SPURspectives

For some time now I’ve been thinking about what I want in a bank. With my background in web applications and user interface design, I happen to be very picky about the applications I use online. I’ve seen a lot of online banking and online bill-pay applications out there and most of them – strike that - nearly ALL of them are absolutely pitiful. Pitiful in every way. I had this very discussion yesterday with a friend who owns a design firm and he agreed 100% with me. Pitiful was our conclusion.

The problem is; it’s hard to blame your bank. As I’ve mentioned in previous entries, most banks outsource the software function of tracking customer accounts to companies called core processors. It’s these core processors that are designing and supplying your bank with online banking and online bill-pay applications. Your bank practically has no choice but to use the online banking product of the core processor they’re using.

There are a few third-party applications out there like Digital Insight and Q2, but they’re not wide-spread because a) the core processors make it difficult if not impossible for third party developers to interface with their data and, b) the core processors have an offer that’s hard to refuse.
They already have the core account data, so it’s not a tough sell to bolt on some crappy online banking and bill-pay applications as an afterthought and call it a day. Even those banks who perform their own core processing in-house mostly have terrible online applications. Why? Because the nerds are in charge of everything from information architecture to interface design!

The whole thing really is quite frustrating. To me, my bank IS the set of applications I use online. I think most banks completely miss this point. They too, like the core processors, see these applications as mere afterthoughts. It’s completely secondary to their evaluation of a core processor. If I were starting a bank and evaluating core processors, their set of online applications would be the primary determining factor. Unfortunately, I don’t think any of them would pass muster.

Do banks really understand that their PRIMARY customer facing opportunity isn’t a teller, isn’t a branch, and isn’t an ATM? It’s their online applications!

And if those applications are, in large part how I judge my bank, how can I choose a bank when most don’t have an online demo? Because of my line of work in the banking business, I happen to know what Digital Insight’s software looks like and compared to most others, it’s pretty good. So naturally I thought it made sense to call them and ask if they could refer a bank in the area that used their product. Of course, they wouldn’t supply a referral.

So, I have an idea… stay tuned.

Tags: banking, customer engagement, customer interaction, online banking, scott oppliger, web applications