Nov. 7, 2018

Desjardins Group, the largest cooperative financial group in Canada, has decided to wind down the operations of Zag Bank, which specialized in online and mobile banking, with a plan to close by the second quarter 2019, according to a company release.

Zag bank employs about 60 people in Calgary, Toronto and Montreal and the bank said they will be given assistance to pursue new opportunities within Desjardins, according to the release.

Zag stopped accepting any new deposits or opened any new accounts as of Monday, and by Dec. 1, customers will high interest savings accounts will have their funds returned. Clients with Guaranteed Investment Certificates will be able to terminate their investments early without penalty. Clients with registered investments, including TFSAs and RRSPs, will be able to transfer those investments to a financial institution of their choice.

Denis Berthiaume, senior executive vice president and chief operating officer of Desjardins, said in the announcement that the company reviewed its operations and "decided that online or direct banking was no longer a strategic fit with our long term strategy."

The company said the impact of Zag Bank’s wind down will be reflected mainly during the third quarter, and represents only about 1 percent of Desjardins' assets. Desjardins originally acquired Zag in 2011, when it was known as Bank West as part of Western Financial Group, and was renamed Zag in 2014. The bank was founded in 2003, but was later converted into a direct mobile-first bank with the 2014 renaming.

Topics: Financial News, Mobile Banking

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Nov. 6, 2018 | by Elliot Maras

At left, Jaime Toplin of Business Insider and Julie Godfrey of Samsung Electronics America converse witth Jeremy Balkin of HSBC Bank USA N.A.

As financial institutions adjust to a more digitized marketplace, many companies are tapping the expertise of technology providers to meet the needs of an increasingly tech savvy customer. HSBC Bank USA N.A. made headlines earlier this year on this front when it became the first U.S. financial institution to bring Pepper, the "social humanoid robot," to retail banking.

As part of an overall initiative to transform retail banking, HSBC has also partnered with Samsung Electronics USA on exploring the use of smartwatches in bank branches. Representatives of both companies gave an overview of this partnership focusing on a technology that brings smartphone functionality to a wrist watch during the recent Money20/20 conference in Las Vegas.

During the presentation, titled "Samsung & HSBC: Applied Mobile Innovation for the Customer Experience," Jeremy Balkin, innovation lead at HSBC, said his company has invested $131 million in retail transformation in the U.S. in the last two years and believes technology can strengthen customer relationships with banks. Balkin foresees smartwatches interacting with Pepper the robot, which greets visitors and answers their questions. 

Personalization and communication

Balkin said smartwatches can bring a high level of personalization to a bank's customer interactions, as well as improve communication among employee teams. 

Julie Godfrey, Samsung's U.S. lead for financial services, concurred, noting that smartwatches can help both customers and employees communicate with one another in the bank branch environment. While smartwatches are a consumer technology, "This is truly a business instrument," she said. "We'll see data delivered to employees in new ways."

Godfrey viewed the smartwatch's benefits on two levels: as a tool for communicating to customers and employees, and as a way for customers and employees to interact within the bank branch. A company, for example, can use a smartwatch to target messages to a specific employee or a customer. Balkin agreed, noting smartwatches can make it easy for branch managers to locate employees in the branch, which can sometimes be difficult.

The smartphone also offers people the ability to access information while performing other tasks, Godfrey said. 

An engagement tool

When a company communicates to a customer in a technology savvy way, she added, it makes the customer feel involved with technology innovation. Balkin added that bank employees similarly can feel empowered by being involved in a technology initiative. 

"Other branches are asking about this, not just in the U.S., but around the world," Balkin said.

Godfrey also pointed out there are security features built into the technology and that the security is equal to that of smartphones used in government defense agencies.

The topic of appealing to millennials comes up in nearly all technology discussions, and this session followed suit.

Moderator Jaime Toplin, a senior research analyst for payments at Business Insider, said companies today are looking for ways to interact with younger consumers who tend to be more mobile but do not visit bank branches as frequently as their elders.

Branches are here to stay

Underlying the quest for improving communication within the branch is the premise that branches continue to play an important role in banking.

