Community

Trust is great, but behaviour is key.

I trust my bank to look after my money, but when I want to spend it there are now many new players I can choose. I dont have to trust them with all of my money, I just have to believe that they will deliver a single payment

Trust is great, but behaviour is key.

I trust my bank to look after my money, but when I want to spend it there are now many new players I can choose. I dont have to trust them with all of my money, I just have to beieve that they will deliver a single payment sucessfully. And if the merchant is happy to accept such a payment method then why should I doubt it.

Consumer behaviour (however we measure it) shows that more people are now making such choices for payments. They are still happy to leave the banks holding their deposits - for now.

Mobile deposits will not halt the decline in cheque usage, but it will reduce the friction and cost. With over 44% of the general public still choosing too use the cheque, this will extend the support for their preferred choice and also give them longer to try and adopt more modern payment methods.

As consumer get used to using mobile phones for receiving cheques then they will become more willing to use their phone to actually make payments directly. 

We may all agree that cheques dont have a long term future, but there is stlll a long way to go to reach agreement on how to replace them / phase them out. 

Introducing cheque imaging as a better and cheaper to process then will help the banks in the interim, but will also educate the consumers to trust more modern mobile phone baased alternatives.

See my blog on cheque imaging

https://www.finextra.com/blogs/fullblog.aspx?blogid=10278

Well it is an encouraging 2nd place for Lloyds, and hopefully will roll out to consumers soon.

See my Blog following the Barclays announcement

https://www.finextra.com/blogs/fullblog.aspx?blogid=10278

Common sense prevails - see my blog on cheque imaging

https://www.finextra.com/blogs/fullblog.aspx?blogid=10278

After just 10 short years ... The Government believes that open application programming interfaces "will enable  financial technology companies to develop innovative solutions...."

It is good to hear that the government, who are keen to foster innovation and the start-up culture have finally woken up to the power of the API.

While the humble API is the way most systems built this century communicate, it seems that the govenrnmnt has just realised that it has a valuable role to play in wealth creation and defecit reduction (I may have added that part myself) 

We have been waiting for "The straw that broke the camel’s back" for many years now. 

With each new innovation, payment method, channel, mobile, etc., there are predictions that the banks legacy systems will collapse under the pressure.

We have indeed witnessed some high-profile failures, and even a £14m fines to punish one guilty party, but there still no evidence of the major work needed to modernise the whole infrastructure.

Solutions do exist, but the bravery to "grasp the bull by the horns" and implement them is lacking.

Thank goodness that Barclays are the type of innovative bank that offer mobile phone banking, or the money would have been long gone before you realised!

A second complaint should be over the 0.0065% interest rate your children are being paid. From my experience banks do not go to much trouble to notify you when that is reduced either! 

It is about the relationship and not the technology.

If a customer had a good relationship, feels valued and supported by the banks technology then they will remain loyal, and even become champions.

If the relationship is about using technology to cut costs and commoditise services, then the customer does not feel valued and will look for alternatives.

Simple really.

Great post Darren,

I agree this tinkering is the equavelent of Nero fiddling while Rome burns.

Such "Grand Schemes" as CASS seem doomed, as their sheer cost and timescale makes them irrelevent even before the design is signed off by the multitude of "stakeholders". Surely someone should veto such schemes based purely on the incredibly bad cost/benefit (as you have so shown so clearly).

The Account Number Portability (ANP) is even worse. it is like taking your postcode with you when you move house. ALready is is being rendered pointless by third party identifiers, e.g. the mobile phone number as used by Paym.

Banks should indeed innovate, and not pander to the committes drawing up these "Grand Schemes".