Citibank Archives
Citibank and WaMu Rated Tops in Deposit Account Sales Process in Change Sciences Study
Change Sciences, publishing under the moniker of its new Kantuit research service, just released its latest financial services website evaluation. The report uses proprietary user-experience modeling to rate, rank and compare 18 leading banking sites on how easy it is to find, select, and open a new deposit account online (see Table 1, inset).
Citibank and WaMu were ranked one and two and scored significantly better than the others. Wachovia was third, scoring about 20% higher (the lower the score, the better). Bank of America, Fifth Third and BB&T were in the next tier, finishing about 50% higher. Among mega-banks, U.S. Bank had the worst score, more than double the leaders.
The Change Science score includes various components that show how a consumer may struggle with various aspects of the application process. These individual scores are totaled to come up with the final composite score shown in Table 1 right.
For example, Figure 1 below illustrates the scores for "Effort (expended) finding and learning about deposit accounts" with Fifth Third leading the way with a 0.1 score, compared to Peoples United Bank, the worst of the sample, scoring 19x higher at 1.9
Download an abstract of the research results here (registration required). The full report runs $4,000; a significant investment yes, but you could make that up with just a handful of additional good deposit accounts. 
Anatomy of a Webpage: Citibank Business Credit Card
By Jim Bruene on September 24, 2007 4:59 PM | 0 Comments
In terms of website design, I find most Citibank pages to be somewhat busy. But overall, the pages usually work well due to the eye-catching graphics, appropriate use of colors, and good copywriting.
I've had a Citibank Business AAdvantage credit card for at least a decade. Even though I don't visit the site often, maybe once every few months, I find that it's generally easy to find what I'm looking for.
As you can see in the business card example below, the bank uses purple and green "buttons" to catch your eye, then inserts important key words within them to drive action:
- The purple, "Fraud is not your fault" reinforces that customers are not liable for unauthorized transactions, something most people are still concerned about, even though their liability is minimal. The button leads to a page that discusses advanced fraud fighting tools such as virtual account numbers and a picture card.
- The navy, "How much have I spent lately?" allows users to quickly drill down into a key area of concern for most card users. Although not as powerful as Wells Fargo's My Spending Report (previous coverage here), it's still a good starting point for many users.
- Finally, the bright green, "Help prevent an identity crisis" pitches the bank's credit monitoring solutions (note 1).
Citibank Business Credit Card main account overview page (22 Sep 2007)
Note:
1. For more information on bank and credit union opportunities selling credit report monitoring see our most recent Online Banking Report.
Citi Mobile Makes the Homepage
By Jim Bruene on August 7, 2007 3:22 PM | 1 Comments
Citibank continues to press its lead in mobile banking services. The banking giant not only runs print and television ads, but also claims valuable left-side real estate on Citi's homepage (see inset for closeup of section; see screenshot below for context; and see note 1).
Since Citi's homepage is relatively cluttered with banner ads, the New & Noteworthy section supported by a small mobile phone graphic should grab a significant number of clicks. The landing page is the same as reported earlier (see previous coverage here).
Note:
1. Citibank's homepage as viewed from a Seattle IP address, Aug 7, 3 PM Pacific, from a laptop that has previously visited Citibank.com but that has not accessed a Citi account.
Citibank Goes Mobile in National Print Advertising
By Jim Bruene on July 23, 2007 9:44 AM | 0 Comments
Even though my wife tries to throw them out at least once per year, I still have every issue of Wired Magazine in a stack in my home office. It remains my favorite magazine, although I no longer devour every issue within the first 48 hours.
I still take notice when any financial services company advertises within its pages. There aren't usually many to choose from, mostly brokerages and mutual fund conglomerates. But one retail bank has consistently advertised in Wired: Citibank, who made the Wired 40 list of leading companies in 2005 and 2006, but not 2007 (see previous coverage here).
In the August issue of Wired (pp. 31-32, see inset), Citibank has a gorgeous two-page spread, featuring, drum roll please, MOBILE BANKING (see note 1). For nearly 10 years, the gold standard of online banking image advertising was the attractive 30-something guy/gal relaxing on the beach, supposedly doing their online banking from a chair (note 2).
It looks like the mobile phone is the new laptop, at least in Madison Avenue photo shoots, especially now that the iPhone is the sexiest new technology since the Palm Pilot. So expect to see plenty of advertising — print, Internet and television — showing happy 30-somethings taking care of their banking in a few seconds on their way to the beach/theatre/dinner. Sure, it's mostly fiction in 2007, but mobile will be the "sizzle" in bank advertising for years to come.
Here's the slightly truncated version of the Wired ad (sorry my scanner is only 8.5 x 14):
Notes:
1. The add also appeared across pp. 3-4 in the July issue of Wired.
2. I go to the beach every year, and I've never seen anyone with a laptop there. Even if you forget about the possible sand and water damage, there is no way you can see the screen through the glare, without risking permanent damage to your eyes. I have a $2,000+ Thinkpad tablet, and I can barely make out the screen in the shade on my deck.
Citi Mobile on National Television
By Jim Bruene on June 20, 2007 11:42 AM | 0 Comments
At the Mobile Commerce Summit, we heard Citibank is running national spots featuring its mFoundry-powered mobile banking service, Citi Mobile <citibank.com/citimobile>. (Hat tip Richard Crone).
Back in the old days, like late 2006, we would have had to request a copy of the ad from the bank. But today, everything is on YouTube, so check out the 30-second spot below (screenshot at right).
While its not as appealing as Apple's iPhone commercials, the Citi spot does a good job demonstrating the utility of mobile banking. It features a close-in shot of a couple driving down the road with the wife making a quick forgotten payment in a few seconds, while still carrying on a conversation with her husband. It is also great branding, furthering Citi's long-term positioning as a technology leader.*
What it Means
National advertising by the big banks, as well as carriers introducing their mobile wallets later this year and next, will create considerable awareness among consumers. Although, usage will be light for the next few years, mobile commerce is NOT a fad. This is one area you should address very carefully in your upcoming budgeting process for 2008.
For more information, see our Mobile Banking Report.
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*Citi would look even hipper if it embedded the YouTube ad in its mobile banking landing page.
