Federal Payments to Go Electronic

By Michael Scheibach, Executive Editor, BankNews

Another step is being taken to reduce paper checks and to reduce costs in the process, and it's a big one. On March 1, 2013, the federal government will begin all-electronic benefit payments. This is yet another indication of the future of payments -- a future where electronic payments will constitute the vast majority of transactions.

For people receiving federal benefits, two options are available: direct deposit, or the Direct Express Debit MasterCard card.  

Banks can play a proactive role by encouraging their customers receiving federal benefits to sign up for direct deposit before the March deadline. The card, which the Treasury recommends, allows federal benefit recipients to pay bills, withdraw cash and make purchases without paying check-cashing fees. The money on the Direct Express card is FDIC-insured, and many card services are free.

"Whether you choose direct deposit or the Direct Express card, you will experience the same benefits of electronic payment: You don't need to go to the bank or credit union to deposit or cash your check every month, you don't have to worry about misplacing your check and you don't put yourself at risk for having your check stolen," said David Lebryk, commissioner of the Treasury Department's Financial Management Service. "Electronic benefit payments also will save American taxpayers $1 billion over the next 10 years."

The Treasury Department is working with more than 1,800 partner organizations to promote its "Go Direct" public education campaign. For more information, visit www.godirect.org.  

It's Time to Invest

By Michael Scheibach, Executive Editor, BankNews

As we approach the end of another year, the time to make plans for 2013 is here. Specifically, now is the time to determine which areas mandate investments in order to remain competitive.The important message is that despite a wobbly economy and uncertain future, banks must continue to invest in equipment and software solutions because if they don't, their competition will.

In the 2013 Banking IT Outlook Survey, conducted by Bank Systems & Technology, 28 percent of respondents said their expenditures would increase more than 10 percent, and another 36 percent are looking at increases up to 10 percent. That's a good sign.

Without question, IT will be the hub for most investments next year, with core systems garnering the most votes in the IT Outlook Survey, followed by mobile banking and customer experience.

Security should be near the top of the list, as well, including authentication solutions and fraud prevention. Every survey I've seen says one security breach, whether or not successful, is enough for a consumer or business customer to seek another bank.

Mobile banking continues to evolve, with remote deposit capture the latest advancement. Community banks are finally realizing the importance of RDC for customer retention and acquisition. Even small-business customers are exploring the benefits of mobile RDC.

Here is my top 10 list of investments for 2013:

1.  Core systems.
2.  Security/authentication solutions.
3.  Mobile banking.
4.  Remote deposit capture.
5.  Compliance solutions.
6.  Personal financial management (PFM) tools.
7.  Upgraded website/mobile website.
8.  ePayments solutions.
9.  Data security/management/backup.
10.  ATMs.

How does this match your list?

It's Finally Over . . . Almost!

Michael Scheibach, Executive Editor, BankNews

As we approach Halloween, it's pretty scary to realize that the election season is almost over. Whether you're a Democrat, Republican, Independent, or a member of the "What, Me Worry?" contingent, we all can agree that election day couldn't come any sooner.

But enough of politics.

It has been an exciting year in banking technology. From the national conventions of the American Bankers Association and Independent Community Bankers of America, to the more recent RDC Summit and BAI Convention, we have seen an array of new companies enter the banking arena, while industry stalwarts have introduced new products designed to move banks and the banking process forward into the 21st century.

Mobile banking continues to gain momentum, especially among community banks. This momentum has been sparked by new applications, such as mobile remote deposit capture, or mRDC. And not for just consumers. Banks are bundling mRDC into their services for small businesses, as well.

Remote deposit capture is evolving beyond simply remote deposit. Mitek Systems, for example, has introduced Mobile Imaging Platform, which transforms a smartphone into a scanner and transmission device for everything from medical prescriptions to insurance papers.

Of course, the continued growth in online and mobile banking means increased attempts by fraudsters. Survey after survey finds consumers and businesses placing security No. 1 on their list of concerns. Banks, too, understand the importance of security. And the number and variety of security and authentication solutions are staggering.

