"Mary's blog is excellent in pointing out that they will encounter greater threats from the competitive unbanking environment that will provide services customers want and need, at a price that will serve both the customer and the unbank's interests; which proves someone is profiting from the current system."

So how do you define an unbanking enviroment? Are you referring to people who are not using banks at all?

I agree with you and Mary on this, B. Krafte.  The ability to provide appropriate security with customer-oriented processes IS doable with today's technology. 

It is the culture, as Mary points out, that is risk adverse; also providing a smokescreen for optimizing profits and minimizing services.  They fully provide security for their interests; I think they have forgotten where their money comes from.

Mary's blog is excellent in pointing out that they will encounter greater threats from the competitive unbanking environment that will provide services customers want and need, at a price that will serve both the customer and the unbank's interests; which proves someone is profiting from the current system.

DHagar

Syedzunair,

Security and customer focus are not necessarily mutually exclusive. Banks don't have to choose between the two. "Security" is a convenient smokescreen and excuse for them not to have to put in the diligence (and $) to provide both.

Syedzunair,

Most banks already have apps. 

The problem, as pointed out in the blog, is that neither the apps nor banking systems are designed around the customer. So far, the customers have put up with it because there's been such little competition. That's changing so now it's up to the banks to play catch up or not.

I agree Joe. But it's only because of the way (some) industries are regulated.

A response to over-the-top lobbying, Capitol Hill and the regulatory agencies respond in sync with one-sided legislation and little thought given to the longer term consequences.  It's typically rolled out all once and without fixes once it's enacted vs. a more measured approach whereby what's rolled out can be assessed before deregulating further. Then following the uproar after what should have been predictable catastrophic results, Capitol Hill manically reregulates - once again without consideration of the consequences

Imagine a company releasing a product without beta testing or extensive research, no updates or fixes to correct  earlier versions and never recalling products leaving it up to the "market to correct." The company would be history, yet this seems SOP for banking deregulation.

So to your point it's cyclic and will continue that way. Not because it's part of the natural ebb and flow of normal commerce regulation, but because it's a systemic problem that everyone knows about but is afraid to take on.

PaulS:

The bank will host an app soon if it wishes to remain in the game. Internet evolution has changed the way we bank and if the banks do not adopt to the on going changes they will risk losing business. 

taimur_tz: 

Unfortunately, banks do not realize the importance of customer service. If they fail to do so in the future then their business will be taken over by some other bank or some other service. They need to realize that there may be a time when people will no longer require banks or that some innovation might take them apart very quickly. 

taimur_tz: 

You are correct. Security should be the foremost concern. Even if these processes make life a bit difficult they must be put in place because in the end they will help the preventing theft. Sometimes in order to be secure you have to forgo some usability features. 

My bank is one that has not developed an App as of yet. They have a pretty good online presence but an app would be really nice. In saying that I can understand how careful they must be when creating an app. Although this is not a BIG bank compared to others I am hoping they come out with one soon.

Absolutely!