All articles by Meghna Mukerjee
Meghna Mukerjee
Co-op promo scraps interest for overdrafts
The UKs Co-operative Bank has kicked off the New Year with a pricing campaign by scrapping interest charges on overdrafts, until the beginning of April. Robin Taylor, head of banking at The Co-op, tells Meghna Mukerjee 450,000 customers will benefit and welcome the savings following the expense of the holiday season. The Co-operative Bank (Co-op) has axed interest charges on overdrafts for its current account customers who have agreed overdraft facilities, for the first quarter of 2012. The pricing campaign aims to differentiate the UK mutual from its competition and, in turn, provide financial relief until the beginning of April 2012 to approximately 450,000 customers who have agreed overdrafts with the Co-op. The Co-op Group has 9m retail customers of which 1.5m are current account users. The overdraft promotion marks a strategic change for The Co-op from focusing on new customer acquisition to rewarding its existing customer base.
CRM strategy key focus for Maybank
Unlike most lenders in its region, Malaysias largest banking group Maybank has invested in advanced CRM solutions heavily in the last few years with key focus on analytics in 2011. David Chong, head of corporate development and CRM strategy, tells Meghna Mukerjee about how Maybank aims to serve customers better using CRM solutions. Malaysias largest banking group, Maybank, has got several things right in 2011. Key among them has been its growing investment in advanced analytical Customer Relationship Management (CRM) solutions. With over 2,100 branches and offices across 17 countries, the Maybank Group serves more than 21m customers. In Malaysia, Maybank itself has 9m customers and the advanced CRM capabilities allows the lender to serve each one of them better, according to the head of corporate development and CRM strategy for Maybank, David Chong.
Deutsche Bank Belgium’s new ad campaign keeps it real
Deutsche Bank Belgium has launched its new, annual advertising campaign that is shot on candid camera and focuses on how customers should not be paying for any hidden, extra bank charges. Meghna Mukerjee talks to the head of communications at Deutsche Bank, Stephan Salberter, and the media agency behind the campaign. What if a local bakery or supermarket market charged money each time a customer had to enter and exit the store? Consumers would not put up with it. Then why put up with a bank that does that?Deutsche Banks message to its customers in Belgium is simple. On 16 January, Germany-headquartered Deutsche Bank has launched its new, annual advertising campaign in Belgium that focuses on the theme of lenders charging customers unreasonable banking charges. For the new ad campaign, Deutsche Bank has created two short video spots for the web that have been shot on candid camera, at two locations a grocery store and a bakery.
Rise in customer satisfaction levels among current account holders: Accenture survey
A customer satisfaction survey by consultancy firm Accenture has shown that the number of current account customers that are satisfied with their bank has risen from 56% to 60% in 2011, while the number of customers complaining about their bank has decreased from 17% to 13%. However, the survey has revealed that the number of British customers who would recommend their bank to family and friends has fallen in 2011 from 61% to 47%. The new Accenture research surveyed approximately 4,000 current account customers in the UK and Ireland. Less than half of the customers surveyed by Accenture believe their bank to be transparent and fair (43%) or providing good value for money (43%).
Debit card spending increases by 20% for Maybank
Spending on Maybank debit cards has grown by more than 20% in the 12 months to November 2011, and the number of debit cardholders has also increased by over 8% during the same period.The growth reflects the growing acceptance of this payment mode in Malaysia, according to the lender.Maybank is expecting debit card spend to grow by 60% for 2012, said B Ravintharan, executive vice president and head of cards, wealth and payments at Maybank.Ravintharan also said the overall growth in debit card use, including overseas, reflect increased awareness in the security and convenience provided by debit cards.
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US Bank reports 47% growth in y-o-y net profit
Net profit has soared by 47% to $4.8bn at US Bank, the countrys sixth-largest retail bank, boosted by substantial deposit growth and a sharp reduction in credit losses. Total deposits increased 15% to $213.2bn while credit loss provisions within the retail banking division decreased by 43.2%. In fiscal 2011, US Banks retail-focused consumer and small business banking unit reported net income growth of 21.3% year-on-year to $842m. Less positive metrics included the cost-income ratio increasing by 30 basis points to 51.8% and the net interest margin reducing by 23 basis points to 3.65%.
Citi posts FY11 net profit of $11.3bn, 6% increase Y-o-Y
Citigroup (Citi) has posted a full year net profit of $11.3bn a 6% increase from the year ago period. Citi was boosted by a strong performance by its regional consumer banking unit as net income soared by 33% to $6.2bn. However, total revenue dropped by 10%, for the 12 months to 31 December, to $78.4bn from $86.6bn. Citi generated $16.2bn in revenues from its retail banking business, an increase of 3% from the previous year ($15.8bn).
ICICI customers to use Facebook to access bank account
Indias largest private sector lender, ICICI Bank, plans to launch an app called Your Bank Account to enable customers to use its Facebook page to access their bank accounts. ICICI set up its official Facebook page in the first week of January. Joining Facebook, for ICICI, is part of its efforts to provide superior banking services in 2012, in line with its Khayaal Aapka (Your Care) philosophy, according to the lender. The new Facebook app will also, reportedly, provide customers with updates on exclusive offers and services being offered by ICICI.
BofA plans advertising review
Bank of America (BofA) is planning to mould a new image by putting its advertising account up for review. The advertising review will reportedly influence about $2bn in annual marketing. BofA spent a total of $1.7bn on marketing through the first nine months of 2011. The last advertising review that BofA underwent was in 2006. In 2007, BofA debuted its current Bank of Opportunity tagline, which replaced its Higher Standards campaign. Since then, BofA has added the Merrill Lynch brokerage force and become more global. The BofA brand has also faced criticism due to government bailouts, a falling stock price and the attempt to implement a $5 per-month debit card fee.
IBM partners five Kenyan banks
Global IT services provider IBM has signed contracts with five of Kenyas largest banks as mobile money expands in the countrys banking sector. Credit Bank, Co-operative Bank, Family Bank, National Bank of Kenya and National Industrial Credit Bank (NIC) have signed agreements with IBM. The agreements are among more than 20 similar deals that IBM has signed with banks across Africa in 2011, in line with the rapid growth of the financial services sector in the African banking market. As part of the deal, IBM will be supplying the Co-Operative Bank with power systems as well as storage and software as part of a major overhaul, while IBMs work with the National Bank of Kenya includes provision of IT services, hardware as well as software.Family Bank and IBM have signed an agreement to support the lenders drive to reach new markets and launch new products and services.