Last week we looked at the holiday efforts (or lack thereof) of the 20 largest U.S. banks. But aside from PNC Bank's "Christmas cost index" and ING Direct's "12 days of mobile," not much this holiday season was particularly noteworthy (inset for Midland Bank gift cheques, circa 1956, see credit below).

For inspiration, you need to look at the smaller banks and credit unions. Here are five we found through random googling today: 

1. Michigan State University FCU: 6.9% Holiday Loan (homepage promo #2)

2. Seattle Metropolitan Credit Union: Visa Gift Card (homepage promo #2)

3. OnPoint Community Credit (Oregon): Mobile gift cards (homepage, promo #1) , Visa Gift Card (promo #2)

 

 

4. Community First Credit Union (Florida): iPad giveaway for eStatements (homepage, promo #3; landing page)

5. Texas Bank: "Stash the Christmas cash" (homepage, one of four rotating promos; landing page)
Note: "Stash the cash" is similar to BofA's "keep the change;" debit card purchases are rounded up to nearest dollar with the extra 1-99 cents deposited into savings. The holiday promo included a 5% bonus match on each transfer in December (website powered by Bancvue)

 

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Note: Picture credit. Midland Bank advertisement for holiday checks from The Illustrated London News, 17 Nov 1956. (Click to enlarge, for sale here). 

Since I began blogging in 2004, I've usually run a year-end post looking at the holiday marketing efforts of the top-20 U.S. banks (links below). This year, only 7 of the 20 banks are using holiday or seasonal imagery on their homepages. That's a decrease of 3 over last year.

As usual, PNC Bank is the gold standard for holiday bank promotions, with its long-running (25+ years) "cost of Christmas index" which quantifies the cost of procuring all the items mentioned in the famous song, "12 Days of Christmas." Following is a quick overview of the promotions, including a 1-to 5-bulb rating. 

Previous posts: 2010, 2009 part 1, 2009 part 2, 2007, 2006, 2006, 2004

_____________________________________________________________________

Big banks in the holiday spirit
(rated 1 to 5 bulbs)

PNC: Christmas cost index

• Cost of Christmas based on the song 12 Days of Christmas

Score:

Homepage

Landing page: Amazing microsite, wonderful graphics, and slow loading (link)

Fifth Third: holiday sweeps

• Pay Your Bills sweeps with holiday graphics
• Small ad with a card wrapped with ribbon which directs users to branches for "holiday shopping made easy," presumably for gift cards, but neither the ad nor the landing page make that clear

Score:

ING Direct: Mobile usage sweeps

• 12 Days of Mobile sweeps

Score:

Landing page

Chase: sweeps and car loans

• Winner Wonderland, credit card sweeps with one entry for every credit card purchase and 5 entries for every donation put on the Chase card
• Add joy to your wallet, car refinance promotion

Score:

BB&T: Visa gift card

• Small advertisement in lower right

Score:

Homepage

TD Bank: Visa gift card

• Small advertisement in lower right (below the fold on my laptop)

Score:

Homepage

Key Bank: gift cards

• Very small gift-card promo, below the fold on my laptop and rotating with a half-dozen other items

Score:

Homepage

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Notes:
1. No holiday imagery on the homepages of BofA, Wells Fargo, Citibank, HSBC, US Bank, SunTrust, Capital One, Citizens, Regions, Harris, Bank of the West, Union Bank, Comercia
2. Screenshots taken from Ft. Myers, FL, IP address, between 7 and 8 PM, 20 Dec 2011    
3. Credit: Happy Holidays animation from LayoutSparks.com

I've written about Black Friday promotions at ING Direct (see note 1), Service Credit Union, and the growing Small Business Saturday event spearheaded by American Express (which even earned a tweet from  Obama).

This year I also noticed a trickle of activity on Cyber Monday as well. It's probably better than Black Friday for online/mobile campaigns. Better yet, use the approach of Visions FCU (screenshot 2 & 3) and use the entire weekend to maximize the impact. 

Cyber Monday promos:

• 50% off credit-monitoring products from Quizzle, the spinout from Quicken Loans (see email below)
• Visions Federal Credit Union offered a loan special from Black Friday through Cyber Monday (screenshot below). The CU reported $10 million in loans on Friday alone.
• Navy Federal Credit Union offered bonus rewards-points for purchases made online

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Cyber Monday email from Quizzle (link; Monday, 7 AM Pacific, 28 Nov 2011)

Visions Federal Credit Union Thanksgiving weekend loan special (28 Nov 2011)

Visions landing page (link)

Navy Federal Cyber Monday cashRewards promo (link)
Note: Given the date shown, this page is likely a carryover from 2010. But it's still available via "Cyber Monday" searches on Navy Federal's website.

Notes:
1. ING Direct was at it again with seven offers over the Thanksgiving weekend (Deposit Accounts has the full rundown). However, the specials did not extend into Cyber Monday.   
2. 1st Financial Federal Credit Union ($210 million, Wentzville, MO) and Heritage Community Credit Union ($200 million, Sacramento, CA) offered loan deals on Black Friday according to CreditUnionsOnline.com

I realize that ads based on recent activity are effective. But it's still slightly unnerving, wondering whether you've lost every last bit of privacy or that you've been hit by an adware virus. But overall, it's good to get relevant offers, especially when one has a $10 bonus in it (see AmEx below).

Here's the two ads tossed my way while I was checking the status of my son's flight today:

I wrote a blog post on Serve yesterday (see AmEx promo on top of the page) and have been banging around insurance sites (see Geico ad on right) for the past two weeks as I wrap up a report on the subject.

AmEx Serve offer
Perhaps because I didn't sign up yesterday, American Express is throwing me $10 to try Serve, its P2P payments service. Here's the excellent landing page (link):

After entering your email address, the button turns to a thank-you. It's good feedback for the user and keeps them from accidentally submitting the form twice.

Here's the email sent a few moments later:

----------------------

Notes:
1. Button credit Zazzle.com
2. We covered P2P payments two years ago in our Online Banking Report (subscription).

In 15+ years of accepting credit cards, there have been few notable communications from our acquiring bank or payments gateway, other than normal transactional messages (note 1). Square looks to be changing that with a focus on merchant (and end user) experience.

For example, today I received an email outlining Square's latest platform enhancements (see first screenshot). The message included an enticing Open for Business with an invitation to watch a 70-second video outlining enhancements to its merchant platform, including built-in rewards capabilities (note 2). 

The company has grown quickly. Basically starting at zero at the beginning of the year, they are now doing up to $11 million per day in card volume. More impressively, they are up to 800,000 merchants. Assuming a $65 to $70 average ticket, that's around 150,000 transactions per day, or 4 to 5 million per month. But that also means the average merchant is only doing 1 transaction every 5 or 6 days. 

And the user experience is far from perfect. Square has suffered growing pains as it learns to manage a business fraught with fraud and uncertainty. We tried to use Square at Finovate last May and couldn't get transactions authorized, apparently due to tight account limits in force then.

Four months later at FinovateFall, most transactions were authorized, much to the delight of attendees who used it. But unbeknownst to us (note 3), the money just sat in the Square account waiting for us to confirm our bank account. One small test-transaction had been sitting there since May.

Bottom line: The company flat-out does a great job with design and UX, very Apple-esque. I expect to see a lot of innovation out of Square given its funding, valuation, and celebrity founder. The promise of turning transaction receipts into a dynamic communication is especially interesting (previous post).

---------------------------

Email from Square (received 1PM Pacific, 15 Nov 2011)

Landing page (not logged in; link)

----------------------------

Notes:
1. It could be that I've simply forgotten messages received years ago. But I can say for sure that there have been very marketing/customer service messages, because I pay attention to them. My acquirer is not one of the major players. 
2. TechCrunch has a good rundown of the new features.
3. In fairness to Square, they did mention on the merchant receipt that we needed to verify the bank account. But during the heat of the conference, I never noticed that. Click on inset to see the company's transaction receipt (highlighting mine).  
4. I wonder what it will take to convince Japan's Square-Enix Holdings, creator of Final Fantasy (video game) to part with the Square.com domain name (which is currently unused). 

Today is a big day for number nerds (note 1), as 11/11/11 makes its once-per-century appearance. So last night, I started looking for banks or credit unions using the date for a price promotion (note 2). With U.S. interest rates hovering around the 1% mark, I figured it would be pretty easy to find financial institutions offering CD specials at 1.11% APY, hopefully the 11-month variety.

But after googling for at least an hour, I came up empty. I found a few 1.11% APYs for longer-term CDs, but no one that was promoting it as a Nov 11 special. I was about to give up, but tried "1.11% discount" and up popped Notre Dame Federal Credit Union going all in on the 11/11/11 theme. 

The home page (below) features a huge ad for its 1.11% APR holiday loan of exactly $1,111. And can you guess the term of the loan? Yep, 111 days! Thank you NDFCU marketing dept, you rock.

Fine print: There is one small catch. To get the loan, members must apply for and be approved for the credit union's Visa Platinum card (presumably you can still get the holiday loan if you already have the CU's card). So it's really a credit card promotion in disguise, but that seems fair. It's a good price, and allows for a little expansion of the holiday budget, but with the discipline of a loan that must be repaid before April tax time (note 3).   

The offer is good through the end of November. And the loan application can be made online.

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Notre Dame FCU hits all 1's on its homepage (11 Nov 2011)

1.11% loan landing page (link)

Notes:
1. I've been one for a long time. When I got my first calculator, I pressed "+1" on it 111,111 times just to fill the screen with 1s, the hard way.  
2. Most U.S. financial institutions are closed today for Veterans Day, making it less likely to have a special one-day promotion. 
3.  Members also have the options of rolling the balance onto their NDFCU credit card at the end of the term.
4. Digital clock image from UK's Daily Telegraph which had a 9-hour head start on the day.
5. Other 11/11/11 news:
- NY Times looks at 11/11/11 promotions
- DealerTrack marked the day with a press release about hitting the 1,111 lender milestone.
- The only promotional email I received using the day was from Starwood hotels (see inset)

Boosting mobile engagement has a promising ROI. Among other benefits, the potential $6+ saved per displaced call center inquiry can have a meaningful impact on the bottom line (note 1).

And while volumes are growing, Capital One says mobile usage is up 5-fold compared to last year, it's still a lightly used channel compared to phone (voice) and online.

Yet, for a card issuer, mobile is THE most important channel for the NFC/Square/GoogleWallet future.

So it makes a ton of sense to pull out the stops now to get customers using the bank's mobile app. Capital One in particular, as one of the last majors to get into the app store, likely has an awareness problem with mobile cardholders. Even if the CapOne native app was downloaded, it's buried so deep on the iPhone's screens, that users forget about it. In my case, it's on screen number eight and I rarely see it even though I use my card almost every day.

To attract more mobile uptake, the card giant launched a usage sweeps today. Between now and Jan 6, each cardholder will get one sweepstakes entry every day they log in to the mobile app or mobile web (SMS activity does not appear to count). One person will win a 16GB Wifi iPad2 each day. And a grand prize of a Chevy Volt will be awarded at the end (full rules). The total prize package is $80,000, less than the cost of one 30-second spot on an about-to-be-cancelled sitcom. 

The sweeps is being promoted with a small homepage link and a prominent mention on the main mobile banking page (see second screenshot below).

------------------------------------------

Capital One mobile sweeps landing page (link, 9 Nov 2011)
Note: The call to action, text "power" to 80101, was not working in my test. 
Update 10 Nov: Fixed 

Main mobile banking page (link)

Notes:
1. Of course, you also have to put in place a mobile channel strategy that actually does displace call-center inquiries. That's easier said than done. Also, financial institutions paying mobile vendors for each active user, may not want to boost mobile usage in this way. 
2. Despite the name of our subscription newsletter, Online Banking Report, we cover mobile issues almost every month. 

