Tag Archives: wells fargo

Mobile payments leader must provide value to consumers and banks

Screen Shot 2015-04-01 at 8.23.55 PMI remember being swept up in the early Foursquare craze. I raced around my little town checking in at my local Starbucks and favorite lunch spots to become The Mayor. I worked hard to keep it by doing drive by check ins as I was stuck at traffic lights. I know, I’m hyper competitive on certain things. Friends and I would compete on who could win the most badges too! I quickly earned the “jet setter” badge with frequent flights from SJC to SNA. Other friends won the “crunked” badge with late night shenanigans. Ahh to be a DINK again. All for what? For pure competition and Facebook feed bragging rights!

At a deeper level, I hoped that eventually I’d receive relevant geographically based alerts and rewards on my phone as I walked by a restaurant or store. Unfortunately, many of these rewards required an AMEX card subscription (creating a HUGE hurdle) or were nothing more than a free drink at check in. Big whoop. Sigh…it was very clear that geo based local marketing had not made the jump from great concepts to effective execution. However, this is all changing quickly with the launch of mobile payment solutions like Apple Pay and well designed retail loyalty mobile apps. Real customer value can be delivered at the right time. Banks can also make HUGE strides in building more meaningful customer relationships beyond checking accounts. FINALLY!!!!!

Screen Shot 2015-03-27 at 3.12.17 PM

My family and I are loyal Safeway customers for the majority of our food. The loyalty was solidified by Safeway launching a program that contained several weekly coupons and special offers based on shopping activity. A key component of the loyalty program is the Safeway mobile app which serves as the main touch point for how offers are communicated to consumers. Just recently, Safeway has pushed daily offers that appear on the front scream of my mobile device. Last week I made a special trip into Safeway’s deli to take advantage of a sandwich offer that was delivered to my phone that morning. Cool. There are several other retail apps, Starbucks for example, that deliver this customer value in a similar way. All of these apps have a way to go on using geo fencing technology to send me offers as I’m nearby or actually in store. Clearly this will be coming!

I mentioned in a previous post that I recently completed my first Apple Pay transaction at Sports Authority. It took me 6 months to actually do this after I loaded all of my cards. Honestly, I forgot to use Apple Pay and struggled with finding locations that use it. I opine in my last post that Apple Pay must do a lot more to remind users that “Apple Pay is Accepted Here” to drive adoption. Steps are being taken to do so for I saw an Apple Pay logo appear on a Walmart payment terminal as I purchased Easter cards.

So where do banks fit in creating greater customer value? Apple Pay requires that customers enter in debit cards and credit cards to make payment. Banks provide these cards. Banks frequently offer rewards programs and provide an incentive to shop a designated retail location. By not actively engaging in this payments ecosystem, banks are LOSING OUT BIG TIME on engaging with customers in a meaningful way with relevant, geo targeted offers.

Screen Shot 2015-03-27 at 3.15.25 PMFor example, let’s say a consumer is using a Wells Fargo bank card for Apple Pay. The consumer pays for items at Walmart that is a member of Well’s Earn More Mall program. The consumer is then informed that they receive double points and are reminded of other Earn More Mall retailers that may be geographically close by. How powerful is that for Wells to influence consumer purchase decision and drive usage of its cards?!

Unfortunately, this type of consumer influence will not be available to banks through Apple Pay. Apple has decided to not share consumer purchase data with card providers/banks. Clearly Apple is looking to own the consumer relationship AND control the valuable behavioral data. However, given the amount of marketing activity driven by banks, especially Wells Fargo, this seems a little one-sided of Apple…giving room for a competitive payment platform that helps consumers AND banks. Banks need to use their power to guide the creation of a payments ecosystem that builds deeper customer relationships.

