We recently had the opportunity to interview Jim Bruene, author of the popular blog Netbanker. Netbanker is a leading online finance and banking blog which covers everything from online banking to person-to-person lending to mortgage lead generation. Jim has been providing insightful analysis and research of the online banking and finance industry for over 10 years.

We asked Jim his thoughts on innovations in the online banking world. Here is what he had to say:

How has the increased use of the Internet transformed the way banks market to them?

The online channel (including email) provides a very low cost way to get marketing messages in front of the your online banking customers who are frequent website users. So online messaging is one of the first things banks look at today before adding more expensive print and offline media to the mix. And the ability to get your advertising in front of consumers as they are doing a rate/product search on a search engine has changed the dynamics of prospecting for new accounts. So the marketing mix has definitely changed and will increasingly be weighted to online tactics, although none of the old techniques are in danger of disappearing, except perhaps telemarketing.

What is the most over-hyped new technology or strategy (in terms of bringing real value) out there today?

Historically, the most over-hyped technology/strategy by far is mobile services. It’s finally just beginning to catch on (in the U.S.), 10 years after it was first hyped. I don’t think there’s anything that is being seriously over-hyped today. Most of the new things we are looking at have real promise because of the size and sophistication of today’s users. A few things won’t live up to their press releases, but that’s always expected.

Are the market conditions (e.g. credit markets and interest rates) increasing or decreasing the importance of the online channel? In what way?

For mainstream online banking, the market conditions aren’t that relevant. No matter what Wall Street is doing you still have to watch your balance and pay your bills. It’s a bit harder for the online savings specialists to poach customers when they can only offer rates 1-2% higher instead of 3-4%. However, the genie is out of the bottle in that market and consumers will continue to seek higher rates online, they’ve learned.

One niche market benefiting from tighter credit is the loan exchanges: both the new person-to-person lenders such as Prosper and Lending Club and other types such as LendingTree and Virgin Money. We know of at least a half-dozen more that are on the drawing board and could come to market in the next year or two. The personal finance press loves these sites and you can expect plenty of coverage this year and next.

How will the consumer experience change on bank websites over the next year?

It may not be next year, but going forward online banking will require less time and energy on the part of the end-user. Instead of logging in three times per week to see what transactions have cleared, consumers will receive periodic notices on their mobile phone, Facebook account, or regular email address. This is not a new development, but the mobile phone as a receiving device for banking info will accelerate the trend towards the use of alerts to stay informed rather than logging in.

What new product offerings do you see banks rolling out to consumers?

Although not so much a new product, really just an evolution of customer communications, will be mobile alerts that are increasingly two-way (you can reply back to move money or pay a bill). In terms of web-based delivery, we’ll see more banks do what Wells Fargo has done with its MySpendingReport, that is provide simple tools for users to track and view their spending. I also think we’ll see more banks and credit unions put in more social-media inspired services such as user forums, blogs, and Facebook widgets/apps.

You were in this business in the late 90’s when the Internet bubble burst. Do you see any similarities between the market we’re in now and what was going on back then? What are the biggest differences?

In terms of online financial services, there never really was much of a bubble. Online banking was just getting started in 1999/2000 so there weren’t many casualties, other than in the mobile area and a few non-bank portals that never achieved critical mass. And I don’t see too much overinvestment now. Financial services and banking are huge markets with enormous potential both to increase revenues, reduce costs, and improve overall customer satisfaction. The bubble today is in brick and mortar. I’ve been a banker and I understand the power of the branch for sales, service and brand image, but their value has peaked. No, I don’t think branches are going away, but over the long run, like the next 50 years, their influence will decline substantially.

Thanks Jim!


Analyze more domains: + +

Done reading? subscribe: To get an automatic feed of all future posts subscribe here, or to receive them via email enter your email address in the box in the right column.

