holding a seminar on how to prepare for retirement. Stop by our local branch at 6pm for appetizers and networking. Check out our website for more info. [Includes flyer of event]

Instead of posting this way, think about how Tim would make this event relatable and something others would want to attend. He might post something like:

Retirement can be scary, but it doesn’t have to be with the team from ABC Bank on your side! This Thursday we’re offering a seminar on retirement planning. We want to help you with all of the troublesome questions you have about financial planning for retirement. PLUS, we’re giving you a whole hour of networking time before the presentation starts to talk with our Bank’s retirement guru. Bring a friend — and your questions — and we’ll see you at 6pm! [Includes photo of the speaker]

The right information is still there — a community with and a slight product push — but it is communicated with much more personality.

Social media marketing is much more enjoyable for the people involved when they start to see true interaction from fans. Noticing a change in the way your brand is interacting overall, or even seeing an increase in likes or followers, will help propel you into creating more engaging, lively content.

Think back to the conference example. Let’s say that you leave the boring session and look to see what presentation is coming up next. You find it’s a similar session to the one before in terms of informative, helpful content, but the speaker turns out to be not only intelligent, but personable, lively and charismatic

She asks you questions. She tells you stories. You can’t help but talk about her when you return to the office. Would you walk up to this woman after a conference? Would you buy her products? What do you tell others that are in the room afterwards? Will it spread like wildfire?

Isn’t that how you want your followers to think about your social media presence?

Source: http://thefinancialbrand.com/41381/social-media-personality-in-banking/

#media

One Third of Americans Switch Banks After Moving

Nearly 30% of consumers opened a checking account with a new bank after moving. Most chose their new bank based on branch proximity.

According to research from TD Bank, moving impacts banking behavior, particularly for those who are 55 years of age or older. The survey found that 32% of those 55 and older opened a new primary checking account after moving, compared with 24% of Millennials (ages 18-34). The average was 29% across all age groups.

Those who opened a primary checking account after moving chose their new bank for the following reasons:

The bank had branches close to home (57%)

They wanted to avoid fees / charges (27%)

The ATMs were close to home (25%)

Those who did not change primary banks after moving had the following challenges with existing checking accounts:

Access to bank branches (13%)

Access to bank ATMs (10%)

Depositing checks (8%)

Millennials Are Moving Right Along

As for banking behaviors, Millennials are less likely to open a new primary account after moving than any other generation. However, of those Millennials who did change their primary bank accounts after moving, 22% reported choosing their bank based on branches that are close to work (versus 11% for those 55 and older). Conversely, 64% of those 55 and older chose a new bank because branches were close to home (versus 48% for Millennials).

The TD Bank survey revealed that Millennials have moved more recently compared to their older counterparts. More than 50% of Millennials have moved within the past two years, compared with 23% of Generation X (ages 35-54) and 15% of those 55 and older. Millennials also put a higher emphasis on finding new local amenities like grocery and drug stores when preparing to move than Gen X and those 55 and older.

Why Americans Move

The survey also revealed Americans’ main reasons for moving, which include the need for a bigger house (23%), moving to a different neighborhood (20%) and personal employment/job (12%). However, of those who moved in the past 12 months, 28% said they moved for a shorter commute or to be closer to amenities such as grocery stores and drugstores (compared with 12% of those who moved more than 10 years ago).

The study, which is an extension of the TD Bank Checking Experience Index, surveyed more than 1,100 Americans to analyze their banking behaviors after they moved.

Source: http://thefinancialbrand.com/40879/research-movers-switching-banks-checking-accounts/

#consumer

Compliance vs. Social Media Growth Strategies: Must Banks Choose?

What’s more important, compliance or growth? Must bank marketers have one or the other? Can't they succeed in both areas?

By John Siracusa, President & CEO at mOSa eBank Marketing Services

I have been in the banking industry for many years, spending much of my career helping banks and financial institutions wrangle social media marketing riddles. One trend I’ve noticed: most banking execs feel that regulations are so onerous that they must sacrifice market growth in order to remain compliant.

I couldn’t disagree more.