As we all know, Android OS based Samsung announced the acquisition of LoopPay as their digital payments platform and competitive solution. It would not be surprising if the Android OS based Samsung phones enable banks to access purchasing data to banks and provide the channel to communicate special offers. For a fee, of course. Apple and Samsung need to be reminded of the power banks have in the transaction process. Banks provide the cards! Strangely, BANKS need to be reminded of the power THEY have in influencing the payment ecosystem. The larger banks like Bank of America and Wells Fargo, have enormous power. At the current moment, banks are willing to draft on the success of Apple Pay.  Wells Fargo even promotes their Apple Pay features in TV commercials.  Cleary banks see value in positioning themselves as “cutting edge.”  However, this affiliation is purely brand driven and not consumer value drive.   If a bank can be promised greater access to consumer data AND direct access to consumers through the device, banks will drive great consumer value while promoting new technology.  Because of the consumer value focus, banks will promote one payments solution over another…and mean it.

Advertisements

Banks think Apple Pay is so money..and Apple totally knows it

WellsFargoApplePayI was glued to my computer on September 9th to watch the live stream of Apple’s BIG announcements. As a fin tech guy, I was particularly interested in what Apple would announce around mobile payments and their creation of a true mobile wallet. I had my fingers crossed that the stream would not freeze during that part!  They did not disappoint with the launch of Apple Pay and the announcement of the several major banks and retailers that are participating in the network. Apple did it right…again. These bank and retailer partnerships are key to quickly driving adoption. Consumers do not need to change how they pay for things, download any apps or struggle to find retailers who accept a certain form of payment. The only “hurdle” to participate in this payments network is for consumers to buy the iPhone 6.

The major banks started aggressively promoting their participation with Apple Pay the day after the big announcement. As a matter of fact, I received an email from Wells Fargo the following morning informing me of the many features and benefits of Apple Pay. I also noticed similar messaging on Wells Fargo’s ATMs that day as well. Wow, major banks see Apple Pay as a benefit for the current customer audience. It will be interesting to see if Wells Fargo, and the other major banks, lead with Apple Pay messaging as part of a customer acquisition or switch marketing program.

IMG_4244

The aggressive promotion by banks and retailers also helps Apple too. Keep in mind that while the iPhone 6 was available on Friday, Sept 19 with HUGE lines outside Apple stores, 75% of all handset users worldwide run the Android operating system. Hmmm….will the creation of a secure mobile wallet be enough to cause Android toting bank customers worldwide to switch to an iPhone? Or will Android users be patient to see what payment platform Samsung and Loopts come up with in the months to come? The intensity and reach of the awareness messaging just might cause some Android users to shift…assuming the iPhone 6 and Apple Pay are AMAZING. Time will tell.  The race to create the leading mobile wallet is ON.  It is so on.

IMG_4245

On a side note, it is truly amazing that Apple has such strong brand power that powerful, multi-billion dollar market cap financial institutions have taken notice and forged partnerships. Yes, Apple is THE LEADING worldwide brand.  These partnerships also echo a common theme within the financial technology industry; technology innovation will happen outside the financial institution. So true. Apple, you are so money.*

* I’ve sprinkled many “Easter Eggs” through out my posts to make reading more fun. These eggs include cultural references from the ‘80s, ‘90s and present day. If you get the reference, send me a tweet (@ericdunstan) with the answer.


Apple Pay is great but I will still need to carry my wallet

Screen Shot 2014-09-09 at 4.25.21 PM

I have to admit that I was GLUED to my computer screen this morning during the Apple announcement. It still blows my mind that technology and bandwidth can’t deliver a smooth online feed to a live event. What was up with the live translation feeds being clearly audible to online viewers? ANNOYING! Fortunately the live stream technical team saw the multiple tweets and fixed the problem.   Unfortunately my viewing experience was very choppy and I got word of the announcement in real time more from Twitter.