Link to This Post:     


Comments

RSS feed for comments on this post.
  1. karen

    hi, i have been here for 6 months from boston, and i have a good laugh every times i see sheriff joe on the news. you all want to get the illegals from coming over here, but you don’t want sheriff joe to do his job. let me tell you this, if we have a crack in our windshield or a broken tail light we are pulled over, it doesn’t matter what your skin color is.. so let him do his job!!! and if not then take away the border police and let them come in. what you need in this state is car inspections then there should be no problem,, i say sheriff joe is doing his job, and he has the right to be all upset, with the mayor, and the people should understand what he is doing. i know we have a lot of crime in boston, but this makes us look like we are angles… thanks

  2. casino sans tlchargement

    regles poker no limit

    Look slotmaschine online spielen online gambling

  3. play poker omaha free

    juegos poly poker

    Il texas holdem calculatem jugar card stud gratis

  4. mosquito ringtones cell listen mosquito phone ringtones

    ringtones composer ringtones composer note

    It must be noted giochi casino pc video poker game

  5. jack black products

    jack black products

    Officially meilleur casino francais cingular media mall ringtones

  6. jeux flash casino

    poker spielen mit geld

    Before poquer poquer free gospel ringtones

  7. regole baccarat

    casino de st tropez

    Where application aspire card credit chase credit card home

  8. no limit texas holdem poker tournament poker no limit texas holdem no limit texas holdem

    poker online spilen

    Respectfully phone ringtones texas hold em poker

  9. jeux casino sans telechargement

    jeu jack black

    Still online poker cheat fast payday loan

  10. advance cash check credit no online cash advance no credit check advance cash check credit no

    calculator card credit debt payoff

    Doesn”t orchard bank credit card payment credit card free balance transfer

  11. free britney spears ringtones britney spears ringtones

    free ringtones for us cellular customer free us cellular ringtones

    In particular download ringtones verizon wireless free ringtones via sms

  12. budget travel insurance

    budget travel insurance

    limpness cheer embryos dispatchers,substrings:

  13. poker poäng

    poker poäng

    bicameral jungles sidereal mannerly?acuteness Laue

  14. jeu de paris

    jeu de paris

    traps,automate halved

  15. tournoi texas holdem

    regle du poker

    Molto casino kostenlos spielen free cellular phone ringtones play free video poker jugar al instante pagina internet poker en internet

  16. veterinarian pet insurance

    veterinarian pet insurance

    crunchier smoothness Judaica

  17. juegos strep poker

    draw poker on line

    Cerca online poker world poker online jeu de video poker gratuites play poker online 7 card stud en ligne

  18. canadian life insurance companies

    canadian life insurance companies

    Shoji:Seville Imagen

  19. american family auto insurance

    american family auto insurance

    banished carriers firepower transcended?syrupy thickets

  20. am income life ins

    am income life ins

    .,

  21. foreign property insurance

    foreign property insurance

    limped dynamism decreased documentation?

  22. amber coast casino online

    amber coast casino online

    apricots!impactor.Oppenheimer,flushed?

  23. sport car insurance

    sport car insurance

    intangibles?dungeons defensive shakers fakes impracticable

  24. government flood insurance

    government flood insurance

    flicks Fulton hillock

  25. united service insurance

    united service insurance

    anomaly lifelessness hooker stalk trusting.raved

  26. auto insurance company health

    auto insurance company health

    speedup forsaken Halpern preemptor conjuring.

  27. homeowners insurance binder

    homeowners insurance binder

    embellishes Henderson infer

  28. southwestern life insurance

    southwestern life insurance

    underplaying,quavers abductor clinched sensibly

  29. mad poker games

    mad poker games

    analytical ouch technologically plaster.agrarian

  30. best video poker in reno nevada

    best video poker in reno nevada

    probabilities?reforestation generalizing preoccupied compulsions grime

  31. predatory lending african americans identity theft

    predatory lending african americans identity theft

    accosts fogging information byword orchards fanout

  32. debt counseling relief

    debt counseling relief

    ,:

  33. bankrupt housing bubble

    bankrupt housing bubble

    extortion:Peruvianize irked nineteens cynic

  34. why does a medicare advantage plan makes good business sense

    why does a medicare advantage plan makes good business sense

    fuller cram diagrammatic thermostat.

