Citi: user experiences boost client retention
The average American customer uses mobile banking on seven days per month in average, according to Citi’s recently published inaugural mobile banking study. The report says almost all (98%) mobile banking customers have their bank’s mobile app. Those American users with high-functioning apps (with five or more features) are more likely to believe they’ll stick with their bank in the next 12 months (80%) than those with low-functioning apps (70%). Check out the entire report here.
Why Google or Amazon don’t want to be a bank
Google, Amazon, Facebook and Apple will never open a bank, as they would find full-service banking a difficult and unprofitable space, writes fintech blogger and author Chris Skinner. But internet giants will “eat into” profitable bank products, like payments and credit, leaving banks with expensive products, such as deposit accounts, without cross-selling opportunities. Banks will have to end some of their free retail services and perhaps retrench into corporate services, according to Skinner.
UAE lender starts digital unit for millenials
Dubai-based Mashreq Bank has launched a digital banking unit, Mashreq Neo, as a new step in its strategy to become a branchless bank in the future. It teamed up with mobile services company Vipera to develop Mashreq Neo, which targets millenials with an in-app enrolment process, an activity wall showing recent banking activity, a call center and a chatbot integrated with Facebook Messenger. The digital platform offers payment, card and investment services. Read more about Mashreq’s plans here.
Oracle ships digital platform for open banking
Oracle has introduced a digital innovation platform for open banking to financial institutions. It allows banks to secure data, algorithms and services through an open API model and comes with an extensive fintech collaborator ecosystem interoperating via APIs. The cloud-based platform also offers blockchain cloud services. Market players that joined Oracle’s open banking scheme include Barclays and fintech firms, such as Biz2Credit, IPSoft and TAS Group.
