JP Morgan Betting the Bank on Mobile Technology

by tom 28. July 2016 20:06

The big banks have been reporting their quarterly numbers and JP Morgan is leading the pack with a boom in consumer deposits. American Banker reports that in the last year, JP Morgan Chase has added $50 billion in the last year at the same time the number of mobile users grew by 18 percent to more than 25 million users. There is no coincidence that the number of mobile users has increased at about the same pace as deposits. The convenience and power of online and mobile banking technology is what is driving many consumers to the big banks, and one of the areas we see smaller and community banks scrambling to compete with their own mobile banking platforms.

imageIt’s no secret that one of the things that sets the big banks apart is the size of their technology budgets. Consumers, especially Millennials, want convenience and cool mobile banking tools, and as a result, JP Morgan’s consumer and community banking group grew 10 percent to $586 billion. As Gerard Cassidy, an analyst with RBC Capital Markets, notes, “The strong gain in mobile usage is evidence of greater penetration into the consumer market.” To help drive new technology, including mobile banking, JP Morgan increased its tech spending by 11 percent to $1.6 billion.

In fact, JP Morgan believes so strongly in its mobile banking strategy that the company has even come up with Chase Pay, its own mobile wallet designed to compete head-to-head with Apple Pay and PayPal. Starbucks and Shell Oil have already signed on as the first partners to accept Chase Pay.

At the same time, JP Morgan has been able to slash overall expenses, partly by closing more branches. While branch penetration in strong markets such as San Francisco and Miami is on the rise, the number of JPM branches overall has been steadily declining.

So with banking behemoth JP Morgan claiming more of the mobile territory for banking does that mean that smaller banks can’t compete? Not at all. We are seeing more community and regional banks stepping forward with their own mobile banking solutions, including more mobile banking promotions. In our research for our ProductBuilder database of new bank and credit union marketing ideas and products, we are seeing more regional and community institutions offering incentives for customers to use their e-statements, online banking, and mobile banking  tools. We also are seeing more banks actively marketing mobile banking. Florida Community Bank, for example, is offering a cash bonus to attract new mobile banking users.

While the big banks may seem to have an unfair advantage with larger technology budgets, smaller financial institutions are developing their own strategies to compete using many of the same strategies and tools. Technology can be a great equalizer that is accessible to all, so the smart bankers are watching the big guys such as JP Morgan and learning from their technology successes as well as their mistakes.

Mobile banking is becoming commonplace, but combining convenience with personalized services and specialty products is where smaller financial institutions can gain an advantage. Any bank can implement a mobile banking strategy, but the smart banks are using technology to address customers needs and are nimble enough to adjust their rates and develop new products that provide real value as well as wireless convenience.

How old is your competitive fee data?

When was the last time you did a full competitive study on ALL the service fees in your target markets? We can show you want the competition charges TODAY, not six months ago.

Service fees have become especially volatile thanks to new economic uncertainty and pressure from the CFPB. Yet fees are still one of the biggest sources of revenue for banks and credit unions.

You could be setting fees too high and dissuading new customers, or your service fees could be so low you are leaving cash on the table. We can show you how your fees compare to the competition.

Take a live tour and demo our precision deposit pricing tools. Contact us for a personalized live tour today. email:MyRITestdrive@marketratesinsight.com or call 1-800-275-5556.

Weekly Term Accounts APY Spread and Premium Index–Jul 25

by tom 25. July 2016 16:35

Market Rates Insight features a weekly APY Spread and Premium indices to provide pricing executives with greater insight into national pricing trends and practices.

APY Spread Index

The APY spread is a simplified form of a standard deviation. It measures the variance between the high and low ends of the price range to the average, which indicates whether the APY of a particular CD is closer to the low or the high end of the pricing spectrum.

image

Premium Index

Premiums are used as the main vehicle to drive balances towards the most desired deposit products, and are an indication of the capital strategy of each individual institution. This week’s highest and lowest national premiums:

image

Tags: , , ,

APY | National Pricing Indicator | CD rates | Deposit rates

Weekly Term Accounts APY Spread and Premium Index–Jul 18

by tom 18. July 2016 16:32

Market Rates Insight features a weekly APY Spread and Premium indices to provide pricing executives with greater insight into national pricing trends and practices.

APY Spread Index

The APY spread is a simplified form of a standard deviation. It measures the variance between the high and low ends of the price range to the average, which indicates whether the APY of a particular CD is closer to the low or the high end of the pricing spectrum:

image

Premium Index

Premiums are used as the main vehicle to drive balances towards the most desired deposit products, and are an indication of the capital strategy of each individual institution. This week’s highest and lowest national premiums:

image

Tags: , , , ,

National Pricing Indicator | CD rates | Deposit rates

Overdraft Fees Climb Before CFPB Rules

by tom 18. July 2016 10:58

With the Consumer Financial Protection Bureau (CFPB) continuing to delay any ruling on overdraft fees, the banking industry is responding by raising overdraft fees. The longer the CFPB delays, the more incentive there is to push overdraft fees even higher to compensate for lack of rate fee income.