A recent customer survey conducted by Samsung found that customers go to branches when seeking consultative services, Godfrey noted. 

"The bank branch isn't dead," Balkin concurred. While millennials go to branches less often than other customers, they still patronize branches. 

For financial/technology partnerships to succeed, Balkin said both parties need to have visionary leaders and dedicated teams. With the right partner, he said, anything is possible.

Godfrey commended HSBC for its transparency in the process, noting there was ongoing communication between the partners.

"We want to make customers fall in love with banking again," Balkin said.

Topics: ATMs, Handsets / Devices, Retail, Trends / Statistics

Companies: Samsung Electronics America

Elliot Maras

Elliot Maras is the editor of KioskMarketplace.com and FoodTruckOperator.com.

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Nov. 6, 2018

Allied Wallet, a London-based provider of online payment processing, said its NextGen Payment Gateway is now compatible with MyBank, Cartes Bancaires, E-Carte Bleue, Cashway and YouPass, due to increased demand in France, according to a company release. 

France is considered the third-largest e-commerce market in Europe, spending more than 81 billion euros [$92.6 billion] and growing at a 14 percent annual rate, according to the release.  

CEO Andy Khawaja said there are "more than 120,000 active e-commerce sites in France and almost 65 million online."  

The payment gateway allows merchants to view various transactions in real time using either a desktop computer or a mobile device. Allied Wallet also offers an eWallet solution that lets users pay family, friends or business associates. The eWallet can be managed via smartphone or computer.  

Allied Wallet, which offers mobile payment solutions in 196 countries, says that 26 percent of all e-commerce purchases are made via mobile and that smartphone penetration is up to 61 percent in France.  

Just last month the company announced that it added WeChatPay, which has 900 million active users, to its platform.

Topics: Mobile Apps, Mobile Banking, Mobile/Digital Wallet, Technology Providers, Transaction Processing

Companies: WeChat Pay, Allied Wallet

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Nov. 6, 2018

The Orange County Transportation Authority in cooperation with Via, said it launched an on-demand microtransit program, called OC Flex, that allows passengers to request and pay for shuttle rides with an on-demand app.

The pilot, which began in October, involves using 40-foot shuttle buses that carry up to eight passengers per vehicle. One vehicle operates in Huntington Beach and Westminster, California, the second in Mission Viejo, Aliso Viejo and Laguna Niguel.

The program allows passengers to pay $4.50 per ride with the OC Flex Mobile app and is designed to help reduce vehicle traffic. The fare provides unlimited rides in each zone and free transfers to OCTA’s bus or rail systems.

After the pilot, officials plan to collect data to determine whether to continue or potentially expand the service.

Topics: Carriers / Operators, Mobile Apps, Technology Providers

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Nov. 5, 2018

Lowe's Cos. named Seemantini Godbole, a current senior vice president at Target Corp., as its new chief information officer starting on Nov. 12, responsible for its critical e-commerce strategy, according to a company announcement.

Godbole is the current senior vice president, digital and marketing technology, at Target, which is considered one of the leading department store chains competing in same arena as rivals Walmart and Amazon.

Godbole is credited with leading Target's digital transformation, as she helped re-architect that retailer's digital platforms, introduced online pick-up and ship-from-store programs, digital wallet, customer loyalty and other initiatives.

Lowe's president and CEO Marvin Ellison called Godbole a "tremendous addition to the Lowe's executive leadership team," in the release.

"She is a proven retail executive and brings to Lowe's extensive expertise in transforming digital platforms to drive outstanding results by focusing on the technology needed to improve the customer and associate experience," he added.

Prior to joining Target in 2010, Godbole worked at travel reservations provider Sabre Holdings and online agency Travelocity for 15 years, holding a number of senior positions.

Lowe's announced today that it would close 20 underperforming stores in the U.S. and 31 such stores in Canada by February 2019, which is the end of its 2018 fiscal year. The majority of impacted stores are located within 10 miles of another store. 

Topics: Loyalty Programs, Mobile Apps, Retail

Companies: Target

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