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Tech News Roundup

Every week, we here at DigitalMailer come up with a number of articles and resources that we share with one another, talking about the "next wave" of finance technology. Here's what caught our attention recently: 

Electronic channels at “social banks.”  (from BAI)

Fixation on Location (from GonzoBanker)

Cloud Computing is Greener (from Harvard Business Review)

Why Community Banks Need a Product Advantage (from BAI)

There IS an app for that...but why? (from CU Soapbox).

Social Finance - Is It Working?

by Jimmy Marks

Look at your watch. Let eight seconds go by. Boom - another social media consultant has just appeared and has come up with an article about how much impact social media has on people's finances. 

It's getting a little crazy. It seems like every time we turn around, we get one more guy saying that users of X social media site are Y% more likely to put their money in your credit union than any other human being alive. Whoops, another eight seconds went by, that's another guy yelling about how all those Facebook fans you have are the same as alternative capital!

Let's get serious for just a second. We've been talking social media for the last two posts (if you haven't read them, go do it). Come to think of it, we've been talking about social media for the last two YEARS. But we've never really taken the time to look at the impact "social finance" and whether or not there were numbers and trends you could count on when it comes to social media and online finance. 

America (Banking) Online

Louis Hernandez at Open Solutions wrote an article (It Takes a (Global) Village: How to Use Social Media - CUJournal, 4/19/10) about social media. Some interesting facts about deposit balances and social network users (most of which, it seems, were culled from a report by Raddon Financial Group): 

• MySpace users have the lowest amounts on average, with $11,891. 
• LinkedIn users has the most with $29,794
• Twitter users had $20,562 on average
• The average Facebook user has $19,339, but daily Facebook users average about $16,586. 

I found these numbers surprisingly high, given that we only started seeing a resurgence in savings in the past year-and-a-half or so. 

I differed to Ron (Daly, my boss), who said "Ask what the average amount is among people who want nothing to do with this stuff." He's betting it's going to be a lot more. Anybody got numbers, comment on this article and let us know. 

Other interesting numbers regarding getting financial advice via social:

• Only two percent of consumers have interacted with their FI while visiting a social networking site.
• Three percent would be interested in taking advice from a blog or SM site. 
• Only four percent said they had solicited advice about finance from a social media site. 

Two, three, and four percent? That's terrible. Is it because there are few FIs online and they're doing a bad job of social media, or is it that people aren't interested in "friending" B of A or their chief banking institution? (Yeah, B of A's Twitter has 7,000 followers, give or take, but I'm doubting all their followers are customers with issues, and with 53 million customers, you're looking at <.013% of customers being helped by their Twitter account.)

Some fresh perspective from Jeffry Pilcher's Financial Brand blog, which ran a "Datahead" article about online banking and social finance (his data's from Forbes, Mintel and ComScore to be clear): 

• 76% of online banking users have visited a branch in the past two months, while 68% have visited an ATM and 37% have called their call center. Mr. Hernandez's article says there's been a drop-off in branch visits even between '08 and '09, but 76% is still plenty high. 
• 75% of members/customers don't realize their bank/CU has online banking. Half of those that DO realize there's online banking USE online banking. That's 12.5% of consumers that are actively using OLB on average. But 87% of those are accessing OLB more than once per week.
• Half of all online banking users have mobile internet on their phone and less than half of those access their bank's services online from said phone - so, on average, about 23% of consumers are accessing their bank's site via mobile. 
• 65% of members wanted to get emails about their accounts(!) while only 8% wanted account updates via social media. 

On this evidence, I'm willing to make a few guesses about where social media fits in the big picture. 

1) Social media is good for ad hoc feedback, event coordination and notification, casual chat and (maybe) some selling. But most folks don't want advice from their social networks. And it's not specifically the networks, it's the people using said network. 

Think about it - do you want to talk about your Roth IRA or your Mortgage with the person who keeps sending you "Which Twilight Character Are YOU!?!?!?11?!" Quiz on Facebook? No, you don't. At least, I HOPE you don't. You trust a few people in this world to tell you what you should do with money, and that conversation doesn't have to happen in front of an audience of hundreds.

According to this article from eMarketer Daily, the number of people using social media is going to be growing to about 66% by 2014. Getting a foot in the door now is smart, given that the trend is increasing and the risk is relatively low, but expecting it to be "the fix" for your institution is unrealistic. People don't start a financial relationship with some bank or CU that they found on Facebook. They go find their bank on Facebook because they already have a relationship with them. 

People are loyal to a dependable product first, its associated brand second. Slap a member or customer with $200 worth of fees and all the social media in the world won't make a difference - they'll feel cheated and complain, and might even leave. Doesn't matter if they brought it on themselves -they're going to say it's your fault.

2) OLB, email and websites all need to be better. There's a reason you started offering online bill pay/banking, eStatements, eLerts and so on. It's because the more people are leaning on your online channel, the less they have to come all the way to the branch to deal with their money issues. Little things like transferring money between accounts and making payments are time sucks for a branch - let people work it out from home. 

