BS&T’S EXECUTIVE SUMMIT 2011: SEE PAGES 22-23                  NEW STRATEGIES FOR NEW BUSINESS MODELS                   Bu...
Visit star.com/learnmoreIn today’s changing debit landscape, choose the STAR® Networkto ensure success every step of the w...
Business Innovation Powered By Technology                                                         Frank Eliason,          ...
I keep a close eye                                                          on the market and all                         ...
I N D U S T RY W ATC H   8 An Impending Threat?         The Epsilon data breach wasn’t as bad as it may have         appea...
FROM THE EDITOR                                                                                                           ...
Money moves fast.                 Stay ahead of it with 4G. In the finance                 industry, fast is king. There’s ...
I N D U S T R Y WAT C H                                                                                             F R A ...
M O B I L E M ET R I C S            Tracking the Mobile Banking Juggernaut      Whether it involves consumers or businesse...
INDUSTRY WATCH                                                                                                     AT M S ...
REWARDS PROGRAMS                                     The End of Loyalty        As banks begin to cease debit card rewards ...
Made You Blink.   On average, the human eye takes 300 milliseconds to blink. Just one millisecond of latency could be wort...
CONSUMER FINANCIAL PROTECTION BUREAU                            Hurry Up and Wait        Even as a picture of the Consumer...
Can Your Core System HelpYou Safely Grow in Today’sRisky Environment?It can if you’re using PhoenixEFE®.PhoenixEFE is an i...
M O D E R N I Z AT I O N                                      Core AdvantagesB               ANKING GIANT BBVA (Madrid) is...
C OV E R S TO RY                                       M EAS U R I N G S O C IAL E N GAG E M E NT           Social media h...
EDIA                                    SOCIAL M                                         UPRISINGCiti uses a variety of to...
C OV E R S TO RY                                       M EAS U R I N G S O C IAL E N GAG E M E NT                         ...
It also provides backgroundinformation, she says — includ-                                                         “This i...
Bank systems-technology-may-2011 2516180
Bank systems-technology-may-2011 2516180
Bank systems-technology-may-2011 2516180
Bank systems-technology-may-2011 2516180
Bank systems-technology-may-2011 2516180
Bank systems-technology-may-2011 2516180
Bank systems-technology-may-2011 2516180
Bank systems-technology-may-2011 2516180
Bank systems-technology-may-2011 2516180
Bank systems-technology-may-2011 2516180
Bank systems-technology-may-2011 2516180
Bank systems-technology-may-2011 2516180
Bank systems-technology-may-2011 2516180
Bank systems-technology-may-2011 2516180
Bank systems-technology-may-2011 2516180
Bank systems-technology-may-2011 2516180
Bank systems-technology-may-2011 2516180
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Transcript of "Bank systems-technology-may-2011 2516180"

  1. 1. BS&T’S EXECUTIVE SUMMIT 2011: SEE PAGES 22-23 NEW STRATEGIES FOR NEW BUSINESS MODELS Business Innovation Powered By Technology May 2011 SOCIAL IMPERATIVE When reviewing social media efforts, it’s critical to apply the right metrics, according to Citi SVP of Social Media Frank Eliason, who says ROI is the wrong metric to use to measure success. p.16$8.95 A U B M T E C H W E B P U B L I C AT I O Nwww.banktech.com
  2. 2. Visit star.com/learnmoreIn today’s changing debit landscape, choose the STAR® Networkto ensure success every step of the way.Regulatory change is coming, and you need to prepare. The STAR® Network adds valuebeyond the transaction with:• Cutting-edge Security Solutions • Industry-leading Innovation• Coast-to-coast POS/ATM Access • Proven Commitment©2011 First Data Corporation. All Rights Reserved.
  3. 3. Business Innovation Powered By Technology Frank Eliason, SVP of Social Media, Citi May 2011 banktech.com F E AT U R E S TO RY 27 Early Wins The most important decisions in a core modernization initiative often are made before the request for proposal is even written, according to the tech providers who build the solutions. R E G U L ATI O N W ATC HC OVE R /TH I S PAG E P H OTO BY E D D I E C O LLI N S 13 Breaking Down Consumer Protection Elizabeth Warren and the 28 Consumer Financial Protection Bureau have hit the ground run- ning. But banks still are awaiting specific regulatory guidance. C O R E SYS T E M S W ATC H 15 Customer-Centric At the Core C O V E R STO RY BBVA Compass CIO Sergio Fidalgo says the bank’s new core 16 Life of the Party SOCIAL M EDIA platform is the foundation of its customer-centric strategy. MEASURING SOCIAL ENGAGEMENT UPRISING Social media has been likened to any P E R S P E CT I V E S social gathering, and increasingly, financial institutions are joining the party. Banks such as Citi, 30 Improving SunTrust, ING Direct and First Tennessee are leveraging Call Reception Banks increasingly are rethinking social media analytics tools to get the most out of their call center strategies in the conversations going on among the guests, and to order to enhance the customer ensure that they are making a good impression. experience. Industry insiders offer tips for improving call cen- ter productivity and effectiveness. 24 A Closed Social Circle SOCIAL COLLABORATION While most banks are just beginning to tap the potential of social networking for customer engagement, Citi has turned its focus inward, creating a leading-edge internal collaboration platform Donna Celia Malysa Raj 24 that leverages social media tools. Fluss, Moncholi, OConnor, Dhinsa, Paul Butcher, DMG TD Bank Kronos Verizon Citi B A N K S Y S T E M S & T E C H N O L O GY ■ W W W. B A N K T E C H . C O M ■ M AY 2 0 1 1 ■ 3
  4. 4. I keep a close eye on the market and all eyes off my screen. 3M™ Privacy Screen Protectors Look to 3M for a full line of visual privacy solutions. Designed for today’s tablets and smart phones, they offer you a crisp, clear view of sensitive financial data while blocking wandering eyes. To learn how 3M Privacy Screen Protectors can help your organization meet regulatory and compliance standards, download the white paper at: 3MPrivacyFilters.com/finance© 3M 2011 Display good judgment.