In banking, we haven't had as much hype over a single day since Y2K. But with every major bank back-pedaling on debit card fees, the power of tomorrow's Bank Transfer Day has  diminished somewhat. Yet, it still should be a good week for smaller players to grab market share.

The Deposit Accounts blog had a run down of some special offers in effect tomorrow, including the "gloves off" homepage promo from Seattle's Verity Credit Union (click inset to enlarge; note 1).

And here are a few more switch pages. Last week, I highlighted Freestar Bank's effort. Here are four more (screenshots/links below):

• Community 1st CU
• 1st Advantage CU
• First Bank and Trust
• Bank of Tennessee, which has the most interesting landing page by a long-shot (see last three screenshots)

All but the first are are powered by Deluxe's SwitchAgent (note 2).

------------------------------

Community 1st Credit Union homepage (link; 31 Oct 2011)

1st Advantage FCU homepage (link)

First Bank and Trust homepage (link)
Note: You cannot click through this ad. The call to action is "visit your banker"

Bank of Tennessee homepage (link)

Bank of Tennessee landing page, part 1 (link)

Landing page part 2

Landing page part 3

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Notes:
1. While you are at Verity click over to its Verity Mom social media effort (powered by Currency Marketing) and see the amazing turnout they had for their second annual spokester contest, 69 one-minute videos were submitted.
2. The reason why I'm showing so many Deluxe examples is because I used "SwitchAgent" in my search and found interesting examples. They have 14 clients using the new service, which we first heard about at BAI Retail Delivery a few weeks ago.
3. We write about these issues and much more in our subscription service, Online Banking Report.

Like most, I've been amazed at how fast Zynga was able to build a 250+ million user base for its social games. But I'd never actually played one.

Until now. So make that 250 million and one users, because I couldn't resist checking up on Capital One's new product placement in three Zynga games (more on what players could do). The bank's Facebook page, which has grown to 2.3 million likes, has details on the promotions (screenshot 1).

Although, it appears I may have missed my chance to interact with the CapOne goat, Visigoth statute or a virtual branch (the promo only ran one week), there are still credit card ads and mystery gifts available, at least in Farmville, the only game I tested.

Capital One viral gift & banner ads
Capital One may have ended the in-game elements for now, but they still have a presence in the game. Starting Farmville for the first time, I was greeted by a number of social elements, one of which is sending a Capital One gift (screenshot 2). There is no indication of what the gift actually is. Maybe that's part of the fun, but it seems like a weakness to me. Am I sending someone a virtual goat or a solicitation for a CapOne card (mystery solved)? 

The company is also running banner ads within the game (screenshots 5 & 6). Clicking on them takes users to the usual Capital One pre-approval page within a separate browser window (screenshot 7). Once you land on the CapOne site there is no mention of Farmville.

Discover Card & Citibank bonus offers
Game players are encouraged to buy all kinds of virtual goods. They can earn virtual currency in a number of ways, including using real world cash to buy credits. But users can also earn currency by participating in sponsored activities.

Both Citi and Discover are offering users virtual cash to apply, and be approved, for a credit card. Discover is offering virtual currency worth about $75 and Citi is handing out about $50.

My take: With 250 million users, the large brands owe it to their shareholders to see if they can make hay in Farmville and any other popular virtual world. And I suspect there will be a positive ROI for the right mix of promotion/offer. I have no idea what the magic formula is, but you know the direct marketing wizards at CapOne, Citi and the others will figure it out sooner rather than later (note 1).

---------------------------------------------

1. Capital One Facebook page (27 Sep 2011)

2. Capital One "free gift" in Farmville (27 Sep 2011)

3. Choose friends you want to receive the gift

4. Before you send the gift, you have the opportunity to see what the notice looks like to the recipient, and you can add a personal note

5. When I got back to the game, there was a large Capital One banner
Note: Starbucks promotion in lower right

6. Another Capital One banner ad served while playing Farmville
Note: Bank of Internet ad on right

7. The banner ad in Farmville, led to Capital One's usual pre-qualification form

8. Discover Card and Citibank have powerful offers in the "earn cash" area.
Note: Discover offers 475 Farm Cash (worth about $75) for card approval, Citibank 300 (about $50). 

9. The first screen after choosing Discover's offer

10. Clicking Continue above leads to standard Discover Card app (in new browser window)

----------------------

Note: If you are interested in a fictional look at where the commercialization of Internet gaming is headed, I highly recommend Cory Doctorow's For the Win.

Just last month we published a report (here) about the large, and mostly unmet, opportunity to bank tweens/teens AND their parents.

Evidently ING Direct didn't need our report. The direct bank, soon to be part of Capital One, is launching an aggressive $10 million advertising campaign for its new MONEY account (note 1). There's no official mention of the program at ING Direct, except for a wall post on its main Facebook page (see last screenshot).

However, several online elements have been released:

• Microsite <ingdirectmoney.com> (see first screenshot below)
• Facebook page <facebook.com/ThatsMoney> with 129 likes as of 2:00 PM Pacific, Aug. 29 (see screenshot 2)
• Facebook app (screenshot 3-5)

Product: There's only a few sentences describing the product, but it sounds like a standard checking account with debit card access. It will have no fees and no minimums and can be managed online (duh) and through a smartphone app.

Campaign: The $10 million campaign (note 2) is primarily fulfilled via Facebook (see screenshots below) and includes:

• Advertising on Facebook and online
• Supporting sweeps has (10) $1,000 prizes, (10) MacBooks, (20) iPod Touches
• Those submitting pictures of themselves, may get it projected on a Times Square Jumbotron for 15 seconds (begins Sept. 15)

Our take: With 1% rates killing its traditional value proposition, it makes perfect sense for ING Direct to build for the future by positioning itself as a place that caters to the banking needs of the entire family. Well played.

----------------------------------------------

1. ING Direct's teen-banking microsite at ingdirectmoney.com (30 Aug. 2011)
Note: In the lower right is a "pre-registration form" where the bank collects the name and email address of interested parties

2. Parents are encouraged to send a message to their children to let them know about the sweeps
Note: The lower right contains a place for parents to send email messages to their children

3. Facebook page at <facebook.com/ThatsMoney>

3. Facebook page info page (Facebook app)

4. Facebook page sign-up form

5. Thank-you page after pre-registering

6. Wall post this afternoon on main ING Direct Facebook page (link, 30 Aug. 2011)

------------------------------------

Notes:
1. New agency Berlin Cameron is spearheading the effort according to today's Adweek article.
2. That's about 40% of ING Direct's projected $25 million media spend for 2011.
3. Hat tip: MyBankTracker
4. For more on teen banking, see our recent Online Banking Report.

Citibank is using some of the most expensive real estate on the planet, the front page of the Wall Street Journal, to promote its Facebook page (see inset and below). The bottom-of-the-page banner invites readers to Like Citibank on Facebook to "find amazing ways to use your (ThankYou) points," and directs them to Citi's main Facebook page, facebook.com/citibank.

Visitors are shown a special page promising exclusive access to an upcoming Beyonce concert for Citibank ThankYou customers (see first screenshot). After, clicking the Like button, a new screen appears with a "coming soon" message (second screenshot).

As of 11:30 Eastern this morning, Citi had 34,500 likes, by midnight the total had grown by about 2,000 to 36,500. I don't know where they started the day, but according Visible Banking, the Citi Facebook page debuted in mid-November 2010 with 7,000 likes, mostly from employees. 

Bottom line: I like the idea of creating exclusive benefits for Facebook fans. And perhaps Citi's goal is to make this into a "teaser" campaign. But overall, I was disappointed not to receive any immediate info to reward me for taking the time to visit/like the bank's Facebook site.

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Citibank banner ad, bottom of first page of WSJ (Western edition, 16 Aug. 2011)

Citibank's Facebook page, before "Liking" (16 Aug. 2011, 8:30 AM Pacific)
Note: This is the landing page displayed when using the primarily URL, Facebook.com/citibank

Citibank's Facebook page, after "Liking" (16 Aug. 2011, 9:15 PM Pacific)

A few months ago, American Express provided five free song downloads as incentive for its cardholders to make Amex the default card option within the iTunes store (previous post).

Today, I noticed Discover offering an eye-opening incentive to get their card listed as the default option for one-click purchases on Amazon.com:

A chance to win $1 million every time you pay

This offer is part of the year-long Discover Everyday Giveaway usage sweeps. 

---------------------------------

Discover Card's $1 million promotion on Amazon.com (12 Aug. 2011)
Note: A small ad first appeared in the upper-right part of the screen, this is what it looked like after I chose "Expand"

How it works (link)
Note: This screen presented when clicking on "Learn more" from above banner

There are three huge usability challenges with online personal financial management (PFM):

• It's hard to get started
• It's a pain to keep up with tagging transactions to make the data meaningful
• It can be disconcerting for many users to view spending summaries

That's why so few Americans engage in PFM, despite its obvious benefits (note 1). One way to tackle the first problem: Offer a sweepstakes or bonus to induce trial.

Truliant FCU is doing that with a late-summer sweeps encouraging members to log in and give its FinanceWorks (powered by Intuit's Quicken) program a try. Members who sign up for the PFM between July 6 and Sept. 29 are automatically entered into the sweeps. There is no cost for the service (note 2).

Prizes include:

• $100 awarded each week
• iPad 2 awarded each month

Total value of the prizes is about $3,000.

----------------------------------------------------------

Truliant FCU PFM sweeps (11 Aug. 2011)

------
Notes:
1. For more on online personal financial management (OFM), see Online Banking Report (published May 2010).  
2. We urge FIs to consider charging for value-added services such as online PFM. See our recent Online Banking Report, Creating Fee-Based Online & Mobile Banking Services (published May 2011) for the rationale.

A few days ago I was on a Chicago-Seattle flight on Alaska Airlines and was surprised to hear an overhead announcement about Bank of America sponsoring free wi-fi on the flight. But it came with a catch, the free access applied only to smartphones (notes 1, 2).

While I'm a big user of airborne wi-fi on my laptop, there isn't much I want to do on a smartphone connection at 35,000 feet. But my curiosity got the best of me, so I gave it a shot and found the free connection was delivered as promised. I had simply to type in my email address, agree to the terms and conditions, and hit the big blue button (see first screenshot).

It didn't take me long to figure out why BofA was being so generous. The second page of the sign-on process included a full-page ad for the bank's Alaska Airlines affinity card (see second screenshot).

My take: Sponsored wi-fi is an effective way to reach the lucrative smartphone-carrying market. But the credit card application user experience was flawed. The bank dumps the whole app and disclosures onto a single mobile webpage, which required scrolling down about eight screens' worth of info (see screenshots 3, 4, and 5). And the fonts were way too small to engage most users.

If BofA were to build a proper mobile-optimized credit card application form, they'd likely increase app volume two- to three-fold. In the meantime, the bank should add an option for the user to request a full-sized app to be completed later on their laptop. 
----------------------------------------------

1. First screen of free wi-fi promotion on Alaska Airlines (7 Aug. 2011)

2. BofA credit card solicitation on page 2 of the login process

3, 4, 5: The rest of the mobile application (click to enlarge)
Note: This shows only the beginning of the disclosures; the full text ran several more screens down the page.

------------------------------------

Notes:
1. I didn't test it, but I assume it would have been free on the iPad as well.
2. I believe they said the offer would continue through the month of August.

