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Q: Are banks/credit unions using good technology? PAYING SERIOUS FOR THIS ANSWER. ( Answered,   0 Comments )
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Subject: Are banks/credit unions using good technology? PAYING SERIOUS FOR THIS ANSWER.
Category: Business and Money
Asked by: rservice-ga
List Price: $200.00
Posted: 29 Nov 2006 20:17 PST
Expires: 29 Dec 2006 20:17 PST
Question ID: 786858
I am preparing a presentation for a credit union and need to know what
kinds of Web 2.0 technologies are financial institutions using to
attract new customers? I'd be particularly interested in wireless,
web, and "hand-holding."

I will track this page all the time and am able to answer your question.

This is a serious inquiry and I'm lkg forward to working with someone on this.

Request for Question Clarification by umiat-ga on 29 Nov 2006 20:38 PST
I will be working on this for you, rservice. I will let you know if I
have additional questions for you. Thanks for promising to stay in
touch!
Answer  
Subject: Re: Are banks/credit unions using good technology? PAYING SERIOUS FOR THIS ANSWE
Answered By: umiat-ga on 30 Nov 2006 13:16 PST
 
Hello, rservice-ga!

 Web 2.0 technologies are beginning to catch on in financial
institutions. I have presented some good resources below for your use.
Please don't hesitate to ask for clarification if you need more narrow
input.



THE CALL FOR BANKS TO ADOPT WEB 2.0
***************************************


"Gartner calls on banks to adopt Web 2.0 technologies." 11/30/2006
http://www.finextra.com/fullstory.asp?id=15723

"Financial services firms should use Web 2.0 applications such as
wikis, podcasts and blogs in order to improve cross-enterprise
collaboration and deliver personalised information to clients,
according to research group Gartner. The report says that engaging
with customers through call centres and via Internet campaigns is no
longer sufficient and recommends that banks adopt Web 2.0 applications
in order to provide personalised services to customers.

Gartner says in the next 12-24 months banks should implement
applications such as wikis, podcasts and blogs to facilitate
collaboration and internal communication. Banks should also deploy RSS
syndication, podcasts and tags to deliver general information to
consumers, such as content covering online banking security and
financial education topics. Firms should also introduce internal
policies to monitor staff participation in public wikis and other
online communities on the bank's behalf, says Gartner.

Through to 2011 Gartner advises the banking community to develop Web
2.0 applications that support multi-channel delivery for personal
account information and alerts. Firms are also encouraged to monitor
emerging Internet social networks for their potential for partnerships
to offer services within the network or to create non-traditional
distribution channels by dealing with customers one-to-one.

"Earlier this year both UBS and Dresdner Kleinwort said they would use
Really Simple Syndication (RSS) as a mechanism to distribute research
to clients. Dresdner Kleinwort also uses RSS feeds internally to
inform employees when the contents of the bank's corporate wiki or
staff blogs are updated."




Examples from Dresdner Kleinwort Bank, JP Morgan and Bear Stearns
==================================================================

Enterprise 2.0: the next generation - "A growing number of banks are
using Web 2.0 technologies within their risk management, trading and
research operations." October 2006 | Volume19/No10
http://www.risk.net/public/showPage.html?page=347518

"Now, a number of financial services companies are making regular use
of blogs, wikis and other Web 2.0 technologies such as podcasts
(web-based broadcasting of sound files), really simple syndication or
RSS (syndication via the web), open source software (where the code is
communally developed and free to users) and mashups (applications
integrated using web tools). What gives them their value - and why
people such as Classen believe they are changing the business world -
is that they are open, interactive and collaborative."


Dresdner Kleinwort bank
------------------------

"Since Dresdner Kleinwort launched the wiki 18 months ago, more than
2,800 of the firm's 6,000 staff have used it, and it now contains more
than 5,000 pages of information across a broad range of the bank's
activities, from automated testing to weather risk. The project
required seeding initially, with Lazopoulou posting early entries
about IT training in an attempt to entice the most likely users on to
the platform. It worked, and the content has steadily grown to the
point where the bank believes it now has the largest corporate wiki in
existence. "This has not been forced on people - it has taken off of
its own accord," says Lazopoulou. Information technology staff have
now moved their risk systems documentation on to the wiki, as have
other divisions such as compliance and trading. The attractions are
its openness, allowing anyone to contribute and everyone access to the
platform."