  5. 5. I N D U S T RY W ATC H 8 An Impending Threat? The Epsilon data breach wasn’t as bad as it may have appeared, according to experts. But banks still need to be prepared for an increase in phishing attempts. 8 9 The Mobile Juggernaut Paul Schaus, Mobile banking is exploding, several recent studies indicate. CCG Catalyst And momentum is building in the mobile payments space, as well.10 A Time — and Place — for Giving Wells Fargo has enabled its 9,000 ATMs to accept customer donations to the American Red Cross in support of relief efforts in Japan.11 The Durbin Amendment Kills Mickey Mouse Citing the burdens imposed by the Durbin Amendment, JPMorgan Chase Bank has ended its Disney debit card loyalty program. While other banks also are cutting debit card rewards programs, a new rewards model is emerging. B E ST P R A CTI C E S32 Boosting Collections First Citizens Bank leverages Noble Systems’ call center technology to improve collections efficiency and customer service.33 A Flexible Foundation Temenos’ T24 core systems platform provides Indonesia’s Bank BRISyariah with the flexibility to open new branches 33 Famhi Ridho, quickly and meet surging demand for Islamic banking. Bank BRISyariah 6 From the Editor34 Exec Watch R E A D E R A D V I S O RY B O A R DFRED COOK, CIO, JOHN ITOKAZU, EVP, CIO,North Shore Credit Union Zions BancorporationFRANK DEARMAS, CIO, PAUL JOHNSON, CIO, BB&TWhitney National Bank MARK LA PENTA, CIO, MetLife BankCOLIN ECCLES, CIO, Umpqua Bank MICHAEL LINDSEY, SVP, BancorpSouthJOHN FIORE, CIO, BRUCE LIVESAY, CIO, First HorizonBank of New York Mellon KEVIN LYNCH, SVP, eCommerce/VINCE HRUSKA, SVP, Director, Product Solutions Contact Center, 1st Mariner Bankand Strategies, City National BankBANK SYSTEMS & TECHNOLOGY (ISSN 1045-9472) IS PUBLISHED 5 TIMES PER YEAR (MARCH, MAY, JULY, OCTOBER, JAN. 2012) BY UNIT-ED BUSINESS MEDIA LLC., 600 COMMUNITY DR., MANHASSET, N.Y 11030.; (516) 562-5000. SUBSCRIPTION POLICY: CIRCULATION FREETO OFFICERS AND EXECUTIVES OF BANKING INSTITUTIONS WHOSE RESPONSIBILITIES INCLUDE BUSINESS LINE/P&L MANAGEMENT,TECHNOLOGY SPECIFICATION AND PURCHASING, AND OTHER RELATED FUNCTIONS. ALL OTHER DOMESTIC SUBSCRIPTIONS: $65PER YEAR. ALL CANADIAN SUBSCRIPTIONS: $67 PER YEAR. ALL FOREIGN SUBSCRIPTIONS: $295 PER YEAR. SINGLE COPIES: $8.95,EXCEPT FOR ANNUAL BUYERS’ GUIDE, WHICH IS $50. SINGLE ISSUE REQUESTS, WRITE TO: BANK SYSTEMS & TECHNOLOGY, P.O. BOX1052, SKOKIE, IL 60076-8052, OR CALL (1-800) 255-2824, (847) 647-4065, OR E-MAIL TO BST@HALLDATA.COM. EDITORIAL OFFICES: 240W. 35TH STREET, NEW YORK, NY 10001; (212) 600-3000. POSTMASTER: SEND CHANGES OF ADDRESS TO BANK SYSTEMS &TECHNOLOGY, P.O. BOX 1052, SKOKIE, IL 60076-8052. PERIODICALS POSTAGE PAID AT MANHASSET, NY, AND ADDITIONAL MAILINGOFFICES. COPYRIGHT 2011 UNITED BUSINESS MEDIA LLC. “STANDARD MAIL ENCLOSED, STANDARD RATE PERMIT #161, LONG PRAIRIE,MN.” RETURN UNDELIVERABLE CANADIAN ADDRESSES TO PITNEY BOWES, P.O. BOX 255542, LONDON, ON N6C 6B2 B A N K S Y S T E M S & T E C H N O L O GY ■ W W W. B A N K T E C H . C O M ■ M AY 2 0 1 1 ■ 5
  6. 6. FROM THE EDITOR Volume 48, No. 3 VP & GROUP PUBLISHER John Ecke 212.600.3097 jecke@techweb.com As the Bank Turns EDITORIAL Editorial Director Katherine Burger kburger@techweb.com Group Content Manager Les Kovach lkovach@techweb.com Associate Editor Matt Gunn mgunn@techweb.com Associate Managing Editor Nathan Conz nconz@techweb.com T HERE’S SOMETHING ABOUT BUSINESS that seems to produce ART short memories. Look at the banking industry, where the credit Kristen Terrana, Igor Jovicic & Tony Vecchione BigYellowTaxi.com crisis-induced horrors and fears of 2008 and 2009 have vanished, ADVERTISING SALES OFFICE big salaries and bonuses are back, and institutions are pulling out 240 W. 35th St., 8th Floor New York, NY 10001 all the stops to fight new and stricter regulations. National Sales Director Ben Riggle 212.600.3171 briggle@techweb.com Northeast Robyn Forma 212.600.3118 rforma@techweb.com West Coast Leilani Provost 415.947.6146 lprovost@techweb.com But before all the memories of the new PricewaterhouseCoopers study Southeast and Midwest James Lloyd 212.600.3375 jlloyd@techweb.com crisis fade, bankers would do well to commissioned by the Interactive Adver- PRODUCTION consider recent developments in the tising Bureau found that U.S. Internet Account Coordinator Publishing Services Manager entertainment industry — specifically advertising revenue hit a record $26 Amanda Waller awaller@ubm-us.com Ruth Duggan rduggan@ubm-us.com ABC’s announcement that it would can- billion in 2010 (a 15 percent increase AUDIENCE DEVELOPMENT Assistant Manager Adrienne Farquharson afarquha@techweb.com cel two venerable soap operas: “All My from 2009 levels), thanks in large part For article reprints and e-prints, please contact: Children” (which first aired in 1970) to the popularity of online videos and Wright’s Media Brian Kolb 877.652.5295 UBMreprints@wrightsmedia.com and “One Life to Live” (which debuted social media. PwC also reported that List Rental: in 1968). The official reason for the fourth-quarter advertising revenue hit MeritDirect Anthony Carraturo 914.368.1083 acarraturo@meritdirect.com respective death sentences: “[The] a record $7.4 billion — up 19 percent changing viewing patterns of the audi- from Q4 2009. INFORMATIONWEEK FINANCIAL SERVICES TechWeb CEO ence.” That would leave only one soap Meanwhile, Facebook alone garnered Tony L. Uphoff tuphoff@techweb.com (“General Hospital”) on ABC. $1.86 billion in ad revenue in 2010 — VP & Group Publisher John Ecke jecke@techweb.com Prior to the announcement, the web- a number that is expected to grow 118 EVP, Sales, InformationWeek Event Director Business Technology Network Jennifer Iannucci jiannucci@techweb.com site Deadline Hollywood reported, “‘All percent, to $4 billion, in 2011, according Martha Schwartz mschwartz@techweb.com Senior Event Manager Editorial Director My Children’ … recently posted two to a recent article in Fast Company. Greg MacSweeney Mitzi Trafton mtrafton@techweb.com gmacsweeney@techweb.com Senior Event Manager weeks of back-to-back all-time lows Facebook has 610,736,920 member pro- Group Content Manager Joseph Marks jmarks@techweb.com Les Kovach lkovach@techweb.com Director of Marketing in the key Women 18- files — more than 200 times the number National Sales Director Sherbrooke Balser sbalser@techweb.com 49 demographic, in of people who watched “All My Chil- Ben Riggle briggle@techweb.com Webmaster Director, Program Management, Vertical Markets which it is dead last dren” on March 7. Vitali Zhulkovsky vzhulkovsky@techweb.com Michelle Somers msomers@techweb.com Senior Director, Events Business Manager among the six day- It wasn’t all that long ago (about the Robyn Duda rduda@techweb.com Joe Donnelly jdonnelly@techweb.com time dramas on the time of the third-world debt crisis of UBM TECHWEB air, drawing [a] paltry the 1980s) that soaps were a dominant CEO Tony L. Uphoff 463,000 for the week and very profitable form of entertain- Chief Content Officer and EVP, Sales, UBM TechWeb Editor-in-Chief, TechWeb.com Events Network of March 7, down 34 ment. Along the way, there were many David Berlind Marco Pardi EVP, UBM TechWeb Light Reading percent vs. last year. efforts to make them “relevant,” and Chief Information Officer David Michael Communications Group Joseph Braue For the same week, their lives were even extended with Chief Financial Officer EVP, UBM TechWeb Game Network John Dennehy Simon Carless ‘All My Children’ was new technologies (think: VCRs, DVDs, Chief Marketing Officer SVP, People and Culture Beth Rivera also last in total view- TiVo and DVRs, and on-demand). Ulti- Scott Vaughan VP, Editorial Director, InformationWeek EVP, InformationWeek ers, averaging 2.32 million. (ABC’s ‘One mately, though, soaps became dinosaurs Business Technology Network Ed Grossman Business Technology Network Fritz Nelson Life to Live’ did only marginally better that could not survive. EVP, Sales, InformationWeek VP, Audience Marketing Dan Melore Business Technology Network with 2.36 million).” What are you doing to make sure Martha Schwartz VP/Group Publisher, Vertical Industries John Ecke EVP, Group General Manager, Here’s some context to illustrate that your organization does not become UBM TechWeb Events Network Lenny Heymann VP, Performance Marketing and Analytics how bad these numbers really are. A the “All My Children” of banking? ■ EVP, Group General Manager, Thomas Smith UBM TechWeb Events Network VP, InformationWeek Analytics Greg Kerwin Art Wittman UNITED BUSINESS MEDIA SVP, Strategic Development and SVP, Manufacturing Business Administration Marie Myers Pat Nohilly Katherine Burger, Editorial Director kburger@techweb.com6 ■ M AY 2 0 1 1 ■ W W W. B A N K T E C H . C O M ■ B A N K S Y S T E M S & T E C H N O L O GY
  7. 7. Money moves fast. Stay ahead of it with 4G. In the finance industry, fast is king. There’s no time to waste waiting for business data to download. Fortunately, the Samsung Epic™ 4G can call up complex financial information in the blink of an eye, so you can keep up with your clients. Run your finance business at fast 4G speed with unlimited 4G data. Only on the Now Network.™ sprint.com/4G 1-800-SPRINT-1 (1-800-777-4681) Full QWERTY Built-in keyboard videoconferencing ability Super-AMOLED display with touchscreen Mobile hotspot– enabled Samsung Epic™ 4G “Sprint showed the biggest improvement in customer experience across 14 industries.” –Forrester Research Report: Customer Experience Index 2010May require up to a $36 activation fee/line, credit approval and deposit per line. Up to a $200 early termination fee/line applies. Coverage is not available everywhere. Sprint Mobile Hotspot: Optional $29.99 add-on for sharing accessto Wi-Fi. No discounts apply. Uses data allowance within your base service plan. Connectivity is dependent upon compatibility. The Sprint 4G Network reaches over 70 markets and counting, on select devices. The Sprint 3G Networkreaches over 271 million people. See sprint.com/4G for details. Not all services are available on 4G, and coverage may default to 3G/separate network where 4G is unavailable. Offers not available in all markets/retail locations or for allphones/networks. Pricing, offer terms, fees and features may vary for existing customers not eligible for upgrade. Other restrictions apply. See store or sprint.com/4G for details. ©2011 Sprint. Sprint and the logo are trademarks of Sprint.