Every once in a while I stumble onto Facebook, usually by following a link from a credit union or banking site. It happened a few days ago, when I clicked a link in the middle of Visions FCU Rocks, a cool youth banking microsite from Visions Federal Credit Union.

The Visions Facebook page was fine, but it was the little ad in the lower-right that grabbed my attention (see inset and screenshot below).

PerkStreet Financial, which has perhaps the richest debit-rewards program in the nation, with 1% to 2% cash back, is targeting USAA customers who just lost their debit card rewards program altogether. The landing page (see screenshot below) does a good job laying out the financial benefits and funneling visitors to the online app.

Bottom line: It's a good time to tout debit card rewards, if you are sure you are keeping it. And targeting USAA customers specifically seems worth testing.

But if I was a USAA customer doing whatever people do on Facebook, I think I would find the, "Your USAA Account Changes" headline vaguely misleading. It might be better to use a headline more like the first sentence of the ad, "USAA is ending debit card rewards" or even, "Be glad USAA ended debit rewards."  

That's it for my attempt at teaching "headline writing 101." Class dismissed. Have a great weekend.  

PerkStreet Financial targets USAA customers with Facebook ad (12 July 2011)

PerkStreet landing page (link)

I was reading one of my favorite personal finance blogs today, Lazy Man and Money, and I noticed an intriguing ad from TD Bank. Actually, the blog is covered in TD ads, with the faces of spokescouple Regis & Kelly peering out from every corner.

But originally I noticed only the ad in the upper-right corner (see first screenshot below). The mobile interactivity, along with the 10 spaces asking for my number, grabbed my attention. 

The text-message campaign is powered by Cielo Mobile, whose URL was displayed in the browser status bar after I clicked the banner.

________________________________________________________

How it works 
________________________________________________________

1a. Users type their mobile number into the interactive banner ad (upper-right).

1b. The banner returns this thank-you message:

2. The link in the text message (left) opens the mobile webpage (right).

3. The app is downloaded from the iTunes App Store and this is the first screen at launch:

_________________________________________________________

Analysis
_________________________________________________________

Apparently, I'm not the target audience for this banner ad since I don't have an account at TD Bank. But if inclined to change that, I'd like a little more help opening an account. The bank does better than most by including links to its call center and webpage on the first screen of its native iPhone app (see #3 above), but there should be a direct call to action, or even a different app, for non-customers. 

I look at banking sites a lot, and sometimes a page or promotion strikes me as a cut above the  rest. For example, today's Bank of America promotion of its image ATMs is eye-catching and must be gathering substantial clickthroughs (more on that below). 

Technically, everything about the promotion is first-rate, from the color to the typography to the copy. But what I really like is how this positions the bank as the place for anyone who appreciates elegant technology solutions to their everyday problems. 

Bank of America personal homepage (21 April 2011, Seattle IP address, customer cookies)

However, the landing page (below) leaves a lot to be desired. A video of someone using the ATM would be perfect. How about links to an FAQ for those with more questions about the technology, risks, costs, guarantees, availability and so on? And a link to the checking account signup form would seem appropriate. But at least BofA did direct people to its ATM finder (in two places). 

Landing page

Bottom line: This BofA effort reminds me of the advertising adage that the worst thing you can do is put out good advertising for a bad product. Before the bank put such an appealing visual on its homepage, it should have put together more content for those clicking through. It's not bad, just a bit of a wasted opportunity. 

Chase Bank is aggressively pushing its latest small biz initiative, Instant Storefront, billed as a way for old-school "9 to 5" businesses to sell online 24/7. Here's where I ran across it last week: 

• A radio ad a few days ago (in Seattle)
• Full-page ad in the San Francisco Business Times (p. 24 of March 25-31 issue)
• On the main account management page within online banking
• Small ad on Chase's business banking public page today (see last screenshot, note 1)
• Email yesterday offering a $100 bonus to give it a try (see first screenshot, note 2). 

The email is short and sweet with a good subject line and appealing design. The green button leads to a landing page with more info (second screenshot). The page includes an old-school, and very effective lead-gen technique, offering to email the $100 coupon to interested visitors (third screenshot).

The cost is $30 per month, and the bank throws in a $350 POS terminal and waives $150 in startup fees for new Chase Paymentech merchant customers.

To redeem the offer, customers must visit with a business banking specialist in a Chase Branch. Ecommerce website development seems like a bit of a stretch for a business banker to be conversant with, but hopefully it's very turn-key. And I like how the service positions Chase as an online partner to small biz, so it may be a brilliant branding tool.

Using a browser with cookies removed (note 1), I don't see any mention of the new service on Chase's website and searching for "storefront" in its site search returns nothing (note 3). So Instant Storefront may be a western market test.

----------------------------------

Chase Bank email to business customers about Instant Storefront (30 March 2011)

Landing page for Instant Storefront (link)

Lead-gen page where users enter their email address to get the $100 coupon

Chase public business banking site (with Washington state customer cookie)

-----
Notes:
1. The ad appears only on the browser I use to access my Chase account. On browser with cookies disabled, I do not see the Instant Storefront ad.
2. The print and radio ads also offer the $100 bonus.
3. The bank uses the URL: chase.com/storefront in its radio ad.
4. For more info, see Online Banking Report: Micro- and Small Business Online Banking (published Oct. 2009)

ING Direct (USA) is a large online advertiser. And because I frequently click on financial ads, I'm sure they are served to me far more than the average Jo(e). Still, the placement of ING Direct's ad today at Amazon.com surprised me.

First, I'm not sure I realized that Amazon had turned over that much homepage real estate to third-party advertisers. It must be lucrative. Second, how does it pencil out for ING Direct? That has to be an expensive ad. How many 1% deposits do you have to get to cover those acquisition costs?

Amazon homepage (17 March 2011, 5 PM PDT, Seattle IP)

Landing page (link)
Note: While I like online video for sales support, the length of this 2.5 minute video on how to open a savings account seems a little excessive.

Off topic: ING's St. Patrick's Day graphic
ING Direct's homepage today placed its orange ball in a pot 'o gold -- a nice touch -- but I was slightly disappointed they didn't animate the ball jumping into the pot. Clicking the pot took users to the bank's We The Savers blog, with the greeting,"Top o' the mornin' to you, Saver."

ING Direct (USA) has been a prominent sponsor within Mint's online PFM. However, this is the first time I've noticed the bank advertising via email alert. And specifically, the direct bank is pitching its fee-free Electric Orange Checking account on the bottom of an email alert about a fee on my U.S. checking account. Excellent timing! 

It's unusual to see an ad on a Mint.com alert. I spot-checked a dozen or so during the past two months, and this is the only one with any direct marketing. But if it works, I'm sure we'll see more of it. Context-sensitive advertising is what the Web has been built on.

Mint.com email "fee charged" alert (16 Feb. 2011)

ING Direct landing page focusing on lower fees (link)

How much does the average American Express cardholder spend in the iTunes store each month? A lot. And how often do you go to iTunes and change your default card? Never. Is it worth $5 to have your card powering an iTunes account? To American Express it is.

I'm sure the card company's spreadsheet shows a payback within a year or two on incremental interchange alone. But more important is the added stickiness these frequent Apple purchases give to the card. Plus, it can't hurt to associate your brand with the most valuable tech company on the planet.  

The fine print
To earn the five-song credit, cardholders must make a purchase with their Amex card between Feb. 10 and March 15. That earns a statement credit equal to five song downloads. It doesn't say which song price-point is used in the calculation, but I'm guessing the standard $0.99.

Relevance to Netbankers
It's always good business to get your card installed as an automatic payment source. Interchange goes up, credit card receivables improve, and you've added one more electronic hook to the account. So consider taking a similar approach and offering a small bounty after your card is used with a new biller.

iTunes promo on main Amex account page (Business Gold, 11 Feb. 2011)

Enrollment screen (link)

Here's the first time I've seen a QR code used on a bank's homepage. After an animation sequence (below) announcing Chase Bank's new Android mobile banking app, the final graphic displays a code that Android smartphone users can scan to download the new app. Very clever.  

Chase Bank homepage (20 Jan. 2011)

Landing page (link)

Animation graphic 1:

Animation graphic 2:

Animation graphic 3:

In doing some initial research for a report we are planning for Q1 on "family bank accounts," I started where I usually do, on Google. The only financial institution advertising specifically on the term "teen banking" was USAA (see note 1).

The top-of-the-page ad led to a well-designed landing page devoted to Teen Checking (see screenshots below) with a clever call to action: 

We won't take any of your teen's allowance.
Teen checking without hidden fees.

USAA even has a dedicated site with its own URL to support its youth-banking efforts: https://my.usaa.com

Relevance for NetBankers: Teenagers may be one of the most lucrative segments to attract to your financial institution. They not only spend billions themselves, but also could literally stick with you for a lifetime.

The thinking goes something like this:

1. Attracting the children of your customers helps you retain the parents
2. Retaining the parents helps you retain the kids as they become young adults
3. Young adults become parents
4. Repeat

This didn't work so well in the old branch-based world because one of the first things the kids did when they moved away was open a checking account at the closest branch to their new apartment or dorm room. In an online/mobile-centric world, that no longer has to happen. 

Google search for "teen banking" (see note 1; search conducted at 5:00 PM on 11 Jan. 2011 from Seattle IP address)

USAA's "Teen Checking" landing page

Notes:
1. First-page organic results included (note, search was limited to items posted in past month) 
-- Fremont FCU
-- North Shore Bank
-- Coast Hills FCU
-- U.S. Bank (Visa Buxx)
-- S.T.A.R Community Credit Union
-- American Riviera Bank (my new favorite bank name)
2. If anyone wants to point out great examples of teen/youth/family banking efforts, please drop me an email jim@netbanker.com or leave it in the comments. Thanks.

For five of the seven Decembers I've spent blogging, I've perused the holiday Web-based marketing efforts of the 20 largest U.S. banks. This year, 10 jumped on the holiday bandwagon, an increase of 67% over the six last year. In 2004, only 4 of the 20 were running holiday promotions (on Dec. 21).

Previous posts: 2009 discussion, 2009 screenshots, 2007, 2006, 2006, 2004

_____________________________________________________________________

Big banks in the holiday spirit
(rated 1 to 5 bulbs)

PNC: 12 Days of Christmas index (23 Dec. 2010, 1:00 PM Pacific)
Quick take: Rotating spot, prominent, seasonal graphics, unique, leads to microsite
Score:

TD Bank: gift cards
Quick take: Prominent spot, not rotating, seasonal graphics, fits in well with entire green homepage
Score:

Regions: gift cards and rewards
Quick take: Rotating spot, prominent, seasonal graphics, small corner graphic
Score:

Fifth Third: gift cards
Quick take: Rotating spot, prominent, seasonal graphics, small graphic in upper right
Score:

Bank of the West (BNP Paribas): POP Money (p2p payments)
Quick take: The first promotion on a three-ad rotation, pushes P2P payments as a holiday gift-giving option, the first time we've seen that (updated 12/25 because we missed it the first time we looked at the site)
Score:

Harris (BMO): gift card
Quick take: Rotated with five spots, seasonal graphic, quick animation, not very prominent
Score:

ING Direct: seasonal graphic
Quick take: Seasonal graphic, prominent location, leads to landing page
Score:

Chase: gift cards
Quick take: Small ad, minor seasonal graphics
Score: 

Bank of America: cash rewards card
Quick take: Small ad with seasonal graphic 
Score:

The scrooge list (top-20 banks with no holiday promotions or graphics on Dec. 23): 
BB&T, Capital One, Citibank, Citizens (RBS), Comerica, HSBC, SunTrust, Union Bank (Mitsubishi UFJ), US Bank, Wells Fargo

-----------------------------

Note: I either have accounts with, and/or previous visits to, all 20 banks which could alter what's shown on the homepage.