CitiBank is Promoting Mobile Banking Through Text Messaging
By Eric Mattson on June 13, 2007 6:55 AM | 0 Comments
One of the exciting trends in the mobile banking space is the start of significant advertising centered around the new technology and capabilities. According to Adweek, CitiBank recently launched an interesting marketing campaign for its well-received mobile banking service using USA Today's new text (aka SMS) message marketing.
The article is brief but gives a little more detail:
"The Citi mobile ads appear in text messages containing stock and mutual fund prices, and consumers can text for details about their balances or the location of nearby ATMs.
According to Zaw Thet, founder and CEO of mobile search and text-messaging firm 4INFO, which helped USA Today build its platform, the response rate to interactive mobile ads is in the 15 to 20 percent range, several times higher than response rates for direct mail or direct TV. "When ads are integrated into content that is relevant, people respond very well to it," he said."
It will be fun to watch the banks put their deep pockets and advertising expertise into play in order to drive the growth of mobile banking. Especially if they keep doing innovative campaigns like this one.
NY Times Reviews Citi Mobile
By Jim Bruene on May 24, 2007 12:21 AM | 1 Comments
The May 24 New York Times contains a generally favorable review of Citibank's new mobile phone service (article here). Writer John R. Quain also touches briefly on Bank of America's WAP service and gives Firethorn's application a spin via BancorpSouth's mobile service.
For followers of the space, there's not much new information here. But a 1,200-word article in the NY Times is significant for the mere fact that the editor's found the subject newsworthy.
The only downside cited, and it's a HUGE one, is the cost from the carrier. In the author's test, it cost him $2.59 in data charges for what sounded like a single Citi Mobile banking session (he did not have a data plan). Ouch.
Here's the exact passage near the end of the article:
For example, checking my balances, making a transfer and confirming a few payments totaled 244 kilobytes, plus one text message, on Citi Mobile. Total charges from AT&T: $2.59.
Update: Drew Sievers, CEO of mFoundry, the vendor powering Citi Mobile, emailed to say that the data charges cited in the NY Times article included the initial download. Subsequent sessions, would cost just pennies each, even without a data plan. He also said that the typical user attracted to mobile banking will already have a data plan, making mobile banking essentially free, at least from the carrier.
Citi Mobile Launches in Southern California
By Jim Bruene on April 3, 2007 10:17 AM | 1 CommentsThe long-awaited launch of True Mobile Banking 2.0 (note 1) in the United States happened yesterday with Citibank beginning a limited rollout of its mFoundry-powered downloadable mobile banking service. The service is currently available to Citibank customers in Southern California with nationwide rollout this summer. However, the bank's website today merely says it's "coming soon" (see screenshot below; link here).
The new service is not mentioned on the main Citibank website, unless you use the site search feature (see note 2).
The single mobile banking page doesn't tell us much we didn't already know (see previous coverage here), other than a few minor details are revealed for the first time:
- Mobile PIN number is the same as what's used for regular phone banking; PIN numbers can be created online through a link on the mobile page
- To enroll, users enter their mobile number, carrier and phone model and a link to the downloadable application is sent via text message
A short four-screen demo (below) shows users how to activate the service once it's been downloaded:
There was lot's of new coverage on launch day, indicating that Citi made the press rounds prior to launch:
- Steve Bills from American Banker chimes in with a brief piece using consultant Richard Crone as a reality check on Citi's PR material (here)
- Eileen Alt Powell put this out on the AP Wire
- Time even picked up the story (here)
Note:
1. True Mobile Banking is defined as transactional banking directly from a mobile phone, without the need to access a website (WAP). The 2.0 means it's a second-generation technology, not to be confused with the circa 1999-2002 version 1 that worked on a limited universe of PDAs.
2. Accessed the website from a Seattle IP address via my laptop which does NOT know that I am a Citi customer.
Citibank Buys the Top Spot for Google "Checking Accounts"
By Jim Bruene on April 2, 2007 10:22 AM | 0 CommentsCitibank has the top spot this morning if you Google "checking accounts" from a Seattle IP address (see below). Wachovia and US Bank are the lucky recipients of the free advertising that goes with being in the top-two organic results. Two smaller institutions purchased well-placed ads with Alaska USA Federal Credit Union landing in the number four spot on the right-side column (#7 overall) and Viking Bank at #5 on the right (#8 overall).
Citibank's landing page emphasizes the rate on its savings account, with a passing mention of EZ Checking (see screenshot below). The landing page is gorgeous, but is it missing the point by soft-pedaling what the searcher was looking for? Only Citi and its analytics team knows for sure. My guess is that it does pretty well since the bank's been using this basic design for more than a year now (see previous coverage here).
Citibank Mobile Getting Closer: FAQs Posted
By Jim Bruene on March 20, 2007 11:48 AM | 1 Comments
Citibank recently posted a short FAQ (click here or view screenshot below) on its website that confirms what we had suspected about its upcoming launch of mFoundry-powered Citi Mobile (see previous coverage here and here).
Here's what we now know:
1. The service will be FREE of charge
2. It will be a downloadable app (unlike the SMS-based service in India shown above)
3. It will work on approximately 100 cellphone handsets
4. It will work across multiple wireless carriers
5. It will include bill payments and funds transfer
6. A direct link to customer service is provided
What we still don't know:
1. Will is support SMS/text messaging?
2. What login/security process will be used?
3. Will it work with all Citi checking accounts or only certain products?
4. Will it work across all major carriers?
5. Will it require a full data plan at the carriers?
As you can see from the Citibank India graphic at the top of the page, major banks offer mobile access in much of the world. But in the U.S., the Citibank launch is a major milestone as the first downloadable application that can be used on common handsets. For more information, see our latest Online Banking Report, Mobile Banking & Payments 2.0 (OBR 138/139).
Click on the screenshot right, to see the Citibank FAQ on mobile banking. Or go directly to its website here.
Citibank's Instant-Win Billpay Sweeps
By Jim Bruene on March 20, 2007 10:39 AM | 0 Comments
Earlier this year, we wrote about how easy it is to run an online instant prize contest using ePrize (see post here). Today, we see that Citibank is using the company to power an instant-win game and billpay usage sweepstakes. They share the same creative and both run March 1 through April 30, but otherwise have little to do with each other.