  8. 8. I N D U S T R Y WAT C H F R A U D P R E V E NT I O N Threat Level Rising The massive breach of an online marketing firm’s database emphasizes the importance of anti-phishing awareness. BY MATT GUNN T HE EPSILON DATA BREACH in April “From a business perspective, those who are in charge that exposed the names and email to protect accounts clearly have to do a more vigilant addresses of millions of Americans job because they can expect a wave of attacks,” says might or might not present a threat Ori Eisen, CEO and founder of Scottsdale, Ariz.-based to financial institutions such as Citi- fraud prevention and detection provider The 41st Param- group, Capital One and JPMorgan eter. According to Eisen, if a bank is doing its due diligence Chase, which are clients of the Dal- to protect customers from fraud, the risk from the Epsilon las-based online marketer. In the near breach is minimized. term, if that consumer information indeed is available as a result of the unauthorized access of Epsilon’s system, THE SKY ISN’T FALLING it could mean more spam emails and phishing attempts “People say the sky is falling,” Eisen relates. “However, targeting the exposed records. if you do the monitoring day in and day out, regardless “In reality, that’s all it is,” says Paul Schaus, president of the breach, you should have your risks managed.” of CCG Catalyst, a Phoenix-based consulting group. “So Eisen adds that the Epsilon breach — if it exposed only from a bank’s perspective, you’re wor- ried about customers getting spam emails or getting phishing emails. “You’ve got to put this all Those are the two big issues. It’s not in perspective.” a confidentiality issue.” PAUL SCHAUS If those email addresses and names CCG Catalyst find their way onto lists that enable fraudsters to make a correlation names and email addresses — isn’t as bad as some other between individuals and their banks, recent events, such as the RSA (Bedford, Mass.) security however, then it could lead to some well-aimed phishing breach in mid-March. attacks, Schaus acknowledges. “That’s the big concern,” CCG Catalyst’s Schaus qualifies that. With the amount he says. “That’s the area of risk.” of information already readily available, he says, if the But it will take some work for criminals to profit from Epsilon breach involved only names and email addresses, any such scheme. As Schaus explains, two things must happen it doesn’t add much new to the online security scene; for fraudsters to succeed: first, the customer must be unaware there’s a lot of personal data already on the web. “You’ve of the breach; second, the phishing email has to look so got to put this all in perspective,” he says. “How many authentic that recipients don’t even think about it. people put their email addresses out there in blogs, or in comments or reviews on Amazon?” DON’T BE THE CATCH OF THE DAY 41st Parameter’s Eisen warns that the Epsilon breach should, if nothing else, emphasize for banks the importance In an email to account holders following the Epsilon data breach, of proactive account-takeover detection. “You don’t New York-based Chase Bank, the banking subsidiary of JPMorgan know when an attack will happen,” he says. “It could be Chase ($1.6 trillion in assets), offered several recommendations to help today, it could be a month from now.” customers protect their sensitive information from phishing attacks: And banks should remind customers about safe prac- • Don’t provide your Chase online user ID or password in an email. tices online, adds Brendan McGowan, director of consulting • Don’t respond to emails that require you to enter personal services for Alpharetta, Ga.-based Safe Systems. “I see information directly into the email. • Don’t respond to emails threatening to close your account if you a direct correlation between the frequency of security do not take the immediate action of providing personal information. awareness training and the success rate of these email • Don’t reply to emails asking you to send personal information. attacks,” he says. “The most effective countermeasure • Don’t use your email address as a login ID or password. to phishing emails is user awareness.” ■8 ■ M AY 2 0 1 1 ■ W W W. B A N K T E C H . C O M ■ B A N K S Y S T E M S & T E C H N O L O GY
  9. 9. M O B I L E M ET R I C S Tracking the Mobile Banking Juggernaut Whether it involves consumers or businesses, mobile banking adoption is exploding, several recent studies indicate. And momentum is building in the mobile payments segment, as well. BY PENNY CROSMANT H E FACT THAT M OB I LE is the fastest-growing found intense interest among banks in developing a mobile banking channel in banking is not news to anyone involved channel for their corporate clients. It also found a high degree of in setting delivery/customer engagement strategies worry among the bankers about security and fraud issues. or providing the support and infrastructure necessary Among the banks surveyed, 54 percent said that developingto keep mobile banking and payments up and running. But the their mobile corporate banking services is a top or very importantsheer scale of that growth is increasingly impressive, according priority. And almost half — 42 percent — rated their customers’to several recent studies. interest as either extremely or very high. About a third (31 ComScore (Reston, Va.) reported that in the fourth quarter percent) said they see mobile corporate banking as a competitiveof 2010, 29.8 million Americans accessed financial services differentiator for their banks, although 38 percent see it becomingaccounts (bank, credit card or brokerage) via their mobile just another service delivery channel; only 15 percent seedevices, an increase of 54 percent from Q4 2009. However, the corporate mobile banking as a revenue opportunity.report also found that nearly half of these mobile banking users Asked about the biggest barriers to growth in mobilestill prefer to bank online, at a fixed computer. corporate banking, 77 percent of the Aite survey respondents According to the comScore report, the use of mobile appli- cited fraud and security concerns.cations is growing faster than the use of mobile browsers: 18.6 Finally, there also appears to be significant growth on themillion users accessed their financial accounts via mobile mobile payments side, although ongoing spotty global adoptionbrowser in Q4 2010, up 58 percent from the previous year, and continues due in part to a lack of availability. Market intelligence10.8 million accessed their accounts via apps, up 120 percent. firm In-Stat (Scottsdale, Ariz.) projects the number of mobileSMS (text message) represented the smallest mobile access payment users globally will increase from 116 million in 2011point for financial services audiences, with 8.1 million users, to 375 million in 2015.an increase of 35 percent over the previous year. “There appears to be consumer demand for mobile payments,” But nearly half of the mobile banking and credit card users says Amy Cravens, market analyst, In-Stat. “Consumers dosurveyed prefer going online via a fixed device as the primary recognize pain points with current payment systems and indicateway to access their accounts, with 47 percent of mobile banking support for a cleaner, easier alternative. If mobile operatorscustomers and 44 percent of mobile credit card users doingso. Thirty-six percent of mobile credit card users and 26 percentof mobile banking customers indicated mobile is their primary Thirty-six percent of mobilemethod of accessing their accounts. Only a small segment of credit card users and 26these users listed speaking with a representative in person oron the phone as their primary access method. percent of mobile banking ComScore also analyzed the reasons consumers cite for customers indicated the mobilenot using their mobile devices for financial activities. A preference channel is their primaryfor using a fixed online device topped the list for both smartphoneand non-smartphone users, at 53 percent and 45 percent, respec- method of accessing theirtively. Security concerns also were cited by many smartphone accounts, comScore reports.users (33 percent) and non-smartphone users (30 percent).Perhaps not surprisingly, 29 perecent of non-smartphone users are able to push beyond the infrastructural challenges andstated cost as a reason for not accessing accounts via their introduce these services to the mass market, the transactionalmobile devices, while only 10 percent of smartphone users value of the mobile payments market is positioned to growsaid the same thing (as unlimited data plans void this concern nearly tenfold over the next several years.”for many smartphone users). The report aligns with a recent study of 1,085 U.S. consumers conducted by Mobio (Vancouver, B.C.), which found that 94MOBILE FOR CORPORATES percent of respondents would make a mobile payment if theyIt’s not only consumers who are assessing the benefits (and thought it was secure. Aite Group has estimated that mobilepotential drawbacks) of mobile banking. An Aite Group (Boston) payment volume in the U.S. will reach $214 billion in 2015, upsurvey of 267 bankers, sponsored by Fundtech (Jersey City, N.J.), from just $16 billion in 2010. ■ B A N K S Y S T E M S & T E C H N O L O GY ■ W W W. B A N K T E C H . C O M ■ M AY 2 0 1 1 ■ 9
  10. 10. INDUSTRY WATCH AT M S Automated Donation Machines Wells Fargo’s 9,000 ATMs are accepting customer donations to the American Red Cross in the wake of the March 11 Japanese earthquake and tsunami. BY MATT GUNN W E LLS FARGO customers are using the In the case of responding bank’s ATMs to make donations to the to the crisis in Japan, the deci- American Red Cross following the March sion to deploy the donation 11 earthquake and tsunami that devastated function to Wells Fargo’s ATMs Japan. A simple process for the customer, it’s the came during a Monday morn- first time the San Francisco-based bank has deployed ing meeting, Velline reports. the technology nationally in the wake of a disaster. “We made it available as our And it was able to do so in less than a day. “We corporate team was determin- built the feature to be a tool that we could deploy fast, recognizing that when there are these situations ing how they were going to respond to this global tragedy,” “Where where there is a disaster, it’s important to be able to he says, adding that it was up there is a react quickly,” says Jonathan Velline, EVP and head and running the same evening. disaster, it’s of ATM banking and store strategy for Wells Fargo ($1.1 trillion in total assets). INTEGRATED OPTION important The functionality was built into Wells Fargo’s core What customers see during to be able ATM application in 2005, and since has been used their transactions is an option to react regionally to respond to disasters as a tool to raise off the main menu to donate money to help a community in time of need, according to charity. By selecting that quickly.” to Velline. “What generated this feature was a con- button they then can select an JONATHAN versation we had maybe six years ago,” he says. “How organization to which to donate VELLINE Wells Fargo can we use this technology to help our communities, — in this case, the American help our customers if there’s a need?” Red Cross is the featured The option to make a donation is built into the organization. Customers then select which bank transaction flow of the ATM, Velline explains. The account they wish to make a donation from and then bank essentially switches it on by running a script the specific amount they want to donate. over the network, he relates, and the feature can be Whereas a text donation to the American Red Cross pushed live to all of Wells Fargo’s automated teller can only be made in $10 increments, a Wells Fargo cus- machines within 24 hours. tomer using one of the bank’s ATMs can donate any amount ranging from a penny to $249.99. Velline points out that American Red Cross has an account with Wells Fargo; when a customer makes a donation, the funds are transferred into the Red Cross bank account and are available to the organization almost immediately. The feature is available to Wells Fargo customers using any of the bank’s 9,000 Wells Fargo-branded ATMs. The bank still is in the process of converting its Wachovia properties to the Wells Fargo brand; overall, Wells Fargo has a national fleet totalling 12,000 ATMs. Velline declines to share any numbers, but he says the initial response from customers has been good — they’re finding the feature and they’re using it, he relates. “The other thing we’ve seen is just a great outpouring in social media,” Velline adds. “We’ve been tracking Twitter and blogs and things like that Wells Fargo customers can use the bank’s ATMs to make — customers are not only finding it for themselves, donations ranging from one penny to $249.99 to the American Red Cross to support relief efforts in Japan. but they’re letting their friends know.” ■10 ■ M AY 2 0 1 1 ■ W W W. B A N K T E C H . C O M ■ B A N K S Y S T E M S & T E C H N O L O GY
  11. 11. REWARDS PROGRAMS The End of Loyalty As banks begin to cease debit card rewards programs in response to Dodd-Frank, a new rewards model begins to emerge. BY MATT GUNNW E’VE ALL H EAR D IT B E FOR E. “Hey, so- alternative to debit rewards programs, the technology com- and-so: You just won the Super Bowl. What munity is stepping in to fill the void. Some banks are are you going to do next?” beginning to deploy merchant-funded in-statement rewards, If you’re a Chase Disney debit cardholder, or value-added discounts within the online banking experienceyou won’t be going to Disney World. that are offered to customers based on factors such as It appears that Mickey Mouse and the Magic Kingdom purchase history or loyalty to a bank. Companies includingare the latest victims of the Durbin Amendment, a provision Intuit (Mountain View, Calif.); Jack Henry & Associatesof the Dodd-Frank Wall Street Reform and Consumer Protection (Monett, Mo.), which recently announced a partnershipAct that limits debit card interchange fees to 12 cents. with BillShrink; and Fiserv (Brookfield, Wis.), which hasJPMorgan Chase Bank customers who participate in the partnered with Atlanta-based Cardlytics, are developingDisney debit card program will cease to earn Disney Dream these types of rewards programs. At little cost to banks,Reward Dollars when they use the card to make purchases. customers might receive discounts offered through theirFurther, the cardholders will no longer be eligible for perks debit cards based on how and where they spend money.at Disney theme parks or discounts on merchandise. In the age of Groupon, Living Social and Scoutmob, To hear Chase tell the story, it’s not the bank’s fault. the concept could be huge. And unlike potentially costlyThe way the bank frames it in a letter to its customers, debit rewards programs, in-statement value-adds don’tregulators are threatening to chisel away the New York- rely on interchange fees for funding. So customers seebased financial institution’s $1.6 trillion in assets. rewards based on purchasing behaviors, merchants use According to the letter: “Congress recently enacted a the opportunity to get closer to the customer and customersnew law known as the Durbin Amendment that significantly get an added value.impacts debit cards. As a result of this law, we will be “It helps drive the core economics of the bank in a waychanging our debit rewards program.” that’s pro-consumer,” says Schwark Satyavolu, CEO of Customers participating in other banks’ debit card rewards BillShrink (Redwood, City, Calif.). “No fees or penalties.”programs face similar cuts. And generally, banks are blaming In other words, rather than make customers feel likethe new legislation, which goes into effect July 21. they’re being punished for the “evil” Durbin Amendment, “Debit card customers already enrolled in the rewards a bank can swap debit rewards with value-added propositionsprogram will continue to earn rewardsat this time on their eligible debit card “This is a new way for bankstransactions,” Lisa Westerman, assistant to achieve their business goalsVP, public relations, for San Francis-co-based Wells Fargo ($1.1 trillion in as well as help consumers inassets), tells Bank Systems & Technol- the process.”ogy. “Due to pending regulatory changes SCHWARK SATYAVOLUthat are expected to result in a significant BillShrinkreduction in fees retailers pay issuersfor debit card transactions, Wells Fargo will no longer be such as statement rewards. “We believe that this is a newenrolling customers in any rewards programs that include way for banks to achieve their business goals as well asdebit cards. There are no changes to the credit card rewards help consumers in the process,” Satyavolu adds.program at this time. Customers can still earn the same great And customers want these types of rewards, accordingrewards on their eligible credit card purchases.” to Satyavolu. A BillShrink survey showed that 81 percent of customers would review their statements more frequentlyAN ATTRACTIVE ALTERNATIVE if they came with special offers — and they might go toIt’s clear the Durbin Amendment is driving banks’ decisions another bank to get them. In the same survey, 69.6 percentto end debit rewards programs. But does that mean customer of customers said they’d consider switching to a bankloyalty programs will die, too? Not necessarily. that did offer these rewards over staying with their current While Chase and Wells Fargo have not yet offered an bank that didn’t. ■ B A N K S Y S T E M S & T E C H N O L O GY ■ W W W. B A N K T E C H . C O M ■ M AY 2 0 1 1 ■ 11
  12. 12. Made You Blink. On average, the human eye takes 300 milliseconds to blink. Just one millisecond of latency could be worth $100 million a year to a brokeragefirm. TIBCO FTL® has an average application latency of 384 nanoseconds. That’s nearly half the latency of its closest competitor*.www.tibco.com/ftl * In our performance tests, TIBCO FTL is over 40% faster than the leading competition based on the latest publicly released test results. . Please visit www.tibco.com/ftl for details. © Copyright 2011 TIBCO Software Inc.
  13. 13. CONSUMER FINANCIAL PROTECTION BUREAU Hurry Up and Wait Even as a picture of the Consumer Financial Protection Bureau’s mission under Elizabeth W arren’s leadership begins to take shape, banks continue to wait for specific regulatory guidance. BY MATT GUNNW ITH THE DODD-FRANK Wall consumers will be harmed by their rules, Street Reform and Consumer other agencies can veto our rules. This is an Protection Act signed into law, extraordinary restraint.” and with new regulation either That isn’t to say the bureau believes it isin place or rapidly taking shape, the question without support. In April it agreed on a Jointbanks must be asking is: What happens next? Statement of Principles with the National In terms of consumer protection, the answer Association of Attorneys General, declaringsimply might be to keep waiting. But that doesn’t that the two groups were on the same page “We believenecessarily mean things aren’t happening. Congress is in terms of protecting consumers from harmful The Consumer Financial Protection Bureau behind us on this financial products.is preparing for its July 21 mandate to consol- mission,” says “We believe that Congress is behind us onidate consumer protection functions that for- the Consumer this mission,” Warren told the National Asso- Financialmerly resided with multiple agencies. As Bank ciation of Attorneys General. “As part of Dodd- ProtectionSystems & Technology previously reported, Bureau’s Frank, non-bank mortgage lenders and paydaythe new bureau — under the leadership of Elizabeth Warren. lenders will be subject to significant federalElizabeth Warren, assistant to the President law enforcement for the first time ever. ...and special adviser to the Secretary of the Treasury Now we will have the tools to deal effectively withon the Consumer Financial Protection Bureau — has some of the worst abuses. On the issue of law enforce-begun public outreach, attempting to engage Americans ment, we are putting our money where our mouth is.through social media and the web. Simultaneously, We are planning for more than half of the consumerthe CFPB has begun to communicate with financial bureau’s resources to be devoted to ensuring consistentinstitutions and other key industries to clarify its compliance with the law.” ■mission and answer questions. Along the way, Warren has been delivering a messageof accountability. “Accountability means that someone GUIDANCE ON DATA COLLECTIONcan be held responsible for failure,” Warren told the Society THE CFPB IN APRIL sent a letter to financial servicesof American Business Editors and Writers during a recent CEOs regarding section 1071 of the Dodd-Frank Wall Streetappearance. “With the new consumer agency, there is now Reform and Consumer Protection Act. The legislation amendssomeone to call out. Instead of hauling up seven regulators the Equal Credit Opportunity Act and requires financial institu- tions to collect and report data on credit applications made byto point fingers at each other, now Congress can haul up women- or minority-owned businesses and small businesses.one. That’s the ultimate accountability.” In the letter, Leonard J. Kennedy, the CFPB’s general Warren acknowledged the bureau’s limitations, as counsel, said the section becomes effective on the designat-well, stressing that the rules made by the CFPB are ed transfer date of July 21. He added, however, that the infor-subject to the requirements and limitations of the mation collection and reporting obligations of the section willAdministrative Procedure Act and that the agency is not take effect until the bureau issues implementing regula-subject to judicial review to ensure that it is acting tions, a process that might take more time.within the constraints set forth by Congress. “But the “Given the sensitivity of the data at issue, we believeconstraints go further,” she added. Congress intended that the bureau first provide guidance “The CFPB is the only bank regulator — and perhaps regarding appropriate procedures, information safeguards and privacy protections,” Kennedy wrote. “Waiting to com-the only agency anywhere in government — whose mence information collection until implementing regulationsrules can be overruled by a group of other agencies,” are in place will also ensure that data is collected in a consis-she said. “While we cannot interfere with other agencies’ tent, standardized fashion that allows for sound analysis byrulemaking efforts, no matter how much we think the bureau and other users of the data.” —M.G. B A N K S Y S T E M S & T E C H N O L O GY ■ W W W. B A N K T E C H . C O M ■ M AY 2 0 1 1 ■ 13
  14. 14. Can Your Core System HelpYou Safely Grow in Today’sRisky Environment?It can if you’re using PhoenixEFE®.PhoenixEFE is an integrated enterprise software platformfor financial institutions.It brings together Harland Financial Solutions’ proven,real-time core processing solution with the company’smarket-leading specialized applications for credit riskmanagement, lending and compliance, businessintelligence, self-service, payments and more.The result is a technology foundation that helps yourinstitution manage risk proactively, offer competitiveproducts, improve efficiency and deliver a superiorcustomer experience.Don’t just believe us, here’s proof:“We have a clean loan portfolio, and our asset increasehas come from constant quality growth. Being able tocontinually stay on top of our business with the help ofPhoenixEFE is a big contributor to that success.”Marti Rodamaker, PresidentFirst Citizens National BankLearn more about PhoenixEFE and this bank’s success at:www.harlandfinancialsolutions.comContact us at: 800-815-5592© 2011 Harland Financial Solutions, Inc. All Rights Reserved. PhoenixEFE is a registeredtrademark of Harland Financial Solutions.
  15. 15. M O D E R N I Z AT I O N Core AdvantagesB ANKING GIANT BBVA (Madrid) is embarking on a major overhaul of its core banking systems across the offices of its U.S. bank, BBVA Compass. BBVA Compass CIO Sergio Fidalgo tells Bank Systems & Technology that the migration to Accenture’s Alnova platform will provide the bank with a single customer information file and real-time transaction posting across all channels.What are your main reasons for embarking on businesses — checking accounts, savings accounts,the core upgrade now? loans — won’t have custom information; theyFIDALGO: BBVA acquired Compass Bank in late will go to the centralized database, which is part2007, and we spent the whole of 2008 integrating of the architecture Alnova provides.the operations of Compass’ U.S. bank affiliates[which included Texas Regional Bancshares, State The other big goal of the project is to provide real-National Bancshares and Laredo National Banc- time transactions across all channels. How areshares]. When we did that integration, we decided you achieving this? Sergio Fidalgo,it was time to do two really big things — one was FIDALGO: Our branch channel automation will CIO, BBVAto change the business model over to the BBVA Compass be replaced by Alnova. The rest of the channelsbusiness model, which is more centered on building — ATMs, mobile, iPad, iPhone, telephone bankinglong-term relationships with the customer rather than on — we’re going to be adapting in order to be able to takethe product-side innovation that has been the traditional advantage of having that information available in allway of developing business in the U.S. We decided it was those channels.necessary to implement a new core banking system tosupport that change in the business model. How long do you expect the migration to take, and when The system we were looking for had to be able to meet will it start and finish?our requirements in terms of customer simplicity; and to FI DALG O: On the deposit side, we’ll start migratingrun core operations for deposit, checking, savings accounts, deposit accounts at the beginning of 2012, then we’ll rolland consumer and small business loans with an integrated out systems on our standard approach throughout thesystem and with a single customer information file — that footprint in the first half of 2012. By the end of 2012 we’llis the first foundation of a customer-centric strategy. be going live with the loans piece.Are U.S. banks behind banks in other countries when it How are you ensuring that the transition is not disruptivecomes to core banking technology? for customers and employees?FIDALGO: In some cases, yes, investments in core banking F I DA LG O : The key in ain the U.S. have not been as relevant as in some parts of the migration is to be as trans- “A singleworld. In our case, in all the countries in which we do banking parent to customers as we customer infor-business we have a real-time capability, which means we’reable to process transactions at the moment customers make can be. We’re taking advan- tage of the conversion expe- mation file —them so they don’t have to wait until the next day to see rience we have, and we’re that is the firsttheir updated balances in their accounts; they can see them working with Accenture on foundation ofon the Internet, ATMs, whatever channel they use. designing training manuals and sessions for employees. a customer-How will you transform customer data silos into a single We know this is a big change centric strategy.”integrated customer data repository? for employees.FIDALGO: That is part of the Accenture Alnova architecture.One of the central components of the system is the customer How much will the project cost? What is the expected ROI?information file. Applications that report to the different FIDALGO : I can’t disclose the amount of the investment, but one advantage we want to gain from it is to be able to reach the market much faster with a complete spectrumBUILDING A BUSINESS CASEFor more on how to get the most out of a core system upgrade, of products. ■ —Penny Crosmansee related article, page 27. B A N K S Y S T E M S & T E C H N O L O GY ■ W W W. B A N K T E C H . C O M ■ M AY 2 0 1 1 ■ 15
  16. 16. C OV E R S TO RY M EAS U R I N G S O C IAL E N GAG E M E NT Social media has been likened to a giant cocktail party, and like any social gathering, guests occasionally chat about their financial services providers. With the help of social media analytics tools, savvy banks including Citi, SunTrust, ING Direct and First Tennessee are listening to and gleaning useful insight from those conversations. MINING THE SOCIAL NETWORK BY PENNY CROSMAN PHOTOGRAPHY BY EDDIE COLLINS F RAN K E LIASON TH I N KS of social media sites such as Twitter, Facebook and LinkedIn as customers’ living rooms. “You have to wait to be invited in,” says the SVP of social media at New York-based Citi. “You want to deliver content that’s important to your fans. As you follow what they’re sharing and commenting on, that tells you which content is working and which is not.” Dan Marks, chief marketing officer at First Tennessee in Memphis, views social media as a big cocktail party. You want to go and listen, find out what people are saying, maybe jump in with a comment or a witty quip once in a while — but you don’t get to control the conversation or pitch products, he says. “It’s a great indicator of word of mouth.” The point is, on social media sites, thousands banks — insights into where they’re falling short of conversations are going on, and some of them in customer service; which products, websites are about your bank. (Actually, it’s often more and mobile apps customers love or hate; what of a random spewing of personal opinions, thoughts their share of voice is compared to competitors and article links to an audience that may or may (that is, how often they’re mentioned versus not be listening.) Within this mass of communi- their competitors); and how their marketing cation lies a wealth of useful information for messages are coming across. >>16 ■ M AY 2 0 1 1 ■ W W W. B A N K T E C H . C O M ■ B A N K S Y S T E M S & T E C H N O L O GY
  17. 17. EDIA SOCIAL M UPRISINGCiti uses a variety of toolsto improve engagement withcustomers via social media,reports Frank Eliason, the bank’sSVP of Social Media.
  18. 18. C OV E R S TO RY M EAS U R I N G S O C IAL E N GAG E M E NT Under the name SuperStarSaver, the bank’s social media team tweets and posts comments to cus- tomers and prospects about their financial chal- lenges. The messages are often offbeat. “Quirky taglines are part of our culture,” says Mark Nicholson, head of digital and interactive at ING Direct Canada. “The intent is not to sound like a bank, but to speak the way a retailer would. It’s embedded in the DNA of what we call the ‘Orange Culture.’” The bank uses Austn, Texas-based Spredfast to collaborate and participate in social networks. “Our folks aren’t directly on Facebook — they’re on Spredfast, which allows us to audit and track all those interactions,” Nicholson says, noting that the SaaS solution helps the bank scale its social media engagement and manage the workload. Spredfast also helps the bank monitor its inter- actions, “so we don’t say something on a social network that we shouldn’t be saying,” and for compliance, Nicholson adds, pointing to proper disclosures as an example. A built-in workflow executes an approval process, he explains. Citi’s ($1.9 trillion in assets) social media team uses Indianapolis-based ExactTarget’s CoTweet “I want to keep people to engage with customers. “You assign responses engaged; I want to be to people, which is extraordinarily useful,” the bank’s Eliason says. And the solution tracks the delivering things they want,” conversation, so if one customer service repre- says Frank Eliason, Citi. sentative starts an interaction with a customer and then his shift ends, another rep can see what Banks such as Citi, SunTrust, First Tennessee transpired. “That’s important,” Eliason adds. and ING Direct not only are listening to the con- To manage Facebook interactions specifically, versations and chiming in where appropriate, they’re Citi uses New York-based Buddy Media. “When analyzing the conversations to uncover ways to you’re looking at managing your wall in Facebook, improve their business, with the help of monitoring you have to look at your publishing capabilities — and analytics software. “A year ago, banks thought how easy is it to put content up there?” Eliason says, their customers might be in social media sites noting that the software also helps the bank and that there might be a few people talk- manage widgets on its Facebook wall. ing about their banking experience (For more on Citi’s use of social media, online, but it wasn’t enough to neces- see related article, page 24.) sitate a strategy,” observes Zach SunTrust ($172.9 billion in Hofer-Shall, an analyst at Forrester assets) also uses ExactTarget’s Research. “Now, just 12 months CoTweet to manage social media later, it’s big, and a lot of banks are conversations and obtain metrics EDIA doing something. But a lot of what they’re doing is behind-the-scenes SOCIAL M for its three Twitter handles: @sun- trust for general bank information, UPRISING research or measurement.” @asksuntrust for customer service inquiries and @livesolid for conversations AN ACTIVE SOCIAL LIFE about finances and savings. “From a workflow Some software products in the space are multi- management perspective, if you have multiple tasking — they provide a console for responding accounts and different contributors under those to social media comments as well as reports and accounts, you want to have an easy way to identify analytics. Toronto-based ING Direct Canada a mention and assign it to someone,” says Bianca (US$37.6 billion in assets) has about 19,000 fans Buckridee, the Atlanta-based bank’s social media and followers of its Twitter and Facebook pages. engagement manager. “That’s what CoTweet does.”18 ■ M AY 2 0 1 1 ■ W W W. B A N K T E C H . C O M ■ B A N K S Y S T E M S & T E C H N O L O GY
  19. 19. It also provides backgroundinformation, she says — includ- “This is a whole other realming the commenters’ bios and of information we wouldn’tgeographic locations, if avail- have otherwise.”able, their blog and/or websites MARK NICHOLSONand past tweets — to help the ING Direct Canadasocial media team decidewhether or not to respond andto determine an appropriate answer. analytics products are available to measure metrics such as buzz and sentiment. In addition to CoTweetANALYZE THIS and Buddy Media, Citi uses Radian6 and ScoutOnce banks have the tools to measure their social Labs, which was acquired by Lithium Technologiesmedia efforts, they need to decide which analytics in 2010, for social media analytics. According toto track. Two of the most popular are “volume” the bank’s Eliason, Scout Labs does a good joband “sentiment.” First Tennessee’s Marks refers with reporting. “It’s easy to pull a quick reportto volume as the “overall buzz.” How often is the and to be able to drill into it,” he says.bank brand mentioned in certain categories, and For Facebook analytics, Citi uses Buddy Mediahow does that change over time? to analyze how people are engaging with the bank’s Eliason’s team at Citi watches for mentions of Facebook page, how much time they’re spendingthe brand, drills down into spikes in Facebook on the page, how they’re sharing the content and“likes” to see what’s driving sentiment up, and looks where they’re sharing it. “That analysis guides youat keyword “clouds” around the brand to see what’s to what people want on Facebook,” Eliason asserts.popular. But, Eliason says, he thinks in terms of One challenge with which all of these toolsmeasuring “engagement” rather than volume. contend is speed, Eliason notes. “If someone’s “Engagement is a little different and there’s no having a bad experience and I want to help themstrong formula for this today,” he explains. “Many out, I’d rather be the first comment than the 20thpeople count followers or fans. In my view, that comment,” he says. “So speed becomes key.”is useless. We look at: How engaged are those First Tennessee’s ($24 billion in assets) Marksfans? Are they liking what you’re putting out there? says he has evaluated six social media analyticsAre they sharing your message through Digg or vendors in the past year. “Nielsen [New York]Twitter? Are they writing back to you?” Citi launched a Facebook presence in November STILL A NEED FOR THE HUMAN TOUCH2010; by March it had attracted 11,000 fans. “I wantto see a positive direction, but am I looking to sky- Even with the right tools in place, social media veteransrocket up to 1 million fans?” says Eliason. “No. I agree, there’s significant value in having people — not just soft-want to keep people engaged; I want to be delivering ware — monitor social media comments. Frank Eliason, SVP ofthings they want.” social media at Citi, for example, has appointed a person to Trickier to measure is sentiment — gauging monitor the thousands of mentions of Citi online per day becausewhether or not people are saying positive or of nuances in meaning, such as sarcasm, that the bank’s solutionnegative things about the brand. “The tools all might not recognize.have some assessment or methodology to recognize “Tools that measure sentiment don’t usually do a good job at measuring sarcasm, and there’s a lot of sarcasm in social media,”whether people are more or less favorable,” First Eliason says. “Boy, do I love my bank,” could be interpreted byTennessee’s Marks says. “Because not all PR is software as positive, but a human looking at a person’s history ofgood PR — just ask Domino’s Pizza or BP.” complaints would realize they mean the opposite, he explains. ING Direct Canada uses software to look closely “My favorite way to [measure sentiment] today is still manuallyat negative comments “so we can improve our ranking comments,” Eliason adds. “That’s how you get your bestbusiness long term,” says the bank’s Nicholson. and most accurate measurements. You can also filter through theTypical software uses a combination of keyword noise the social web brings.”search and natural language processing to pick First Tennessee chief marketing officer Dan Marks alsoup on the good or bad vibes. believes it’s necessary to have a person monitor social media Sentiment analysis tools also typically track comments, though not necessarily full time. “The nature of monitoring is much less precise than, say, querying a databasethe Internet as a whole, not just social media sites. for accounts,” he says. “It involves some level of trial and error“We’ve had more third-party mentions in good and sophisticated understanding.” For instance, softwareold-fashioned online customer forums than on searches for “1st Tennessee” bring up references to a localFacebook,” First Tennessee’s Marks observes. sports team and a volunteer regiment, Marks notes; a person A growing throng of mostly hosted social media would immediately know these are not relevant. —P.C. B A N K S Y S T E M S & T E C H N O L O GY ■ W W W. B A N K T E C H . C O M ■ M AY 2 0 1 1 ■ 19

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