I've long been an admirer of Cascade Bank, a $1.7 billion bank headquartered in Everett, WA. A friend was marketing director there for a number of years, and I learned a lot from her about community bank marketing and management.

While I used to have a mortgage at Cascade, I don't have any accounts now; hence, the email I received earlier this week. The bank invited prospective customers to come to one of its 22 branches (today only) and enter their name in a drawing to win an iPad. Five iPads were being given away bank wide.

And while in the branch, hoping to pick up a free ipad, the bank dangled an attractive duffel bag in front of visitors as a premium for opening a new checking account. And Cascade promised to drop an extra $25 in your account if you traded in your old check register from the competition.

Bottom line: Thanks to the iPad and some great graphic design, the mailing had a stunning visual, good title, and compelling offer. Excellent work.

Email announcing the giveaway (received 30 Nov. 2010)

Cascade Bank homepage (3 Dec. 2010)

Landing page pitches free checking with duffel bag premium and $25 bonus 

Note: For more ideas, see Online Banking Report: Growing Deposits in a Digital Age.

ING Direct ran a slew of Black Friday offers again this year (see screenshots below; last year's coverage). And they weren't the only one. Service Credit Union also ran a homepage-dominating ad for its 6 AM-to-noon "doorbuster deals" today:

• 10% APY 3-month CD with maximum deposit of $1000...$23 in extra interest compared to its regular CD (pre-tax)
• Fee-free Visa gift cards (limit 5)
• 1% rate reduction on new personal loans
• $25 Visa gift card for opening a new credit card
• Unspecified "in-branch checking account specials"

The credit union's U.S. branches opened at 6:00 AM to mimic the retail craziness on the day after Thanksgiving. Specials were available until noon only, and all required a branch visit to redeem.

I was going to say something about the lack of online-redemption options, but luckily I checked back after noon and found that a Cyber Monday promotion had taken the place of the Black Friday ad. Online users are being offered similar specials on this coming Monday (aka Cyber Monday):

• 7% APY 3-month CD with $1000 max deposit (a $17 interest bonus)
• $100 bonus for opening a new checking account (requires direct deposit and estatements)
• $25 Visa gift card for opening a new credit card
• Free personalized credit card design for first 100 members ($9.95 value)
• $25 Visa gift card for a referral

Bottom line: The dual promotion was a clever way to involve both online and in-branch members.

Service Credit Union placed a bold advertisement on its homepage promoting its Black Friday deals (10:00 AM Pacific, 26 Nov. 2010)

Later in the day, the CU posted Cyber Monday specials on the homepage (1:00 PM Pacific)

Landing page (link)

ING Direct homepage on Black Friday (26 Nov. 2010) 

Landing page (link)
Note: Offers are good for the entire weekend

If you've read Netbanker a bit, you know I can get pretty excited at just about any new and shiny bit of fintech. So if you went only by my blog posts, it might be hard to differentiate between a cool new feature and a major strategic disruption. 

Well, take note, this is one of the big ones if Capital One can deliver on the promise. And that is a very important caveat. The card giant better be able to fulfill cards to the vast majority of those it prequalifies online or it will have legions of disgruntled applicants.

What the company has done is place a pre-qualification form between its online ads (see banner running on TechCrunch below) and the full application. The form asks for name, mail address, and last four digits of the Social Security Number, plus two multiple-choice questions about desired features and credit self-evaluation. 

The whole process can be completed in as little as 35 seconds (in my test it took 24 seconds to fill in the blanks; 8 seconds for the results to be displayed).

Importance: Credit-savvy consumers, about the only ones who'll be approved these days, know that every credit application negatively impacts their credit score, at least temporarily. Therefore, many are hesitant to complete an online app if they think there's a chance they won't be approved. Being able to test your creditworthiness (note 1) without a credit bureau hit is a powerful incentive to move consumers into the sales process.

The other advantage of this system is that even if you don't complete the full application after the pre-qual, Capital One has captured your name, address, and a positive match with your SSN. So they can hit you with followups in the near future. However, I am surprised the company doesn't ask for your email address. It must have dampened response in testing. 

Capital One banner ad across TechCrunch (17 Nov. 2010)

Landing page emphasizing the lack of risk to your credit score (link)

Pre-qualification form

Results page with a recommended card and two alternatives
Note: I indicated a preference for travel rewards in the pre-qualification form.

Online application
Note: Users must start over as none of the pre-qualification form info is transferred over

Notes:
1. At the end of the pre-qualification process, the company only says you are "pre-qualified." There is no guarantee you'll get the card or credit limit you want.
2. For more on online lending, consult our previous OBR reports:
- Online Lending v5.0 (part 1) (Nov. 2005)
- Online Lending v5 (part 2) (Jan. 2006) 

In my post yesterday about flash marketing via Groupon and LivingSocial, I neglected to mention another interesting opportunity: working directly with the marketing companies to add your brand to the service.

Because payments and credit are crucial to ecommerce success, financial brands are a logical addition to the checkout process. And Visa just so happens to be featured today at LivingSocial (see inset and screenshots below).

Anyone who buys today's Seattle deal, a $25 restaurant certificate for $10, automatically gets a second certificate to use as a gift, if they pay by Visa Signature card (see notes 1, 2). It's hard to say what Visa is paying for the promotion, but given the massive website traffic and transaction activity, it's likely a pricey sponsorship (note 3).

Email from LivingSocial with Visa branded add-on offer (28 July 2010)

Landing page (link)

Notes:
1. Some interesting items in the fine print for the Visa-sponsored comp certificate:
- valid only for Visa Signature cards, which might irritate some non-Signature Visa customers
- offer not valid for purchases made via iPhone (there must be something in the shopping cart that does not work on the iPhone)
2. My saved credit card in the site is a MasterCard; when I went to purchase the deal, there was no mention of the free certificate, nor any prompt to switch to Visa.
3. The merchant is receiving $5 for each certificate issued under the main deal. Visa's sponsorship would need to cover some compensation to the merchant, but perhaps at less than $5 each, since fewer of the gifted certificates will be redeemed. It looks to be a popular offer, having sold almost 2,600 units (by 7 PM), with almost 10 hours remaining.

The coffee shop where I do much of my writing held a huge sale yesterday. But you wouldn't have known it from the sparse late-July mid-day crowd. The event took place entirely online through local deal-of-the-day marketer, Groupon.

The day-long sale resulted in nearly 3,000 half-price $10 coupons being sold, a huge influx of customers for a 3-location coffee shop (see screenshot below). I'm working somewhere else tomorrow when the coupon buyers start coming in. 

Groupon is the leader in the burgeoning field of localized flash marketing (aka social/group buying) having taken more than $170 million in VC funding to expand to more than 150 cities.

The other major player is Living Social, which I've successfully used a few times to buy gifts. LivingSocial has raised $50 million and recently expanded to 52 cities. Both companies have nearly 5 million unique monthly U.S. visitors (see below). And with minimal barriers to entry, there are dozens of copycat sites in operation.

There's another sub-category in flash marketing, companies that specialize in certain types of merchandise. The pioneer here is the geeky and irreverent gadget and T-shirt marketer, Woot with 2.3 million monthly visitors. The site was scooped up by Amazon for $170 million last month. In women's fashion, Gilt Groupe has a cult following and nearly 1 million monthly visitors.

U.S. traffic at Groupon (blue), Living Social (green), Woot (orange), Gilt Groupe (red)

Source: Compete (link)

Flash marketing is not a new concept, and it's not much different than the $299 laptop on the cover of the Best Buy circular. Savvy shoppers know to show up early at the store if they want to claim one of the few loss leaders in stock.  

Web-based flash marketers use email, Facebook and Twitter to inform potential customers of the latest deal. There is usually a time limit, typically a single day, and/or a limited number for sale. All the Groupon deals expire at midnight local time. Woot runs all its deals for 24 hours, or until they sell out, beginning at midnight Central Time.

Opportunity for Netbankers
While I haven't seen a financial product sold on Groupon or LivingSocial yet, there's no reason it wouldn't work. In a quick search, the only financial institution participant I found was First Tech Credit Union, a recent recipient of sponsorship recognition in a LivingSocial deal for half-off tickets to the 2010 Bellevue (WA) Jazz Festival (see second screenshot).

But the promotions can be costly. The flash marketing companies typically take 50% of the sales price and require a deep discount, usually 50% or more off list prices. So retailers are getting as little as 25 cents on the dollar in the promotions (see note 1). Quantities can be limited to protect against too many takers.

While financial services don't lend themselves to online flash sales as well as spa visits or fine dining, there are fee-based services that could work. For example: 

• Checking account: $15 annual fee (first year) instead of $96 list price (note 2)
• Credit monitoring: One year for $50 instead of the $150 list
• Credit report: One 3-bureau report for $10 instead of the $30 list
• Financial plan: $50 instead of $200 list
• Prepaid MasterCard/Visa: One $25 card for $15 instead of the $29.95 list (assuming $4.95 issuing fee)
• Savings account: $50 initial deposit for $15 fee (note 2)
• VIP banking package: $25 annual fee instead of more than $100 if bought separately (rewards card, premium service, free VIP online banking, credit report, rate discount, etc.)

Or FIs could go the First Tech route and work with local restaurants, theatres, or nonprofits to sell a product bundle. For instance, a $20 dining certificate, 50% off on theatre tickets and a $10 Visa card for $20. 

Groupon Seattle deal-of-the-day at Zoka Coffee Roasters (26 July 2010)

First Tech Credit Union gets top billing on recent LivingSocial deal (link)

Notes:
1. That assumes all coupons are redeemed. But typically a large portion, as much as 50%, go unredeemed. That means fewer new customers in the door, but it also helps limit the amount of discounts that must be honored.
2. The problem with many financial product offers is that not all customers will be approved. But you could offer refunds for anyone declined for a checking account.
3. For more info on selling online, see our Online Banking Report on Lead Generation.

I love holiday-themed online promotions. It's the low-hanging fruit of online marketing. Why not dress up your website for the holidays and offer a little savings on the side? Worst case, you get a smile from your customers. Best case, you turn a tidy profit on the effort.

Last fall, I wrote about ING Direct's Black Friday (pre-Thanksgiving) sale. I liked it so much, I am now the proud owner of an ING Direct mortgage refi thanks to the $683 incentive to apply that day.

Knowing what a fan I am, the bank provided me with a preview of the offers planned for next weekend to celebrate the events of 1776:

• Investing for financial freedom: Investors who open a new ShareBuilder account receive a $76 bonus (after making one transaction). 
• Pursuing the happiness of homeownership: Prospective homeowners who apply for a mortgage  receive $776 off closing costs, a 40% discount. 
• Liberation from checking fees: A surprise promotion for its no-fee Electric Orange Checking account. 
• Spreading the wealth of savings: An undisclosed boost to the bank's usual refer-a-friend offer.

More details will appear on the bank's landing page at 12:01 AM on July 1 <ingdirect.com/independence> (see teaser page below, first screenshot). The teaser campaign has already been implemented on the bank's homepage, Twitter page, and Facebook page (see screenshots below).

Anyone else have something special planned for next weekend? Add it to the comments below or drop me an email.

Landing page teaser (link, 24 June 2010)

ING Direct homepage

Twitter page preview (link)

Facebook page (link)

Two thousand is the largest banking premium I've ever seen, although Chase's out-of-pocket costs are probably less than $500. The offer was made last week via email (see first screenshot) to existing business-banking customers not already enrolled in Chase Quick Deposit, a scanner-based remote check-deposit service.