The instant-win game can be played by anyone and finishes with an ad for Citi's e-Savings account. The sweepstakes rewards Citi billpay customers with automatic sweepstakes entries tied to billpay usage. Here are the specifics:
1. Instant win: Anyone who registers with an email address and date of birth may spin the wheel up to three times each day to win won of 300 prizes awarded randomly between March 1 and April 30, 2007. The total prize pool is $15,000 with one-hundred $100 winners and two-hundred $25 prizes. At the end of each play, Citi pitches its e-Savings account with 4.75% APY and $25 signing bonus, which is slightly different than its website promotion of 4.65% and $50 bonus (see screenshots below).
2. Usage sweepstakes: Citibank billpay customers are also entered into a sweepstakes with a single grand prize of $25,000. Each bill payment of more than $5, after the first four during the 60-day run, receives one automatic entry into the sweeps.
The promotion is advertised on its main Banking page with a small banner (see screenshot below). A larger promotion (see inset above) appears on the Online Banking page (see note 1).
Screenshots: Citibank signup page, "spin" the wheel to play, loser's page with cross-sell of 4.75% savings account (click to enlarge)
Citibank main "banking" page with sweepstakes promo
Note:
1. Tested from a Seattle, WA IP address at 10 AM PDT. Cookies are enabled and will show multiple visits to Citibank, but no evidence of any Citibank accounts.
In 2006, 86% of credit card direct mail included online options
By Jim Bruene on March 5, 2007 11:13 AM | 4 Comments
Advertising-monitoring firm, Mintel Comperemedia reported last week that nearly 9 out of 10 credit card solicitations in 2006 directed recipients to the Web, up sharply from 56% in 2003 (see note 1, 2). Several big mailers, namely American Express, still seem reluctant to use website response as an option, at least in the mailers we see at our house.
American Express tests must show a drop in response by offering too many choices. But if you don't have the budget of American Express, which can afford to drop a mail piece in every credit-worthy household every two or three weeks, you should add website options to your direct mail creative. That way, you can at least capture a lead at your website, even if they don't ultimately accept your credit offer.
Total mailing volume for 2006 was 9.2 billion pieces (see note 1), or about 3 per week per credit-worthy household. Two of those were from the five largest mailers listed below which accounted for more than 60% of the volume, according to Comperemedia. JPMorgan Chase accounted for 18% on its own.
In another data slice from Comperemedia, cited by Capital One in a Feb. 2006 investor presentation (PDF here), response rates have fallen from 1.4% in 1995 to 0.3% in 2004 (see note 3).
Here's a breakdown of the billion-piece club, and their percent change compared to 2005:
1. Chase >>> 1.7 billion (down 4%)
2. Capital One >>> 1.2 billion (up 13%)
3. American Express >>> 1 billion
4. Citibank >>> 980 million (down 2%)
5. Bank of America/MBNA >>> 920 million (down 17%)
Other top-10 mailers: HSBC (up 25%); Discover (up 29%); Barclays Bank (190 million, up 70%)
Note:
1. Comperemedia tracks mailing volume for more than 150 large financial institutions. So the figures here do not include mailings from thousands of smaller banks and credit unions. In total, those probably account for less than 5% of the total from the top-150.
2. Comperemedia press release is here. Interview of Comperemedia director Jenny Roock by MediaPost is here.
3. Credit card response rate slide from Capital One's investor presentation (PDF) at the Debt & Equity Conference, Feb. 2006; data from Comperemedia.
Citibank Mobile Banking Delayed Until April
By Jim Bruene on March 2, 2007 11:03 AM | 1 Comments
In a multi-page look at mobile banking (here), BankRate.com reporter Laura Bruce quotes Citibank's Rob Julavits as saying the bank will be:
...testing (mobile banking) in March and allowing customers to enroll in April, with a broad launch expected before midyear
That's a few months later than originally expected. The bank sent Citi Mobile disclosures to checking account customers in January indicating the service would be live in February (see article here). Citibank already provides mobile access to its credit cards in Japan (link here).
Citi Mobile Appears Ready to Go Live in February
By Jim Bruene on January 28, 2007 3:50 PM | 0 CommentsI opened my Citibank checking account statement today and out fell one of those text-only "terms and conditions" notices that are rarely read. However, the title of this one caught my attention (emphasis added):
Important Information: Introducing Citi Mobile
It's an update to the bank's terms and conditions incorporating access via web-enabled cellphone or other mobile device. The statement was mailed January 23rd and the notice carried a 2006 copyright with an "01/07" date by the item number.
There's no mention of any fees for the service, which begins in February 2007, according to the statement insert. Readers are referred to the Citibank website for a list of compatible phones, but we couldn't find anything on Citi Mobile today.
In a Google search we ran across an older Citi Wireless Services website <wireless.citi.com/wireless/homepage> with a 2001 copyright date (see screenshot below), but it discusses the previously available services such as alerts sent to mobile phones. There is no mention of the new mFoundry-powered services (see previous coverage here).
Make Sure Your Wikipedia Entry is Factual and Up-to-Date
By Jim Bruene on January 11, 2007 5:31 PM | 0 Comments
Ten years ago, we advised banks to make sure their listings in Yahoo were up to snuff. Now, the major search engines are so good, there isn't much work needed to appear at or near the top of the results for searches on your company name (see note 1).
However, there is one important online database with massive reach that still needs manual maintenance, Wikipedia. As the sixth-busiest Internet property in the world, with 150 million monthly visitors (see note 2), you should make sure your institution's entry is both factual and up-to-date. One of Wikipedia's defining attributes is that anyone is allowed to edit the content. So there is no reason you shouldn't jump right in and change any factual errors right away. You should also consider adding info and links to missing or incomplete listings, but make sure to follow the strict guidelines prohibiting self promotion.
Nor surprisingly, Wikipedia prohibits all forms of advertising. And they'll take down any entry deemed to be made to further sales rather than add to the world's knowledge base.
Wikipedia does allow company listings provided your company is deemed "significant" by Wikipedia. Most financial institutions should qualify. However, don't try to put a listing in for your SuperDoubleNet Gold Card. It won't fly.
Also, copy must be devoid of hype, be totally unbiased, and basically read like an encyclopedia entry (see guidelines for company listings here). That said, the online encyclopedia does allow limited use of logos and pictures, so you want to make sure your entry is attractive without being a brochure. Any violations of Wikipedia's guidelines will be quickly deleted.