Tragically, most banks fail to recognize upside of building a powerful social media presence, and therefore do nothing (or almost nothing) — e.g., casting a positive halo on the bank’s brand, bridging a powerful connection between the bank and the community.

Unfortunately there is no such thing as “risk-free”; anything worth doing involves at least some degree of risk. The best banks understand this, learning how to tolerate and manage risks relative to the potential rewards. Now I’m not saying that banks should go ahead and do what they want with their social media marketing efforts — compliance be damned. But they can — and should — pursue social media growth strategies and remain compliant. This only happens when the bank’s internal process focuses on how the marketing and compliance departments communicate with each other.

Nevertheless, because of the highly regulated nature of banking, most banks work from a defensive strategy rather than an offensive one. They want to protect what they have, rather than go out and aggressively pursue what they could gain. But even playing the best defense will only keep you in the game; you can’t win without having a powerful attack as well. This is why many banks have difficulty succeeding in new and emerging marketing channels like social media. Generally speaking, most financial institutions prefer to avoid taking any risk, opting instead for tried-and-true methods of marketing.

What should banks do?

With all the M&A’s coming out about, lack of growth and rising cost of remaining complaint being the main causes of bank failures, banks need to “wise-up” and start working together to create growth. These reports are practically screaming at us as to why things are failing, yet we make no changes. In the words of Tony Robbins, “If you do what you’ve always done, you’ll get what you’ve always gotten.” So what should banks and credit unions do differently?

1.) Banking execs need to understand and accept the importance of social media, and the role it can play in growth strategies. Social media affects so many areas of a banking including recruiting, marketing growth, branding, reputation, m&a’s and most importantly, the culture.

2. Although remaining compliant is a big priority for all banks, everyone should always stay focused on growth.

3.) Financial institutions need to have the best defensive strategies as well as the best attacking strategy.

4.) You’ve got to cultivate the right people who can handle playing both offense and defense. And everyone has to work together, equally as a team, with everyone on the same page.

5.) Make sure marketing has a seat at the table, and put social media down as a line item on the agenda for executive management meetings.

Source: http://thefinancialbrand.com/41198/compliance-social-media-growth-strategies-banking/

#media

12 Takes on the Emerging Role of Online Video in Banking

What role does online video play in banking? How should banks and credit unions leverage online video, if at all? Here are a dozen different perspectives, collected by Mark Arnold, The Financial Brand's reporter at large.

By Mark Arnold, President On the Mark Strategies

1. Tell & Sell

Banks and credit unions must use videos to tell stories that sell throughout the digital buying journey. It is these stories that will allow banks and credit unions to differentiate themselves and rise above the commoditized features, benefits and rates offered by their competitors in a digital economy.

By positioning consumers as the hero of the stories being told, banks and credit unions can take the humble role of the guide, like Obi-Wan Kenobi from Star Wars for example, and help the hero along the journey to find success together. But simply producing videos and posting them to YouTube is not enough.

These stories must be told, shared and distributed through a variety of digital marketing channels in order for them to attract leads and grow share of wallet.

James Robert Lay, CEO, CU Grow

2. Consistent Marketing, Cohesive Brand Messaging

A financial institution’s online videos should support the messaging conveyed in other marketing mediums to create a streamlined, consistent brand message.

Today’s consumers increasingly use online research to help them make purchase and financing decisions. Showcasing your financial institution’s videos on both YouTube as well as on your website will help you maximize the reach of the video content and increase engagement with today’s consumers.

Video is one of the most dynamic tools available for storytelling. A marketer’s ability to use video to package a message in a succinct, easy-to-understand and relatable manner is a powerful tool for creating brand awareness, topic interest and engagement.

Yvonne Hamilton, Marketing Manager, Ent Federal Credit Union ($4 billion in assets)

3. Humanizing Banking Brands Affordably

As video production technology continues to improve and bandwidth issues gradually falling by the wayside, video should be at or near the top of most financial institutions’ marketing efforts. The reason: video is a magnet for online visitors. People just enjoy watching videos — especially ones that are short, informative, and entertaining. Done right, videos can humanize any organization by putting a face on it, instead of using a logo or a building.

