Industry News and Items to Watch:

What is Customer Analytics? (Part 1 of 4)
AUTHOR: MARC BORBAS, VP MARKETING – INETCO (www.inetco.com)

Customer analytics is the use of a wide variety of data sources to understand how customers behave. In retail banking, understanding customer behavior can help you tailor product and service offerings to encourage loyalty, increase revenue, decrease risk, and align service costs appropriately.

As customers interact over a broader variety of channels and use more self-service technologies, we need to look at things from the customer's perspective, as opposed to more traditional financial-, product-, or channel-centric vantage points. The challenge is that most banks lack the means to easily and systematically analyze customer behavior. Instead of an automated process performed by software (like financial analysis or product analysis), customer analytics is a labor-intensive, time-consuming manual process conducted by channel managers and marketing executives.

You may be wondering why, or if you're a channel manager, maybe you aren't! Regardless, it's because customer interaction data is captured in bits and pieces by a variety of systems. It doesn't end up in one place (e.g. data warehouse, your core, etc.). Instead, some interaction data is captured by your ATM software, other bits by your web analytics software, some by your core, some by 3rd party systems, especially if you've outsourced parts of your mobile, internet, or online banking infrastructure.

As a result, channel managers have to source out all these pieces of data, acquire them, and then integrate them somehow to gain insights. This typically involves Excel and lots of waiting.

We've found that the fundamental questions you need to answer are deceptively simple:

• Who did we serve?
• Where did they interact?
• What did they do?
• How long did it take?
• Were they successful?

Then you want to start segmenting – by customer type, location, demographics, time of day, etc. And sub-segmenting: on us customers, off us customers, platinum customers, etc.

So, to do customer analytics well, you need three things:

The next 3 parts will be devoted to exploring each of these areas in more detail.

If you are interested in learning about INETCO's own customer analytics software, INETCO Analytics, watch this 2-minute introductory video. You can also watch the BECU case study we released last week:

Stay tuned for part 2 of this 4 part article series!

Cardware 2015: Payment Insights - Were You There?

I'm sure you've been to your fair share of conferences: some good, some disappointing and a few that were great. I share those experiences with you. For that reason, I wish there was a word other than "conference" to describe Cardware. Let me describe the event and perhaps you have a word I could use.

Take more than 300 senior payment stakeholders who represent issuers, acquirers, merchants, payment networks, regulators and the industries that supply them with products and services. Bring them from Canada, the United States, Europe, Norway, the UK, Turkey and New Zealand. Provide them with information from 37 presentations and panels and then watch them take advantage of every minute to share information, insights and ideas.

Payments are not for the faint of heart. The industry is pressed to find business cases for a growing number of form factors such as mobile phones, tablets, wearables and even glasses. The investment to make each of these happen can be steep, even though the increase in revenue-driving transactions is modest.

Issues of privacy, security and customer experience all demand attention. Digital currencies and dynamic currency conversion also claim the industry's attention. Tokenization and P2P encryption, along with HCE and customer authentication were all topics of conversation. Delegates talked about the massive amounts of data that will be generated by the Internet of Things and discussed whether that would create privacy issues.

Balancing cautions and concerns were enthusiastic discussions about mobile point of sale, POS applications that drive value for merchants and in-store mobile payments.

Payment networks met with major Canadian merchants to discuss areas of mutual interests. Merchants met to discuss mobile strategy and, at a second meeting, considered a data breach analysis option. ATMIA hosted a town hall meeting where delegates could learn more about issues facing the ATM industry.

In addition to all the content, Cardware was once again where people connected with the other stakeholders who work with them to provide secure payment and digital ID. We always say that what happens at Cardware doesn't stay there! It takes a great number of people to deliver opportunities and overcome barriers that are a part of the daily fabric of payment. ACT Canada is pleased to bring them together to help them meet their goals.

So, I still don't have a word to describe Cardware, but when I look up the definition of 'conference', I find, "the act of conferring or consulting together; consultation, especially on an important or serious matter". That does describe a large part of Cardware, but it misses one key element. When you listen to the crowd at Cardware you hear excitement, commitment and enthusiasm for all things payment. You can almost see people's emotional batteries recharge. They ask questions and share ideas. They build and strengthen relationships for the benefit of their organizations and their careers.

So, is there a word for that?

If you were at Cardware, we thank you for helping to make it a success and we look forward to seeing you next June as we look at new opportunities and challenges. If you weren't there – we look forward to seeing you join us there next June.

Catherine Johnston
President & CEO ACT Canada

Manulife Bank to Add More Than 800 Automated Banking Machines Across Canada

• ABMs will be installed in Mac's , Couche - Tard and Circle K locations across Canada
  
• Ex panded ABM network will provide Manulife Bank customers with greater access to financial services and surcharge - free withdrawals
• 4.5 Million customers of Exchange Network members can also use Manulife Bank ABMs witho ut additional fees.

Manulife Bank today announced the planned installation of approximately 830 automated banking machines (ABMs) in select Mac's Couche-Tard and Circle K locations across Canada to help customers better meet their day-to-day banking need.

Manulife Bank will add ABMs in British Columbia, the Northwest Territories, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Newfoundland and New Brunswick. The machines will be managed by Stanley Security, a global provider of security products and services with a specialty in financial solutions, which is delivering comprehensive monitoring and management of the ABM networks. The ABM deployment is expected to be complete by the end of September. The transaction is a part of Manulife Bank's focus on helping customers access banking services however and whenever they like.

"Our customers have asked for greater access to ABM services," said Rick Lunny, President and Chief Executive Officer, Manulife Bank of Canada. "This is all about offering convenient banking near where our customers live and work."

In addition to offering greater access to Manulife Bank customers, the new AB Ms will be a part of The EXCHANGE^® Network, a network of banks and credit unions that provide surcharge - free deposits and withdrawals to members' customers at more than 3,300 locations.

"We are thrilled with th e addition of Manulife Bank's AB Ms to THE EXCHANGE^® Network, " said Andrew Obee, President & CEO of FICANEX Services, which runs the network. "This increases our surcharge - free ABM fleet to over 3,300 coast to coast, making it one of the largest ABM networks in the country and further promoting anytime, anywhere access to surcharge - free cash to Canadian cardholders."

Cardholders at most other major financial institutions will also be able to use the ABMs at standard network rates.

To find the Manulife Bank ABM nearest you, visit http://www.manulifebank.ca. The ABM locator will be updated as additional ABMs are deployed.

ATMIA Working Committees

As our ATM world changes due to reasons such as IT,hardware, regulatory, fraud, operator changes, etc. ATMIA is continually ramping up or winding down committees as necessary to keep its members well informed of impending changes. Committees are made up of a cross section of members and subject matter experts. The work effort on behalf of committee members is minimal but of high caliber. Please take a look at the existing working committees to see if you are interested in becoming involved to guide change. https://www.atmia.com/committees/

Next Generation ATM Architecture Committee

Are you interested in joining ATMIA's new Next Generation ATM Architecture Committee? This committee meets to share next generation projects in the industry, pilots and case studies in order to encourage innovation. It is an interesting and stimulating forum for exploring evolving software, hardware and network architecture in the ATM industry. Please drop Mike Lee a line at [email protected] if you wish to join.