Below is the first part of the 1500-word entry for Citibank. Note the use of its current logo and an attractive branch photo.
In comparison the entry for Boeing Employees Credit Union is just 170 words and devoid of graphics.
In addition, you might look for other Wikipedia "marketing opportunities" where your bank could be listed as a service provider or reference. Again, it has to add to the facts of an existing article, not be positioned solely for marketing purposes. Of course, this is as gray an area as you can get, so there is no harm in trying as long as you keep the edits in line with the spirit of the website.
For example, in the Wikipedia listing for "remote deposits", under the sub-heading, "usage of remote deposit," the following financial institutions are listed (see screenshot right):
- Bank of America
- Citibank
- Commerce Bank
- U.S. Bank
- USAA (Offers this feature to consumers using a common scanner)
- Pentagon Federal Credit Union (offers this feature to consumers, although the physical check must be mailed in)
- Wachovia Bank
- Wells Fargo (also offers this feature to consumers using special ATMs)
If you have a good remote deposit capture service, add your name to this list. It may or may not be accepted, but it's worth a try.
Notes:
- You should make sure your tags and titles are up-to-date and appropriate (see previous article here).
- Worldwide unique visitors in Sep. 2006, according to comScore (press release here)
Holiday Bank Marketing Continued
By Jim Bruene on December 24, 2006 10:29 AM | 0 CommentsAs mentioned last week (here), U.S. banks are starting to get more creative with their websites, with 12 of the 30 largest (note 1) injecting a bit of holiday spirit into their websites.
This year, three of the top-30 banks had major holiday themes running on their homepages; in 2004, none did. And today we viewed another nine with minor holiday sprinkles, making 12 in total. Two years ago, four banks had minor holiday-themed promotions.
We expected to see more banks marketing gift cards, one of the hottest holiday gifts, especially during the last few days before Christmas. Only four banks mentioned gift cards on their homepages on Dec. 24 (note 2):
- National City
- BB&T
- North Fork Bank
- Commerce Bank
Here is a rundown of those with major holiday themes:
- Citibank: Citi had the best overall holiday theme as it continued pushing its 5% e-Savings Account, with a clever 5% "ornament" hung next to traditional Christmas decorations (see screenshot below).
- PNC Bank: Runner-up was PNC with its unique brand of holiday marketing, a tongue-in-cheek look at the cost of the items listed in the popular Christmas song, Twelve Days of Christmas. It's a holiday tradition at PNC which has been tracking the holiday index for 22 years (see screenshot below).
- Bank of America: The largest online bank used a holiday theme, and $100 off a Dell PC, to encourage users to join the other 20 million BofA customers using its online banking. Customers hitting the bank's homepage were greeted with an animated banner displaying a wrapped package, which after two seconds changed to the Dell deal (see before and after screenshots below).
Showing before and after package animation:
Other top-30 banks with holiday-oriented images on their homepages:
- Chase Bank: snow globe with 0% credit card offer
- Wells Fargo: packages
- Washington Mutual: snowball with 30-second credit card application
- Citizens Bank: packages with a debit card rewards promo
- National City: snowflakes with gift card promo
- BB&T: packages with a gift card promo
- Countrywide Bank: snow and packages with a loan promo
- North Fork Bank: Radio City promo with $15 off coupon and gift cards
- Commerce Bank: packages with gift card promo
Notes:
- According to Online Banking Report's list of the 150 largest U.S. financial institutions as of 31 March 2006 (link here).
- Searches conducted during late morning (EST) on Dec. 24, 2006, from a southwest Florida IP address. Although gift cards were not mentioned on US Bank's homepage on Dec. 24, we had seen them advertised on previous visits, although not necessarily on ithe homepage.
First Direct Bank's Holiday Pop-up Marketing
By Jim Bruene on December 14, 2006 11:21 AM | 0 Comments
I am a sucker for holiday graphics on websites. It doesn't have to be dramatic, a few snowflakes or candy canes in the background is fine. For example, Citibank's e-Savings banner on its homepage today (see inset, click to enlarge). Just like a holiday wreath on the door of the branch, it shows your customers and employees that you have some holiday spirit.
Unlike two years ago (see prior post here), this year many banks and credit unions are running holiday promotions for gift cards and other products (see rundown here) and/or have dropped holiday sprinkles into their websites. The most dramatic is the popup from U.K.'s First Direct <firstdirect.com>. This is over-the-top, but it brings a grin, not a bad thing during the end-of-year rush.
First Direct homepage with popup showing (click to enlarge)
Close-up of popup after choosing "let it snow" option
The loud holiday music that accompanies the snow globe can be turned off with the button in the lower right. Selecting "all snowed out" or "bah humbug!" from the first screen displays a brief "seasons greeting" message before automatically closing the popup.
Citibank Teams with mFoundry for True Mobile Banking
By Jim Bruene on December 13, 2006 11:53 AM | 0 Comments
I spoke with mFoundry CEO/Founder Drew Sievers last week. If you want to get energized over the possibilities of mobile commerce, this is the guy to talk to.
Although mFoundry already has more than 100,000 users of its mobile application, we were most interested in its recently announced deal with Citibank. The bank is set to launch a full mobile banking application in Q1 2007 that encompasses both SMS-based banking and what we call True Mobile Banking (TMB), a banking application running on the mobile device (see definitions here).
While mFoundry's CEO cannot confirm which functions Citibank will use, the vendor's mBanking platform includes the following:
- account inquiry
- transaction summary
- funds transfer
- bill payment
- ATM/branch locator
- password generator
The platform also supports advertising and service functions (download spec sheet here).
How it Works
The mFoundry approach uses both text messaging for alerts and simple inquires and a complete downloaded application that mimics Web-based online banking (i.e., True Mobile Banking). With True Mobile Banking, the user's phone carries a unique identifier that is registered with the bank (factor one); and before receiving data or initiating a transaction the user must log in with a password or PIN (factor two).
When the user logs in, current balance and recent transactions are automatically downloaded and displayed, satisfying most user needs within seconds. The application times-out after a certain length of time and more importantly, no data is retained on the device itself, so security is nearly perfect. If the phone is lost or stolen a call to the bank will deactivate the service, although as long as the password or PIN has not been revealed, there is little security risk.