"Keeping up with such a vast and growing body of information is
challenging, so the bank has introduced another Web 2.0 technology -
RSS. Staff can sign up to a 'Watch this page' feature on the wiki to
receive RSS notification via email or an RSS aggregator every time a
selected topic is updated. And in recognition that its employees are
often on the road, the bank has developed a Blackberry version of the
wiki, which essentially offers the same information but without the
graphics."


JP Morgan
---------

"Meanwhile, JP Morgan has been experimenting with other Web 2.0
technologies in its algorithmic trading division. Carl Carrie, New
York-based head of algorithmic trading in electronic client solutions
at the US bank, says Web 2.0 is about moving away from the desktop as
the centre of computing towards use of the web as a platform. "It's
also about having a rich, customisable user interface that escapes the
traditional limitation of old-school web pages," he adds."


Bear Stearns
--------------

The equity and fixed-income research departments at Bear Stearns, for
instance, have been using podcasts since April as an additional
channel of distribution for audio briefings and conference calls.
Previously, clients participated in these briefings live or downloaded
recordings from the bank's website to replay on their computers.

"Our clients could previously listen to or retrieve audio content, but
they needed to be on the telephone or connected to the web to do so,"
says Dan Spina, head of fixed-income research and the financial
analytics and structured transactions group at Bear Stearns. "Now they
can download it on to an iPod or other MP3 player and listen to it on
the go. That's a major change."

Introducing the technology has been relatively straightforward because
Bear Stearns was already storing and distributing audio files. "The
consumer sector developed the devices, such as iPods and other MP3
players, and we had the infrastructure to make it work," says Spina.
More than 3,200 podcasts are now downloaded by clients each month.


Read further......



More about Dresdner Kleinwort Wasserstein use of wikis in
-----------------------------------------------------------

"E-Mail Is So Five Minutes Ago - It's being replaced by software that
promotes real-time collaboration."
http://www.businessweek.com/magazine/content/05_48/b3961120.htm



====================


"Banks tap social networks to target youth market - Financial services
firms exploring the use of Web 2.0 technologies are looking to 'social
media' channels - such as myspace and youtube - to connect with new
customer markets, and in particular the youth market." 9/14/2006
http://www.finextra.com/fullstory.asp?id=15863+


Dutch bank ING Direct, for instance, has launched a viral video
marketing campaign that promotes its new 'orange mortgage' to renters
and potential first time home buyers. The backbone of the campaign is
a new Web site which features content, video clips and games. ING says
the site also features a hidden secret mortgage offer that effectively
reduces the closing costs on the mortgage to zero. ING says the
campaign is designed to reach first time home buyers through creative,
interactive activities and links with other Internet destinations most
familiar to the majority of the audience."

"These innovations will enable customers to share their experience
with their friends, says ING Direct, which has seeded its short films
on viral video sites like youtube and established links from leading
online gaming sites to its own video games."

"Bill Higgins, head of lending services, ING Direct, says: "We expect
the viral nature of the MoveOutMoveUp.com campaign will raise newfound
awareness, reaching our core customers in environments to which they
are most familiar and shining a brighter light on a compelling offer."

"Canada's Windsor's Motor City Community Credit Union is also working
to establish a presence on channels such as MySpace in a bid to target
younger people. The credit union has set up a profile site intended to
give young people a forum to learn about and discuss financial
issues."



===================


Blog post: "Web 2.0 and BFSI Applications."
http://sketharaman.com/blog/?p=19


"Barring the few exceptions of financial institutions like UBS and
Dresdner Kleinwort who have used RSS technologies to distribute
research to clients, Web 2.0 technologies have so far not made too
many inroads into business applications, whether in BFSI (Banking,
Financial Services & Insurance), or in other sectors. However, all
that is about to change. Gartner has recently called banks and
financial institutions to use more Web 2.0 technologies in their IT
applications. A recent report from the leading IT analyst notes that
engaging with customers through call centers and via Internet
campaigns is no longer sufficient. It recommends that banks adopt Web
2.0 technologies and applications in order to provide personalized
service to customers."