Banks and credit unions should be making two-minute, educational videos on all their offerings (with consumer benefits) — mortgages, auto loans, investing, getting out of debt, retirement, etc. The name of the game here is help, help, help your audience. Become a trusted leader and people will do business with you. Educational videos are ideal tools to play a significant role in meeting this goal.

So how should financial institutions promote their online video content? That’s the easy part: post/archive on website, post on all relevant social media networks consistently, pitch to the media (become their go-to financial resource), embed or include video links in your newsletter, play videos on branch monitors while customers/members wait to see a teller or representative — tons of distribution options once you have the content.

Mike Lawson, CU Broadcast

4. Get the Basics Right

Financial institutions should have a YouTube channel that succinctly explains any and all questions consumers might have — like what is Reg D, how does premium overdraft work, what is the credit union difference?

Clips should be shorter than 60 seconds. Content doesn’t need to be continuously updated, but it does need to be accurate. Make sure to use a good microphone and good lighting. Sound and light quality will make all the difference.

Shari Storm, 6th Story

5. Don’t Take the Opportunity for Granted

It’s pretty simple. First of all, make great videos that people will want to watch and share and then use YouTube to host those videos. Embed those videos on your website, your blog and your social sites. For bonus points, experiment with YouTube advertising. Create engaging 15-second spots and place them on popular videos as geo-targeted pre-roll ads. It’s affordable and can be very effective.

YouTube is an unbelievable free resource! If I told you 10 years ago that there would be a place online that will host all of your videos for free no matter how many people watched them and it would be bigger than any television network, plus you would have the ability to place these videos on your own website, you’d think I was crazy. But today, we take it for granted. First of all, make great videos that people will want to watch and share and then use YouTube to host those videos. Embed those videos on your website, your blog and your social sites. For bonus points, experiment with YouTube advertising. Create engaging 15-second spots and place them on popular videos as geo-targeted pre-roll ads. It’s affordable, and can be very effective.

Online video presents a great opportunity to teach and position banks and credit unions as experts. “Better Money Habits” by Bank of America in partnership with the Khan Academy is the gold standard. Useful, engaging and extremely watchable. Learn from what BofA is doing to apply it to your situation.

Tim McAlpine, President & Creative Director at Currency Marketing

6. Educate and Engage

Video is a fantastic tool for member education. You can take a topic that might otherwise be a little boring and make it interesting, engaging and even fun. Offering a library of branded tutorials adds credibility and creates a personalized member experience. You become the expert!

Cherie Tilson, Creative Director at Collins Community Credit Union ($787 million)

7. Content Marketing’s Secret Weapon

Video is the most valuable asset in your content marketing arsenal. It’s viewed more. It’s shared more. And most importantly, it’s remembered more. All of which will help with unaided consumer recall – the number one factor when evaluating your brand equity score.

Too often, institutions use YouTube as a video storage warehouse simply linking from websites or part of an e-mail marketing program. YouTube can be an effective addition to your existing television advertising, or a stand-alone program if TV doesn’t align with your budget.

We recently worked with Google in developing a YouTube advertising campaign that saw a 6.5% CTR by cross-referencing our demographic data with the wealth of information Google knows about its users.

Brian Holloway, AVP of Marketing at Grow Financial FCU ($2 billion)

8. Use One Voice to ‘Pull’ (Not ‘Push’)

Online video content is meant for communicating a personal, one-on-one message that informs, requests, or calls to action. Online video is a means to continue the conversation… but not just any conversation — the conversation that is most recent, relevant, and personal with a consumer. This requires a financial institution to speak with one voice and execute that voice using digital media, which is not a small task.

Use a “pull” approach instead of “push”. Shift some your resources away from creating content and advertising, and redirect them to empowering consumers and members to create their own content as advocates. For example, allow consumers to create their stories and submit them for use on your website. This offers a much more powerful “promotion” than navigating the loud world of online media advertising.

Tommy Smith, VP of Marketing & Brand Development at ORNL Federal Credit Union ($1.6 billion)

9. Marketing Online Videos Is As Important As Making Them

Let’s be honest. The odds of someone randomly landing on your marketing video without some sort of prompting are probably very small. If you are going to invest the time and energy (and for many community institution’s, my guess is this task falls on the internal marketing staff who may already be taxed to the limit), you need to have a plan in place on how you will drive people to your video.