Analysis
As mentioned in our post three weeks ago (here), it's taken nearly a decade for me to jump on the mobile banking bandwagon. Earlier efforts were too hard to use and had limited appeal, primarily to a small group of PDA-toting geeks.
However, now that even basic mobile phones can use the service (see note 1) and top brands such as Citibank, Cingular, and MasterCard are poised to pump millions into educating the market, mobile finance should take off rapidly (see note 2).
End Notes:
- mFoundry says its service works across more than 200 different phones at the five major carriers, AT&T, Cingular, Sprint, T-Mobile, and Verizon. Sure enough, even our relatively inexpensive 2-year-old Sanyo is on their list of supported phones.
- In order to download the mobile application, users select their carrier and phone type from sliding menus (see screenshot below, from mFoundry's My Mobile News).
2. The next issue of our Online Banking Report will contain a mobile banking forecast.
Best Internet Banks from Global Finance Magazine
By Jim Bruene on August 8, 2006 11:07 AM | 0 Comments
In its seventh annual Internet-bank "beauty contest," Global Finance Magazine <gfmag.com> named Bank of America the best consumer Internet bank in the United States and Citigroup the best corporate Internet bank. Apparently, the magazine loves Citigroup's work, naming it the best corporate Internet bank in 46 countries and best consumer Internet bank in 11 countries including Germany, United Kingdom, and Indonesia (see list of complete winners, by country, by clicking on the link at the bottom of this article).
The magazine also named winners in specific categories. In the United States, the winners were:
Consumer Internet Banks:
Best investment management services: Bank of America
Best bill payment and presentment: Bank of America
Best online consumer credit: Wells Fargo
Best website design: Wells Fargo
Best integrated consumer bank site: Bank of America
Best information security initiatives: Bank of America
Best online deposits acquisition: TD Bank Financial Group
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Corporate/Institutional Internet Banks:
Best online cash management: Citigroup
Best trade finance services: Citigroup
Best website design: Wells Fargo
Best integrated corporate bank site: Wells Fargo
Best information security initiatives: JPMorgan Chase
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Country | Consumer | Corporate/Institutional |
Argentina | Banco Rio de la Plata, S.A. | Citigroup |
Australia | HSBC | Citigroup |
Austria | RZB | RZB |
Bahrain | Citigroup | -- |
Belgium | Citigroup | -- |
Bolivia | -- | Citigroup |
Brazil | Banco Bradesco | Banco Bradesco |
Brunei | HSBC | -- |
Cameroon | -- | Citigroup |
Canada | TD Bank Financial Group | TD Bank Financial Group |
Chile | Citigroup | BBVA |
China | Ind. & Com’l Bank of China | Citigroup |
Colombia | Citigroup | BBVA |
Congo | -- | Citigroup |
Costa Rica | -- | Citigroup |
Cote D'Ivoire | -- | Citigroup |
Dominican Republic | -- | Citigroup |
Dubai | National Bank of Dubai | National Bank of Dubai |
Ecuador | -- | Citigroup |
Egypt | Citigroup | Citigroup |
El Salvador | -- | Citigroup |
Finland | -- | Citigroup |
France | -- | Citigroup |
Gabon | -- | Citigroup |
Germany | Citigroup | JPMorgan Chase |
Greece | Citigroup | Piraeus Bank/Winbank |
Guatemala | -- | Citigroup |
Haiti | -- | Citigroup |
Honduras | -- | Citigroup |
Hong Kong | HSBC | Citigroup |
India | ICICI Bank Ltd. | ICICI Bank Ltd |
Indonesia | Citigroup | Citigroup |
Ireland | -- | Citigroup |
Israel | -- | Citigroup |
Italy | -- | Citigroup |
Jamaica | -- | Citigroup |
Kenya | -- | Citigroup |
Korea | -- | Citigroup |
Kyrgyzstan | AsiaUniversalBank (AUB) | AsiaUniversalBank (AUB) |
Malaysia | HSBC | OCBC |
Mexico | Banamex | Banamex |
Netherlands | -- | Citigroup |
Nigeria | -- | Citigroup |
Oman | BankMuscat | -- |
Pakistan | Citigroup | Citigroup |
Panama | -- | Citigroup |
Paraguay | -- | Citigroup |
Peru | BBVA | Citigroup |
Philippines | Citigroup | Bank of the Philippines |
Poland | Bank Millennium | Citigroup |
Portugal | Millennium BCP | Millennium BCP |
Puerto Rico | Banco Santander | Citigroup |
Qatar | Qatar National Bank | Qatar National Bank |
Russia | ZAO Raiffeisenbank | Citigroup |
Saudi Arabia | Samba | Samba |
Senegal | -- | Citigroup |
Singapore | Citigroup | -- |
Spain | BBVA | Citigroup |
South Africa | -- | Citigroup |
Sri Lanka | HSBC | -- |
Switzerland | -- | Citigroup |
Taiwan | Citigroup | Chinatrust Com’l Bank |
Tanzania | -- | Citigroup |
Thailand | Citigroup | Citigroup |
Trinidad & Tobago | -- | Citigroup |
Turkey | Garanti Bank | Akbank |
Uganda | -- | Citigroup |
United Arab Emirates | HSBC | HSBC |
United Kingdom | Citigroup | HSBC |
United States | Bank of America | Citigroup |
Uruguay | -- | Citigroup |
Venezuela | Banco de Venezuela | BBVA Banco Provincial |
Zambia | -- | Citigroup |
Source: Global Finance Magazine
Citibank Leaves Card Applicants Vulnerable to Identity Theft
By Jim Bruene on August 7, 2006 2:39 PM | 0 CommentsWe were impressed with Citibank’s full-page ad in Sunday’s New York Times travel section offering 25,000 miles to take a new American Airlines co-branded credit card. As usual, we looked for a link to the Web-based application and were pleased to find a large, reverse-type URL along the bottom of the ad. Unfortunately, Citi did not follow the usual convention for printed landing-page URLs, creating potential problems for applicants.
Typically, offline advertisements use a special filename after the normal domain name, such as <www.yourbank.com/special>. This allows users to go directly to the landing page explaining the special offer (see landing page below).