BankNews magazine will continue to cover the latest banking technology. The November issue looks at the 2012 RDC Summit, held in September. And the December issue will provide an overview of the vendors offering RDC and mRDC products.

Let's enjoy Halloween. I've already got my candy ready.
 

 

Come On, Get Happy

By Michael Scheibach, Executive Editor

During the depths of the Great Depression, watching a Busby Berkeley musical provided a brief respite from economic woes. Movies such as Flying High, Whoopee and Strike Up the Band renewed one’s spirit and confidence that good times would soon return. Unfortunately, good times did not return until 9,000 banks had failed.

Today, the country is mired in a lingering recession; and, once again, banks are failing. Through it all, however, small and mid-tier financial institutions remain cautiously optimistic. A recent FIS/Leede Research survey, for example, found that 44 percent of bank executives are concentrating on revenue growth, in contrast to last year when the majority of respondents were focused on reducing expenses to protect profit margins.

“With the shift toward growing revenue,” said Dan Shannon, senior vice president of consulting services at FIS, “we anticipate bankers planning a change in their strategy that will place more attention on sales. This includes activities such as shifting cultures from operations-oriented to sales-focused; investing in technology that increases servicing speed, such as online applications; and looking carefully at outsourcing discrete business processes that can provide a unique advantage, such as an after-hours call center to support online product applications.”

In today’s competitive marketplace, said Shannon, no financial institution can afford to resist change. The winning formula should encompass growing revenue, improving sales, streamlining operations and improving customer service. He recommends the following best practices to help maintain a competitive edge:

• Focus on interest income and loan yields — High-performing banks will not become so distracted in dealing with fee income that they lose ground on the lending side of their organizations. 
• Develop a consistent sales culture — Sales goals and objectives should be understood throughout the financial services organization. 
• Enter high-growth markets — High-performing banks understand the need to apply maximum sales resources to the highest potential sales territories. Consequently, they set sales goals and targets based on market potential, not past performance. 
• Leverage customer and market demographics — Savvy financial institutions continuously study their markets to carve out niches for themselves and to gain a clear understanding of how they can best compete. 
• Use key metrics that work — Revenue growth cannot be achieved, maintained or improved without accurate tracking and measurement of performance. Appropriate behaviors need to be reinforced with clear measures of sales performance.

Another key to success is understanding the bank’s specific market and customer base. According to Shannon, technology investment should be guided by a well-crafted marketing strategy such that banks rolling out a mobile banking product will understand how to best package the technology for bank customers, what adoption rates to expect and what additional income is possible.

“Mobile banking and remote deposit capture are positively impacting customer service and reducing branch transactions,” said Shannon. “For banks looking to make transformational large-scale changes, we suggest they look carefully at their business processes around planned technology implementations in order to ensure they obtain maximum return on investment.” An example he points to is a $5 billion institution that worked with FIS to improve customer service and loan-processing turnaround time, and, as a result, identified $3 million in annual savings by removing paper entirely from its loan processes.

No one disputes that small and mid-tier financial institutions can and must offer the latest technology. Yet, as Shannon emphasizes, this does not mean these institutions can afford to beat the mega-institutions to market; it does mean they need to partner with their technology providers in order to offer the latest technology solutions that meet their customers’ banking demands and that, ultimately, make everyone happy.

RDC Summit Rapidly Approaching

By Michael Scheibach, Executive Editor, BankNews

We're just a couple of weeks away from the 2012 RDC Summit, being held Sept. 26-28 in Orlando. This is one of those conferences you don't want to miss if you are involved with remote deposit capture for businesses or consumers or both.

Remote deposit capture is a technology that's been around a while but finally becoming a hot topic in the financial services industry. From too-large-to-fail banks to small-town community banks to credit unions, RDC, especially mobile RDC (mRDC), is rapidly becoming an essential product offering.

Studies abound showing that Generation X, Generation Y and the emerging Core Millennials are inclined to use financial institutions offering the latest and greatest technology, such as mRDC. Moreoever, small businesses and self-employed contractors are seeking FIs that can provide the convenience of remote check deposit.