The details:

------------------------------------------------------------------------------------------------------------

From: Chase Bank 
To: Business Banking clients
Date: 10 June 2010 (1 PM)

Offer: Two years of free remote deposit services (Chase Quick Deposit), normally $50/mo, plus the $855 Panini 50-50 business-class scanner to power it. Total retail value = $2,055 

Fine print:
-- Users must deposit at least 10 checks per month to maintain fee-free service
-- New Quick Deposit users only; not valid for current or previous users
-- $500 cancellation fee if discontinued within 12 months
-- Offer good through July 31, 2010

Notes: This offer does not appear to be available to the general public. On the bank's website, the current offer is a free scanner with a 2-year contract at $50/mo.

-------------------------------------------------------------------------------------------------------------

Analysis: It's definitely attention-getting and will drive new remote-deposit business. But I'm a bit surprised Chase is giving away both the razor and the blades (see note 1). Perhaps the bank is testing different offers. But it will be two years before Chase finds out what percentage of its users convert to paying customers. Of course, they are also banking on an account-retention lift to repay the significant cost of the offer.   

Email from Chase offering free remote deposit services (10 June 2010, 1 PM)

 

Landing page

Users accepting the offer must first log in to their account to enroll

Notes:
1. Offer made to a single-service (DDA) small business checking client converted from WaMu.
2. For more info, see Online Banking Report: Micro- and Small Business Online Banking (published Oct. 2009)

Three weeks ago I noticed that North Carolina-based Truliant Federal Credit Union had posted a highly visible opt-in overdraft pitch on its login page (see screenshot #5, below). I checked back today and found that the CU is still running a login page ad, albeit smaller (ss #2), and has also taken the message to its homepage (ss #1).

The new ads are more fear-based compared to the previous friend-of-the-customer approach (see note 1). In addition, the 180,000-member CU has moved to an online opt-in form (ss #4). Previously, customers could only ask for someone to contact them (ss #6).

Truliant has considerably simplified the landing-page message. In May, it offered a credit line option in addition to the simple $29-per-item system (ss #6). Apparently, that wasn't working as well as hoped. Now, members clicking on either the homepage or login-page promo receive a short, semi-urgent message (ss #3) that links to the online opt-in form.

Analysis: While I think the CU does an adequate job explaining the new opt-in options (see note 2 for suggested improvements), I'm disappointed it moved away from giving the credit line option equal billing. With an APR of 6.5% to 11.5% and no transaction/advance fees, it's a much more cost-effective option (note 3).   

1. Truliant FCU homepage visitors receive a large homepage pitch to opt-in for overdraft protection (10 June 2010)
Note: It must be a brand new banner since the underlying hyperlink, after the ads have cycled once, has a typo causing it to lead to an error page (9:25 AM PDT)

2. Overdraft protection message on login page (link, 10 June 2010)

3. Landing page (link, 10 June 2010)       4. Opt-in form (link,10 June 2010)
Click to enlarge                                           Click to enlarge

5. Previous login page had two ads for OD protection (20 May 2010)

6. Previous landing page included a line-of-credit option (link, 20 May 2010)
Note: In May there was no online opt-in form; interested members could only select a "contact me" button. The landing page now links to the form shown in #4 above.

Notes:
I hate singling out Truliant for this post. It has one of the best blogs in all of banking that does a great job educating and connecting with members. And because the CU has done a decent job with the overdraft opt-in process, I'd give it a B or B- grade. But my job is to look for potential improvements, so here goes.

1. Is making members afraid of using their Truliant debit card really a good way to endear them to the brand? Sure, the ads are likely to produce clickthroughs and they definitely don't cross over into the misleading category, but is there a little "crying wolf" here? Something to think about.

2. Other suggestions for improvement:

• The three choices on the online form are not as clear as they could be. The most popular choice, number 2, has both a YES and NO in it. That's the kind of wording that gives your members a headache. It would be far simpler if you just asked customers to tell you which types of transactions they want covered:
     A. Paper checks and automatic drafts (yes/no)
     B. Debit card transactions that don't require a PIN (yes/no)
• The landing page confuses the matter by using three different terms (debit without PIN, debit, and signature debit) without providing a detailed definition. At minimum, a link to a clear definition of the term should be included.
• The landing page says you have to "opt in again by August 15." That sounds like I need to do something now and something again later this summer.
• The "nightmare" scenario presented on the landing page, being denied at the grocery store POS when you have a hungry family to feed, is a good example of the downside of not electing to have debit-card OD protection. And even though the $29 charge is mentioned in the previous paragraph, members skimming the landing page may still not understand it will cost them $29 to avoid this embarrassment/hassle. I'd go overboard here and place an asterisk by this line and disclose the $29 fee again in fine print at the bottom.  

3. If the problem is that it's too hard to qualify for the credit line, the CU should consider a higher-APR and/or more-fee version for riskier members.

Full disclosure: I’ve always liked sweepstakes. Even though I’m a Diet Coke addict fan, I’ll gladly grab a different cola if it has an “instant win” cap. It’s like a free lottery ticket.

So when banks try to save a few coins switching customers over to estatements, I think it’s the perfect time to give some of it back in the form of a sweepstakes. You’ve created a little excitement in online banking and likely made it all back with a lift to the estatement response rate. ING Direct, Chase and many others have taken this approach in the past (previous coverage).

Wells Fargo’s current sweeps is pretty straightforward (link to details). For every account switched to paperless statements, customers get one entry in the sweepstakes. Ten customers will win $2500 each and one will get $25,000. A relatively small, but effective $50,000 prize pool.

The contest runs from April 12 through June 4.

Login splash screen (interstitial) (19 May 2010)

Landing page after choosing “Switch now” above
Note: Link to View Samples (see below)

Sample statement (click to enlarge)

Although it usually takes me 40 pages or more to get my points across in Online Banking Report, I am a strong believer in succinct online copy. I especially love online pitches that take no more words than Google’s homepage (the gold standard).

Today I found a great example after logging out from my PayPal account:

You are Pre-Approved to use Bill Me Later!
One Click. Two Questions. No Third Degree.

Choose Bill Me Later when you checkout with PayPal.

20 words. Point made. Give the copywriter a bonus.

PayPal’s logout pitch (14 May 2010)

Landing page (link)

Note: I’m counting Bill Me Later as one word since it’s a brand name.

If you've read Netbanker for awhile, you already know that I'm a little obsessed about the lack of imagination most financial institutions display when it comes to dressing up their websites for major holidays.

It's not that big a deal, but still, unless you are purposefully trying to project an image from the late 1990s (maybe not such a bad idea for many banks, given the current backlash), you might consider investing in a few graphical tweaks to keep up with other Internet retailers (see our Dec. 24 post).

Today, while looking for mobile banking examples, I happened across Amplify Credit Union, one of my favorite examples of financial marketing. They didn't have mobile on the homepage, but they were sure decked out for Valentine's Day, which is just 48 hours away.  

The CU not only swapped out their normal background graphic on its homepage, but also sweetened its logo with a heart, ala Google, and changed its tagline:

From: Bank Less. Live more.

To:    Bank less. Love more.

These are three alterations I've not seen from a financial institution. In addition, the Valentine's theme was carried out with:

• Red shading to the sides of the page, providing a very professional finish
• A "share the love" promotion for the CU's $25 refer-a-friend promo

Overall, it's very clever and supports the credit union's innovative brand image.

Amplify CU altered its homepage and logo for Valentine's Day (12 Feb. 2010)
Note: Pause button in upper-right keeps the promotion from automatically cycling to the next one.

Share the Love landing page (link)

One of the lasting benefits of the Internet is it's ability to quickly rally resources. The latest proof point: raising funds for Haitian earthquake relief. The big Internet companies, such as Amazon, Google, Bing, Craigslist and PayPal, post links almost immediately to provide site visitors with a trusted path to donate funds (see screenshots below). 

Consumers trust those companies and visit frequently, so it's a great way to raise awareness and funds. But there's another group of Internet powerhouses that historically have not participated in Web-based fundraising: financial institutions.

Even during the New Orleans flooding in 2005, we found only three top-50 banks linking to the Red Cross. It's not a whole lot better this time. But one major bank, Citibank, has a homepage link to earthquake relief (screenshots below). Also, we found two other top-50 banks with homepage links: Astoria Federal and Webster Bank (see screenshots below). None of the largest 10 credit unions had links up on Saturday.

Several major banks, such as Wells Fargo and Chase, have homepage references to their own donations, but no way for their customers to participate directly. 

Online bill-pay fundraising
Another welcome addition to bank-enabled fundraising was launched by Online Resources just two days after the earthquake hit. The bill-pay provider created banners and splash pages for its clients to use in publicizing the availability of bank bill pay for use in donating to the Red Cross (see inset right and top of the page; link to ORCC page with examples).

As of Friday, ORCC had commitments from about 10 clients to participate in the effort.

Mobile fundraising
It was also interesting to see the role mobile is taking in the current crisis. Websites and television networks have done a great job publicizing a simple way to donate $10 to the Red Cross: text "Haiti" to the shortcode 90999. Once you authorize the transaction via a return text message, $10 is automatically added to your mobile phone bill. The service is powered by mGive, a nonprofit based in Colorado. In a Friday blog post, the organization said $8.5 million had been raised so far, a number likely exceeding $10 million by now.

Banks with links: Citibank, Astoria, and Webster Bank (18 Jan. 2010)

 Links for Haitian relief at Google, PayPal, Amazon, Craigslist, and Microsoft Bing (18 Jan. 2010, 11 AM PDT)

Would you like your bank statement to be more interactive? Cardlytics is betting you would. The company's patent-pending technology allows merchants to present their customers with rewards and incentives for shopping with existing bankcards, without needing extra coupons or promotional codes.

But the clever part is that the incentives are placed directly in the customer's online bank statement. The consumer can activate an offer by clicking on it and then using their card at the merchant. No coupons necessary.

Here's how it works:

(1) Bank clients log into online banking. The bank statement includes special offers based on the client's previous spending. As shown below, offers are presented next to the transaction record:

(2) To get more information, users click the expand link.

(3) Accepting the offer activates the promotional deal.

(4) Once the promotion has been activated, the cardholder simply uses the associated debit or credit card at the merchant. The reward dollars are then automatically credited to the account at the end of the next month. Nothing needs to be printed or carried to the store.

(5) Qualifying transactions are instantly confirmed in the consumers' online banking statement.

Analysis: The Cardlytics system is a useful tool for banks seeking to develop incentive programs. According to Cardlytics CEO Scott Grimes, consumers in the current economy are no longer buying into the "pay for it later" mentality fostered by credit cards, making this the perfect time for banks to provide debit card incentives. Merchants fund the rewards in exchange for the highly targeted advertising.

The appeal for the merchants is obvious. They are able to make highly targeted offers directly to customers of their competitors. In the example above, McDonald's places its famous Golden Arches in front of a Burger King customer. That's a definite score.

As a result, more than 50 national retailers have signed up for the platform.

One cautionary note: Will Burger King customers feel they've been sold off to McDonalds by their banks? It's a real concern. Customer education will be important so that consumers understand that no personally identifiable information is being released to advertisers.

The ultimate test for Cardlytics will come from the consumer. Will the Cardlytics program increase bankcard use? It might if the deals are attractive enough to change behavior. So far, the company reports positive results, with an average response rate of 15% and some going as high as 40%.

I'll be watching my bank statement.

Here are the screenshots that support our previous blog entry.