Instead, Citibank used the unique server name "miles5" as in: <www.miles5.citicards.com>. There are several problems with this approach. First, it’s long and not easily recalled. But the biggest problem is its non-standard format. Internet users do not expect to see an extra period in the middle of a bank's URL. So many users, myself included, may read this as a unique domain name, <miles5citicards.com>.
Normally, that would be okay. But in this case Citibank neglected to register that domain name. An identity thief could easily have registered that domain, and then taken “applications” for days or weeks before anyone caught on, possibly leaving hundreds of applicants vulnerable to identity theft after entering their personal info, including social security number, in the application.
By mid-day on Monday, almost two days after the ad first appeared in print, the domain was still unregistered. We went ahead and registered it to prove the point, and keep it safe.
Implications
The moral of this story: If you live in a glass house, make sure any transparencies are covered. Register your domain name. Citibank, which has spent millions on its anti-identity theft campaign, left itself and its customers vulnerable for the price of an $8.95 domain name. Make sure you register the domain name of any cute URLs you put out there for marketing campaigns. While you are at it, spend $60 and lock it up for 10 years.
Memo to Citibank’s legal team: We have no commerical interest in the domain and will happily transfer it to your ownership. All we ask is reimbursement of our 9 bucks.
--JB
Getting Even with the Citibank Call Center
By Jim Bruene on July 11, 2006 2:18 PM | 0 Comments
Score:
Tom Brown -- 1
Citibank -- 0
How many times have you been frustrated by your experience at a call center? Well, if you were a multi-millionaire hedge fund manager with his own blog, you could get back at the company, and then some.
Read today's extremely thorough account (transcribed verbatim from a tape recording) of Second Curve's Tom Brown as he attempts to add a PayPass contactless debit card to his Citibank account <bankstocks.com>.
A couple lessons here:
1. Flag Tom Brown, and other influential VIPs, in your customer database so they get topnotch phone service
2. Be careful with geographic-based product rollouts to avoid irritating customers
3. Simplify call center scripts
--JB
Google Checkout: "iPodding" Ecommerce? Citibank's Unusual Role
By Jim Bruene on July 5, 2006 12:01 AM | 0 Comments
Has Google found its iPod? Not the music player, but an end-to-end ecommerce system that is safe, convenient, and above all, drop-dead simple to use. Something that does for online commerce what Apple did for digital music. That's a tall order, but we believe the search giant may have just such a hit on its hands with Google Checkout.
For more than a year, there has been a great deal of speculation about Google’s entry into the payments arena. After months of quiet testing with carefully selected beta merchant partners such as Starbucks and Buy.com, Google Checkout was officially released June 29 <checkout.google.com>. Although the reaction in online blogs was mixed, we think it's a winner. The only question is whether it's a home run or a grand slam (or World Cup equivalents, one goal or four).
Google Checkout (previously known as Google Payments or Gbuy) is an online-payments tool integrated with the user's Google account. On the surface, it's similar to PayPal, but the true strength and potential threat is its close ties to Google’s already industry-dominant search function.
At this point, Checkout's functionality is more limited than PayPal's. There is no stored value, no subscription payments, no eBay integration, no non-credit card options, no integrated debit card, or money market account. For the end-user, it's closer to a virtual wallet than a PayPal substitute. However, it goes way beyond what the ewallets of the late 1990s offered, taking control of the entire checkout process, a potentially disruptive technology in online retailing.
How it works
Searches that match a Google Checkout advertiser include a shopping cart icon embedded within the AdWords text box (see Google search on "Starbucks store" above). Users can buy products from these merchants in a few clicks without having to enter any additional information (see Google Checkout icon in lower left of the Starbucks shopping cart shown at right). This eliminates the dreaded merchant-account set-up process that causes massive shopping card abandonment problems, especially at relatively unknown merchants where privacy fears are greater.
First-time users are prompted to enter their credit card, billing, and shipping information, which Google stores in its servers (see screenshot left). Subsequent purchases can be made with a simple Google username and password. Users can store additional payment and/or shipping options at any time. Complete purchase histories can then be monitored from their Google account.
Currently, just 100 merchants are participating (see places to buy), but given the potential merchant savings, expect that to change quickly. Twenty-four of the 100 Checkout users offer a $10 discount on purchases of $20 or more (see DayDeals screenshot below).
Like PayPal, Google shields the buyer’s credit card number and other personal information beyond what is necessary for shipping purposes. However, Google also provides the option of keeping the user's email address confidential, a spam-limiting function not available via PayPal.
When a user selects the confidential option (see screenshot below), Google forwards the seller's confirmation message to the end-user.
Sellers are paid directly through their own Google Checkout account. Google has significantly undercut PayPal on pricing, at least for smaller merchants. Google's fee is 2% of the sales amount plus a flat $0.20 transaction fee compared to PayPal’s typical 2.9% plus $0.30 (PayPal has a sliding scale with higher-volume, $100k/mo and above, merchants paying 1.9% plus $0.30).
In addition, Google advertisers earn credits against their processing fees. For every dollar spent on Adwords, sellers can process $10 worth of sales with no processing charges other than the $0.20 transaction fee. It amounts to a 20% discount on AdWords spending, provided there is sufficient Google Checkout volume (i.e., at least 10 times the amount spent in AdWords).
Finally, sellers can create their own Buy Now buttons at the Google site, then drag and drop the HTML code into their websites. This allows small business sellers who are not currently ecommerce-enabled to immediately begin accepting Google Checkout.
Google is expected to provide additional data as the service matures. Having a hand in the process from product search all the way through to the purchase will allow Google to keep tabs on which ads actually result in a sale. This could mean changes to Adwords pricing or structure.
Analysis
The pitch to consumers is appealing. In addition to the privacy shields, Google promises to mediate disputes, and gives users a central place to track purchases. But the biggest consumer benefit: a common user interface for checkout, something that previous ewallets never provided. As you can see in the screenshot below, after shopping the merchant site, the contents of the cart are transferred to Google. At that point, Google takes over, offering the end-user the following options:
- Change shipping method with all costs itemized
- Add a coupon code
- Change credit card
- Change shipping address
- Shield email address from merchant
- SIgn up for promotional messages from merchant
- Links to the user's Google account
- Concise summary of the billing info, including exactly how the charge will appear on the user's credit card statement
- Concise summary of the merchant's return policy
Will consumers give up more personal information to the largest data repository on earth? Initial polls seem to suggest so. In addition, you can bet that merchants will create incentives to move credit card and/or PayPal volume to Google to save as much as 3% on card processing. For a retailer with a 10% margin, that's a potential 30% lift.