If your bank or credit union is currently offering RDC to businesses and/or consumers, or if it anxious to learn more about RDC and mRDC, then the 2012 RDC Summit is a must event.

The RDC Summit is being held in Orlando, Fla., Sept. 26-28. And the lineup of speakers and presentations is impressive.

Three tracks are being offered: Credit Union and Community Bank Track, Retail and Commercial Bank Track, and Corporate Track. Here's a sampling of topics -- click on the title for details:

• Understanding your Options: Operations, Technology, Risk Management and More
• Success in Marketing & Selling RDC
• Addressing RDC Operational Challenges
  
• Lessons Learned and Peer Group Discussion
• Consumer and Mobile RDC Risk Management

To register or for more information, visit www.RDCSummit.com.

Don't Miss the 2012 RDC Summit

By Michael Scheibach, Executive Editor, BankNews

Remote deposit capture is a technology that's been around a while but finally becoming a hot topic in the financial services industry. From too-large-to-fail banks to small-town community banks to credit unions, RDC, especially mobile RDC (mRDC), is rapidly becoming an essential product offering.

Studies abound showing that Generation X, Generation Y and the emerging Core Millennials are inclined to use financial institutions offering the latest and greatest technology, such as mRDC. Moreoever, small businesses and self-employed contractors are seeking FIs that can provide the convenience of remote check deposit.

If your bank or credit union is currently offering RDC to businesses and/or consumers, or if it anxious to learn more about RDC and mRDC, then the 2012 RDC Summit is a must event.

The RDC Summit is being held in Orlando, Fla., Sept. 26-28. And the lineup of speakers and presentations is impressive.

Three tracks are being offered: Credit Union and Community Bank Track, Retail and Commercial Bank Track, and Corporate Track. Here's a sampling of topics -- click on the title for details:

• Understanding your Options: Operations, Technology, Risk Management and More
• Success in Marketing & Selling RDC
• Addressing RDC Operational Challenges
  
• Lessons Learned and Peer Group Discussion
• Consumer and Mobile RDC Risk Management

To register or for more information, visit www.RDCSummit.com.

Mobile's Competitive Advantage

By Michael Scheibach, Executive Editor, BankNews

Perhaps we can learn a bit from across the water in the U.K. about the impact of mobile banking.

According to a new report by Rackspace Hosting, a cloud-computing service provider, an impressive 63 percent of financial institutions reported that providing customers with mobile apps is now considered "crucial" to having a competitive advantage.

Other findings from the survey of U.K. financial institutions:

-- 20 percent have introduced a mobile app in the last 12 months.
-- 17 percent are in the process of developing apps for customers.
-- 19 percent are developing apps for private clients.

According to the report, these findings confirm "the banking sector's wider progressive attitude and desire to dominate the mobile payments industry."

At the same time, however, the report says 27 percent of respondents do not have any mobile strategy. The percentage of U.S. banks may actually be higher than this, which is unfortunate and short-sighted.

Mobile banking is, or will soon be, an expected channel by customers, just as online banking is considered a requisite service.

Keeping Pace With Security

By Michael Scheibach, Executive Editor, BankNews

As small and mid-sized banks continue to grapple with increased regulation, an erratic economy, customer retention and revenue growth, technology is not making the path to success any easier. In fact, a recent Javelin Strategy & Research survey found that members of Generation X, Generation Y and Core Millennials are gravitating toward the big banks, which can provide personal financial management tools, mobile remote deposit capture, person-to-person payments, mobile payments and other leading-edge services, while allowing them to participate in their own protection against fraudsters. They want anytime, anywhere, any device, all-encompassing financial capabilities. Speaking at last month’s Payments 2012 Conference in Baltimore, Chris Cox, vice president, mobile commerce solutions, First Data, summed it up this way: “Winners will be those that deliver on needs that go beyond payments to the heart of daily life.”

