iPhone already making an impact

Those of you in Australia, particularly Melbourne and Sydney, will know the hype and subsequent sales of iPhones at Optus, Vodafone and Telstra stores over the weekend was hard to ignore. The launch of the 3G phone had much lead up coverage and consumer excitement, to the point where I personally witnessed the queue outside Melbourne's T-Life store in the Bourke St Mall. When I asked if I could just go in the store for a look (not at the iPhone) I was told to join the queue by the security people on the front door - I was waiting for some line like 'not in those shoes', as if it was some desirable night club ... not sure if Telstra will ever reach those heights.

And so the conversations and work begins on iphone ready internet banking (and other related functions).

ANZ have already launched something capable of working with the iPhone (has their java app failed then?) - this from their press release: "The initial functionality available to iPhone users visiting anz.com will include the tailor-made webpage and the choice of functions including Contact us, Locate us, and View Regular anz.com, as well as the ability to use the normal ANZ internet banking service. Over the coming weeks and months the purpose built iPhone banking service will be expanded to include View account balances, View your transaction history, Transfer between your accounts and Pay anyone." Baby steps for ANZ, but platform and compatability/rendering issues will be the first hurdle.

Commsec are allowing trades using the iPhone - "CommSec clients with iPhones can login anywhere, keep up to date with market news and prices, research companies and their performance, monitor their stock portfolio, and buy and sell shares." Interesting point made in the press release - "Rather than just accessing a website through the iPhone, the new purpose-built CommSec iPhone Edition enables customers to make the most of iPhone touch-screen functionality." This is an important distinction to make, to ensure we know they've taken the unique user experience of the iPhone into account, not just the fact that its a mobile. There's a demo you can watch here.

Jim at Netbanker gives us a good overview here on Kiwibanks iPhone offering, and also reveals the initial customer reaction of the BofA solution (and some background on BofA and Paypal apps). Again, an interesting point - "Their main complaint: it's not really a native app, just a front door to the bank's existing mobile site." This again emphasises the importance of the context and environment of the experience is as important as the task and functionality on offer - they must be aligned.

How important is this speed to market for the bank brands, to be associated with one of the most anticipated products in years... to finally get their IB platforms to meet REAL mobile phone standards??

ANZ and CommSec make some new toys

Have noticed the following: ANZ have launched a desktop widget, built by Yahoo, that enables you to access information on your desktop through a verisign secure connection. And CommSec have launched a nice site (might not be that new) that culminates in their new cash mgt account, and might I add, a hell of a lot of information - perhaps an overload there, although the traders out there probably soak it up like a sponge.

Oh and the Money Magazine awards are out - CommBank wins Bank of the Year! Wonder when the Customer Experience provider of the year will be an award...

Choice magazine talks about their views on recent merger activity

From The Age:

"It's clear that competition in the banking sector is not working as well as it should. In fact, competition is getting worse, not better.

Indeed, what's not clear is how a merger between one of the Big Four and the fifth biggest bank in Australia (with a particularly strong position in NSW and South Australia) will increase competition. Even if the cost of funds decreases as promised, there is no guarantee that any benefit will be passed on to customers. This is precisely why competition needs to have priority over other considerations."

...

"How many bank customers who were thrown into a rage because of poor service or high fees have had to back down on their threats to leave the miscreant bank because it is just all too hard? While 25% to 40% of bank customers express dissatisfaction with their current institution, only 3% actually switch accounts.

As things stand, customers are not able to drive competition by easily choosing a better deal, and that means incentives to offer better products are undermined. A competitive market will encourage banks to innovate — to offer attractive differences in price or service to draw new customers — but this can't work where it's too difficult for consumers to switch."

Article continues...

Banks fight for online supremacy

Good article from Fin Review on the banks improving their online presence, with CBA, ANZ, and NAB all focusing on better online customer experience.

CommBank launches GradConnect game

Have a play of the new GradConnect game on Commbanks site.

CommBank determined to be different

Most Australian readers will know this new brand campaign from CommBank and the press its generated, but I wanted to wait for the reaction and next steps.



