Online Banking Trends

Online banking is certainly convenient for customers and cost-effective for banks, but its widespread adaptation continues to be hampered by concerns over security. Some security professionals estimate that upwards of 39% of all computers are infected with viruses, spyware, and other malicious software.^[1]  Most of these programs are designed to collect people’s bank account information and passwords. The risk is not just limited to home computers either; third-party data processors and banks are also regularly targeted by hackers.

Despite the risks, a significant number of people still bank online, even though they worry that this activity may leave their information exposed to criminals.^[2]  Over half of respondents to a survey by mobile security firm Entersekt said that they, or someone they knew, had been a victim Read More »

New banking systems have been cropping up all over the place. Kiboo is a brand new banking platform, and even though it’s still in Beta stage it's one to keep your eye on -- and maybe even put your money in. It keeps you connected to your personal finances 24/7.^[1]

Kiboo's Strategy

When a customer signs up with Kiboo, they get a single account divided into two portions: spending and saving. Then, they can track their money in both accounts using Kiboo’s unique web platform and the Kiboo mobile finance app. SMS alerts help users keep track of their accounts, even if they don’t have wireless access.^[2] 

Budget and Expense Tracking

With Kiboo's expense tracking, users are Read More »

Google Apps, the cloud computing wing of Google, recently signed their largest deal to date. But it isn't the size of the deal that's surprising—it's the fact that they partnered with a bank. Financial service companies seem like the most unlikely candidates for cloud solutions due to their high security needs and strict regulations regarding sensitive customer data.

BBVA is not only one of Spain's largest financial institutions; they're also the largest bank in Mexico, and they have a pretty big presence in the southern United States.^[4] The Spanish banking giant has signed on to offer Google cloud computing to 110,000 of its employees worldwide.^[1] Over 35,000 Spanish employees will begin using the tools with plans to migrate the cloud computing services to employees in over Read More »

Zopa is taking personal loans to an all new level. They're removing the bank from the equation, and helping individuals make and engage in peer to peer lending. That way, if someone is looking for a loan, they can just use Zopa to borrow online directly from another person. 

How Peer Lending With Zopa Works

According to Zopa, peer to peer lending on their network is more efficient, principally because borrowing from another person is less costly than borrowing from a bank, and because individual lenders can profit by making smart loans.^[1]  Here's how Zopa's social lending model works:

1. Zopa checks on potential borrowers credit scores, sorting them into groups so that lenders can tailor Read More »

Americans are tired of feeling helpless about finances, and with help from companies like Simple.com, they can take charge of their money again. It's a new online banking solution that strives to put its customers first, so that they can feel confident in their finances.

Simple.com's dedication to their users is clear: they have no hidden fees, and tout their devoted customer service team, who are available over call, email, chat, and even Skype. In addition to convenient customer service options, Simple.com is also available as a completely mobile banking solution, meaning users can keep track of their bank accounts from just about anywhere on their smartphones.^[1]

How it Works

Linking accounts and credits. The platform works Read More »

Businesses of all kinds are establishing a social media presence through channels like Facebook, Twitter, and Google+. The banking industry though, has been slow to take advantage of the benefits of these new opportunities.^[1] There are a few banks however, that are starting to embrace social media for a few key reasons.

Customer Service and Rapid Response

Like many other businesses, banks are starting to realize that many of their customers use social media to register complaints about products and services.^[2] Paying attention to social media is critical for any company, because if someone is complaining via social media, their complaints have an automatic  audience. That audience could be filled with potential customers, so responding rapidly is crucial. While the number of business to consumer interactions Read More »

Do you know who's been checking your status updates and perusing your profiles? Believe it or not, your ex may be the least threatening of your uninvited Facebook page visitors. Big banks have a long track record of snooping, and social media has only escalated the behavior. Now that personal interactions and behaviors have been made public through Facebook, Twitter, and other social media sites, companies can data mine social media profiles to learn all about prospective—and existing—customers. The information they find goes far beyond the results of any focus group, and can be used for a variety of purposes. As noted by Michael Finney of ABC News in San Francisco, "Web users are becoming increasingly aware that companies are secretly gathering and selling Read More »

Banking has evolved rapidly in the past 25 years. Written checks and paid advisors have been replaced by electronic transfers and online money management sites. Instead of paying with cash or checks, most opt to use credit or debit cards. Instead of paying for financial advisors, many people now turn to online money management sites like Mint.com. Most people don't ever have to worry about balancing a checkbook (whatever that means). How did this happen? 

In the Beginning

It all began in the 1980s. The forerunner for modern online banking arrived in the form of 'home banking' systems, which relied on phone lines. In 1981, the first online banking services began in New York when Citibank and Chase—along with two lesser known institutions—began Read More »

Many banks offer online banking.  Most utilize the same sort of template, transactional data, and perhaps some basic budgeting. But things may be changing as banks begin to explore apps that can make their customers' banking experiences much more personalized, as well as providing the necessary tools to manage personal finances online.

The CEO of Yodlee, a financial services company that provides "some level of online banking functionality to 80% of the nation's largest banks,"^[1] says that many big banks are on the verge of making their online platforms more personalized, and easier to use. "Online banking began mostly as data aggregation," he explains, "where you could view transaction data across multiple financial institutions from within the portal of your main bank, but data aggregation has Read More »