As predicted, Apple entered BIG into payments with Apple Pay and into wearables too with Apple Watch too.  Apple’s recent announcements around partnerships with Visa, Amex, MasterCard etc were clear leading indicators of the entry into payments. I am very excited about Apple’s payment system and how it will help drive mass consumer adoption of a true mobile wallet. Yean! However, we are a ways away from Apple driving mass adoption of their wallet.

Screen Shot 2014-09-09 at 4.14.30 PMApple Pay will be available on the iPhone 6 and Apple Watch devices for it requires technology included only in this hardware. Yes, the iPhone 6 and Apple Watch will set sales records and proliferation will be fast across the globe. However, Apple Pay will not be available on legacy devices that will slow down the adoption rate. Additionally, Apple Pay will be limited to major retailers including Whole Foods, Macy’s and Toys R Us. Yes, over 200,000 stores will be accepting contactless payments through Apple Pay. I’m sure Apple is busy negotiating partnerships with several other major retailers as well and the footprint will grow even more.

Apple Pay will not be available to stores outside of this Apple negotiated big box retailer network. Consumers will not be able to truly leave their wallet at home. Apple’s partnership with IBM, though, will help Apple Pay expand its footprint to more business….but it will take time. As I mentioned in a previous post, the IBM partnership provides Apple access to many banks and financial institutions. These FIs have business banking customers and frequently provide merchants with POS payment systems. Now that the iPhone 6 includes the NFC chip, Apple will be hot to engage IBM on pushing the distribution of NFC enabled payment terminals to their banking customers. Only until NFC enabled payment terminals are more widely distributed will Apple gain ownership of the mobile wallet.

Clearly Apple has the hardware, technology and strategic partnerships to create the closed loop necessary to build a ubiquitous payment system. It’s a matter of time before this happens. However, NFC technology and devices are not Apple technology and can be easily licensed by competitors. Yes, Apple has leap fogged into the lead on building a mobile wallet, but the competition did see this coming. Apple must continue adding nationwide retailers to their network to enable consumers to use Apple Pay. The first mover advantage will be key and the network affects will take hold. If a competitor is to provide another offering for consumers and merchants, they better act FAST. Samsung and Loopt I’m sure are having lunch right now.

On a side note, I am amazed by the level of talent Apple employs for their advertising and marketing efforts; JT, Jimmie Fallon and U2. A list talent meets A + list company. I’m sure Apple pays a large portion of the marketing budget for these names. Or maybe it’s vice versa! Let this be a reminder of the high margins Apple receives on every product they sell. Impressive.

 

 

 

 


Banks, make account opening easy from a mobile device and win customers

SimpleFinancial technology bloggers have written a lot recently about the implications of BBVA’s acquisition of Simple and Facebook’s acquistion of WhatsApp.  I know, what does the WhatsApp acquisition have to do with FinTech?  Industry pundit, Jim Marous, points out that the WhatsApp acquisition points to an ENORMOUS industry trend that sends a huge warning signal to all financial institutions.   That trend, and this should be no surprise, is the significant shift for consumers from the desktop to the mobile device in not only social media, but in banking too.  The warning signal? Consumers want to engage with their bank through the mobile device as the primary channel of engagement.  Banks need to get their mobile house in order or customers are headed out the door, through the windows and maybe even through the ATM.  The most salient mobile app feature that banks must get right to address this trend is account creation.  Banks who make account creation easy from the mobile device will turn the tide …and will attract more customers away from banks who do not embarce mobile.

Marous sites, “While Facebook was built for the desktop and migrated to mobile, WhatsApp was built for mobile first, giving the network an advantage in today’s marketplace.”  Similar to Facebook, a bank’s consumer products and user experience has been desktop based and is gaining momentum to migrate to mobile devices.  I am a Wells Fargo user and have downloaded the mobile app that offers a snapshot into my bank account online.  Aside from remote deposit capture, the application offers very little additional value that leverages the power of my mobile device.  As I’ve mentioned in previous blog posts, there are many FinTech innovators who are creating banks and banking technology that put mobile first.  GoBank, Moven and Simple are prime examples.