American Banker recently reported the latest trends in overdraft fees based on data Market Rates Insight provided over the last quarter:

“Banks with at least $10 billion in assets raised overdraft fees an average of 50 cents from March to June, to $33.66 per overdraft, according to data collected by Market Rates Insight in San Anselmo, Calif. Institutions with $1 billion to $10 billion in assets increased fees an average of 14 cents during the same period, to $32.77; those with $100 million to $1 billion in assets hiked fees an average of 2 cents, to $30.79.”

Indicators are that banks are working to get ahead of the regulators by raising the baseline for overdraft fees prior to any CFPB ruling. The larger banks are leading the trend. KeyBank and Sterling National Bank in Montebello, NY, have raised their overdraft fees to $39 per overdraft, which is up from the previous highs of around $35 per overdraft.

At the same time there is a growing trend to eliminate overdraft transfer fees. JP Morgan Chase is expected to eliminate its $10 overdraft-protection transfer fee. At the same time banks are stepping up promotion of new products and services that help consumers avoid overdraft, in line with the CFPB’s requires to the top 25 banks to start promoting more product that provide overdraft protection.

There is a sea change in the way that banks approach overdraft, as banks raise overdraft fees but offer more overdraft protection alternatives that are free or very cheap. There is more transparency into overdraft than ever, and more banks are making more money from overdraft than before, especially the big banks.

Consumers are becoming smarter about overdraft, and banks are more willing to be transparent and educate consumers about overdraft protection and overdraft fees. With the CFPB still considering how it will rule on overdraft, there is always the possibility that these changes will head off any CFPB action. Consumers are becoming smarter about overdraft, and banks are making every effort to keep customers informed so offering free overdraft protection services may address regulatory concerns, even when banks charge higher fees. The longer the CFPB waits to make a decision on overdraft, the more time the banking industry has to address those concerns without sacrificing revenue.

How old is your competitive fee data?

When was the last time you did a full competitive study on ALL the service fees in your target markets? We can show you want the competition charges TODAY, not six months ago.

Service fees have become especially volatile thanks to new economic uncertainty and pressure from the CFPB. Yet fees are still one of the biggest sources of revenue for banks and credit unions.

You could be setting fees too high and dissuading new customers, or your service fees could be so low you are leaving cash on the table. We can show you how your fees compare to the competition.

Take a live tour and demo our precision deposit pricing tools. Contact us for a personalized live tour today. email:MyRITestdrive@marketratesinsight.com or call 1-800-275-5556.

Tags: , , ,

Overdraft | Market Rates Insight | In The News

Weekly Term Accounts APY Spread and Premium Index–Jul 11

by tom 11. July 2016 13:53

Market Rates Insight features a weekly APY Spread and Premium indices to provide pricing executives with greater insight into national pricing trends and practices.

APY Spread Index

The APY spread is a simplified form of a standard deviation. It measures the variance between the high and low ends of the price range to the average, which indicates whether the APY of a particular CD is closer to the low or the high end of the pricing spectrum:

image

Premium Index

Premiums are used as the main vehicle to drive balances towards the most desired deposit products, and are an indication of the capital strategy of each individual institution. This week’s highest and lowest national premiums:

image

How old is your competitive fee data?

When was the last time you did a full competitive study on ALL the service fees in your target markets? We can show you want the competition charges TODAY, not six months ago.

Service fees have become especially volatile thanks to new economic uncertainty and pressure from the CFPB. Yet fees are still one of the biggest sources of revenue for banks and credit unions.

You could be setting fees too high and dissuading new customers, or your service fees could be so low you are leaving cash on the table. We can show you how your fees compare to the competition.

Take a live tour and demo our precision deposit pricing tools. Contact us for a personalized live tour today. email:MyRITestdrive@marketratesinsight.com or call 1-800-275-5556

Weekly Term Accounts APY Spread and Premium Index–July 4

by tom 5. July 2016 14:19

Market Rates Insight features a weekly APY Spread and Premium indices weekly APY Spread and Premium indices to provide pricing executives with greater insight into national pricing trends and practices.