CommBank, working with San Francisco agency (itself a news-making move outside the Australian advertising industry) Goodby Silverstein, have created a new campaign titled 'Determined to be different' with a rather odd new ad in mockumentary style, with a short clip of Aussie stereotypes and frankly bizarre imagery, followed by the reaction from the CommBank clients to seeing this in the agency's office. I think we need to see the next ad for it to make more sense. To me this is a cryptic, double meaning to open your new philosophy to customer service. Most people have a chuckle at this ad, and perhaps admire a large vanilla corporate like a bank for not taking itself too seriously (an important Australian quality), some have slammed the ads, particularly those in the industry. But does it really indicate whats good in customer service? Perhaps the fact that this is ad is indeed different makes it an indication of the courage the bank will need to be different (recent interest rate rises by the bank can be called 'different' or even just mean).

John Singleton, local advertising icon, has given his opinion - "Mr Singleton, who rarely comments publicly on advertisements, told The Australian that bank shareholders should be angered by the bank's decision to take its advertising business overseas. "In this climate where people are struggling, interest rates are up, there is a credit crunch on, there is half a crash, you have people hiring Yanks to treat the Commonwealth Bank like a joke," Mr Singleton said." "But to treat banking as a joke, when they treat their customers so terribly -- all banks -- I think it is irresponsible."; "It is the worst thing I have seen in a long, long time, and I have seen a lot of crap. It is up there with the worst I have ever seen."

This Determined To Be Different microsite goes on to explain the banks new mantra, and outlines customer service will be the main focus for the forseeable future. Again, this is related to the new attention on customer satisfaction, a personal target for CEO Ralph Norris. The site contains some powerful words (this is all it may end up being) on capturing the hearts and minds, to quote someone else, of the customers through promising good service and self improvement.

Worth a visit and see the campaign and other related material. Along with the new website, campaign and commitment to customer service, it will be interesting to see the subsequent development within the company and staff, and reaction of new and existing customers and whether this leap of faith pays off.

OBR profiles branch hours

Charis at OBR brings us an interesting view on the recent wars between ANZ and CBA and their branches. Opening hours of branches and call centres are hot topics, given the proliferation of 24/7 services such as supermarkets, petrol stations etc.

CommBank & ANZ battle it out for convenience

From The Australian:

ANZ is understood to have agreed last week to withdraw its claim, and will revert to its less controversial assertion that it offers ``more convenient banking''.

The case was sparked by a letter from law firm Gilbert + Tobin, on behalf of CBA, which said its client had a clear advantage over ANZ in terms of branch numbers, automatic teller machines and points of presence around the country. Gilbert + Tobin threatened legal action unless ANZ dropped its advertising.

ANZ was initially defiant, believing convenience could mean a number of things, including shorter queueing times. It also has a call centre open 24 hours a day, seven days a week. CBA, though, has countered that it, too, has an always-open call centre operation.

A bank insider said yesterday that CBA had used the moniker ``most convenient bank'' for a number of years, well before ANZ had adopted it.

ANZ personal division boss Brian Hartzer told The Australian last year that the bank, starting in 2002, had heavily researched a strategy that would differentiate it in the market, ultimately choosing convenience and simplicity. He said ANZ had since invested money into reducing queue times, 24-hour call centres and convenience issues. ``If you stop someone in the street and ask them which bank provides more convenient banking, it's not certain they will say ANZ,'' Mr Hartzer said. ``But give us another year and they will.''

Comm Bank launches a travel agency ... ?

CommBank have launched this intriguing site called Travel Plus, a site where you can book holidays and flights using of course CommBank credit cards and rewards programs. A rich flash site, with credit card selector, and a demo on how the booking system works.

Are they a bank or a travel agency? Qantas Holidays look out.

CommBank site goes live

I was wrong - the site is live now! Check out the new CommBank site. Whats with the German Shepherd??

CBA open 7 days a week and reviews site

CommBank has launched this landing page on their 7 day a week opening hours. A nice use of the weather feed and day-specific content. I like this credit card page too.

I reckon the CommBank site will be live in ... January. See the sneak preview here!!!

This from CommBank:

"We have an average of 100,000 visitors each day and close to three million unique visitors every month," said Commonwealth Bank Chief Marketing Officer, Mark Buckman.

"The website has been redesigned to emphasise simplicity and deliver a positive experience when our customers visit the site either for online banking, or product and service information."

According to Mr Buckman, customer feedback has been one of the key drivers of change on the website and is designed to provide our customers with a world-class online experience.