Delivering on these needs is challenging because of the escalating issue of online and mobile banking security. As banks expand their services to keep pace with customer demands, they become increasingly susceptible to fraud, much of which emanates from consumers’ infected computers. Since 2007, for instance, Microsoft has detected more than three million computers in the United States with suspected infections of the Zeus malware, which provides a means for fraudsters to steal user IDs, passwords and other financial information. Even though Microsoft and NACHA recently announced the disruption of the most harmful botnets using the Zeus family of malware worldwide, it is only a matter of time before another threat emerges.

Whether it is online banking or mobile payments, customers want to be assured that their transactions and accounts are secure; financial institutions, in turn, must implement the most effective technologies to provide this assurance. The importance of security, authentication and fraud prevention was evident throughout the sessions and exhibit at Payments 2012, with much discussion focused on how to secure the rapidly expanding mobile channel.

“There’s a distinction to be made between online and mobile banking security,” said Ajay Nigam, senior vice president, product management, at IronKey, a Payments 2012 exhibitor. “According to Juniper Strategy & Research, malware targeting mobile devices doubled in 2011. For online banking, banks must start with the assumption that their customers’ browsers, PCs and Internet connections cannot be trusted.” IronKey, located in Sunnyvale, Calif., offers Trusted Access, which delivers multiple layers of security, including a protected browser that users download, thus eliminating the threat of malware.

Banks need to consider four major points before deciding to move to a cloud/SaaS service, according to Nigam:

1. Look at how to establish security. Start with the assumption that the end user’s PC, browser and network connection are all compromised. Protect them anyway. 
2. Consider how to leverage cloud/SaaS service fully to lower infrastructure costs without risks of security or data loss. 
3. Layer security, starting from the client browser, extending through the network, and incorporating analytics and monitoring at the service connect level. 
4. Make the user experience seamless. 

The challenge is balancing budget restraints and the need for new technology investments. Fortunately, cost-effective, cloud-based solutions are pushing the transformation of information technology to business technology. In other words, cloud-based solutions allow expenditures previously targeted at equipment maintenance and personnel to be shifted to strategic initiatives, such as online and mobile banking security. Community banks need to be part of this transformation in order to remain competitive in this new era of technology-driven financial services.

           

RDC and Community Banks

By Michael Scheibach, Executive Editor, BankNews

Remote deposit capture (RDC) has been around for a few years now, primarily as a tool used by mid-sized and larger businesses for making check deposits. As technology has driven down the cost of scanners, however, smaller businesses have adopted RDC; and, in turn, smaller community financial institutions have responded by introducing RDC. Credit unions have been at the forefront of mobile RDC, which is being adopted quickly not only by the younger, smartphone-savvy generation, but also by independent contractors and smaller businesses. As this trend gathers momentum, community banks are beginning to see the merits of offering RDC for both consumers and businesses.

A quick, 30-second Google search of community banks using RDC found banks in Arizona, California, Florida, Georgia, Michigan, Minnesota, Texas and Utah. And I'm sure I would find scores more with a more comprehensive search.

The point is, RDC is becoming an essential tool for businesses and a value-added service for consumers. For community banks -- and credit unions -- RDC is an important offering that can helps retain customers, attract customers, reduce costs and generate revenue.

If your community bank currently offers RDC, I'd like to hear from you. You can email me or call me at 913-261-7072.

And I recommend all community financial institutions -- both those currently with RDC and those looking to add RDC -- to attend the RDC Summit 2012, being held September 26-28 in Orlando. The theme of this year's convention is Remote Deposit Capture: Evolution.

For more information, visit www.RDCSummit.com. 

Mobile Wallet Promises Big Payoff

By Michael Scheibach, Executive Editor, BankNews

Expand your mobile banking services. Strengthen your brand. Broaden your customer base. Differentiate your bank from the competition. And, even more important, create new revenue opportunities. These are among the potential benefits of the e-wallet, a much-anticipated smartphone packed with a multitude of banking and payments solutions. Unfortunately, despite the efforts of such major players as Google, Sprint, Paypal and Isis, the e-wallet has remained elusive in the U.S. market ... until now.

