Geezeo Team Blog

The iPhone, Verizon and the Consumer of the Future (The following is a repost of a post to the CU...

clagett — Thu, 03 May 2012 09:47:27 -0400

The iPhone, Verizon and the Consumer of the Future

(The following is a repost of a post to the CU Times blog on February 4, 2011. Has retail banking evolved much in the past 15 months?)

The announcement that the iPhone will be released on the Verizon network in the next couple of months got the tech pundits buzzing, but only slightly. That fact that Android powered phones have made major inroads into the smart phone market is the major reason for the collective yawn from the technorati, but credit unions should be taking the proliferation of smart phones as the signal of a major threat and a major opportunity for our future.

The New Consumer

You’ve seen them, but maybe haven’t realized what they signal. At a shoe store two women take a picture of the bar code on a pair of shoes…not to find out more about the product, but to see if they can get a better price elsewhere. The mobile Internet is a powerful tool for the new consumer. With their always connected, location-aware device they are on the lookout for deals and positive buzz. The new consumer can not only quickly identify deals, but loopholes that allow them to manufacture their own unique deals. You’ve heard about Groupon and Foursquare (and maybe even tried them), but these are just the first pioneering efforts to link retailers and the rapidly expanding number of consumers using the mobile Internet.

The Threat

It almost goes without saying that this new consumer is a threat to credit unions…at least those without a strategy to connect with them. The current credit union service model best suits the shrinking number of consumers who plan ahead for the financing of a major purchase. Very few credit unions are equipped to serve the consumer who makes their financing decision at the time of purchase. Look at the sad state of direct auto lending as an example. As consumers have come to expect and rely on financing options at the dealer, fewer and fewer purchase auto loans are made in the branch. Indirect lending was providing a healthy solution to the problem until recently, but now the captive lenders and big banks are competing fiercely for what little volume there is in that space. The top twenty lenders own over 80% of the new auto market – leaving credit unions and other small lenders to fight over the remainder.

The Opportunity

All is not lost. In America the adoption of mobile technology has been slower than in Asia and Europe. We can learn from the successful mobile strategies in other parts of the world to develop methods to compete in the newly developed mobile landscape. Imagine, for example, that your members have opted into a “deal finder” app that you provide. Say one of those members has visited their second auto dealer of the day, and your location-aware app has a behavior-driven rule to send that member a special financing offer good for 48 hours – only they must specify the dealer send the loan to you to get the deal. That’s just one way you can use the mobile Internet to connect with your member when they are shopping. Never before have we had the opportunity to be so connected to the purchase process, or know so much about our member’s shopping behaviors.

Stop Following and Start Leading

Credit unions are in a unique position to leverage the trust they have built up with their members and the capabilities the emerging mobile technologies will provide. The time to build a mobile strategy is now. Don’t wait for the perfect turn-key solution, either. You would spend a couple million on a new branch…put that much into a “mobile development fund” and start building. Map your overall strategy and start experimenting. Make “fail fast” your motto. Design, build, measure and repeat.

-Jim Craig, Dir, Geezeo Interactive

@jimncraig

You Won't Be Starbucks. (And that's ok with me.)

clagett — Tue, 10 Apr 2012 08:41:41 -0400

The following is a “reprint” of a post I did for CU Insight

For the past 10 years I have heard credit union CEOs say they want to create a Starbucks-like retail experience. For some, it has been the Starbucks venee rhat has appealed to them, but for many others, it has been simply a case of follow the leader. The Starbucks retail store experience, with its music, earthy color palettes and hipster environment is hard to ignore. It’s a great place to grab a cup of coffee and perhaps even hangout to get some work down, provided the Wi-Fi is free and a seat is available.

From its origins, the Starbucks marketing strategy has focused on creating a “third place” for people to go to between home and work. Creating this unique and relaxing “experience” and “atmosphere” for people has been very important for the coffee retailer as they have realized that this is one of the defining concepts attached to the company. But let’s admit it, your credit union is not going to be a “third place”. And it can’t generate a member return by offering a coffee shop environment.

With all the talk of mobile banking and Generation C, you’d think the branch is going by the wayside. I don’t believe this to be true. According to a recent study by Novantas, consumers are psychologically attracted to branches. This being said, while I think branches still play an important role in driving sales, they have the highest operating costs. So simply investing in coffee bars and filling branches with comfy sofas likely will not support your bottom line. Besides, the “crowded house” approach to retail design is thankfully a thing of the past. Even a handful of “bankers” I know are creating environments that are less distracting for consumers, and more focused on reducing the banking chore. Retail space design should be centered on simplicity and clarity. This certainly does not describe the average Starbucks store, so maybe it’s time we stop talking about them all together. Let’s move on.