"Our ultimate goal is to improve customer service and our customers’ experience with every Bank touch point. By delivering a best practice website, simplifying online navigation and access to information, and reducing the number of pages to navigate by 40 per cent, we are a close to achieving this in the online space," said Mr Buckman.

"As part of the upgrades, the Bank’s online search function will be significantly improved to provide more accurate results."

"The first stage of the website enhancement has seen a simplification of the personal banking section," said Mr Buckman.

Complementing the personal banking section upgrade, the Bank’s online banking service, NetBank has also been reviewed.

"NetBank, now in its tenth year, features an improved home page, simpler short cuts, customer news bulletins and links to useful tools such as budget planners and a home loan calculator," said Ross McEwan, Group Executive, Retail Banking Services.

"We started the ball rolling six months ago with the introduction of two factor authentication for NetBank to deliver safer and more secure online banking."

Mr McEwan said in addition to leading online security, NetBank offers users easier access to credit card payment information, an option to apply for other bank products and services via NetBank, and simpler means to update personal information and security details.

Net Promoter Scores 2006 - guess the one bank in the black

This from MBS, the Net Promoter Scores for Australia 2006 across a variety of industries - auto, banks, health insurance, tourism, mobiles, computers, etc. Completed by Mark Ritson, a friend of TheBankChannel. Excellent and revealing reading! Read his media release here.

Bendigo, like their customer satisfaction, dominates with the only positive net promoter score at +7 in the banking industry. HSBC was next, which was interesting, at -8. ANZ -24, St G -30, Westpac -39, NAB -42, CommBank -54 .... heck.

CommBank ramping up the new look and feel

CommBank are launching nice landing pages, this one for credit cards.

NZ Banks Continue To Make Gains In Satisfaction, Bendigo wins in Aus again

Click on the image to see a bigger version.

New Zealand Bank Performance

Roy Morgan reports NZ banks are continuing to improve as a group, with the leader minor bank TSB with a staggering 93.2% of customers satisfied with their service.

Roy Morgan New Zealand found that in the 12 months to July 2007, satisfaction reported by customers of the five major banks improved 3.8 percentage points to 75.6%.

The biggest improver was Westpac, with those who have any relationship with Westpac increasing their satisfaction level by 6.1 percentage points to 71.1%. While this represents a steady and significant improvement over the past 12 months, Westpac still trails its competitors.

Another interesting point is the entrance of government/post office owned Kiwi Bank that started and remained at number 2, but looks to be coming back to the advancing pack.

Australian Bank Performance

Meanwhile Bendigo has again won the latest customer satisfaction round here in Oz. The Roy Morgan Research Consumer Banking Customer Satisfaction Report (August 2007) ranked Bendigo Bank as the highest of any Australian bank in terms of customer satisfaction. Bendigo Bank received a 90.6 percent customer satisfaction rating.

ANZ received a 75.6 percent rating; Commonwealth Bank a 68.1 percent rating; NAB a 68.9 percent rating and Westpac a 72 percent rating. St George and Suncorp both received a 79.3 percent rating. Adelaide Bank received a rating of 82.6 percent higher than Bank of Queensland and BankWest which received ratings of 82.1 percent and 72.4 percent respectively.

7 day trading ... in a bank!

We dont talk much about branch banking here on TheBankChannel, a very deliberately direct banking blog, but this does rate for mine.

7 day trading is pretty much the norm in retail, some health services, and other areas.. but surely not in banking. The unions must be feeling their grips either slipping on control of their workers rights, or tightening on the awards their workers receive. Given the IR situation in Australia at the moment, and even the soft union stance the opposition Labour party is exhibiting, I think its the former.

CommBank and ANZ have both announced a move to open their banks on Sundays in a pilot in certain stores in certain states:

"ANZ's initiative, which will see seven-day banking in every capital city and selected regional areas by 2010, is part of a strategy aimed at making the bank more accessible to its customers and stressing its point of difference over its rivals.

ANZ Banking Group Ltd has two full-service branches open for Sunday trade - one in Melbourne and one in Brisbane.

It also also has a number of other branches nationally, which open seven days a week for account and loan enquiries.

But Commonwealth's roll-out is much bigger with six full-service branches to open at shopping centres in Victoria, three in Queensland, and one in South Australia next month.