Some financial institutions use video to offer a behind-the-scenes view of their corporate culture. At Royal Bank America we used video to highlight employee efforts in the communities we serve (MLK Day of Service, Relay for Life, etc.), and on a much lighter note to immortalize our attempt to build an 80 foot cheese steak at a recent branch opening.

Our biggest video of the year is one we use exclusively at our annual meeting of shareholders. Produced in-house, we find this video is the ideal vehicle to quickly and effectively bring our shareholders up to date on all that we have accomplished in the past year and to provide a glimpse into where we are focusing our energy in the year to come.

Last year we produced a really fun and informative video in partnership with a local cable channel. Created with a middle school (and up) audience in mind, the mostly animated video has been well received and has become a key part of our “Bank At School” programs. We use YouTube to host the video. Most classrooms are wired now so we can easily access the video online and build it into our discussions. Our team members don’t have to worry about bringing a DVD with them, they just surf over to our YouTube channel and click play. This video is also available year round via a link from our website.

Marc Sanders, VP/Marketing at Royal Bank America ($726 million)

10. More Than Just Commercials

For any organization considering online video, the first step is to determine the purpose, goals and anticipated outcome of your program. Far too often I see financial institutions simply treat video as a commercial that runs on their website with no real strategy behind it.

There are several ways that banks today can take advantage of online video, such as developing an ongoing educational series, telling stories about their bank or community, or sharing regular messages from the president. When producing your videos, consider how they will be consumed so make sure they are good quality, short in length and engaging.

Mika Moser, SVP at Bank Director

11. It’s Time to Jump In

Video marketing has become a key component of any marketing mix. According to Nielsen, 64% of all marketers expect video to dominate their marketing strategies in the near future. If you aren’t on the band wagon, it’s time to jump on.

First National Bank of Omaha uses videos as an opportunity to create new and engaging content, while helping bring to life core elements of our operating philosophy. In the case of our ‘First in the Community’ series, we produce community spotlight videos once a month that feature a cause, destination or organization that deserves the spotlight because of how those efforts contribute to a community moving forward. We believe that when the community is successful, we are successful. So we’re proud to share examples of how we partner with these great organizations to enhance the quality of life in the communities that we live and operate in.

To ensure that our “First in the Community” message reaches as many people as possible, these videos are housed on our website and employee Intranet, along with our YouTube channel, and promoted via social media.

Katrina Wells, SVP/Corporate Marketing at First National Bank of Omaha ($16 billion)

12. Increasing in Strategic Importance

Videos shouldn’t serve as an afterthought – it should be central to your marketing and branding strategies and thought of strategically. As mobile devices like smart phones and tablets continue to gain popularity, marketers will find that easy-to-access, relatively short and entertaining/informative video clips will help address consumers’ thirst for information.

Video use must rise to the forefront of bank and credit union marketing strategies. We live in an age of extremely limited consumer attention spans. Video is a terrific way to make good use of the precious few seconds they’re going to give us. It’s also one of the most powerful ways to tell the story of your bank or credit union.

#media

Gen Y Hopes Their Next Bank Helps Them Budget Better

Nearly half of all Gen Y consumers looking to switch banks want their next institution to offer online personal financial management (PFM) tools.

Over the last year, the percent of consumers using personal financial management (PFM) tools hasn’t changed. But that doesn’t mean interest in PFM is slipping. PFM tools are proving to be an increasingly effective selling point among consumers looking to switch institutions. In fact, 46% of bank account shoppers under 30 said they were interested in PFM capabilities, vs. 21% of those shoppers ages 50 or older.

In May 2014, over 3,000 active bank shoppers participated in the BankChoice Monitor survey fielded by Novantas exploring the role and usage of PFM, and how important this feature was to consumers considering a new bank or credit union. Responses from a similar study in April 2013 and May 2014 were compared. Among consumers shopping for a new bank or credit union checking account, interest in PFM tools overall grew year-over-year by 19%.