Banking is not sexy. Your members want to get in, get out and get it over with. It follows that a visit to branch, for whatever the reason, should be easy and satisfying. As the founder of Simple (formally Bank Simple) says, “ banking shouldn’t suck”. Citibank, a bank that many of my credit union friends love to hate, is on to something with a strategy focused on customer-centric innovations that draw on smart banking technologies. They are using technology, retail design and onsite staff (dare I say bankers) to minimize the banking chore while aiming for a value-added consumer experience that compels visitors to interact freely with the environment and explore product offerings. Staff is specially trained to operate in this kind of environment. If they offer coffee, I can assure you that it is not the focal point of the design.

For the record, I wrote this during vacation at a Starbucks in Williamsburg, Virginia. I selected a ”third place” that did not feel like home or the office. Even if my bank or credit union offered such as space, I wouldn’t use it. The experience there is already mundane enough and the unmanned concierge desk and coffee bar, serves horrible coffee. By the way, if you’re going to try and emulate Starbucks in your branch, at least make sure the coffee is hot. And you sure shouldn’t be serving Folgers.

Marketing: The next big money sector in technology.

clagett — Mon, 19 Mar 2012 13:56:30 -0400

“By 2017, a CMO will spend more on IT than the CIO.” —Gartner Group

Wise Words

clagett — Tue, 06 Mar 2012 13:34:01 -0500

This quote expresses our sentiments as a business partner to clients. But it also sheds light on why products like PFM benefit financial institutions. As banking transactions continue to migrate online, how are you engaging your audience?

“You need to spend a good percentage of your time with customers and clients because that keeps you externally focused.”

- Kenneth Chenault, Amex

People Make the Difference. So People, Let’s Make A Difference.

clagett — Thu, 02 Feb 2012 11:43:57 -0500

The following is a repost of post I did for CU Insight. /BC

I have spent the last several years meeting with credit union people at conferences, trade shows and routine client visits. I do a fair job of keeping abreast of current affairs that impact the financial services industry. Economic forces, the regulatory environment and shifts in consumer behavior as a result of emerging technologies are the topics I hear spoken of or written about the most.

New players are entering the financial services world, in very powerful ways. Today it could be a new fin-tech start-up and tomorrow it could simply be the latest and greatest must-have iPhone or Android Application. Consumers are starting to find new ways to bank and manage finances and are embracing changes that reduce the mundane chore of “doing their banking.” Let’s face it; as consumers, none of us get excited about visiting our local branch, applying for a loan or heading online to pay our bills. Plain and simple, it’s a chore that we don’t want to do, but ultimately must do.

I have no doubt that our industry is taking strides to reduce this chore. Frankly, it’s not even an option; it’s a requirement. Most of you get that. When I am lucky enough to have an audience, I am quick to remind them that the seemingly safe world of traditional banking is threatened by new technology and ever increasingly the proliferation of non-traditional competitors. The safe haven of a traditional brick and mortar retail banking strategy is threatened, and most financial institutions feel the need to evolve. There remains great uncertainty and many of us, no doubt have more questions, than there are answers for.

The credit union industry has historically prided itself on having a philosophy of “People Helping People.” People are what drive our industry and connecting your employees to the market and your members should remain mission critical. So while we need to build better online and offline experiences, and reduce the chore associated with “banking,” let’s assure we empower our employees to act and engage. Your members have real world questions, concerns and goals that an App can’t address. And what of that new FinTech start-up? What are the chances they have an educated staff well versed in communicating directly with consumers? In many cases, they don’t have the manpower or infrastructure to engage consumers personally.

So while threats abound and we evolve to meet the needs of a changing environment, credit unions have a secret weapon. Yes, it’s our people. Let’s not diminish the value of the human factor in retail banking. New technologies can come and go, but it is people and the human experience that ultimately will allow us to survive and differentiate as financial services continues to evolve.

Worth Repeating.

clagett — Wed, 18 Jan 2012 12:35:26 -0500

Most Important Marketing Channels

(as published on The Financial Brand)

Despite many predictions declaring that traditional media is dead, roughly half of all bank and credit union marketers assert that print, TV, radio and outdoor advertising will have about the same importance in 2012 as it did last year. However, financial marketers also say that online advertising, social media and PFM tools will be growing in importance over the next 12 months. This data suggests that future of bank and credit union marketing will shift to the internet, but old habits die hard. It’s also worth noting the increase in significance of data-driven initiatives such as on-boarding, database/matrix marketing, CRM systems and direct mail.

For more information, visit http://thefinancialbrand.com/21384/2012-bank-credit-union-marketing-study-results/

We tend to agree. Banks and credit unions can part of the "disruption".

clagett — Tue, 17 Jan 2012 14:15:06 -0500

“Short-term disruption of the financial services industry will most likely come from within: when banks partner with financial services entrepreneurs and embrace innovation.” -

Ryan Gilbert

CEO of BillFloat

Perceptions of wealth are often more complicated than just net worth, a new study indicates.

clagett — Mon, 16 Jan 2012 13:31:05 -0500

Perceptions of wealth are often more complicated than just net worth, a new study indicates.:

“People generally like assets and dislike debt, but they tend to focus more on one or the other depending on their net worth. We find that if you have positive net worth, your attention is more likely to be drawn to debt, which stands out against the positive background. On the other hand, when things are bad, people find comfort in their assets, which get more attention.”