The most significant opportunity to drive mobile banking adoption is to fully leverage the camera feature on a  smartphone.  Yes, most banks do utilize the camera by enabling mobile deposit capture and photo bill pay.  However, the camera needs to be enabled for a much more significant  functionality: The ability to capture the PII needed to open a bank account without asking the consumer to key it in using a device key pad.   Without this feature, the mobile channel will always be secondary to the online banking channel where consumers create and manage banking relationships.

Jumio Netswipe

Financial technology innovators Jumio and Mitek  are making great strides in leveraging the device camera to capture customer data. Jumio recently launched at FinovateEurope a technology that uses the device camera to scan an ID and extract the needed PII to open up a banking account. The technology then “deposits” this needed data into a bank account registration form.  Wow.  Cool. The technology addresses the significant consumer pain point of using a tiny device keyboard to open up an account ….which is a process filled with typos, frustration, and high abandon rates.   The Jumio platform makes opening a bank account fast and easy.

 

The mobile camera ID scanning technology sounds great…however, from the consumer perspective I can identify several potential hurdles or concerns that have to be addressed.  Where does the picture of the scanned ID go?  Is the image in my device photo stream?  If I lost my phone, could the thief see this data? If the ID image lives in a cloud, who’s cloud is it?  What happens if the cloud provider is breached?  There are so many questions here that need to be addressed!  One thing is for sure, innovators need to have the data security technology locked down and messaging at the ready to educate customers on why this ID verification technology is safe.  After all, consumers don’t readily distribute copies of their ID to just anyone offline…and it’s no different in the online world.


What Can Bank Social CRM Teams Learn from Ford? A lot!

Last year my wife and I began our search process to find a new SUV. Our consideration set included Toyota, Ford and Chevrolet. I tweeted out one evening that we were considering the Ford Explorer and asked for feedback from my community.  Within 24 hours I received a reply…not only from friends, but also from Ford.  The response included a link to the Explorer’s features and an offer to schedule a test drive. Color me impressed. (Tweet me at @ericdunstan with the 80s movie reference)

Image

I responded that we were interested in a test drive. A Ford rep quickly responded and offered to schedule a demo and to provide incentives.

Image

Ford is effectively using social media as a lead generation tool and quickly acquired my information to schedule a test drive.  I used all natural language text with no # or handles. Clearly Ford is monitoring the social media channels and has an effective strategy to capture the information and act on it.   Nice work.

I recently blogged about my frustration with the mobile deposit feature of the Wells Fargo mobile application.  I tweeted my frustration as part of a theraputic venting processes.  Within 24 hours Wells Fargo replied with a tip to address the mobile application #fail and a request for me to call a 1-800 number to address any further issues.

Image

I applaud Well Fargo for capturing or “hearing” my frustration on Twitter and responding.  However, given the importance of social media as a marketing channel, Wells Fargo’s response is almost a given.  I would imagine that almost all of the Top 100 banks have similar processes in place to monitor and manage the social media channel.  However, I believe Wells Fargo’s response falls short of meeting my customer needs and their social media team could learn a lot from what Ford is doing.

The Wells response was very generic and made me do the heavy lifting.  “Try closing the app and restarting your phone.  If the problem persists, please call 800….”  Duh. Wells Fargo, I’ve been an iPhone user sense the iPhone 3 and know that restarting an app is a quick fix.  However, given the Wells app recent reviews, I think this functionality fail is an application problem.  Additionally, the LAST thing I want to do is call your 800 number to then have to dial through a myriad of prompts to eventually talk with a representative after a several minute wait.

