Some of the features built into financial websites are at least as much for show as they are for actual customer utility. Podcasts probably fall into that category. Really, who wants to listen to a bank's four-minute treatise on "home loan jargon" or nine minutes on "paying off your home loan sooner" (see screenshot below)? The answer: people serious about understanding the mortgage process and getting a fair price, an important market segment.  

Podcasts are just rebranded versions of streaming audio, a technology that predates Web 2.0, iPods, and even broadband. But today, the name has a definite cachet thanks to Apple, and they draw website viewers, and the occasional listener.

Because of the low cost and favorable ROI, it makes complete sense for financial institutions to repurpose marketing, service, and educational messages into audio files and post them to your website (see previous coverage here). Many of the programs will have a multi-year shelf life, so over time they will get a significant number of plays.

While you are at, spend a few more dollars to do the things Australia's ANZ Bank did in their podcast microsite at <anzpodcasts.com.au>, the best banking audio education center we've seen.

• Create a microsite with fresh graphics and modern colors (see screenshot below)
• Use a unique URL to find the site, in this case <anzpodcasts.com>
• Allow users to subscribe via RSS and iTunes (see bottom of screenshot below)
• Make it clear that the "podcasts" can be streamed directly to the desktop, right now (see green play buttons below)
• Post a FAQ with more detail on the podcasts
• Post a survey to see how the podcasts resonate with customers

Finally, the most important way to leverage the podcast, something often overlooked:

• Post a transcript of the audio program so that those preferring to skim the information can do so

Note: The top background has moving bars that provide the look of music playing through a graphic equalizer or some type of meter. It's a nice touch, but the bank should turn it off after a few cycles so that it doesn't distract the viewer.

We are starting to see RSS feeds used at public financial institutions, primarily to keep shareholders up-to-date on new filings and press releases.

Consumer feeds are still relatively rare, but are growing quickly. By this time next year, we predict as many as half of all major U.S. banks and credit unions will be producing feeds as part of their online marketing mix.*

One bank in front of the curve is Beverly Hills-based City National Bank <www.cnb.com>. The bank has seven RSS feeds and three podcasts (see below). They've even added an RSS feed button on the bottom of most website pages (see End Notes). The podcasts are just read-throughs of the articles. That's OK, but the bank should let customers know not to bother subscribing to both. 

Newsfeeds
The newsfeeds are geared primarily towards business users (2 feeds) and shareholders (3 feeds), but there's also a Personal Finance feed and a Market Perspectives feed. The bank has published three Personal Finance articles so far: the first on Aug. 16; another two weeks later on Aug. 30; then, after a two-month hiatus, a third one today.

Podcasts
The bank is also podcasting more thoroughly than we've seen before, with not one but two monthly podcasts: personal finance and international business. The company also produces a weekly market perspectives podcast (see list below). Users can subscribe to the audio reports via a newsfeed (RSS) or directly into Apple's iTunes using the appropriate button.

*Preliminary forecast. See the final forecast numbers in our upcoming report, Online Banking Report #135, Web 2.0-itizing your Bank (to be published in early November).

End Notes (click on link below for more screenshots)

City National homepage includes links to newsfeeds (lower left)
Note also: link to remote deposit capture service (mid-page)

RSS page loads whenever clicking on an RSS link from another City National page (see RSS button in lower-right corner)

City National podcast directory (note the integrated iTunes button)

Podcast was voted the 2005 Word of the Year by New Oxford American Dictionary. That alone is enough to make it an interesting marketing technique, even though it's more associated with music than banking.

So far, two U.S. financial institutions have jumped on the podcasting bandwagon:

• The first financial podcaster was Stockton, CA-based Financial Center Credit Union <fccuburt.org>. Its rambling, 56-minute first effort, Personal Finance Tips, from CEO Michael Duffy, was posted on Apple's iTunes on August 30. The program is more philosophical than factual and sounds almost unscripted, as if the CEO just sat down and talked about whatever came to mind for an hour. It's hard to imagine anyone other than his mother or marketing manager listening to the whole thing. Since then, they've published two more installments of the series: a 31-minute Personal Finance Tips, posted Oct 17, and a nine-minute discussion of phishing and pharming on Dec. 14. The latter program, which did NOT feature the CEO, was a more appropriate length and dealt with facts and actionable information.
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  While the content is of questionable value, the website design is good, positioning the CU as hip and with it. The podcast series is entitled, Talkin' About the Benjamins, and features a clever visual of Ben Franklin with the signature Apple earphones on his head (see inset above left). The credit union has a link on its homepage to a dedicated podcast page (click on inset above for closeup) that explains how to subscribe to the series via Apple's iTunes site or to download directly from the CU site in MP3 format.
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• The first bank to post a podcast was UMB Bank <umb.com> out of Kansas City. The first of the three planned recordings was posted Dec. 5, The Ins and Outs of 401(k) Retirement Plans. The bank also makes its podcast available for free downloading at the iTunes store or directly at the bank's website. The recording is a question-and-answer session with UMB Portfolio Manager Casey Matthews. The UMB program is also relatively amateurish, with the participants nervously chuckling at their own jokes. At more than 24 minutes, it's too long, but for a listener with little knowledge of retirement plans, it's not a bad educational program.
  
  In contrast to the marquee placement of FCCU's podcasts, UMB bank buries the program in the middle of a long list of content within the News and Information part of the website (click on inset above for a closeup). This considerably diminishes the marketing value.

Analysis
The question isn't really whether to podcast or not, but rather whether audio/visual content should be added to your website. The answer to the second question is a resounding YES. It's time to leverage the high-speed Internet connections enjoyed by the majority of your customers with professional audio and video content. There are numerous programming tools that can be used; the most common is Macromedia FLASH, to develop good audio and video programming.

There isn't really a pressing need to provide the information in the proprietary iPod format. The number of users who will want to download your sales pitch and listen to it on the train ride home can be counted on one hand. However, given the hype surrounding everything iPod, it's not a bad idea to post your work as an iPod recording.

If you do end up with a podcast, keep these tips in mind:

• Keep it short and to the point: Strive for a tight, overall length of no more than 5 to 10 minutes. If the subject matter needs more time, break the broadcast into multiple parts.
• Make it professional: Listeners expect a degree of professionalism from their bank that they don't expect from other podcasters. If you can't afford to hire a pro to develop the program, try tapping into the eager broadcasting majors at a local university or community college. At the very least, develop a script and practice before broadcasting.
• Use a Q&A format: We like UMB's format, pairing an interviewer with a bank expert. Had they kept to the 10-minute limit, it would have been worth listening to.
• Lose the humor: Banking is serious. It's OK to use some humor in advertising and promotion, but a broadcast from the bank should not include any attempts at humor, and NO laughing at your own jokes.
• Post it at iTunes: Easily explain how to find it, so that users can quickly subscribe to future broadcasts.
• Most important, marry the audio broadcast with visual aids: UMB's 24-minute podcast on retirement savings would be much more effective with supporting visuals, especially as they run through several examples of after-tax returns of various investment options. A standard webcast using PowerPoint and an audio presentation would be far more effective, although less likely to land you a write-up in the local newspaper.

--JB

America Online’s Personal Finance area received a facelift this month. Buttons in the lower right corner access the three main financial institution areas: Banking Center, Brokerage Center and Mutual Fund. David Baird is GM Personal Finance, 703.918.2356.