FIS, one of the world’s largest providers of banking and payments technology, has entered the e-wallet sweepstakes with its new mobile wallet, a cloud-based payment solution that can be built into any financial institution’s existing mobile banking applications, thus enhancing brand and customer loyalty.

“FIS Mobile Wallet is unique in its ability to support existing smartphones and existing point-of-sale hardware, while still being forward-compatible with new technology as it becomes available,” said Doug Brown, FIS senior vice president of mobile financial solutions. “This enables financial institutions to launch a mobile wallet today, and to attract and retain customers via their own financial institution-branded mobile payment solutions.”

Success of the e-wallet — and digital banking in general — ultimately hinges on merchant and consumer adoption. Retailers must see the benefits of mobile payments, which FIS understands. Its mobile wallet has the ability to promote advertising, couponing and companion offers to consumers, thus enhancing the ability to generate sales. Currently, it uses quick response, or QR, codes to execute transactions. Payments are processed via a software connection through a secure cloud server and, therefore, do not require terminal updates by retailers.

E-wallet security is another major issue for consumers, merchants and financial institutions. A recent study by security company Symantec, for example, discovered that the majority of people who found a lost smartphone attempted to access financial and other information, rather than try to return the phone to its owner. Brown points out, however, that the FIS Mobile Wallet is uniquely secure because no payment credentials, such as credit card numbers, are stored on the smartphone. Even more impressive, the customer’s private information is not even provided to the POS device, thus ensuring total security on the bank and the merchant sides of a transaction and eliminating PCI compliance burdens for merchants.

“As the mobile wallet replaces the traditional wallet,” said Brown, “there is the potential for a profound change in consumer behavior, as well as the way financial institutions and merchants engage their customers. The anytime, anywhere nature of mobile and online represent an unparalleled level of convenience that consumers will continue to embrace.”

This is putting more pressure on banks. In fact, Brown believes banks must provide the channels consumers want for accessing and managing their financial information. He recommends four best practices to strengthen banks’ position in the digital world:

• Work with your financial services technology provider to discuss your business needs and digital/mobile strategy.
• Leverage your mobile solution integrated into your core and e-banking solutions.
• Think beyond traditional mobile and online banking. These are table stakes. Have a plan for remote deposit capture, mobile payments and digital money movement.
• Encourage employees to be enrolled and active in your mobile and online channels.

Younger generations that have grown up with this mobile technology expect their financial providers to offer these services, stores in which they shop to handle their e-wallet transactions and their e-wallets to be completely secure.

Plan to Attend the Mobile Banking & Commerce Summit

By Michael Scheibach, Executive Editor, BankNews

With business travel becoming more costly and, therefore, less frequent for many of us, it's important to choose wisely which conferences you want to attend.

The top of my list are the 6th Annual Mobile Banking & Commerce Summit, being held at the Westin St. Francis, June 10-12, in San Francisco; and the RDC Summit, being held at the Omni Orlando ChampionsGate, September 26-28, in Orlando, Fla.

First up is the Mobile Summit, which I've had the opportunity to attend the last two conferences, with each one packed with new information in the ever-changing world of mobile banking and commerce. This year, the conference is planning to cover these topics:

• Who is fighting to be top of the mobile wallet, and what this means for you. 
• The merchant perspective on the value of mobile payments and mobile incentives. 
• Examples of best-in-class mobile banking. 
• The most influential individuals and companies in mobile financial services, including the early adopters and innovators. 
• The role of mobility in social commerce. 
• Innovations to come, with mobile banking and commerce on tablets and location-based offers. 
• Making it safe: Security in mobile financial services.

Needless to say, I can't wait to learn more about the latest developments in the long-awaited e-wallet (or m-wallet), the strides being made in mobile security and the best examples of mobile banking. 

The Westin St. Francis is a first-class hotel, but if price is an issue, visit Priceline.com or Expedia.com and search for nearby hotels with lower rates.  