"For many of our customers Sunday is one of their busiest days, whether they are merchants or just members of the general public," the bank's group executive for retail banking services Ross McEwan said."

In July, foreign-owned regional lender BankWest announced plans to open 160 new branches on the east coast, slash bank fees, and extend branch opening hours across the weekend."

Another example of an elephant of an industry moving to meet customers needs, and the last union, aside from possibly the biggest union in the country, the Community & Public Sector Union, moving with the times. Tell me a family that wouldnt want its bread winner to earn double time on a Sunday and take Monday and Tuesday off to drive the kids to school.

Customers will say - "if the supermarket, petrol station, book store, my favourite clothing chain, and every cafe in town is open on Sundays, sometimes 24/7, then why shouldnt a bank - why do they shut at 4 on weekdays when I cant get there during work hours" ... we may know the answers why, but customers dont, and dont care. "Whats the difference in staff and overhead costs?" And worse still is when some call centres reflect these hours.

The days of all day all night support is upon us, after probably 10 years of avoiding it. Internet banking and the emergence of bank anywhere by mobile will mean a call centre agent and hopefully more branch locations will be available when customers are active as shoppers and bankers.

CBA plans CommSec Bank

CommSecs brokerage business is so strong, they're extending their brand into a full service offering - the distinct customer base they have is niche enough to warrant it.

From Financial Standard:

"Commonwealth Bank is reviewing plans for the transformation of CommSec, its equity and funds brokerage business, into a full service financial institution.

CommSec is one of the jewels in the crown at CBA, a point underlined by its strong contribution to the bank’s earnings for the year to June, reported yesterday.

CommSec’s monthly trading volumes were up 70 per cent, it processed a record 1.1 million trades in June and it drove a 40 per cent increase in margin loans, which now total more than $8 billion.

It has started to make its presence felt in the market for IPOs and other primary equity issues. According to Thomson Financial its ranking in equity issuance has jumped from 28th to seventh over the past year.

According to a source, the view within the bank is that CommSec’s one million plus customer base is sufficiently different from the bank’s to warrant the creation of a separate product portfolio that would include lending and deposit products."

IWL, CommBanks new target

"Commonwealth Bank of Australia (CBA) has agreed a deal to acquire Internet brokerage IWL for around A$373 million. CBA has bid A$6.57 per share, less any dividend paid by IWL for the period ended 30 June 2007, for the IWL business. IWL shareholders will be able to receive payment wholly in case or in CBA shares of equivalent value.

CBA says the IWL business will be folded into its CommSec brokerage operations. Stuart Grimshaw CBA group executive, premium business services, says the retail client base of IWL is a strong fit with the existing equities business of CommSec."

Internet Banking gets hit hard

From Finextra (1 & 2):

Three Australian banks - CommBank, Bank of Queensland (BoQ) and NAB have all recently been affected by 'system failures' over the past week or two.

CBA's software provider Oracle is reportedly working to fix a glitch that has caused "extensive problems" with the bank's CommSee teller system and online business banking application CommBiz last week.

Meanwhile BoQ has been working to fix technical problems with its Internet banking service this week that prevented some customers from accessing their accounts, also last week. The problem, which follows recent routine upgrades to the system, has left the bank's online services congested and unable to operate at full capacity at peak times.

NAB customers were locked out of Web banking accounts when the system broke down at around 9 am on Monday this week. The service wasn't restored until late afternoon.

CommBanks web presence is evolving

A while back we touched on the rise of a new CommBank online (and offline - I presume a brand reboot is on its way ... lets hope so. The brand mark itself is pretty good (by Ken Cato) but the collateral around it needs a refresh). But looking at the CommBank home page we see more:

Ross Greenwood talking finance, on the home page
which relates to Celebrate the new financial year
Australian Of The Year nominations
New NetBank features - more on this soon
Education Savings Plans

This is at least some movement for CommBank - the site seems to have sat still for a while. Lets see what happens next!

Is there a new Commbank site coming?

Or are these landing pages just landing pages?

Make the move
Term deposits
Retirement
Cash Investment Account
Wealth

Other banks have a long history of making dedicated landing page designs, but other than Westpac, the Commbank site is ripe for an upgrade. This follows on from their KnowYourMoney site.