You might be thinking that free credit card processing is a short-term loss leader that will end as soon as a critical mass of merchants adopts Google's system. We don't think so. Put yourself in the shoes of a Google advertiser. You now know that you'll earn a 20% discount on your A
dWords buy. Will you let that drop to the bottom line, or might you use some of that windfall to goose your bids on Google a bit? If it's an efficient market, eventually much, if not all, of the "free" card processing will flow back to Google in the form of higher bids. And since not all merchants will qualify for the 20% discount, Google might actually increase its total take due to the "discount." Brilliant.
Citibank's role
The program should have little impact on retail banks, since at this point Google Checkout must use a bank-issued credit or signature debit card to participate. However, Citibank is paying Google to be the "preferred card" on both the Google sign-in page (click on inset above for closeup) and the credit card registration page (click on inset right). The credit card giant is hoping the $5 (or 1000 Thank-you points), will entice users to enter their Citi card into the Google wallet. The $5 bonus offer ends Aug. 1.
Retail banks might want to consider supporting the payment service with a secure gateway to various online payment alternatives so users can manage their PayPal, Google, and other accounts directly from a secure online banking area.
If you are a credit card processor, however, this could eventually pose a threat to your market share and/or margins. Even without factoring in the AdWord's credit, Google's highly publicized 2% discount rate, along with a lack of monthly fees, is a bargain, especially for small businesses. However, given the reluctance of businesses to change banking relationships, it will be years before the impact is felt.
--JB
Citibank cracks the "Wired 40"
By Jim Bruene on June 30, 2006 7:32 AM | 0 Comments
We are huge fans of Wired magazine <wired.com>, having read just about every one of its 190 monthly issues. In fact, eight or nine years ago I used to tell friends that the goal of Online Banking Report was to translate the technology magazine into "banking terms."
I still recommend the magazine to anyone interested in the future of digital communications, marketing, or content (that ought to cover anyone reading this). So if you're not already on board, head to its website and plunk down US$10 for an annual subscription.
Wired 40
Every year Wired publishes its list of its top 40 companies, The Wired 40. Most are large companies selected for their strategic vision, global reach, killer technology, and hunger for new ideas. The latest ranking (July issue) has Google at #1, knocking Apple from the top. The biggest surprise, New Corp. hitting the chart at #9. The company, which wasn't even ranked last year, has become an Internet giant with its purchase of MySpace last year (see NB March 16).
Here's the top 10 with last year's rank in parenthesis:
- Google (#2)
- Apple (#1)
- Samsung (#3)
- Genentech (#7)
- Yahoo (#5)
- Amazon.com (#6)
- Toyota (#8)
- General Electric (#17)
- News Corp. (NEW)
- SAP (#11)
As you would expect, there's not much in the way of financial services in the list. However, Citibank holds on to the number 38, down two spots from last year. Not entirely coincidental, Citi is one of the few major financial services advertisers in Wired. This month, the bank has a huge buy, with a fold-out front-cover spread pitching its "Citi identity theft solutions."
GE (#8), Yahoo (#5), Microsoft (#36), and even Google (#1) have significant retail financial services, although they account for mere slivers of the giants' overall revenues.
Like Citibank, GE elected to make an ad buy this month, pitching its high-yield deposit products on the online version of the Wired 40 list (see inset).
Falling out of the top 40 this year was TD Ameritrade which the magazine said still "ruled etrading, but what once was a disruptive technology is now a commodity."
Online Banking's "Second Wave"
By Jim Bruene on June 28, 2006 12:42 PM | 0 CommentsIn today's Wall Street Journal, personal finance writer Jane Kim does a roundup of what she calls "the next wave of online banking." The impetus for the article was Yodlee's new MoneyCenter that will be available to consumers in early July. I was interviewed for the article and provided several of the examples along with the market size estimate.
In addition to Yodlee, the following developments were chronicled in the article:
- Citibank's <citibank.com> 50-fold increase in online interbank transfer limits from around $2,000 to $100,000 this summer. In what may simply be a self-serving comment made to a reporter, the bank cites the demand for its new e-Savings account as an impetus for the change.
- Commerce Bank's (NJ) Virtual Private Bank <virtualprivatebank.com> for customers with $1 million or more in investable assets.
- Wells Fargo's My Spending Report, a simple integrated spending report we discussed last year. (NB Feb. 17, 2005)
- Bank of America's <bankamerica.com> account aggregation and recently expanded account alerts.
- Chase's <chase.com> next-day bill payment.
Analysis
Although most of these examples are relatively minor improvements, it's good to see the mainstream press recognizing online banking innovations. The last few years have been dominated by security concerns, and we believe it's a great sign that reporters are looking for "what's next." It would be wise to have an answer to that question when your local paper calls.
We believe the Virtual Private Bank (VPB) from Commerce and the Yodlee system deserve closer examination. We'll cover Yodlee's new product when it goes live next month. And, although we won't be able to drop a million into Commerce Bank, we'll take the VPB for a test drive later this week.
--JB
If you'd like to learn more about the future of online banking, check out the Online Banking & Bill Pay Forecast: Current, future and historical usage: 1994 to 2016 from our sister publication, The Online Banking Report.
Five Percent Savings Rate from Citibank
By Jim Bruene on June 26, 2006 10:18 AM | 0 CommentsIn yet another aggressive deposit-pricing move, Citibank raised its e-Savings rate to 5%, the first major high-yield player to surpass the magic 5% mark on a savings account with a low minimum balance. IndyMac (5%, $25k min) and Countrywide (5.25%, $50k min) hit 5% before Citi, but have higher minimums.
Keep in mind, Citi's account requires a checking account, a significant part of the strategy that has attracted more than $2 billion in new money in the past three months (NB June 1).
Citibank's e-Savings email
By Jim Bruene on June 21, 2006 4:24 PM | 0 CommentsLast night, Citibank sent selected checking-account customers an email solicitation for its 4.75% APR e-Savings account. I live outside its branch network, so Citi may have elected not to send the message to customers serviced by traditional branches.