Holiday Promotions and Themes from Top-20 Banks

5. PNC Bank (22 Dec. 2009)

Landing page <pncchristmaspriceindex.com>
Note: According to Compete, received 25,000 unique visitors in Dec. 2008

 13. TDBank (22 Dec.)
Note: The promotion was gone when we checked back today (24 Dec.)

Landing page

14. Citizens (RBS) (22 Dec.)
Note: The gift ad was gone when we checked back today (24 Dec.), but the free electronic calendar (to the left of the gift ad) was still running.

Landing page

15. Regions (22 Dec.)

16. Fifth Third Bank (22 Dec.)

17. ING Direct (24 Dec.)

20. Harris Bank (BMO)
Note: The points ad had been pulled down when we checked back this morning (24 Dec.)

Note:
1. Previous Netbanker December holiday-marketing posts (2007, 2006, 2006, 2004)
2. Rankings based on deposit on 31 Dec. 2008 (list here)

It's a bit of a holiday tradition at Netbanker (note 1), checking out the top-20 banks to see if they've upped their retail game during the year-end holiday period. Or at least pushed out a holiday greeting to visitors, such as Google's greeting to Gmail users yesterday (inset). 

It was pretty much business as usual at most large bank sites. The only top-10 bank with any major holiday message this week was PNC Bank, with its clever Christmas Price Index, which values the items listed in the 12 Days of Christmas song. The total this year: $21,500, up 1.8% over 2008 (press release).

PNC has calculated the price index for 26 years and displays a bar graph at their CPI microsite (below). It's been online for a number of years; we first blogged about it in 2004.

This year, we surfed the 20 largest U.S. banks on Dec. 22 and Dec. 24 (screenshots are in the next post; note 2). On the first visit, we found six top-20 banks with a holiday mention on the homepage (rank in parenthesis). We took a tour again this morning expecting to find a few more holiday messages. There was only one newcomer, ING Direct, and surprisingly, three of the original six had pulled down their holiday ads already. In all only four top-20 banks have a holiday message today (24 Dec., 9 AM Pacific time). 

December 22	December 24
5. PNC Bank	5. PNC Bank
13. TD Bank	15. Regions Bank
14. Citizens (RBS)	16. Fifth Third
15. Regions	17. ING Direct
16. Fifth Third
20. Harris Bank (BMO)

Luckily, an astute reader emailed yesterday to let us know that their bank was decked out in the holiday spirit, $2 billion (deposits) Union Bank and Trust (below) headquartered in Bowling Green, Virginia.

Union Bank & Trust (24 Dec. 2009)

Note:
1. Previous Netbanker December holiday-marketing posts (2007, 2006, 2006, 2004)
2. Rankings based on deposits on 31 Dec. 2008 (list here)

It looks like we are just days away from the launch of the first Geezeo-powered private-branded online PFM. Fifty-thousand-member Stanford Federal Credit Union, one of the first financial institutions in the world to offer Internet banking in the mid-90s, has been promoting the soon-to-be-launched personal financial manager for several months.

The service, called MyMo is currently in final testing with SFCU employees. It will run both online (screenshot 1 and 2, below) and through a mobile app (inset).

MyMo has been the lead story in the CU's in-house newsletter for two months running (see screenshots 3 and 4). In November, the service was said to coming "this month." Then in December, it hedged with a "coming soon" message. There's still no specific info on when MyMo will launch, but there's a promotion running on the middle of the SFCU's homepage and Facebook page (see screenshots below), so it must be soon (note 1).  

The future: While private-branded online PFM is not new, Bank of America has several million users of its Yodlee-powered solution, the concept appears to be gaining momentum. Intuit/Digital Insight are now powering hundred of FIs while Wesabe and Jwaala have also made in-roads into the CU world. We'll see lots of innovation in this area in the coming decade (see note 2).

1. MyMo desktop: Dashboard view (link)

2. MyMo desktop: Add a goal

3. SFCU's November 2009 newsletter (link)

4. SFCU's December 2009 newsletter (link)

5. SFCU homepage (17 Dec. 2009)

6. SFCU Facebook page (link)

Notes:
1. While I think it makes sense to run a teaser campaign for a new product, SFCU should provide more detail on when the service will launch and why it's been delayed. Members want the service to be fully tested, so they won't mind waiting a bit longer as long as the CU is upfront with them about the timing.
2. For more information on the PFM space, see our Online Banking Report on Personal Finance Features.

These days, most major banks and credit unions do a pretty good job of exposing their various products and services to website visitors. But when it comes to actually moving visitors through the sales process, it's a mixed bag. The best have account selection tools, online applications (see note 1), readily available help, good benefits-oriented copy, and so on.

But you still won't mistake banking sites for a retailer. Most banks still assume that visitors are already familiar with their brand and are predisposed to buy. While that thinking works fine with walk-in traffic to bank branches, on the Web it's a different environment, with near-infinite choice.

You need to quickly impress visitors, then provide incentives to get them to take action. I always go back to the AIDA framework from Marketing 101: Attention, Interest, Desire, Action. Many financial sites are effective only for consumers already ready to take action. They are missing crucial financial AID (sorry for the weak effort at banking humor).

HSBC diverts customers to a lower-cost checking account
However, there are many exceptions. For example, HSBC's U.S. website. The site really sells. There are dozens of little things they do right, and a few that could be improved, but here's something I've not seen before.

When looking at checking account options, I clicked on the Basic Banking package. Instead of telling me about the account, I was greeted with a popup, on top of the grayed-out screen, explaining how I could save the $3 per month charge by choosing Choice Checking (see screenshots below).

I never thought I'd see a major bank, or large retailer for that matter, trying to push me into a lower-cost option (see caveat below). But it makes a ton of sense. HSBC knows that most website visitors are expecting a no-monthly-fee checking account. So why not direct them that way instead of just hoping they find it before heading off to ING Direct or other online options?

But I wonder how many visitors are happy with this recommendation? Choice Checking is only conditionally free (which is disclosed in the popup). The account has a direct-deposit or minimum balance requirement to avoid the $8 monthly fee. Customers unable to muster those hurdles would be better off with the account they were originally looking at, Basic Checking. And, many visitors, especially outside the branch footprint (note 2), might prefer the Online Payments Account from HSBC Direct.  

Only HSBC knows whether the end results are positive, but it's a great marketing technique regardless. 

HSBC Basic Banking landing page (8 Dec. 2009)

Landing page for "lower cost" option
Note: It's only free if you have direct deposit or maintain a $1500 combined balance (highlights below are mine).

Notes:
1. For more information on the online sales process, see Online Banking Report: Online Account Opening.
2. We have several HSBC branches in the Seattle area, so the results of this cross-sales experience could have been different if I'd been searching from a different IP address. It's possible they had a cookie on me from present visits as well.

With growing debit card usage, and few rewards programs with meaningful payment bonuses (note 1), the market seems right for a focused debit-card-rewards provider.

But the market has not evolved as fast as many thought. Capital One threw in the towel on its decoupled debit rewards program. Finovate alum (video here) Tempo Payments is refocusing on affinity-branded cards, which often have a reward component paid for by the affinity partner.

But a new entrant, PerkStreet Financial (powered by The Bancorp Bank) may have the right answer: reward levels on par with credit-card programs, 1% of spending value, 4x the average debit card program (note 1). The company emphasizes rewards paid via free coffee (nice tie-in to the name), music downloads (going after the youth market), or gift cards from name-brand retailers (adds retail interest to the account). See the first screenshot.

But with lower interchange, and no monthly fee (note 2), how can a bank afford such high rewards?

• No branches
• Rewards paid out on retail stored-value cards which are provided to the bank by retailers at prices less than face value
• $30 overdraft charges (but it's OPT-IN optional)

$50 new-account bonus: If you navigate directly to the website, there is no new account bonus (see screenshot 2). But if you use Google, it's hard to miss PerkStreet's ad (screenshot 3) or the affiliate deals. Going to the site through those options earns you a $50 bonus (screenshot 4), and in the case of the Google ad, an additional $50 qualified satisfaction guarantee (screenshot 5). 

1. PerkStreet perks page (link; 2 Dec 2009)

2. Standard homepage with no offer, emphasizing free

3. Google search for "PerkStreet Financial" (2 Dec 2009, 5:30 PM Pacific from Seattle IP address)

4. PerkStreet homepage accessed via affiliate (Doughroller link)
$50 bonus with $25 opening deposit and three months of activity

5. Landing page offer (link, 2 Dec 2009)
$50 bonus now with direct deposit, and $50 more if not satisfied within eight months.
To qualify as not satisfied, you must have set up direct deposit within 60 days of account opening, made 10 or more debit transactions per month for six straight months, and have closed your account within eight months of opening.

Notes:
1. According to the fine print disclosures on PerkStreet's homepage, 17% of debit cards provide rewards with an average value of 0.23% of spending (source cited: BAI/Hitachi 2008 Study of Consumer Payment Preferences).
2. The account has a monthly fee ($4.50) only if there is no activity.

As a followup to our pre-Thanksgiving post, here's what the ING Direct website looked like on Black Friday (the day after Thanksgiving).

ING Direct Black Friday homepage (27 Nov 2009, 1 PM Pacific)

Black Friday deals landing page <ingdirect.com/blackfriday>
Note: All the "Learn more" links went to the regular product pages

ING Direct wasn't the only one with a Black Friday promotion (yesterday's post).

Portsmouth, NH-based Service Credit Union also took advantage of the U.S. vacation day to promote a special 10% APY 3-month CD ($1,000 max deposit) and 1% off loan rates (promo page). But unlike ING Direct, the CU's special offers were redeemable only in its branches, which opened at 5 AM to mimic giant retailer early-morning specials.

The offer was promoted in a rotating banner on the homepage (see inset and screenshot below). And it had its own landing page (see screenshot below).

I like the creativity, so I'll give them an A for effort. But seriously, opening at 5 AM? Maybe they were hoping for PR exposure, but it's just not right (note 1). I understand (sort of), heading to Best Buy in the middle of the night to save a couple hundred on a TV. But who would go to their bank at 5 AM to make an extra $20 on a CD (note 2) or apply for a car loan (note 3)?

But there was one offer in the fine print that was more valuable for a typical Black Friday shopper, fee-free gift cards until noon. Although, I'm not sure why they limited the number to five per customer. 

Hat tip: Bank Deals blog

Service Credit Union Black Friday promo page (link, 27 Nov. 2009, 9 AM Pacific)

Service Credit Union homepage

Notes:
1. Now if you have in-store branches, it's another matter. Desert Schools FCU opened its 24 WalMart branches at 5 AM along with the retailer.
2. Extra interest on a $1000 CD for 3 months is about $7 per month, or $20 total. And that's before tax.
3. The almost unreadable type on the bottom of the small banner mention great prizes and giveaways, but the landing page makes no mentions of prizes. Now, free stuff would make it worth a trip to the branch, so I wonder why the CU didn't mention that on the promo page? Maybe they didn't want people to show up only for the prizes? 

Rarely does ING Direct disappoint when it comes to adding a little holiday pizzazz to its website. And it's no turkey this year.

The bank's homepage is given over entirely to a flash animation that starts with its trademark orange ball rising over a cityscape. Then a decked-out turkey joins the scene and its revealed that its a play on tomorrow's NYC Thanksgiving Day parade balloons.

But the more interesting development is the small orange "Black Friday" sale tag in the upper right corner (see inset). ING Direct has four Black Friday specials that will be revealed at one past midnight this Friday at <ingdirect.com/blackfriday>.

We are sworn to secrecy on two of the deals, but we can tell you that there will be a $683 discount (the average amount American's spend on holiday gifts) on ING mortgage products (currently 3.75%) and a 20% off ShareBuilder deal.

The Black Friday tease was also emailed to ING Direct customers this morning (see inset).