To register or to find out more about the 6th Annual Mobile Banking & Commerce Summit, click here. 

See you there.

Stay tuned for an update on the RDC Summit. In the meantime, visit RDCSummit.com for more information.

Make Way for the eWallet/Virtual Wallet/Mobile Wallet

By Michael Scheibach, Executive Editor, BankNews

I don't know about you, but I'm simply trying to stay up with all the developments in mobile banking, which has gone from account lookups and money transfers, to mobile payments via an ewallet -- also called a virtual wallet or a mobile wallet.

The new FIS Mobile Wallet is a cloud-based payment solution that can be built into any financial institution's existing mobile applications. This approach reinforces the bank's brand while building customer loyalty. Another key feature is its use of QR, or quick response, technology for payments. This makes it much more usable by merchants, who don't have to update terminals.

 “The new solution is unique in its ability to support existing smartphones and existing point-of-sale hardware, while still being forward-compatible with new technology as it becomes available,” said Doug Brown, FIS senior vice president of mobile financial solutions. “This enables financial institutions to launch a mobile wallet today, and to attract and retain customers via their own financial institution-branded mobile payment solutions.”  

For more on the FIS Mobile Wallet, click here.

UPside Visa, introduced by Plastyc, is another an iPhone/Android app targeted toward the youth and under-banked markets. UPside Visa mobile apps provide a full range of personal banking needs, including activating a new account, signing up for direct deposit, redeeming cash back points, paying bills, transferring funds to friends, issuing paper checks, checking balances and reviewing transaction histories. 

Of course, we also have Google, Isis, Sprint and Paypal moving ahead with their respective versions of the ewallet.

The key to ewallet success is not acceptance by banks. They, in fact, have gone all in. Rather, it is with retailers. And not just the major ones. For the ewallet to become the norm, all retailers must be able to accept mobile payments just as easily as credit cards.

FIS is using QR codes, which eliminates this obstacle. Other ewallets are based on NFC, or near field communications: wave a smartphone over an NFC reader to record a payment. One swipe and you're out of there.

NFC has been stuck in the promise stage for a couple of years now. But according to a new study by Juniper Research, "Mobile Commerce Markets," NFC will facilitate transactions valued at $74 billion by 2015.

Juniper Research states: "The increasing use of mobile devices as an alternative to credit cards and paper tickets is one of the fastest growing segments of the mobile commerce market. The report shows that the rapid adoption of mobile devices for commerce-related applications is by no means limited to NFC. All segments -- money transfers, banking, payments and coupons -- are forecast to exhibit significant growth rates."

"Our report demonstrates the spectacular growth we see across all segments of the mobile commerce market, said David Snow, author of the report. "Four of these segments (money transfer, physical goods, NFC and coupons) will more than treble in transaction value over the next three years, whilst digital goods, banking and tickets will still on average, double over the same period." 

For more on mobile banking and advancements of the ewallet, visit BankNews.com and subscribe to BankNews magazine, which is available as a digital edition and as a mobile app for iPhones and iPads.

Make Your Plans for the Mobile Summit

By Michael Scheibach, Executive Editor, BankNews

With business travel becoming more costly and, therefore, less frequent for many of us, it's important to choose wisely which conferences you want to attend.

The top of my list are the 6th Annual Mobile Banking & Commerce Summit, being held at the Westin St. Francis, June 10-12, in San Francisco; and the RDC Summit, being held at the Omni Orlando ChampionsGate, September 26-28, in Orlando, Fla.

First up is the Mobile Summit, which I've had the opportunity to attend the last two conferences, with each one packed with new information in the ever-changing world of mobile banking and commerce. This year, the conference is planning to cover these topics:

• Who is fighting to be top of the mobile wallet, and what this means for you. 
• The merchant perspective on the value of mobile payments and mobile incentives. 
• Examples of best-in-class mobile banking. 
• The most influential individuals and companies in mobile financial services, including the early adopters and innovators. 
• The role of mobility in social commerce. 
• Innovations to come, with mobile banking and commerce on tablets and location-based offers. 
• Making it safe: Security in mobile financial services.