The Ford response was very personal, responded to my specific question, and provided a channel to connect with a representative directly.  Ford made me feel personally taken care of, listened to and treated as a desired customer.  Wells could have worked harder by…

1. Offering to collect my information so an online/mobile customer service rep could contact me directly

2. Having the rep present the option of contacting him or her directly through a Twitter DM to help trouble shoot

3. Providing me a link to their website with a list of known issues

4. Acknowledging my frustration and offering an incentive as a “mea culpa” for their failed application

I feel like my concerns were heard by Wells Fargo, but I don’t feel personally taken care of to ensure my issue was resolved and that I’m a valued customer.  This is an example of the difference between just listening to the customer and engaging with the customer.  By engaging with the customer, Wells has the opportunity to personally respond to my need to show that my customer relationship is valued.  Ford did this so well that we bought an Explorer from them.

Moving beyond just listening to and engaging with the customer may require rethinking how customer support teams are trained and incentivized.  Additionally, companies should consider implementing a social media analytics and engagement software solution.  These solutions go beyond functionality of Tweet Deck that enable users to track multiple accounts and listen for mentions of their company or brand.  The more robust solutions, like Attensity or Nimble, for example, enable companies to listen to the customer, analyze the need and then act on meeting the customer need.

Consumers are increasingly frustrated with their banking relationship. There are a few Internet and mobile only banks, like GoBank or Moven, which take the mobile experience and customer service seriously.  Leading banks, including Wells Fargo, will quickly lose customers should they not learn how to actively engaged with their customers through all channels of customer support, including social media.


Mobile must remain a priority for large banks to retain customers

My family and I received several checks from family members as gifts and as payback for gifts purchased.  My wife typically handles the day-to-day checking account and generally handles making deposits at the nearest Wells Fargo ATM.  I suggested that she try using the mobile deposit feature on the Wells Fargo mobile application.  Being the wife of someone who works in FinTech, she agreed to try out the feature….despite all the negative feedback about the application. Unfortunately,  she successfully validated the negative comments splattered across iTunes.

The biggest disappointment came through the application crashing after each attempt to deposit a check using the mobile deposit feature. What I found most interesting were my wife’s comments after the 3rd attempt. “Well, Wells Fargo, I guess you REALLY don’t want me to use this feature,” was the first comment.  The second comment was “What happened to the pics of the checks I took before the app crashed? Are they stuck in the app or are they with Wells?  Can someone steal the money?”

Three interesting thoughts came to mind as I digested her valid complains.  One, when it comes to getting customers to try new features that involve their money, banks better be sure the feature works for the customer the first time.  Yes, app crashes can happen for many reasons.  Unfortunately, several reviews reflected the same frustration and experience my wife had…which implies that improvements need to be made to the application. From my wife’s point of view, Wells Fargo implicitly told her mobile deposit is not ready for prime time and to keep using the ATM.  Wells needs to track that these customers are and target them with a “mea culpa” CRM program to win back their trust with new technology. After all, according to a recent study, 49% of consumers will change banks for a better mobile experience.

Secondly, I think my wife’s concerns about where the check pictures have gone after the application crashes point to an engrained reaction that stems from frequent e-commerce transactions.  I think similar “where’s my money now?” concerns come up when a consumer enters in a credit card number online, presses submit and the site crashes. “Did my credit card go through? Do I need to re-enter my credit card? If I do, will I get double charged?  Is my card number safe?”  All are common questions following an e-commerce site crash.  I think it’s only natural for my wife to ask similar questions after a mobile banking application fails.  In-application messaging must be delivered immediately to consumers to quell their anxiety when things don’t go as planned.

Lastly, the low application star rating and poor review indicate that mobile is NOT a big priority for Wells Fargo. In an effort to win customers, I would imagine that the mobile team would quickly iterate and redeploy an application as quickly as possible. Unfortunately, Wells Fargo is not the only major bank that appears less focused on winning customers through mobile.  Chase and Bank of America have similarly low rated mobile applications. If these major banks do not step up their focus on mobile, the door will remain WIDE OPEN for innovative mobile banks like GoBank and Simple to entice customers through compelling mobile banking experiences.


%d bloggers like this: