Selecting and Successfully Marketing a Mobile Banking Service

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Presentation at the 2011 ABA National Conference of Commmunity Bankers in San Diego, CA

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  • 02/25/11 19:05 2009 Investor Conference Olsen v11
  • 02/25/11 19:05 2009 Investor Conference
  • 02/25/11 19:05 2009 Investor Conference
  • 02/25/11 19:05 2009 Investor Conference
  • Selecting and Successfully Marketing a Mobile Banking Service

    1. 1. Selecting and Successfully Marketing a Mobile Banking Service Kevin Lynch, SVP eCommerce, First Mariner Bank Kelly Rodriguez, Director of Product Management, Fiserv February 21, 2011
    2. 2. U.S. Consumer Demand for Mobile Services Steadily Increasing "U.S. banks will need to expand their thinking about mobile banking beyond 'online-banking lite' and start to view mobility as its own powerful and compelling delivery channel." Charul Vyas, Analyst with Tower Group Source: American Banker, July 2010
    3. 3. Mobile Banking Forecasts <ul><li>“ Mobile web banking in the U.S. has grown to more than 13 million mobile subscribers – up 120 percent in just two years – and is now poised to level the playing field for the banked, unbanked, young, old, rich, poor, downtown, uptown or out-of-town.” </li></ul><ul><li>The Nielson Company October 2010 </li></ul><ul><li>By 2015, 68 percent, or 128 million, of U.S. adults will own a smartphone. Smartphone owners use mobile banking at a rate more than double that of all consumers: 36 percent versus 17 percent. </li></ul><ul><li>Javelin Strategy & Research: 2010 Mobile Banking and Smartphone Forecast </li></ul>
    4. 4. Key Considerations for Your Mobile Strategy <ul><li>Top Five Strategic Areas </li></ul><ul><ul><li>Business Drivers </li></ul></ul><ul><ul><li>Target Markets </li></ul></ul><ul><ul><li>Product Capabilities </li></ul></ul><ul><ul><li>Integration Points </li></ul></ul><ul><ul><li>Your Priorities </li></ul></ul><ul><li>Practical Concerns </li></ul><ul><ul><li>Security Considerations </li></ul></ul><ul><ul><li>Future Adaptability </li></ul></ul><ul><ul><li>Potential for ROI </li></ul></ul><ul><li>Tell Your Customers About It </li></ul><ul><ul><li>First Mariner Bank Case Study </li></ul></ul>
    5. 5. Top Five Strategic Questions <ul><li>What are your Business Drivers? </li></ul><ul><ul><li>Compete with ____ or create competitive </li></ul></ul><ul><ul><li>differentiation? </li></ul></ul><ul><ul><li>Strengthen existing customer relationships or </li></ul></ul><ul><ul><li>attract new ones? </li></ul></ul><ul><ul><li>Reduce cost-to-serve by driving customer to </li></ul></ul><ul><ul><li>self-service channels? </li></ul></ul><ul><ul><li>Drive fee-based services? </li></ul></ul><ul><ul><li>Lay the groundwork for future mobile payments? </li></ul></ul><ul><li>Who are your key target markets? </li></ul><ul><ul><li>Existing Online Users? Smartphone Users? </li></ul></ul><ul><ul><li>New customer segments (such as Youth, “balance checkers”, offline consumers)? </li></ul></ul><ul><ul><li>Consumer, Business or both? </li></ul></ul>
    6. 6. Top Five Strategic Questions <ul><li>What do you consider high priority capabilities? </li></ul><ul><ul><li>Which access methods you wanted to support first? What enrollment methods? </li></ul></ul><ul><ul><li>Which transactions do you want to support day one? Phase 2? Longer term? </li></ul></ul><ul><ul><li>What are your security, risk and compliance concerns? </li></ul></ul><ul><ul><li>How will you manage change in the mobile space? (Device management, support burden) </li></ul></ul><ul><li>Where are the important integration points to maximize user experience? </li></ul><ul><ul><li>What are the current systems for Online Banking, Alerts, Core </li></ul></ul><ul><ul><li>and bill pay? </li></ul></ul><ul><li>What are the most important factors in making a solution decision? </li></ul><ul><ul><li>Time to market? Consumer adoption? </li></ul></ul><ul><ul><li>Total cost of ownership? Revenue generation? </li></ul></ul>
    7. 7. Questions for Your Provider <ul><li>Do you support a “triple play” offering? </li></ul><ul><li>How do you support smartphone users? </li></ul><ul><li>How will you establish and monitor device management processes? </li></ul><ul><li>What type of enterprise support is provided, across modes? (customer care, enrollment, etc.) </li></ul><ul><li>How do you optimize the end user experience (across multiple devices)? </li></ul><ul><li>How do you deal with the question of security? (lost/discarded devices, consumer perception) </li></ul><ul><li>How is it integrated into other systems? (core, online banking, bill payment) </li></ul><ul><li>What types of marketing programs are available to drive adoption? </li></ul>
    8. 8. Security Considerations <ul><li>Best Practices </li></ul><ul><ul><li>Consumer </li></ul></ul><ul><ul><ul><li>Secure your phone with a PIN / Passcode </li></ul></ul></ul><ul><ul><ul><li>Don’t provide your PIN /Password to anyone via SMS or other mobile requests </li></ul></ul></ul><ul><ul><ul><li>Utilize Security Alerts to get you more immediate access to account changes and potential fraud </li></ul></ul></ul><ul><ul><li>Financial Institution </li></ul></ul><ul><ul><ul><li>Extend your existing security standards to the mobile channel where appropriate </li></ul></ul></ul><ul><ul><ul><li>Train your consumers to come to you to find Apps. Self discovery can present risk. </li></ul></ul></ul><ul><ul><ul><li>Encrypt any data stored on the mobile device. (Especially important as we move into payments with debit and credit data being stored on the mobile device) </li></ul></ul></ul><ul><ul><ul><li>Ensure that you can remotely lock a consumer’s mobile access in the cases of lost phones. </li></ul></ul></ul>
    9. 9. Future Adaptability What do I need to consider down the road while purchasing mobile services today? <ul><li>Multiple Enrollment Methods </li></ul><ul><li>Prepare to offer P2P Transfer </li></ul><ul><ul><li>Need to be part of a larger network </li></ul></ul><ul><li>Ability to meet payment requirements as they develop </li></ul>
    10. 10. A Decisive Strategy to Higher Profitability Avid Mobile Users are More Profitable
    11. 11. Tell Your Customers About It Leverage Low Hanging Fruit as Quick Hits Email Campaigns Splash Pages Website Banners Pre-Enrollment Electronic Statements Targeted In Product Messaging
    12. 12. Marketing Mobile Money at 1 st Mariner Bank ABA National Conference for Community Bankers San Diego, CA February 21, 2011
    13. 13. Kevin Lynch SVP, eCommerce | Contact Center Email: klynch@1stMarinerBank.com LinkedIn: /in/kevinplynch http://bankingonsocialmedia.blogspot.com/ Twitter/@kplynch Presenter
    14. 14. <ul><li>1 st Mariner Bank </li></ul><ul><ul><li>Started in 1995 </li></ul></ul><ul><ul><li>Largest bank located in Baltimore, 4 th largest in Maryland </li></ul></ul><ul><ul><li>Assets of $1.4 billion </li></ul></ul><ul><ul><li>22 bank branches in the Baltimore metropolitan area </li></ul></ul><ul><ul><li>1 st Mariner Mortgage, a division of the bank, is the largest local mortgage banking business in the Baltimore/DC MSA </li></ul></ul><ul><ul><ul><li>Emphasis is on traditional mortgage services through 14 local offices </li></ul></ul></ul><ul><ul><ul><li>Recently added Direct Mortgage operations in Baltimore and in Northern Virginia </li></ul></ul></ul><ul><ul><ul><li>Also owns a VA Mortgage operation, including the vamortgage.com domain, specializing in loans for military personnel </li></ul></ul></ul>About Us