"We can expect Web 2.0 applications like RSS, Corporate Blogs, Wikis,
Podcasts, Toolbars and  AJAX to feature more prominently in the
application portfolios of banks and financial institutions, especially
for customer-facing applications like Internet Banking, Online Stock
Trading, Research, Electronic Bill Presentment & Payment, Remittance,
and so on. Banks and FIs can use a combination of Blogs, RSS and
Toolbar technologies to communicate more proactively with their
customers. They can use a blog (derived from web log) as the mechanism
for publishing details of new products and services, research updates
and changes to policy. Using RSS (Really Simple Syndication), they can
create regularly updated information feeds. Through Toolbars,
customers get to notice such updates even if they don?t visit the
bank?s websites."

Read further.... 



===================


  

Visible Path's Web 2.0 technology being used by some of the world
"largest financial institutions."

"Business embraces Web 2.0 - TOOLS HITTING CORPORATE AMERICA ALLOW
USERS TO SHARE AND ACCESS MATERIALS EASILY, AND FOUND SUCCESS AT SITES
SUCH AS WIKIPEDIA," By Ryan Blitstein Mercury News. Oct. 09, 2006
http://www.mercurynews.com/mld/mercurynews/business/15714774.htm


"Big business is waking up to the same technology and tools now
fueling the second generation of dot-com fever among teens, college
students and the Silicon Valley elite. Oil companies are social
networking online, investment banks are posting to Web ``wikis,'' and
Tupperware is mashing up Web applications to analyze data."

"Many of the technologies now hitting the corporate world first saw
success at such consumer Web sites as Friendster, Wikipedia and Google
Maps.

"Because the networks are private, Visible Path can't name all its
clients, but Brydon counts some of the world's largest financial
institutions and energy companies among his customers."

"Four years ago, people thought we were crazy, because these tools
seemed more like toys,'' said Ross Mayfield, chief executive of Palo
Alto-based SocialText, which sells corporate wiki software. ``Now,
there are more wiki users behind the (corporate) firewall than there
are on the public Internet.''

Dresdner Kleinwort Wasserstein, a European bank with 6,000 employees
stationed all over the world, has used SocialText since 2004, but only
among the techies in its information technology department. Last fall,
they expanded to the larger business, and bankers now collaborate on
Web pages containing confidential information about the bank."




THE EXAMPLE OF WELLS FARGO
===========================

"Wells Fargo Makes Blog History."
http://www.micropersuasion.com/2006/03/wells_fargo_mak.html

"Wells Fargo has become the first US bank to launch a corporate blog,
Micro Persuasion has learned. The blog is called "Guided by History."
It is devoted exclusively to earthquake and disaster preparedness. 
The launch is timed to coincide with the 100th anniversary of the San
Francisco earthquake and fire, which took place on April 18, 1906.
Wells Fargo has a direct link with this historical event. They are one
of the few financial institutions which helped rebuild the city after
the quake and fire destroyed 490 city blocks in San Francisco. The
Wells Fargo blog includes contributions from John Stumpf, Wells
Fargo's President and Chief Operating Officer. Comments are turned on
with some basic ground rules. It also has some nice features such as a
Technorati graph showing the number of daily blog posts that mention
earthquakes plus lots of links to resources."

==

"Wells Fargo Accelerates Market Responsiveness with KnowNow."
http://www.knownow.com/article/?id=339

"KnowNow, Inc., a leading provider of Enterprise 2.0 solutions, today
announced the deployment of two KnowNow solutions at Wells Fargo, a
diversified financial services company with $500 billion in assets. 
Wells Fargo?s deployments, one through KnowNow?s hosted service and
one through an on-premise installation of KnowNow?s Enterprise 2.0
solution suite, are connecting key business managers with relevant,
critical information the instant it is published and enabling those
business managers to drive change.  The two deployments are examples
of how syndication technologies like RSS can be deployed within an
organization to solve different types of business problems.  Wells
Fargo?s deployment of KnowNow?s Enterprise 2.0 solutions are best
practice industry examples of how enterprise RSS can syndicate
information that originates both inside and outside of an enterprise
firewall.

Read in more detail...



==================



Some insight about implementing Web 2.0 in financial institutions and
the need for security features:

CEO's Guide to Enterprise 2.0
http://ross.typepad.com/blog/2006/06/ceos_guide_to_e.html

"As a group, financial institutions are wary because of regulations.
They can't even use instant messaging without logging and archiving
them. They've got to have a record of everything.

"But other than that group, every other kind of industry and CIO I've
talked to absolutely buys into it and says, "Bring it on." Obviously,
you have to meet security concerns. But I don't find chief executives
wary of podcasts, blogs, wikis, or social networks.