An interesting infographic from Fast Company, show Twitter...

clagett — Fri, 13 Jan 2012 13:30:06 -0500

An interesting infographic from Fast Company, show Twitter traffic.

“This is a picture of the world, as connected by Twitter, created by Eric Fischer. It shows where people travel—and, what’s more, who they communicate with all around the world. Thus, in one map, you can see where people’s physical communities are, and their virtual ones as well.”

Best Wishes and Season’s Greetings

clagett — Fri, 23 Dec 2011 11:13:43 -0500

It is time to gather with family and friends, to get closer, to share stories and to exchange gifts. This is the time to celebrate, to reunite, to remember, to eat, to drink and of course, be merry. It’s also the time to thank you, our friends, fans and followers.

2011 has been a spectacular year for Geezeo. We started the year with just 13 PFM clients and will end 2011 with more than 70. Through the year our team enhanced features and benefits, launched a new referral product and began offering a variety of new services to countless financial institutions nationwide. We built upon partnerships and even added a few. In short, we’re proud of all that we have accomplished and have you and our team to thank for it.

We look forward to the challenges and possibilities 2012 will bring, and thank you for your continued support. And rest assured, Geezeo will remain a very “social” company.

Happy Holidays and a Very Happy New Year to you and your family.

The Geezeo Team

The 12 Shoppers of Christmas. Via joyoftech.com and All Things...

clagett — Thu, 22 Dec 2011 12:40:31 -0500

The 12 Shoppers of Christmas.

Via joyoftech.com and All Things Digital

Can it be that grocery stores offer more robust...

clagett — Thu, 15 Dec 2011 12:25:51 -0500

Can it be that grocery stores offer more robust retail delivery strategies than financial institutions?

Lipstick on the piggy bank? Go beyond the New Year...

clagett — Mon, 12 Dec 2011 11:02:41 -0500

Lipstick on the piggy bank? Go beyond the New Year Resolution.

Make saving money a 2012 priority for your online account holders. Visa stated in a recent survey that shoppers can’t account for an average $21 spent per week. Do the math; that’s $1092 per year. Simply put, PFM can help your customers save. #PFMhelps

Infographic of The Day: All About The Mobile App Market

clagett — Fri, 09 Dec 2011 13:48:59 -0500

Infographic of The Day: All About The Mobile App Market :

There is a massive gap in the app market.

The Words of A New Client

clagett — Tue, 06 Dec 2011 12:27:36 -0500

“ We felt that members are becoming more financially astute and more educated about their overall finances, that the time was right to offer a comprehensive Personal Financial Management tool to meet the needs of out members. Geezeo was simply the best industry partner available that offered a PFM product that was easy to use for the members and easy to administer for the Credit Union.”

Bill Carhart, CEO, Oswego Credit Union

Holiday Spending Forecast, via Lab42

clagett — Wed, 23 Nov 2011 11:17:11 -0500

Holiday Spending Forecast, via Lab42

Innovation Is Required. Really. Just Ask Your Online Users.

clagett — Mon, 14 Nov 2011 11:28:15 -0500

From the perspective of customer experience, innovation is no longer a decision. And it is no longer an option. It has simply become a necessity that retail financial institutions must embrace. Consumers have started to demand that their financial institutions online offerings keep up with the times. The overall evolution of the Internet has given your consumers a taste of rich, dynamic, interactive experiences online at home, the office and while mobile.

Hardware providers like Apple get it. New “un-bankerly” players like MovenBank get it. And your customers get it. Expectations of your online customers have changed. Just ask them.

Do you get it?

"Under capitalism, real wealth has always gone to those who own the means of production. The factory..."

clagett — Fri, 04 Nov 2011 08:00:49 -0400

““Under capitalism, real wealth has always gone to those who own the means of production. The factory worker or the coal miner never got rich, but the factory owner and the mine owner did. It was very expensive to build or buy a means of production. But today, the means of production is the laptop. It can be claimed by anyone who has the courage to decide to become an “owner” of your own production, rather than just a worker in somebody else’s machine.””

- Seth Godin, via Chief Marketing Technologist, Scott Brinker

Are You Part of The Solution? You Can Be, You Should Be. #PFMhelps

clagett — Tue, 18 Oct 2011 14:49:00 -0400

American consumers are showing a new level of fiscal discipline. In August of this year, US credit card debt and other forms of revolving debt dropped to the lowest levels in 6 years. And right now, the average savings rate in the US is hovering around 5%.

These remain tough economic times and people are struggling to live within their means. But you can help by offering new levels of empowerment. You help people spend wisely, plan for a better future and prepare for life’s important milestones.

Go ahead. Do it.

Some much change, so little time. Consumers are ready. Are you? #retaildelivery

clagett — Wed, 12 Oct 2011 15:06:49 -0400

“Customers expect more from their financial providers because of the rapid introduction of new digital technologies” - Don MacDonald, Chief Marketing Officer at Fiserv