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SxSW Day 2 - Financial Services in the Spotlight

SxSW today for me was all about something near and dear to my heart (and many of my clients) banking and payments. I managed to carve out enough time to attend three banking sessions. The sessions ran the gamut from tips for personal finance to the future of banking and the role of geeks in finance.

There a few lessons any financial services technology company should carve in stone, but these rules also apply to consumer technology and other markets.

Consumers are dead. (or at least dying). They are evolving into active participants. They don’t want to pick from a menu, or be given one choice, they want to be empowered. Smart banks and financial technology companies are empowering consumers and giving them actionable advice and data.
Financial services UI (user interfaces) need a revamp. I know Mint.com has done it, as has my client Fiserv. Both are putting great emphasis on this. I see it as another variation on death by PowerPoint. Having tons of data can be great, but you need quick, actionable intelligence to make the right decision.

At first the second session was being bit too anti-bank. Banks serve a role, and all agree banks are essential. The challenge is many FIs are risking being disintermediated by third-party developers that don’t work with the bank. That’s what all the panelists in the second session we championing, so banks should pay attention and work on innovation within their services and offerings.

Mint.com has been very successful to date, and its executives were featured on two panels. There were a few key points I thought were of interest:

Mint.com built its following by hanging out where the consumers are, rather than creating their own community. They find it more effective. I believe both have their place, but it ties back into the fundamental premise of successful social media engagement – strategy before social.

Mint also does not buy PPC, they have found creating short videos and making them widely available to be most effective. Their consumers prefer that type of activity, and it lets them provide a richer (no pun intended), more detailed experience.

The consensus in multiple panels was the future of banking is mobile. But mobile information is just the first step, financial institutions need to focus on transactional capabilities, as well as advice and counsel. Getting tailored advice on your cell phone is much more valuable. That’s a message every good marketer knows – tailored, relevant and useful information engenders more loyalty.

Consumers need to pay attention as well. According to the speaker in the first session, Ramit Sethi, consumers are fundamentally delusional when it comes to money: 20% of people polled think they will get rich via the lottery and 3% though an insurance settlement.

While yesterday was all about the human network, Day 2 of SxSW was about the evolving financial network. There are a lot of interesting things on the horizon. As a final note, if you haven’t checked out CreditKarma yet, you should. A very interesting site that brings a lot of value to helping consumers improve their credit score.