Results from the survey also revealed that:

Most PFM users rely on third party tools, not their current institution. Many banks and credit unions do not offer PFM tools to customers, so many consumers use third-party sites like Mint. Overall, 32% of respondents use PFM services or software to manage their finances, but only 28% of these PFM users said they use their bank or credit union’s site for personal financial management.

Dedicated mobile banking users already use PFM tools. People who habitually check their accounts using mobile banking are the most likely group to already be using PFM tools — Shoppers who log onto their institution’s mobile application daily were 58% more likely than shoppers who log onto mobile banking less than weekly to indicate that they currently use services or software to manage their budget or for financial planning.

Third-party PFM users would like their primary banking institution to provide PFM. While 72% of respondents that use PFM tools do so on third-party sites, over 40% of these respondents indicated they would prefer to use these tools on their bank’s or credit union’s site or mobile app.

Source: http://thefinancialbrand.com/39844/gen-y-checking-account-pfm-budgeting/

#consumer

Bitcoin May Be The Currency Of The Future

Have you heard of Bitcoin? If you're a fan of the CBS legal drama The Good Wife, then you may have learned of it for the first time there. But if you're like most, you probably didn't know that Bitcoin existed or even what it is. You know of the dollar, the euro and the peso as ways to buy items and get paid for your service, but thesefiat currencies, as they are called, may someday be replaced by a virtual currency that is only in digital form. So, how does it work? History The mechanics behind digital currency appear complicated, but the major problem facing it is easy to understand. What would keep you from using it more than once? Assuming your digital currency was placed in your digital wallet, why couldn't you send it out to multiple people at the same time? With traditional currency there is a physical exchange, and unless you have exceptional resources that allow you to counterfeit, you can only use it once until you earn it back. Because of that, digital currency has to be encrypted; and just like with a credit card, there has to be some kind of clearing facility that keeps track of when a currency is used and who owns it. The early digital currencies were based around this idea, but having one central place seemed like a recipe for corruption to the creators. So they made the clearing house a process that happened on computers all over the world instead of just one place. They also didn't want the value of the currency to be controlled by a central bank, the way traditional currencies are controlled. The bitcoin system releases a set amount on a certain schedule. Earning bitcoins requires mining them, much like gold but in a digital format. A complicated cryptographic puzzle has to be solved to activate the bitcoin, and the first person to solve it is the successful miner of the bitcoin block, who becomes the owner.

Bitcoins started with the value of pennies in April 2010 but quickly rose thereafter. As the value rose, more bitcoin miners set up powerful systems to unlock the new bitcoin codes. As bitcoins gained popularity in 2013, the price rose significantly, and the exchange rate hit a peak around $230 to purchase one bitcoin. People who had held bitcoins from the beginning were millionaires in less than three years. The Problems As bitcoins rose in popularity, problems developed. This was not a mainstream currency with mainstream businesses adopting it. Who would want to accept payment in a currency without a guaranteed value? Next, people without advanced computer skills weren't interested in the hassle of mining or digital wallets, so the system has never reached beyond a relatively small group of technologically savvy people. Then, a series of online attacks sent the currency plummeting in value. Bitcoins were stolen from exchanges, and in one instance hundreds of thousands of dollars worth of bitcoins were mistakenly deleted. The current value sits at around $90, but with demand faltering and fewer merchants excited about this 21st century currency, some believe that bitcoins may have a shorter life than previously thought. One of the ideas behind digital currency is to remove the market effects of traditional currency, but quite the opposite happened. As the popularity rose, currency speculators were able to manipulate the price, making this currency even more volatile than commodities like gold and silver, and much more volatile than the dollar. There's also the problem of trustworthiness. Although traditional or fiat currencies may not be based on an underlying asset like gold, they have an implied value due to their universal adoption. Bitcoins aren't backed by a hard asset or a large government, so there is no guarantee that bitcoins will hold any value in the future. The Bottom Line Those who try to develop digital currency face many of the same problems that have plagued paper currencies for generations. Because currency is not only a means to buy and sell but also an investment product, the currency may have to be regulated in some way. Although popular venture capitalist Fred Wilson believes that a digital currency not controlled by governments will make a large scale emergence in his lifetime, he still isn't sure whether that's a good thing.

