This week, Banksimple, a US financial services platform, issued its first cards to its own employees as a first stage of their launch. This is an exciting development as Banksimple has the potential to encourage a wave of innovation in banking.
Technically, Banksimple is not a bank, but rather a front-end money management platform, that works with FDIC chartered banks to store their customers' money in the back-end. As a front-end platform, Banksimple is all about providing great customer service (think Zappos) through whatever channel is most convenient to their customers, from phone, mobile, chat, Skype, FaceTime or email, and eliminating all fees.
In terms of product features, Banksimple is initially focused on making sure their customers get the best deal possible, without having to think about it. In the background, customers will have checking accounts, savings accounts, loans, etc. However, Banksimple is all about using predictive programming to optimise the management of these various accounts, so that the Banksimple customer always has sufficient funds for spending, while getting the best possible interest rates.
Beyond this, Banksimple eventually plans to open their platform to application developers. This clearly necessitates a real focus on security and privacy, but could propel an exciting wave of innovation in money management and financial services.
At a time when banks are increasing their fees, and very possibly soon hike their interest charges, there might be an important place for Banksimple, as a commercial weapon for the consumer, in the financial services ecosystem. However, having just begun the first stage of their launch, Banksimple has a lot of work a head of it yet.
Sunday 22 May 2011
Monday 9 May 2011
Google to Pilot Discount/Loyalty Coupons for NFC
In an article from last Friday, Finextra reports that Google is teaming up with the French terminal manufacturer, Ingenico, to pilot a system whereby consumers can redeem discount/loyalty coupons that they have downloaded on their Android phone with NFC technology at POS.
Finextra, in fact, speculate that Google's much-talked-about NFC trials in NYC and San Francisco will be aimed at testing this system, and not the payments solution that has long been rumoured. They back this up with recently published research from Oracle saying that using multiple NFC read/write apps on a mobile will slow down the process and negate the key benefit of the technology.
Personally, I would be very surprised if this is the case and that Google will not roll out a payments solution shortly. Google has based its business model around organising the world's information and will definitely have recognised the power and value of transactions data.
The discounts and offers that they are working with Ingenico to execute might be what draws the customer to the merchant, but the transactions data is what will enable Google to target those offers. I therefore believe that it is integral to Google's model to deliver both these elements.
http://www.finextra.com/News/Fullstory.aspx?newsitemid=22523
Finextra, in fact, speculate that Google's much-talked-about NFC trials in NYC and San Francisco will be aimed at testing this system, and not the payments solution that has long been rumoured. They back this up with recently published research from Oracle saying that using multiple NFC read/write apps on a mobile will slow down the process and negate the key benefit of the technology.
Personally, I would be very surprised if this is the case and that Google will not roll out a payments solution shortly. Google has based its business model around organising the world's information and will definitely have recognised the power and value of transactions data.
The discounts and offers that they are working with Ingenico to execute might be what draws the customer to the merchant, but the transactions data is what will enable Google to target those offers. I therefore believe that it is integral to Google's model to deliver both these elements.
http://www.finextra.com/News/Fullstory.aspx?newsitemid=22523
Monday 2 May 2011
E la Carte Digitizes Restaurant Service
A number of applications are now being developed to digitize service at restaurants. E La Carte, a US based company, has developed its own tablet, that let's diners book tables, order their food, play games while waiting, make their payment and provide feedback.
If used correctly, these tablets should not be seen as a replacement of physical waiters, but as a tool to increase sales, improve service and receive immediate customer feedback.
The team behind E la Carte claims that restaurants could see increases in sales of up to 10% simply by including pictures of their food in on the digital menus. They should also see improvements in customer satisfaction, as customers no longer need to wait for waiters to make their orders and to receive the check and make payment.
From a payments perspective, it is interesting, but not surprising, to see that the payments process has been integrated in the tool. This is a fantastic opportunity for the E la Carte, and similar companies, to intermediate the networks and extract a healthy profit.
If they are successful at building a network of restaurants, they should also be able to gather valuable information about their customers; which restaurants they visit, what they eat, how much they pay, etc. This could be fantastically useful for restaurants to fine tune their offerings and in tailoring marketing programs for the customer.
If used correctly, these tablets should not be seen as a replacement of physical waiters, but as a tool to increase sales, improve service and receive immediate customer feedback.
The team behind E la Carte claims that restaurants could see increases in sales of up to 10% simply by including pictures of their food in on the digital menus. They should also see improvements in customer satisfaction, as customers no longer need to wait for waiters to make their orders and to receive the check and make payment.
From a payments perspective, it is interesting, but not surprising, to see that the payments process has been integrated in the tool. This is a fantastic opportunity for the E la Carte, and similar companies, to intermediate the networks and extract a healthy profit.
If they are successful at building a network of restaurants, they should also be able to gather valuable information about their customers; which restaurants they visit, what they eat, how much they pay, etc. This could be fantastically useful for restaurants to fine tune their offerings and in tailoring marketing programs for the customer.
Sunday 1 May 2011
Will Google Commit to their Moves in Mobile Payments?
In a fun feature, Business Insider logs Google's 10 weirdest investments. These include wind farms for $40M, Shweeb, a $1M human-powered monorail and a prototype for a new solar panel technology.
With Larry Page back at the helm of the company, Google is likely to continue making these type of weird and wonderful investments.
"What does all this have to do with payments?", you may ask. Nothing, really. But, as we watch Google enabling NFC on Android and investing in payment pilots in New York and San Francisco, it is worth keeping in mind that the company has a history of making ambitious and visionary investments without executing.
http://www.businessinsider.com/google-weird-uses-of-money-2011-5#
With Larry Page back at the helm of the company, Google is likely to continue making these type of weird and wonderful investments.
"What does all this have to do with payments?", you may ask. Nothing, really. But, as we watch Google enabling NFC on Android and investing in payment pilots in New York and San Francisco, it is worth keeping in mind that the company has a history of making ambitious and visionary investments without executing.
http://www.businessinsider.com/google-weird-uses-of-money-2011-5#
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