The message was direct and to the point (click on screenshot left). Citibank even included the impressive 4.75% interest rate in the message subject. The only distracting portion of the message was a garbled first word in the second paragraph. It was probably caused by incompatibilities in software rendering of the apostrophe in the first word, "there's." To avoid this type of error, make sure you proof your message in multiple email clients.
The bank continues to engender trust in its marketing messages by including the "email security" box in the upper-right corner which includes the customer's full name and last four digits of their ATM card. The security information is prominently displayed, in a blue shaded box to make it more prominent, even if the user has images blocked (see screenshot below).
The bank also includes short text messages that appear where the images would have been displayed (alt-text tags) making the message relatively readable even for users that never download the images.
Surprisingly, the landing page for the offer was a generic product page. The campaign would be much more effective if the bank had reinforced the e-Savings benefits on the landing page like it does when it advertises online (see NB March 29). Click on the following link to see a screenshot of the landing page. --JB
Appendix
Landing page
(displayed when clicking on the "signup" button in the email).
Note: I tested the link on my laptop where I am not recognized as a customer and on my desktop that saves my username in a cookie. Both times I was served the same landing page (below).
Citi Direct Bringing in $1 Billion Per Month in New Money
By Jim Bruene on June 1, 2006 3:50 PM | 0 Comments
According to remarks made by Citibank CEO Charles Prince at the Sanford Bernstein investor conference, the bank's new high-yield savings account, currently yielding 4.75% (see NetBanker May 19), is bringing in $1 billion per month in new money. He characterized the deposit total as, "the equivalent of having opened 23 new branches."
His exact quote, available via webcast (comments start at the 47:45 mark of the webcast) was, "In the first ten days after the launch, we had ten times the volume we predicted. Today, literally only a few weeks after the launch, we've raised 3 billion dollars in deposits." He also said that two-thirds of that was "new money to the institution."
These numbers are in line with the industry forecast outlined by Citibank.com director Catherine Palmieri a month ago (see NetBanker May 5) of $250 billion in 2006. If that forecast holds true, $20 billion per month into high-yield savings, Citibank is bagging 7% to 8% of the market.
--JB
Citi Focuses on its High-Yield Savings Account
By Jim Bruene on May 19, 2006 9:24 AM | 0 Comments
On Tuesday (5/16), Citibank raised its e-Savings rate 25 basis points to 4.75%, making it the highest savings rate at a name-brand financial institution. Only Corus Bank in Chicago has a higher APY on BankRate.com today, 4.84% with a $10,000 minimum.
More importantly, Citi continues its massive ad buy touting the rate. It was back on the top of MSN's homepage today, and the bank has bought huge parcels of BankRate.com, with some pages running three Citibank promos, top, bottom and side (see BankRate "Checking & Savings" page right). It's similar to what Emigrant Direct did last year to kick off its direct banking efforts (click here to see past NetBanker articles on deposit marketing).
Analysis
Emigrant Direct, HSBC, ING Direct, and now Citibank are all spending $10+ million per year promoting high rates (see ad spending NetBanker5/17). While high-rate offers are nothing new, the ease of finding rate deals online and transferring the funds means it will be harder to hold onto those high-balance 0.50% checking and savings account balances.
--JB
Hiding Your Offer from Existing Customers
By Jim Bruene on May 10, 2006 12:45 AM | 0 CommentsUsually, when designing targeted offers, you focus on what you know about the prospect. Where do they live? What products do they use? What's their balance? What if you wanted to offer a product only to folks you know nothing about, such as new visitors to your website?
Suppose you had a hot APY offer you wanted to make only to new customers to avoid cannibalizing that cash cow, the passbook savings account. Using cookies, you could avoid showing the offer to online banking users, minimizing their awareness of the product.
Apparently, Citibank is using this approach. In a routine visit to Citibank's website in mid-April using our laptop, we were surprised to see advertisements for its 4.50% e-Savings account dominating the website (click on inset for a closeup). When the high-yield product was announced (NetBanker March 29), many observers believed it was a stealth offer made through a new "Citibank Direct" entity.
But when we returned to the office, the offer had disappeared from the homepage. We had to click on the small "special offers" link to find it listed along with several other offers. Apparently, the cookies on our office PC, which identify us as a Citibank online banking user, triggered the website to load a different homepage. We confirmed this through testing on other PCs.
But before you use this tactic, realize it has significant drawbacks. First, it doesn't work with users who delete or disable cookies, estimated to be as high as 40%. Also, an online banking user visiting from a different location, or with a different browser, will also see your offer.
There is also the risk of your clever marketing being outed to the press and public, which may find the practice deceptive (see SmartMoney, April 2006). Finally, you may be teaching users to game your system, deleting cookies more often, entering different zip codes, and so on. This could hinder your ability to deliver targeted promotions to the customers you DO know something about.
--JB
Note: Citibank isn't shy about putting the offer on Google, where it shows as the top paid result on searches for "Citibank" (see screenshot right).
Citi Markets e-Savings in Amazon Packages
By Jim Bruene on May 8, 2006 11:00 PM | 0 Comments
The new headphones for my son’s eleventh birthday arrived last week with the usual advertising fliers dropped into the Amazon.com box. One of the three products caught my eye, a 4x6 glossy sheet advertising Citibank’s 4.5% e-Savings account. 
It looked much like their online ads with a blue-and-white theme emphasizing the APY (see right).
9
On the back, four benefits were highlighted:
- Free Online Bill Pay
- Online Fraud Protection
- Free Wireless Alerts
- Online Statements and Check Images
Notice how the 13 words of benefits included “free” twice, “online” twice, along with the positive buzzwords “wireless,” “fraud protection,” and “check images.”
9
The bank used an easy-to-remember URL <offer.Citibank.com> with offer code CSA2 (click on inset to see the Citibank offer site prior to inputting the offer code). The fine print contained the usual requirement that it was not available in Citi branches. Interestingly, the bank elected to forego the usual toll-free number option.
--JB
Marketing Database -
If you'd like to learn more about past interactive financial marketing campaigns, check out the Interactive Financial Marketing Database from our sister publication, the Online Banking Report.
Citibank's Forecast for Online Savings
By Jim Bruene on May 5, 2006 9:25 AM | 0 Comments
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