Source: http://www.investopedia.com/financial-edge/0212/bitcoin-may-be-the-currency-of-the-future.aspx

#technology

Westpac Air Rescue brand-funded series

Campaign: Air Rescue documentary series

Client: Westpac

Agencies: MediaCom Beyond Advertising, Map and Page, Fredbird Productions, DDB Tribal

Background

In 2013 Westpac marked 40 years of partnership with the Westpac Lifesaver Rescue Helicopter Service, making it one of the most iconic, long-standing sponsorships in Australian history.

To truly convey the essential and brave work undertaken by the men and women of the Service, Westpac engaged MediaCom Beyond Advertising to produce Air Rescue, a six-part observational documentary series for Channel Seven.

Air Rescue followed a core cast of rescuers from the Service as they entered the lives of ordinary Australians in need, such as fishermen in trouble on the rocks, injured farmers, flood victims, motorbike riders and holidaymakers in the wrong place at the wrong time.

Viewers were taken behind-the-scenes to witness the intense and dramatic world of the crew members and experience spectacular rescues first-hand, capturing the vast range of emotions felt by the crew.

The series marked Westpac’s first foray into the branded content space, and made Westpac the first bank to have funded a prime-time television series.

Objectives

Westpac’s objectives were to:

Adequately recognise and showcase the essential, brave and free work undertaken by the Westpac Lifesaver Rescue Helicopter Service.

support the Service beyond sponsorship by driving fundraising via a direct call to action after each episode, and

entertain and engage consumers with the Westpac brand through genuinely interesting and compelling content.

Strategy

To mark the 40th anniversary of Westpac’s partnership with the Service, an integrated communications strategy was developed that extended across multiple platforms including events, in-branch activity, above the line advertising, publicity outreach and social media integration.

This milestone also offered Westpac the ideal opportunity to venture into branded content featuring the Service, and engaged MediaCom on making Air Rescue a reality.

The sponsorship of the Service is also an iconic example of the bank’s brand position, ‘Australia, proudly supported by Westpac’.

The dramatic and captivating stories highlight the remarkable and, quite literally, lifesaving work the Westpac Lifesaver Rescue Helicopter Service performs in the community, making the production of Air Rescue a very natural extension of Westpac’s partnership with the Service.

Execution

Westpac worked closely with MediaCom, which has been the bank’s media agency since 2011, and MediaCom Beyond Advertising (MBA) to develop the brand-funded series.

MBA engaged Fredbird Productions and followed a core ‘cast’ of crew members, capturing gripping rescues and the heightened emotions of the patients and their loved ones. Six 30-minute episodes were produced and presented to Channel Seven, which agreed to schedule the program to air in a prime-time slot at 8pm on a weekday. The series aired over six weeks in November and December 2013.

In addition to the TV episodes, MBA produced 15 web-based episodes and MediaCom used promoted tweets, YouTube, TruView and promoted posts on Facebook to seed this content, and two- minute teasers for episodes one and two.

The show was also supported by an extensive publicity strategy implemented by Map and Page (MAP), Westpac’s PR agency, which worked alongside MBA in maximising the ‘storytelling’ opportunities beyond the show.

Westpac also engaged DDB Tribal Melbourne to build the microsite Westpacrescue.com.au, which provided people with a place to share and read stories about the Service and rescues, as well as being a centralised location for people to donate nationally. The site was promoted at the end of each episode as a call to action for donations.

Results

Air Rescue became the first ad-funded series to air on a free-to-air channel in prime time, and garnered an average audience of 1.4 million viewers per episode.

It was number one in its time slot across regional audiences consistently across the six-week period, and achieved a total metro TV reach of 4.3 million viewers,

the publicity strategy implemented by MAP secured 230 pieces of coverage across print, online and broadcast, with a PR value of more than $2 million,

the six episodes delivered an ROI eight times greater than traditional advertising, and

Westpacrescue.com.au saw $60,000 worth of donations delivered across the site in the first three months.

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