Needless to say, I can't wait to learn more about the latest developments in the long-awaited e-wallet (or m-wallet), the strides being made in mobile security and the best examples of mobile banking. 

The Westin St. Francis is a first-class hotel, but if price is an issue, visit Priceline.com or Expedia.com and search for nearby hotels with lower rates.  

To register or to find out more about the 6th Annual Mobile Banking & Commerce Summit, click here. 

See you there.

Stay tuned for an update on the RDC Summit. In the meantime, visit RDCSummit.com for more information.

And Where Do We Go From Here?

By Michael Scheibach, Executive Editor, BankNews

Banking is undergoing a sea change, even though it is occurring as a series of ever-strengthening waves rather than one catastrophic typhoon. But rest assured, the end result will be the same: a new way of banking as we move through the second decade of the 21st century.

Among the latest reports to lend credibility to this change is "The New Digital Tipping Point," released by the U.K. research firm, PwC. According to the report, customers want innovative digital services, such as social media notifications, e-wallet loyalty cards and personal financial management tools. They want more robust banking services on more devices. Yes, says PwC, we are nearing the digital tipping point.

And, lest I forget perhaps the most important finding in the report, customers are willing to pay money for these services: $6 a month for a loyalty card and up to $15 a month for a full slate of digital services. Unfortunately, but not too surprisingly, banks are slow to take advantage of this new opportunity.

“Banks have generally been slow to embrace the digital innovation customers now expect from other industries, such as retail or travel," said Stephen Whitehouse, retail and commercial banking partner at PwC.. "This needs to improve if banks are to hold on to their existing customers and attract the next generation, as the quality of a bank’s digital offering will become an increasingly important factor for consumers.

“Despite customers’ appetite for new and innovative digital banking offerings," Whitehouse continued, "and the fact they are willing to pay for these, the majority of banks still only provide basic mobile and Internet banking services. Banks are clearly missing a trick if they don’t start to invest in their digital offerings and only see digital as a way to reduce costs.”The lack of investment is perhaps even more surprising considering banks are struggling to grow revenues at a time of increased regulation and a difficult economic environment. Digital products are a significant opportunity for banks to grow revenues and serve their customers in a way that they want.”

And where do we go from here? I hope to a new era of new-found revenue for the banking industry.

What, me worry?

By Michael Scheibach, Executive Editor, BankNews

The new year is under way, and signs of a modest economic rebound are in the wind. Car manufacturers, especially the Detroit bunch, are reporting increased 2011 sales and positive projections for 2012 sales. Unemployment is inching downward, with some areas, such as South Florida, reporting unemployment rates below 10 percent for the first time in nearly three years.

Small businesses are pushing much of the job growth, while the mega-companies continue to announce cutbacks, downsizing and, in Macy's and other Big Box cases, store closings.

Small business growth, in turn, is a stimulus for community banking growth. And after the anti-Big Bank movement of last fall, it is a welcome sign to see that small is good . . . and getting better.

In Daytona, Fla., for example, a combination of favorable demographics and an upturn in the local economy has resulted in three new banks being opened. Chase is one. But the other two, First Green Bank and BankFirst, are smaller community banks expanding into the greater Daytona area.

A article in News Times, Danbury, Conn., reports that, according to a new study by Stamford, Conn.-based Greenwich Associates, the trust between small to mid-size businesses and their banks is showing signs of improvement.

The article reads: "Of the 464 small and mid-size businesses surveyed, .. . about 20 percent said their level of trust in their banks increased over the past nine months, a rise from the 17 percent that reported an improvement in trust over a similar period of time in the last quarter of 2010. Among mid-sized companies, reports of declining levels of trust have been decreasing since the start of 2010."

I am somewhat optimistic about 2012, but we have a long way to go to make up the lost ground since the Collapse of 2008.

As my old pay, Alfred E. Neuman, always says, though, "What, me worry?"

No reason to worry at all. Right?