Emails, eStatements and online notices are popular (it's why we exist), but we still have people who are on the fence about communicating with members via email. Why? What's stopping you? You don't have to put a ton of personal info into the thing and you aren't spamming anyone. "We might get phished," you say? Yeah, you might. But if you're actively engaging members with emails and getting them accustomed to what an email from you looks like, you're training them about what the real messages look like versus a fake one. Come on, people, it's 2010. "I'm scared of email" stopped being a valid excuse in 1998. Get in there.

If your OLB, emails and websites aren't up to snuff, you're missing out. This is Web 1.0 stuff, and 2.0 is about to hit the bricks in favor of Web 3.0 (does that blow your mind, because it should). You're going to see the big banks and their big websites increase functionality in the next few years, and as Robbie Wright of CU Innovators recently said: 

I will immediately think poorly of a product if they have a crappy looking website. crappy site=crappy product

less than a minute ago via CoTweetRobbie Wright

Let's just cut to the chase: you have a budget of $1 million. You can spend it on your websites and online banking, or on your social media initiatives. You can only spend it these two ways, and you can split it any way you choose. What are you going to spend it on, knowing what you know now? 

Talk to me, people.

Social Media: Getting Started

by Jimmy Marks

Many companies worry about their involvement with social media (or lack thereof). We've talked about social media before, but we've never really given a list of "getting started" instructions. Hopefully, this will help your business get its feet wet. 

STEP 1: Sign up, Get going

No more of this "will we, won't we?" business. Get moving! Start turning out those blog posts, recording messages from the CEO to upload to YouTube, twittering, facebooking, emailing...whatever fits your member's tastes. Don't know what members are interested in? Hit them with a quick survey to sharpen your focus. 

More importantly, make this new communication channel someone's job. Make them track results and feedback. Stay on top of it. 

Best Practice - Set a bar and meet it. What do you WANT out of Social Media? Before you get going with anything, read this from thefinancialbrand.com about ROI and social media. 

STEP 2: Learn to Share

If you are running a blog or sending out a monthly email newsletter, you can make individual stories or pages shareable via the major social networks. Twitter, Facebook, LinkedIn, and most other networks provide links that, when set up properly, allow readers to share your content via their own account. Most blogging services provide a widget for sharing this information around. If you are a DigitalMailer ARB user, we can get you set up with the proper links and icons for sharing. 

You've probably seen buttons such as these before. When readers/members/users click these buttons, they're sharing your content and information with other people. Encourage them! 

Best Practice - Worried you don't have enough followers after a week? Don't. Building out this new way of talking to members and customers can take time. Read the CU Soapbox article "Follow-and-Friend Freeze Out" to give yourself and your organization a realistic idea of a "healthy" follower count.

STEP 3: Refine and Realign

Don't get comfy, social media trends and usage are changing day to day. Know which methods and messages are working and which aren't. Keep an eye on your stats and your referrals and make note of which method/network is giving you the best response.

Best Practice - Don't just talk, listen. If you have followers or friends eager to speak with you, address them and meet the need. You'll find that you can help users and members in a way that's simple, light and smart. You may also pick up new members and customers as a result. 

Some final food for thought:

Take a look at this video on "socialnomics". VERY thought provoking. 

Where is "The Fold"?

by Greg Crandell

Back when newspapers were as simple as "Really Simple" syndication got, being "above the fold" or "below the fold" was something that mattered to editors and advertisers. Being above the fold means better visibility and a greater likelihood of response and recognition. While fewer folks are reading papers these days, ads and articles that are above the fold are still regarded as more important and more desirable. 

This concept has translated to web design to some degree. It's led most folks who design websites to post all the "good content" just under the site header, or anywhere within the bounds of the "first scroll". More and more these days, web designers and usability experts are questioning whether or not "the fold" exists on the web. 

This article from Clockwork Active Media Systems starts shooting some holes in the conventional wisdom. Better information architecture, says the article, is much more important than where things are relative to the fold. Some resources from the article that might be helpful to your design team/web managers: 

• http://browsersize.googlelabs.com/ - this link will show you browser sizes and percentages, indicating how many people have their browser windows open to a specific size. How many people, on average, are seeing your actionable content? Do they have any way to contact you? Do they see content worth seeing within a specific size range? Type in your own URL at the top to use the overlay.
• http://www.thereisnopagefold.com/ - Get used to websites such as these - with URLs being easier to register these days, "single serving" websites like this will become more prevalent. Have only ONE thing to say? You need a single serving site, just like this one. If this is a little technologically advanced for you, let me give you a hint: scroll down. The folks behind the "There is no page fold" movement want to get away from this above/below fold mindset. If users see anything interesting on your website, they'll scroll; if they don't, they'll bolt. Simple, right? 

I'm not an expert on where people look/how they behave online, but I will say that I'm more inclined to read through a page that's linked to me. If I've got a few minutes and I need to find something on a given website, I'll browse around and hunt for the information I want. Going back to the design argument, if something is clearly defined or demonstrated on a website, scrolling to find it won't bother you. Better to have information that's easy to understand than information that's easy to find, but better still to have both. 