APY Spread Index

The APY spread is a simplified form of a standard deviation. It measures the variance between the high and low ends of the price range to the average, which indicates whether the APY of a particular CD is closer to the low or the high end of the pricing spectrum

image

Premium Index

Premiums are used as the main vehicle to drive balances towards the most desired deposit products, and are an indication of the capital strategy of each individual institution. This week’s highest and lowest national premiums:

image

Tags: , , ,

National Pricing Indicator | CD rates | Building Deposits

Weekly Term Accounts APY Spread and Premium Index–Jun 27

by tom 27. June 2016 14:01

Market Rates Insight features a weekly APY Spread and Premium indices to provide pricing executives with greater insight into national pricing trends and practices.

APY Spread Index

The APY spread is a simplified form of a standard deviation. It measures the variance between the high and low ends of the price range to the average, which indicates whether the APY of a particular CD is closer to the low or the high end of the pricing spectrum.

image

Premium Index

Premiums are used as the main vehicle to drive balances towards the most desired deposit products, and are an indication of the capital strategy of each individual institution. This week’s highest and lowest national premiums:

image

Tags: , , ,

National Pricing Indicator | Market Research | CD rates | Deposit Products

Talking To Customers Promotes Loyalty and Limits Rate Shopping

by Tom 26. June 2016 18:53

When you offer market research, you have to have some idea as to how your research findings affect your customers’ customers. We offer the most up-to-the-moment data on deposit rates, loan rates, and fees, but for our customers to see real value in our research, they have to understand how that rate data has a direct impact on their customers. They have to look at rates in light of customer sentiment as well as how their rates track against the market.

Which is why I was surprised to read this week that the banking industry is not particularly adept at listening to their customers. A recent survey of retail banking customers conducted by PeopleMetrics reveals that 1 in 5 bank patrons have input they want to share with their bank on ways to improve the customer experience.

Monitoring customer experience and customer sentiment is an active process that requires speimagecific tools and techniques, but the act of actually engaging with customers it itself clearly pays off. For example, according to the study about half of banking customers believe they have access to materials that are helpful in guiding financial decisions. Those that believe they have the tools they need to help manage their money had a net promoter score (NPS) of 79, while those who did not feel they have access to helpful financial tools had an NPS of 26. If banks want a) happy customers and b) customers that will share that positive experience with friends, then banks need to find new ways to engage with customers and listen to their concerns.

Customers want to feel that their unique requirements are being met and they are doing business with a bank or credit union that cares about them and their financial needs. That’s why you measure customer experience in the first place. You have to listen to customer to learn about their experience, what they like, and what’s missing. The act of listening alone will improve customer loyalty, so finding new ways to poll customers in itself will promote loyalty; “My bank cares about my opinion!”

It has been demonstrated time and again that the more you engage with customers and listen to what they have to share about the customer experience, the more you promote customer loyalty. And the more loyal your customers are, the easier it is to get those customers to accept unpopular moves such as lower deposit rates and higher fees. If you have a rapport with your customers and they feel they have your ear, they are going to be more willing to accept lower rates and higher fees. At the same time, you can be more assured of maintaining customer loyalty, since customers will be less likely to shop rates and migrate to the competition.

So as you are conducting competitive research to see what the competition is up to, be sure you consider customer sentiment and customer loyalty in your analysis. New convenience features such as mobile banking and peer-to-peer payments could be exactly what your customers want. However, did you ask them first? Creating a culture of customer feedback can help you build customer loyalty and improve revenue at the same time.

Tags: , ,

Banking Trends | Consumer Confidence | Market Research

Weekly Term Accounts APY Spread and Premium Index–Jun 20

by tom 20. June 2016 15:22

Market Rates Insight features a weekly APY Spread and Premium indices to provide pricing executives with greater insight into national pricing trends and practices.

APY Spread Index

The APY spread is a simplified form of a standard deviation. It measures the variance between the high and low ends of the price range to the average, which indicates whether the APY of a particular CD is closer to the low or the high end of the pricing spectrum.

image

Premium Index

Premiums are used as the main vehicle to drive balances towards the most desired deposit products, and are an indication of the capital strategy of each individual institution. This week’s highest and lowest national premiums:

image

Tags: , ,

National Pricing Indicator | CD rates | Building Deposits

Weekly Term Accounts APY Spread and Premium Index–Jun 13

by tom 13. June 2016 16:30

Market Rates Insight features a weekly APY Spread and Premium indices to provide pricing executives with greater insight into national pricing trends and practices.

APY Spread Index

The APY spread is a simplified form of a standard deviation. It measures the variance between the high and low ends of the price range to the average, which indicates whether the APY of a particular CD is closer to the low or the high end of the pricing spectrum.

image

Premium Index

Premiums are used as the main vehicle to drive balances towards the most desired deposit products, and are an indication of the capital strategy of each individual institution. This week’s highest and lowest national premiums:

image


Become MRI Fan on FaceBook!

FaceBook Icon