My take: The Black Friday promotion, which is being pushed out to media outlets in advance of Friday, is brilliant. It plays perfectly into the more-conservative budget mindsight in the country and gives the press something else to write about beside the long lines at Best Buy at 4 AM Friday.

Grade: An A+ and an extra helping of sweet potatoes to ING Direct for both timing and creativity.  

In a quick survey today of the 25 largest retail banks, three others had holiday promotions or themes: 

• Zions Bank had a traditional Thanksgiving message on its homepage (see below)
• Wells Fargo has a low-key bill pay message in a holiday theme (see below)
• Comerica and Fifth Third Bank had holiday-shopping messages

ING Direct (USA) homepage (23 Nov 6 PM Pacific)

ING Direct black friday landing page (25 Nov 2009)

Zions Bank homepage (23 Nov 7 PM Pacific)
Note: Trusteer promotion on homepage

Wells Fargo homepage (25 Nov 2009, 1 PM Pacific)

Note: For future reference, this post was made on the day before Thanksgiving.

The latest Advertising Age profiles the 40 hottest brands in the United States. In the current climate, I wasn't expecting to see a financial brand. But there was a one financial tech company that made the list.

Intuit's TurboTax. It even made the cover photo montage (see inset), although you have to look carefully to see the box laying flat in front (note 1).

Who would have thought tax prep software could be cool? Part of the reason: TurboTax's marketing VP, Andy Young, has been pushing the envelope looking for novel ways to market tax prep services. For example, last year TurboTax was the first company to use a Google program that displayed an Intuit tweet stream on AdSense partner sites such as Facebook, MySpace and VentureBeat (see screenshot below from our previous post). Clickthroughs went to Intuit's Twitter page, rather than its main website (note 2).

And things were clicking last year for TurboTax with 11% growth to 18 million units, despite an 11% decline in boxed-unit sales. The growth driver? Online of course, up 36% year over year.  

Implications for FIs: Banks have driven users to TurboTax for years earning a slice of revenue under affiliate deals. But the potential to provide TurboTax services is set to grow exponentially.   As announced in September's Finovate, tax prep/TurboTax will soon be integrated directly (e.g single signon) in Digital Insight's FinanceWorks. 

VentureBeat home page (9 April 2009)

Note:
1. I might have missed the TurboTax box, because I was too fixated on the Five Guys cup on the left, which is coming to Seattle very soon.
2. For more info on leveraging Twitter, see our report published in May, Online Banking Report: Connecting to Customers with Twitter.

Bank of America's latest online effort is a personal finance educational site at <learn.bankofamerica.com> that includes consumer polls, money savings tips, videos and articles. Bank products are sprinkled throughout but the marketing is relatively restrained.

It's a solid effort. Good, concise copy married to an attractive graphical layout. And for a bank the size of Bank of America, it makes perfect business sense. The site moves a little product, builds the brand, shows off the bank's consumer-friendly side, provides material for PR campaigns, and gains some CRA credit (note 1). 

But I'm not sure how much usage it will get other than the curious driven to it from banners within online banking. That's how ended up there today after paying my BofA credit card bill online (see second screenshot below).

Given Bank of America's 30 million online banking customers, they must not be driving much traffic to the site yet. According to Compete, traffic surpassed 100,000 for the first time in October. July was the first month that traffic was registered at the site.

Unique monthly visitors to BofA's personal finance tips site (July through October, 2009)

Source: Compete

Other than enabling an RSS feed for article updates, the site has no Web 2.0 or social media features. No blog. No forum. It's just a very pretty face on personal finance 101 material. It will be interesting to see where they take it.

Learn.BankofAmerica.com homepage (link, 13 Nov. 2009)
Note: I completed the poll on the middle of the page, so the results are shown rather than the poll question.

Logoff screen (13 Nov 2009, 3 PM Pacific)

Note:
1. CRA = Community Reinvestment Act which requires banks to help meet the financial and credit needs of low- to-moderate-income consumers.

The ink's barely dry on the news that ING Group will divest its U.S. bank, ING Direct, within the next 48 months (note 1), when someone else has already launched a direct bank with a distinctive orange theme (note 2):

The new brand: Incredible Bank from River Valley Bank, an 18-branch, $900 million (assets) bank headquartered in Wausau, Wisconsin.

The strategy: Like the original orange bank's Electric Orange account, Incredible Bank offers a high-yield checking account, currently paying 2%, that's 100% electronic. No paper checks (note 3), no paper statements. And unlike the hundreds of rewards-checking products, this one comes with no strings attached. The full rate is paid on all balances up to $250,000, then it drops to 1%.

Other account features:

• Debit card
• Free online bill pay
• Unlimited ATM reimbursement
• Overdrafts are $34 each with max 10 per day
• Incoming wires are $5 each, outgoing are $20
• Mobile banking (which is highlighted on the home page, see below and note 4)
• ACH in/out (coming soon)

Analysis
I've always wondered why, other than ING Direct and Kiwi Bank, only the U.K. direct banks seemed capable of a light-hearted brand positioning online (see update below). While we've seen many good social media and microsite efforts using humor, few financial institutions have dared use this approach on their core websites. Leave it to those spirited cheeseheads in Wisconsin to break the mold finally (note 5).

Initially, it's the 2% rate that will bring cash to Incredible Bank. But longer term, for any direct bank to add value to the parent's franchise, it must create loyal customers who won't bolt to the next newcomer offering a 15-basis-point rate advantage. This is a good start for River Valley, but they'll need a lot more than this bare-bones website to create long-lasting relationships.     

Hat tip: Bank Deals blog.

Update 9 Nov: The Financial Brand's Jeffry Pilcher reminded me of two good U.S. examples, GMAC's Ally Bank and (how could I forget?) Redneck Bank.

Incredible Bank homepage (9 Nov 2009)

Notes:
1. In his Retail Delivery presentation, always one of the highlights of the show for me, Second Curve principal Tom Brown said ING Direct would be an attractive acquisition for any number of deposit-seeking large financial institutions; however, he did not name any.
2. Full disclosure: I have a strange weakness for the color orange, perhaps the result of many trips to Florida as a child. So, take anything I say in this post with a huge grain of salt. 
3. Normally, I think paper checks should still be made available, even if they are discouraged with fees. However, in cases where the direct brand will cannibalize deposits at the parent, it can make strategic sense to cripple the direct brand's checking account in this way. That way, fewer River Valley customers will simply move their entire checking account over.
4. The bank has created a mobile site with shorter URL: ib4you.com. 
5. While Incredible Bank is quite different, the main River Valley Bank brand remains typically conservative, at least in its online presence. They don't even dare mention the Incredible brand anywhere on its website.
6. See our Online Banking Report: Growing Deposits in the Digital Age for a dozen more strategies.

Seth Godin is a true marketing guru. And unlike some authors, he also practices what he preaches.

Case in point: At 10:49 AM Eastern today, he announced via post on his blog that he was selling a special boxed set of five of his books (here):

• Limit one per customer
• 800 total sets, with no more to be printed ever
• Price = $64 + $10 shipping
• Payment via PayPal only.

By 1 PM, when I ordered, only 176 remained. By the time I returned from this afternoon's BAI Retail Delivery program, they were all gone (note 1).

And of course, I received a clever thank-you note from Mr. Godin a few hours later (see below).

Relevance to Netbankers: This doesn't really have anything to do with financial services other than being one more bit of evidence of PayPal's ubiquity online. This is just a great example of how to create retail excitement with a combination of clear value, simple check-out process, a nice webpage (see screenshot below), and a blog entry. It's more challenging to do it in financial services, but it is possible. 

Seth Godin's webpage sold a limited-edition box set for a few hours (link, 3 Nov. 2009)

Thank-you email (three hours after purchase)
Apparently, part one in a series

Note: If you must have it, there's one up for auction on eBay. Starting price $1.

This is one of the most valuable freebies I've ever been offered simply for being a customer. Bank of America online banking customers, new or existing, are being given a one-year free subscription to McAfee, worth $70 at retail.

The fine print is relatively clear (reprinted below, after the screenshot). The main "catches:"

• Must not have a current McAfee subscription (see Results below)
• The subscription auto-renews at $34.98/yr, a 50% discount
• While in progress, the BofA offer never mentions number of users covered (the normal $69.99 subscription from McAfee covers three users, see note 1); however, during checkout, after accepting BofA's offer, the product description confirms three users are covered with the subscription

Bank of America is also publicizing the offer on its main website (here). To accept, users must log in to online banking first.

Results: I signed up for the account this morning and was surprised to find that you are not required to use Bank of America for payment. In fact, BofA is never mentioned again after leaving the original landing page (see second screenshot). The McAfee cart offered the usual choice of Visa, MasterCard, American Express, PayPal and others. 

Opportunity for financial institutions: Assuming you can swing a deal with McAfee that requires no out-of-pocket expense, offering your customers a year's worth of anti-virus protection is a win-win. The primary downsides are a few extra calls to customer service and a few irritated existing McAfee customers who do not qualify for the freebie.

Bank of America logout screen (21 Oct 2009; 7 AM Pacific)

Fine print on bottom of page above:
This exclusive offer is available only to Bank of America Online Banking customers. Online Banking customers receive McAfee Internet Security for PC free for 12 months, a $69.99 value. At the end of the 12-month period, Online Banking customers are eligible to renew for another 12-month period at 50% off MSRP or $34.98. Customers with a current McAfee subscription are not eligible for this offer. Bank of America reserves the right to modify this offer and eligibility requirements at its discretion.

Landing page (link)

Same offer on BofA website (link)

Notes:
1. The service is currently offered at a discount at Intel's software store for $32.95 for one year for three users. Intel's offer was positioned via paid ad at the number-one position on a Google search for "McAfee Internet security."
2. For more information on online banking security, see Online Banking Report: New Security Techniques (Sep 2008)

Isn't business banking supposed to be all about the people? Then why don't financial institutions use their websites to publicize their business banking talent? None of the several dozen business banking sites I recently reviewed allows prospective business clients to connect with an actual human being in advance of calling or emailing a general number for more info.

The only bank I'm aware of that actually puts its business bankers on its website is Cascade Bank headquartered in Everett, WA, a few miles north of Seattle. The bank has posted the following info for years (see screenshot below):

• Headshot
• Name, title, location
• Short mission statement/bio (note 1)
• Phone number and email address

That's a respectable start. But with today's virtually free Web-based tools such as Twitter, blogs, and Linked:In (note 2), every business banker should have their own online presence. Sure, the bank or credit union will need to provide guidance and oversight, but it's not like these sales folks don't know how to put their best foot forward.

Cascade Bank Commercial Banker Directory (link, 20 Oct 2009)

Notes:
1. Unfortunately, the bio area is blank for 3 of the 12 business bankers listed. That looks pretty bad, especially with 2 of the first 3 blank. Come on Lar, Cynthia and Patrick, get those bios over to marketing ASAP.
2. Those Cascade listings would look much more impressive with Linked:in links by each name.

Most major financial institutions have been pushing estatements for several years (see previous coverage). The appeal of shaving $10 to $20 off the annual servicing cost for every account is an attractive payoff.

Yet, you rarely see estatement appeals elevated to the homepage. BB&T bucks convention with this attractive graphic with the big-three benefits: security, convenience, accessibility (see first screenshot). The green button leads to a landing page reiterating these three benefits plus adding the environmental message.

Bottom line: It's a good, educational effort. But with most consumers already aware of online statements, there's little motivation to change something that's worked fine for the past 10, 20, 30 or more years. 