** "The point being, CEOs are ready for the shift, but need to work
with vendors who have adapted social software for the enterprise
within security requirements."




UTLIZING RSS FEEDS
====================

"Podcasts and RSS feeds from City National Bank." Oct 29, 2006
http://obr.typepad.com/financial_innovations/city_national_bank_ca/index.html

"We are starting to see RSS feeds used at public financial
institutions, primarily to keep shareholders up-to-date on new filings
and press releases. Consumer feeds are still relatively rare, but are
growing quickly. By this time next year, we predict as many as half of
all major U.S. banks and credit unions will be producing feeds as part
of their online marketing mix.*

"One bank in front of the curve is Beverly Hills-based City National
Bank. The bank has seven RSS feeds and three podcasts. They've even
added an RSS feed button on the bottom of most website pages.

Newsfeeds

"The newsfeeds are geared primarily towards business users (2 feeds)
and shareholders (3 feeds), but there's also a Personal Finance feed
and a Market Perspectives feed. The bank has published three Personal
Finance articles so far: the first on Aug. 16; another two weeks later
on Aug. 30; then, after a two-month hiatus, a third one today."

Podcasts

"The bank is also podcasting more thoroughly than we've seen before,
with not one but two monthly podcasts: personal finance and
international business. The company also produces a weekly market
perspectives podcast (see list below). Users can subscribe to the
audio reports via a newsfeed (RSS) or directly into Apple's iTunes
using the appropriate button."


====



"By using the comyno product suite, financial institutions are now
able to offer real-time banking alerts to their customers via SMS and
email - and for the first time ever even via RSS-feeds."
http://openpr.com/news/12824/All-channel-banking-alerts.html

"RSS will evolve into a decision criterion in the financial services
sector", Markus BŁttner predicts. "Web 2.0 and RSS will move into the
mainstream. Banks who embark with the integration today will profit
from an extensive competitive advantage and increased customer
satisfaction and customer retention." A recent Gartner-report ,
calling banks to adopt web 2.0 technologies and to develop
personalized RSS-feeds for their customers, backs up his thesis."


====


"RSS Feeds at UW Credit Union are a First." 3/21/2005
http://www.creditunions.com/home/articles/template.asp?article_id=1577

"University of Wisconsin Credit Union in Madison with $730 million in
assets was the first credit union in the state to offer home banking
to members, so it shouldn't come as a big surprise that it's also the
first (that we know of) to offer RSS content feeds to members. Because
UW Credit Union's members skew demographically young (the average age
is mid-thirties) and tech-savvy (half the 100,000-member base are avid
home banking users) Eric Bangerter, director of internet services,
recognized RSS as a practical and inexpensive solution to promote
wider adoption of the monthly content of its website."

"Although adding RSS feeds to its site wasn't a strategic decision and
didn't correlate to a particular business operation, Bangerter said
that because the credit union is tied to an educational institution,
?We are known as a provider of financial education and a source of
information as well as a provider of products and services."



MORE ON CREDIT UNIONS
======================

Fort Worth Chapter of Credit Unions moving foward with Web 2.0 training
http://www.fwcuc.org/articles/2006/05/24/upcoming-training-session-web-2-0
 
"In a couple of weeks, we?ll be presenting an afternoon technology
training session for the Fort Worth Chapter called Web 2.0 and Credit
Unions: Beyond Traditional Websites. There?s a big shift occurring in
how the Internet is being used by some very innovative credit unions
and credit union organizations. Today?s "Web" has moved from being an
information delivery system into serving as a collaboration system,
thus the Web 2.0 moniker. At a session with the Chapter last October,
we fielded a lot of questions about blogs and wikis, and our upcoming
training session will dive into these and other free tools that you
can use to communicate and collaborate with members, coworkers, and
other credit union innovators. We?ll explain how credit unions are
uniquely positioned to take advantage of the openness and transparency
of these emerging technologies, and how you can use them to reach
members, the underbanked, and the elusive young adult market in a more
personal way online."