    15. 15. <ul><li>How we got here </li></ul><ul><ul><li>February, 2009- Began evaluating vendors </li></ul></ul><ul><ul><li>August, 2009- Identified three finalists: </li></ul></ul><ul><ul><ul><li>ClairMail </li></ul></ul></ul><ul><ul><ul><li>mCom/Fiserv (Mobile Money) </li></ul></ul></ul><ul><ul><ul><li>Mobile Money Ventures </li></ul></ul></ul><ul><ul><li>September, 2009- Chose the vendor </li></ul></ul><ul><ul><li>December, 2009- Received first demo </li></ul></ul><ul><ul><li>May, 2010- Finalized contract </li></ul></ul><ul><ul><li>June, 2010- Began live testing </li></ul></ul><ul><ul><li>August 26, 2010- Go Live! (FINALLY) </li></ul></ul><ul><ul><li>January, 2011- Began Marketing Campaign </li></ul></ul>Timeline
    16. 16. <ul><li>Utilizing an interface to our Online Banking Platform, customers can access their accounts through: </li></ul><ul><ul><li>Text Banking - Utilizing the Short Message Service (SMS), they can send a text to get account balances and review their transactions. It’s a quick and easy way to get your account information when you need it. </li></ul></ul><ul><ul><li>Mobile Browser - with internet capability, they can do all of the above plus transfer funds through any mobile browser. </li></ul></ul><ul><ul><ul><li>We provide them with a unique, personal URL that identifies both them and the registered mobile device. </li></ul></ul></ul><ul><ul><ul><li>We take advantage of the multi-factor security features in Online Banking and present them with the same Security Image before entering their password. </li></ul></ul></ul><ul><ul><li>Mobile Apps- These will be available for the smart phones in February, 2011. </li></ul></ul>The Mobile Offering
    17. 17. <ul><li>Phase 1- “Soft” rollout with no marketing support </li></ul>Marketing Plan
    18. 18. Marketing Plan
    19. 19. <ul><li>The Offer: </li></ul><ul><li>To encourage customers to try it, Mobile Money will be free through the end of March, 2011. </li></ul><ul><li>After the promotional period, it will continue to be free if customers meet any one of the following: </li></ul><ul><ul><li>Have an eligible electronic direct deposit from an employer or government agency. *   </li></ul></ul><ul><ul><li>Maintain an average monthly balance of $1,500 in an enrolled checking account </li></ul></ul><ul><ul><li>Complete at least one bill payment through Online Banking per month. </li></ul></ul><ul><li>If they do not meet the criteria after the promotional period, we will charge a monthly fee of $1.95. </li></ul><ul><li>* Qualifying deposits are limited to salary, pension, Social Security and Supplemental Security Income (SSI) benefits and other regular periodic income payments from Third Parties. </li></ul>Marketing Plan
    20. 20. <ul><li>Phase 2- Interactive Marketing </li></ul><ul><ul><li>Banner ad on home page and online banking </li></ul></ul><ul><ul><li>Landing page </li></ul></ul><ul><ul><li>Email </li></ul></ul><ul><li>Phase 3- Offline Marketing </li></ul><ul><ul><li>Television ad featuring Joe Flacco, QB for the Baltimore Ravens </li></ul></ul><ul><ul><li>Branch posters for teller stations </li></ul></ul>Marketing Plan
    21. 21. Marketing Materials Banners
    22. 22. Marketing Materials Landing Page
    23. 23. Marketing Materials Email Alert
    24. 24. Marketing Materials Flyer/Poster
    25. 25. Questions and Answers Kelly Rodriguez [email_address] Kevin Lynch [email_address]

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