Actionable Insights From APT's Financial Services Practice
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Banks Charge for Branching Out

November 25th, 2013 | Posted by JDouglass in Financial Services | Financial Services - (Comments Off on Banks Charge for Branching Out)

In the constant struggle to figure out how to successfully charge fees, some banks are now charging customers for using the branch. A recent article by CNBC cited multiple cases in which banks are introducing accounts for customers who plan to bank mostly through online, mobile, and ATM channels. However, if the customer wishes to bank in the branch, he may face a sizable fee: $8.95/month in the case of Bank of America’s “eBanking” account mentioned in the article.

As we’ve seen with many other banking fee innovations, charging for branch services bears risk. Bank of America recently folded their eBanking account offering after three years, a spokesperson acknowledging that “Customers want full service banking, even if they only visit a teller infrequently.” This action further underscores a trend that we’ve seen before:  fees will likely be much less successful if they are tacked onto a product or service that customers are accustomed to receiving for free. In many cases, it may simply be too difficult to get around the customer’s disposition against fees for products/services that were historically free.  Alternatively, banks may be more successful in charging fees for new or expedited services, such as fraud monitoring and faster mobile check deposit availability.

So how can banks determine which fees are profitable? Neil Weinberg, editor of American Banker suggested, “What is a premium service that they’re willing to see fees from? That’s the experimentation.” Experimentation is indeed the way APT has helped many banks understand the profitability of new fees. Banks should test new fees in a few markets or branches to measure the impact on key performance metrics and decide whether broader rollout is warranted. Click here to read more about APT’s work analyzing in-market tests at leading financial institutions.

Solving Big Data Challenges

November 1st, 2013 | Posted by JDouglass in Financial Services - (Comments Off on Solving Big Data Challenges)

In a recent Wall Street Journal article, Dr. Jordan of Penn State’s Smeal College of Business, discusses the challenges of Big Data for companies. APT’s software suite has been designed to solve many of the challenges outlined in the article, as evidenced by the more than 100 leading organizations that leverage APT daily.

“These are great tools, but who has the skills to use them?”

This article suggests that companies must hire “Big Data experts” to use specialized Big Data tools. APT is designed for use by business analysts. It takes only a few hours of training, and doesn’t require an advanced degree in Computer Science or Statistics. The article gets one aspect absolutely right when it suggests that for Big Data to be useful, analysts must understand the industry. While APT has gained a deep understanding of each of the industries in which it serves, we believe that institutionalizing a Big Data analytics process within the organization and empowering internal users always yields better results than outsourcing analysis to vendors with black box solutions.

“What do we do with all these numbers?”

We agree that standard spreadsheets can’t scale to make sense of Big Data. However, the answer to “what do we do with all these numbers?” is clearer. APT focuses on helping banking executives make decisions that will drive significant bottom line improvements. The outputs of APT are designed to answer three key questions to help make more profitable decisions: 1) Will our new idea work? 2) Will it work better in some situations than others? And, 3) How can we tailor and target a rollout for maximum profitability going forward?

To learn more about how APT continues to solve the Big Data challenge, click here to read a Forbes article written by APT’s Chairman, Jim Manzi. And click here to watch a video of APT’s CEO, Anthony Bruce, discussing testing’s role in Big Data.

Bank of America Trims Drive-Up Service In Some Branches

September 6th, 2013 | Posted by JDouglass in Financial Services - (Comments Off on Bank of America Trims Drive-Up Service In Some Branches)

A recent NPR article reports that Bank of America recently decreased drive-through teller services in some locations. This reduction in drive-through services is another example of the changing nature of the bank branch. In the article, APT SVP Will Weidman comments on this trend. Click here to read the article.

Staffing Optimization

August 22nd, 2013 | Posted by CCorman in Uncategorized - (Comments Off on Staffing Optimization)

Should banks invest in specialized staff? APT SVP Will Weidman discusses how banks can optimize their staffing models by leveraging Test & Learn for Employees.

Customer Segmentation and Targeting

August 13th, 2013 | Posted by CCorman in Uncategorized - (Comments Off on Customer Segmentation and Targeting)

APT SVP Will Weidman discusses how banks can use Test & Learn to improve customer segmentation and targeting.

APT Founder on Goldman’s $100 Million Investment, Jim Manzi Interviewed on CNBC Squawk Box

June 27th, 2013 | Posted by Jatin Atre in Uncategorized - (Comments Off on APT Founder on Goldman’s $100 Million Investment, Jim Manzi Interviewed on CNBC Squawk Box)

APT Co-founder and Chairman Jim Manzi spoke with CNBC’s Squawk Box about predictive analytics and Goldman Sach’s recent $100 million investment.

Goldman Sachs Invests $100 Million in APT

June 27th, 2013 | Posted by Jatin Atre in Uncategorized - (Comments Off on Goldman Sachs Invests $100 Million in APT)

APT is taking another step in its journey towards fulfilling its mission and achieving global leadership in Big Data and predictive analytics. Goldman Sachs has made a $100 million investment in APT.  Goldman Sachs’ new investment and Accel-KKR’s continued support as our primary shareholder, are exciting endorsements of our business, our direction, our technology, and what we can accomplish going forward. Click here to read the full story from Bloomberg.

Why Big Data Will Not Solve Your Problems, APT Byline Featured in Banking Strategies

June 4th, 2013 | Posted by Jatin Atre in Uncategorized - (Comments Off on Why Big Data Will Not Solve Your Problems, APT Byline Featured in Banking Strategies)

In a recent byline for Banking Strategies, APT SVP Will Weidman explains that “‘Big Data’ is wonderful but rarely do banks apply it at the branch level, where it could really do some good.” Click here to read more about how retail banks can make their big data drive real value.

Check Out Trends in Mobile and Online Banking from APT SVP Will Weidman

May 28th, 2013 | Posted by Jatin Atre in Uncategorized - (Comments Off on Check Out Trends in Mobile and Online Banking from APT SVP Will Weidman)

In this video, APT’s Will Weidman surveys innovations in mobile and online banking.

Talk To Me: The Impact of Voice Recognition in Mobile Banking

May 20th, 2013 | Posted by FedCohen in Uncategorized - (Comments Off on Talk To Me: The Impact of Voice Recognition in Mobile Banking)

Last month, US Bank announced that they will test features to allow customers to carry out banking tasks by speaking directly to their smartphones. To better understand the impact of the new feature, they will pilot the functionality by first allowing bank staff to leverage it. Piloting the features is a great way to understand the incremental impact of the implementation and what effects it will have on customers.

As banks evaluate customer-level investments in this way, they should keep in mind two key points that ensure banks properly understand the impact of the investment: (more…)