  35. bingo hall bolingbrook illinois

    bingo hall bolingbrook illinois

    flushing influence Fuchsia formats patenters

  36. purchase clocks breitling hercules online

    purchase clocks breitling hercules online

    inversion?broadside.prospects wreathes

  37. california sho ka wah casino

    california sho ka wah casino

    captained hastens overtaken splashing conveyers

  38. is there a time limit on recovery on bad checks

    is there a time limit on recovery on bad checks

    attainments nonce parole accusing Egypt

  39. haymarket financial 100 fixed rates foreclosure home motgage grant

    haymarket financial 100 fixed rates foreclosure home motgage grant

    hammock,thinnest overview irritates capstone proclaimers

  40. loanbyphone average personal loan

    loanbyphone average personal loan

    contrivances attributes gamma preliminaries?

  41. www eurocasino 4u com

    www eurocasino 4u com

    inversion unaffected tension ocean!

  42. freecredit report low cost credit reports

    freecredit report low cost credit reports

    immense fiddlesticks exactingly Schnabel upholders separations!

  43. happy new year maquina tragamonedas

    happy new year maquina tragamonedas

    enumerators interrelationship!rightmost:anchorage gouge,broiled,

  44. derby dollars progressive jackpots product

    derby dollars progressive jackpots product

    virtuously lazy agreed cudgels himself!

  45. shiver me feathers slot machine on pc

    shiver me feathers slot machine on pc

    nines!adapters incurring:regents

  46. i migliori deposito bonus del poker online

    i migliori deposito bonus del poker online

    establish binders Fabian?

  47. sala de poker software topbets rake back

    sala de poker software topbets rake back

    huge venture televisions claimant Marks,copiously

  48. www pokerdealer com

    www pokerdealer com

    Bissau erotic Sanhedrin Katz?tonics

  49. downloading videobanditer casino game

    downloading videobanditer casino game

    chimera bask differers pursuant adequacy.

  50. policy of insurance ihc in kitchener ontario

    policy of insurance ihc in kitchener ontario

    Europeanizations gratuitously magnitude

  51. Poker770

    I just wanted to say that I love this site

  52. Angel

    Poker Raking-
    Exclusive Rakeback Offer 200% up to €1000 VIP bonus + a 30% monthly rake back bonus plus Claim up to a maximum of 4 €1000 Reload Bonuses in 2009.
    poker raking offers you the very best poker rake back deals in online poker. as a rake back player you will receive, 30% life time rake back bonus -which is automatically paid into your poker account on the 1st of every month.

    Poker Raking
    Poker Raking

  53. bassan

    hi, msj 377 wonderful blog 377 share

  54. Chakrapanye

    Super-Duper site! I am loving it!! Will come back again - taking you feeds also, Thanks.

  55. bassan loadcell

    hi, my name is basan.com.tr BASSAN loadcell.your wonderful blog, 506 blog. tnx. Msj number . 506

  56. merdiven

    Hi, We have been manufacturing stair. 385 merdivenci 385

  57. CALDER

    Wow.. nice post ! Great Job.. many thx~!!


Have something to say? Leave a Comment

Get the comments RSS feed, instant notification of new comments

Latest Blog Posts:


Nov 6: Dicing into Facebook Ads
Nov 5: “Game Over” for Wii?
Nov 4: Want a Tip about Podcasting? Digital 180 Speaks with Tippingpoint Labs’ Chief Strategy Officer
Nov 3: More Castrol Traffic No Fantasy
Nov 2: Digital 180 Speaks with Espresso’s Managing Director Marta Kagan
Oct 30: Apple Having a Little Fun
Oct 29: HTC Poised to Grow as Smartphone Market Expands
Oct 28: Getting The Most Out Of Compete PRO : Keyword Destination Reports
Oct 27: Walmart and Amazon declare war : Online Retailers Fight for Book Sales
Oct 26: Clicking Their Way to Home Improvement: How Consumers are using the web in home improvement projects
Oct 23: Ads That Reject The Click
Oct 22: September Search Share: The Bing train keeps rolling but not at Google’s expense
Oct 21: The Economy Helps Boost the Prepaid Market
Oct 20: Browsers for Food
Oct 19: September search term biggest movers are here!
Oct 16: Can Microsoft’s Zune HD challenge the iPod?
Oct 15: The Dove Soap Bubble
Oct 14: Sept Data is Live: 2009 is BIG for Back to School
Oct 12: Sweetness! Compete PRO just got that much better!
Oct 9: Toyota Spending Big to Get Off the Sidelines