UPDATE - Not saying we're ahead of the curve, BUT...

by Jimmy Marks

A few days ago, Greg and I posted this story about the difference between social media comprehension and...well, what's going on nowadays. My Internet Friend (boy, THAT'S a depressing phrase) Ron Shevlin stopped by to talk about what the role of social media is and whether or not you can "vet" a social media expert. Or whether or not one exists. 

Well, Ron sent me a link to a MarketingSherpa article which shows that most organizations think that, with no social media experience, marketers are still somewhat knowledgeable about social media techniques. 

A copy of their chart: 

Chart: How Knowledgeable Are Marketers With No Social Media Experience?  

MarketingSherpa seems to have summed things up very well:

This was confirmed in MarketingSherpa's Social Media Marketing and PR study where we found that the "lack of knowledgeable staff" was the most significant barrier to social media adoption. When making the initial jump into social media, many organizations start by delegating responsibility to the first staff person they find with a profile on Facebook or LinkedIn since very few people have any level of practical experience in this new strategy. The result is usually a marketing program pre-destined to failure. [Click here for the full article from MarketingSherpa]

Exposure does not equal experience. Just keep that in mind. 

Feed Me, Seymour! Why you need to get with the RSS program.

by Jimmy Marks

There was a time when I didn't see the point of RSS feeds. I didn't care to get all the information I wanted from one source. Who needs that kind of headache? 

Turns out I do. When I'm here in my office, I'm usually working on twelve things at once (thanks, TV, for giving me the attention span of a three-month-old puppy, an asset of my personality that's both depressing and productive). Why go to 19 different news/magazine/blog sites when I can go to one site and get all the information? 

So I use Google Reader, which comes with signing up for a Google account that gets you your gmail and your personalized Google information. It's not the fanciest thing in the world, but it does what I want. And when there's new sites that might interest me, I can look them up with Google's feed finder and they're all right there for me. Convenience, thy name is RSS. 

So you're not into getting yourself a reader? Fine...here's another golden egg that's just been laid. It's called Tabbloid, and it's a service offered by Hewlett-Packard that takes RSS feeds and turns them into a PDF that gets delivered to your email account. The service is pretty new and it takes very little know-how to get going, so jump on it while it's fresh (go to tabbloid.com by clicking here). How did I know about Tabbloid? It came up as an article on a blog I read called "brand new". Which I have in my RSS FEED READER. Is this sinking in yet!?! (Thanks, brand new, for being great! A Link to their Article on Tabbloid)

But what if your site doesn't use RSS? Odds are if you're reading this, you're a professional our company works with or just someone with a curiosity about Web 2.0 type stuff. Well, your site can have an RSS feed and not be a blog site. It's true! There's a service called Feedity that turns static web pages into dynamic RSS feeds. It's a nifty tool and it's free (for the stripped down, ready-to-run version). Just type in your web address and use Feedity to start generating RSS feeds about your frequently updated content. Then offer that feed as a service to clients/people who use your site a lot. Go to Feedity by clicking here. 

I get tired of repeating myself, so this is the last time I'll say it: you're wasting time "surfing" when you could be just reading. Web 2.0 is a way of making the internet come to you. So start getting in! You don't want to be standing on the dock when Web 3.0 (whatever that is) leaves port. Get in the game now and start eating up those feeds. 

The C.C.C. Blog in the news

CUES, the Credit Union Executives Society,published their most recent copy of Credit Union Management magazine. And lo and behold, resident Gen-Y representative Jimmy Marks was mentioned in an article! His insights on credit union membership warranted a mention. To read the article (and Jimmy's comment), click here. 

To learn more about CUES, click here. 

To read the CUES Skybox, click here. 

Surveys: How's Web 2.0 Treating You?

by Greg Crandell

Give us your feedback: has social media made a big difference in your businesses' online presence?

Take our surveys below and let us know. Thanks!

Quizzes by Quibblo.com

Quizzes by Quibblo.com

Some news from the folks at C.C.C.Blog

by The Contributors

Well, it's been a hum-dinger of a five months here at the C.C.C.Blog (Note: That's our new nickname for ourselves! Ya like? It goes with our logo that goes out with our email stories: 

Cool, huh?)

We've just ticked past 40 stories and we've got some exciting new updates to talk about. First: We recognized just the other day that our feed for this site was a little hard to get to. Luckily, we've put a BIG, HONKIN' LOGO linking to our feed right on our sidebar there! -->>

Click it and sign up for our feed in your favorite feed reader. If you don't have a favorite feed reader or don't want one, that's okay, too...we now deliver through email. Just click on the subscribe via email link right under the BIG, HONKIN' LOGO over there. -->>

So, what else is new? 

>Due to the popularity of our quiz from a post or so ago, we're going to start offering more quizzes...maybe on a particular day? Contact us, let us know when's a good time to be tested.

>Jimmy had a post featured in the CUES Techport newsletter! Click here to visit the CUES Techport website, or just go to the story itself by clicking here!

>Rob emerged from a posting dry-spell to give us his thoughts on the financial crisis...click here to read!

>We're STILL so excited to be bringing you advice and opinion! Speaking of advice, do you have questions you want us to answer? About anything? Let us know, we'll do our best to bring you enlightenment.

Onward and upward!