ADDITIONAL RESOURCES
*********************

"A VC's View of Web 2.0 - The day of giant corporate software packages
is over, says Oracle vet Ray Lane. The future lies in bottom-up,
user-driven services." Business Week Online JUNE 5, 2006
http://www.businessweek.com/technology/content/jun2006/tc20060605_641388.htm


See the following blog posting and opinions:

"Web 2.0 inches towards financial institutions (while the clueful inch
away)." November 21st, 2006
http://www.piepalace.ca/blog/2006/11/web-20-inches-towards-financial-institutions-while-the-clueful-inch-away.html




WIRELESS
========

"Has mobile banking finally arrived?" November 2006
http://obr.typepad.com/financial_innovations/2006/11/has_mobile_bank.html

"During 11 years of publishing Online Banking Report, we've written
about 500 words in total on so-called "mobile banking." Even though it
was a much-hyped in the late 1990s, our answer when asked about mobile
banking was, "fix your Web-based banking, add email alerts, and mobile
will take care of itself."

"But it looks like times may be a changing. Not only is Cingular
throwing its considerable muscle into a phone-centered service using
Firethorn's new platform, the U.S. market for wireless services is
enormous (per MasterCard & Cingular during their Nov. 16 presentation
at BAI's Retail Delivery Conference):

* 2 billion mobile phone users worldwide including 218 million in U.S.(per 
  Cingular)
* Nearly 80% of U.S households own one (per Forrester)
* $660 billion of revenue for voice, messaging, and data services
* 75 million U.S. mobile phone users sent a text message in September (per 
  M:Metrics, Nov. 20)

"Even more interesting, ClairMail shared market research that said
that nearly two-thirds of U.S. consumers aged 18 to 34 have used text
messaging during the past 3 months. That means that even in the
laggard U.S. market, a core group of consumers are ready, willing, and
able to use the phone for more than just voice calling.

Analysis:

There are three main reasons why mobile banking's time has arrived:

1. It works on common phones: Previous generations only worked on a
subset of high-end PDAs, now most mobile phones can handle mobile
banking.

2. It has a business case: Mobile banking can both increase fee income
by being a core component of a Premium Online Banking service (see
Online Banking Report #109) AND lower costs by migrating voice calls
away from the IVR and into self-service.

3. The youth movement: Younger consumers interact with each other in
real-time via text and instant messaging. There is little doubt that
they will value the same type of interaction with their bank.



REPORT
======

Abstract of Report for purchase - "Remaking your financial website for
a Web 2.0 world."
http://www.onlinebankingreport.com/subscriptions/issue.html?iid=147


"How much of the Web 2.0 discussion applies to banks and credit
unions? Do we need a Bank 2.0? Or is this just another design fad,
like shag carpet, that can be ignored? Could we be witnessing a
fundamental shift in consumer behavior that requires new investment?"

"One tool that is impossible to overlook is the blog. Because blogs
are relatively inexpensive - in fact, you may be able to reduce your
Web development expense with them - they are no longer optional. You
might as well get started now while you can still be the first bank on
the block with a blog (see inside the report for our advice on
building a winning banking blog). A related tool, perhaps even more
powerful, is the RSS/XML feed. Some experts believe feeds will do to
email what email did to faxing.

Companies mentioned: City National Bank, Digital Mailer, New York
Times, RBC Financial Group (Canada), PayPal, TechCrunch, Upcoming.org
(Yahoo), Verity Credit Union, Vancity Credit Union (Canada), Wells
Fargo, Zillow, Zopa (UK)"


===


 I hope this helps. While GA is officially closing it's doors tonight,
you can still ask for additional clarification for the next 30 days.

 If I don't hear back from you, please know that you have been a
much-loved customer for many of the researchers here at GA! If you
would like to stay in touch, please come by our blog at
http://web-owls.com/ where you can find many of us and keep updated as
to how we, as a group of dedicated researchers, might be able to serve
our former customers in the future.

With warmest regards and many thanks!

umiat


Search Strategy

Web 2.0 AND financial institutions OR banks
banks using enterprise 2.0 
Wells Fargo and web 2.0
Credits Unions AND RSS
Credits Unions AND Web 2.0
City National Bank AND  Web 2.0
RBC Financial Group AND  Web 2.0
training banks to use Web 2.0
training AND Web 2.0 AND banks OR financial

Clarification of Answer by umiat-ga on 30 Nov 2006 19:21 PST
Well, GA has officially closed it's doors. I now feel comfortable in
stating that if you need future research and care to post some "not
absolutely clear but easy to decipher" identifying information in a
clarification, I will be more than willing to take over where GA has
left off. Your questions have been quite fascinating, and I would love
to perform further research of this nature. Just a thought.
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