If you are serious about reducing paper and postage expense, give your customers a reason to change their behavior:

• Low-cost gifts, such as a pair of movie tickets, 2-for-1 meal, $10 Starbucks card, etc.
• Sweepstakes (one-time or ongoing; see Wells Fargo example below)
• Extra online services such as increased archives or an electronic vault
• Enhanced security guarantee
• Discounts on other services

But whatever you do, don't introduce a fee for paper statements unless you want to get T-Mobiled.

BB&T homepage promotes online statements (7 Oct 2009)
Access via Seattle IP address; we do not have any accounts at the bank

Landing page (link)

Wells Fargo $60,000 estatement sweepstakes landing page (link)

Note:
For more information, see our Online Banking Report: Lifetime Statement Archives (June 2005)

Logging out from my Bank of America credit card account (both personal and business accounts), I was greeted with this pitch for the bank's small business community (see first screenshot). The pitch is straightforward and emphasizes three benefits:

• Get answers to your business questions
• Exchange ideas with other entrepreneurs
• Free

Clicking the red Join Today button drops users onto the Forums page at the small business site (see second screenshot).

Bottom line: The logout effort is a good brand-building exercise for Bank of America, and it should drive much-needed traffic to the site. According to Compete (see chart below), in August the small business community site had an estimated 70,000 unique visitors, two-thirds more than the 40,000 a year ago. But traffic was down almost a third from the springtime peak.

Bank of America logout screen (23 Sep 2009, 4 PM Pacific)

Landing page (link)

Compete traffic estimates, Aug 2008 through Aug 2009 (link)

Evidently, there is still a disconnect between the print and online advertising groups at major advertisers.

Case in point: American Express kicked off a new campaign (press release) with an impressive full-page ad (p. A9) in Tuesday's WSJ (see inset) and other print media (note 1). It was a timely ad, playing on money fears and overall security concerns. It concluded with the company's new tagline:

Don't Take Chances. Take Charge.

The call-to-action uses a new URL <takecharge.com> that leads to a new microsite (see second screenshot below). Wanting to look at it, I did what I always do, typed "take charge" into Google. Nothing (see first screenshot). I even Binged it. Again, nothing. Searches at Twitter and Facebook also came up empty. Even at American Express's own website, site-search results do not include the microsite (note 2).

It's hard to understand why AmEx would spend millions on a new campaign and microsite without Google AdWords support to help people find it, at least until the microsite starts appearing on the first page of search results (note 3).

But after looking at the Take Charge microsite, I can see why the company might not be ready to direct search traffic there. The site is a good example of what NOT to do. The Flash-based site is slow-loading (note 4) and sparsely filled with ten testimonial videos (notes 5, 6), a list of seven benefits for using a charge card, and a couple links out to the main AmEx site.

So far, the microsite looks like a pure branding play. There's little there that would motivate someone to apply for a card on the spot. But with millions being spent on other media using that URL, it seems like a wasted opportunity, so far. It will be interesting to watch it evolve.

Google search results for "take charge" (9:30 AM Pacific, 1 Sep 2009 from Seattle IP address)

AmEx Take Charge microsite (1 Sep 2009)

Notes:
1. Here's the initial media buy according to the company's press release:

The marketing campaign launches (Sep. 1) with print advertisements in national newspapers, including The Wall Street Journal, The New York Times, and USA Today. On September 2, print advertisements will run in major regional newspapers, including Boston Globe, New York Post, Los Angeles Times, San Francisco Chronicle and the Chicago Tribune. Television advertising will begin to air on major broadcast and cable stations such as CBS, FOX, NBC, TNT, A&E and the Discovery Channel breaking during the U.S. Open on September 5.

2. The search results do provide relevant links, just not to the microsite.
3. I haven't tested it on other computers, but AmEx's TakeCharge.com site just about brings my 3-year-old Thinkpad to a grinding halt. It's not a good first impression. The company either needs more server bandwidth or a less demanding page, or preferably both. There should also be a link to a lower-bandwidth version.
4. Currently, the AmEx site does not come up within the first 10 pages. There's also a remote possibility that Google won't let AmEx use "take charge" in search ads due to the similar-sounding TakeCharge Financial. But I have to think AmEx lawyers have worked through that issue already. 
5. There are small "apply now" links displayed at the end of each video.
6. Once it loads, the site is visually interesting (see screenshot above).

One problem with most websites, as compared to the offline world, is that they are relatively static experiences. Unless you are already familiar with the brand, you don't know if you are the first visitor this year or if 10,000 others are banging away on the servers right now. There's no online equivalent to the "line out the door" that signals you arrived at a popular restaurant or night club.  

That's why I like online tickers that show user activity. In financial services, the best example, active for many years, is Progressive Insurance's scrolling window of rate quotes (see inset). Geezeo, Zillow and ING Direct (see note 1) have also used the technique (see previous post).

And just this month, two financial providers added similar tickers to their homepages:

• BillShrink: The personal finance tool, and FinovateStartup 2009 Best of Show winner, shows potential savings in its "live feed" in the middle of its home page (screenshot below).
• MoneyAisle: The online deposit auction site, and Finovate 2008 Best of Show winner, scrolls auction results with a 15-minute delay (screenshot below, see note 2)

Both newcomers have neglected to "time stamp" the activity to demonstrate how recent it was. That's an important aspect for credibility.

BillShrink homepage with Live Feed (16 July 2009)

 MoneyAisle's Live Ticker was recently added to its homepage
(16 July 2009)

Progressive's Rate Ticker (16 July 2009)

Notes:
1. Behind the login screen, ING Direct used to have a counter showing the total amount of interest paid to depositors. But it was discontinued last year at about the $9 billion mark. 
2. Industry participants can purchase MoneyAisle's real-time deposit pricing data stream for $1,500/year (here).

Business runs in cycles and right now many of the large financial brand names are a bit tarnished. Over the next few years, we'll likely see community banks and credit unions turn up the volume on marketing campaigns emphasizing their low-key, low-risk community-based services.

We ran across this good example two weeks ago at $930-million (assets) Alpine Bank of Illinois. The bank uses a clever escape theme that should resonate with hard-core computer users and novices alike (see screenshot 1 below). The eye-catching banner sequence (see screenshot 1a) asks a serious of three questions, then culminates in an escape key (ESC) inviting users to click to a landing page with more info.  

Then on the landing page, the "Esc key" in the lower right (screenshot 2), takes users to an online Contact Me form (screenshot 3) that includes simple contact info to be used for a followup call or email (customer's choice). This is a nice high-touch alternative to regular online app, that can take 7 to 10 minutes to complete and are abandoned at alarmingly high rates (see note 1).  

Analysis: Overall, the campaign is clever and well presented (note 2). But the bank could make several landing-page changes (screenshot 2) to improve conversion rates: 

• Increase the visibility of the $25 account-opening bonus. It's currently buried in the first paragraph. I didn't even notice it until the third time we looked at the page (note 3).
• The account opening link on the landing page should be enhanced with one or more brightly colored Open Now button.
• While the "escape key" is clever, users may not realize that's how they are supposed to request more info. The bank should add a More Info button and/or add "more info" to the Esc key graphic.
• On the Contact Me form, their should be an Open Now button for users who decide they are ready to open immediately.

For more info on improving your online account opening results, see our latest Online Banking Report: Opening Accounts Online, published last week.

1. Homepage (16 June 2009)

1a. Homepage banner ads (they cycle through in this order)

2. Landing page (from homepage banner; link)

3. Contact Me form (link)

Notes:
1. For more info, see Online Banking Report: Opening Accounts Online, published last week.
2. One small nitpick on the design: The banner ads should only cycle one or two times per visit. There's no need to keep cycling the banner ads over and over, it's annoying for someone trying to find something on the homepage.
3. The $25 bonus does have a small banner on the homepage, lower right. But visitors attracted to the large escape banner could easily miss it.

Chase has great graphic design panache (see previous post here and here). As I was logging in to my account last week to see what the bank had done with a pesky $2 balance remaining from my payoff a month ago (see note 1), I was presented with an eye-catching offer to transfer a balance (see first screenshot below). 

The balance-transfer options weren't quite as enticing as they've been in the past:

• 0.99% for six months plus 3% balance-transfer fee
• 5.99% for a year plus 3% balance-transfer fee

This time last year, the 5.99% offer would have likely been for the life of the balance. However, under new regulations approved by Congress, where monthly payments must be allocated to the highest rates first, it no longer makes financial sense to offer a low rate for the life of the balance.

Note: Chase provided real-time chat support as I considered their balance-transfer offer (see second screenshot below).

Chase Bank's login interstitial (16 June 2009)

Chase offered online chat via a popup window

Notes:
1. Kudos to the bank for automatically eliminating the $2 in extra interest accrued between the day I paid my balance in full online (at the Chase site) and when the payment posted. When I logged in I was afraid I might see a $39 late fee on the $2 remnant balance. 

2. For more info on post-login marketing, see our recent Online Banking Report on Selling Behind the Login.

After viewing my credit card statement (personal and business) I was greeted with the following retirement planning pitch from Bank of America. I've recently seen similar banners on the bank's homepage (though not today).

It's not easy getting consumers interested in looking at their retirement situation when they are in the middle of an Internet session. There's always something more pressing or entertaining to be done than worry about some distant event. 

So it takes extra effort to entice clicks. BofA has a good approach. The "Stop Guessing About the Future" hook is a good way to grab attention. And the colorful slider-based tool is easy to use and, most importantly, takes only a few seconds to deliver some meaningful results.

1. Bank of America logoff screen (2:25 PM, June 16)

2. Landing page of promo (link)

The BofA tool uses a short bit of audio to get your attention and explain how to complete the short, five-step wizard. Users may turn off the audio using the button in the upper right. 

3. Step 1 of 5

4. Results page

• Calculates your "retirement number," the amount you need to have to bring your cash income during retirement to 85% of today's value (similar themes have been used by Wells Fargo (here) and ING (here))
• Shows range of possibilities based on a range of potential investment returns
• Has two handy boxes showing when you'll run out of cash and how much you need to add to your monthly savings to avoid that (also expressed in ranges)
• Action plan in the lower right leads to some suggested courses of action, that the bank can help with, such as rolling over a 401(k)

Note: For more information see our Online Banking Report on Selling Behind the Password, published in April.

Over the years, E*Trade has been consistently innovative in both product development and marketing, two areas that provide natural synergies. The company didn't disappoint with its latest missive to existing customers. 

An email arrived yesterday afternoon (Thurs., 11 June 2009) and immediately grabbed my attention with its clever and timely subject line:

Re-plan Your Retirement with E*TRADE and Get Up to $500

Analysis
One thing I've heard consistently from my friends, no matter how secure their jobs, is that they will "be working forever" now that the Great Recession has slammed their net worth with the double whammy of a bear market and home-price declines.

So this is a great time to get in front of customers with new efforts to help them re-plan retirement with new investment ideas, asset rebalancing and just a general reboot of their portfolio. And it's also an excellent time to discuss 401(k) rollovers, as E*Trade did in this message, with an "up to $500" (see note 1) incentive to roll over a retirement account to the company (see landing page, third screenshot below). As Americans change jobs by necessity, there will be millions of retirement accounts in play. 

Security features in email
E*Trade also demonstrates another best practice to improve trust in customer emails: personalization. The company includes customer name and last four digits of their account number to help distinguish the message from fraudulent phishing attempts. E*Trade draws attention to the feature with a Security Enhanced icon on the top-right (see first screenshot below).

Clicking on the Learn More link drops readers to the bottom of the email message where product URLs provide direct-navigation alternatives to paranoid readers (see second screenshot below). I hadn't seen that before, a nice touch.

E*Trade email promoting 401(k) rollovers (received 11 June, 3 PM Pacific)