Tag: mobile

FinTech 101: What is a Green Bank?

On February 8, 2021

What Is a Green Bank?

You may have heard the term “Green Bank” and wondered what it meant. This short article will explain the term and concept behind it.

Green Banks in a Nutshell
A green bank is a bank that exists for the sole purpose of battling earth climate change by funding projects that may be able to decrease the global carbon emissions and increase the use of alternative and renewable fuels and energy. They tend to support infrastructure spending in wind, solar, and other renewable energy space.

Green Banks: Functional Model
Green banks are not climate charities. Their funding is expected to be paid back with a profit for the bank. Currently, they are supported by some states in the U.S. and also by private funding. Green Banks utilize philanthropic and public funds. They generally fund energy projects that beyond the research stage and “good to go”. The Coalition for Green Capital (CGC) is a nonprofit agency that is deeply involved in advocating for green banks’ continued development.

Where Did the Idea for Green Banks Originate?
The idea for green banks started in 2008 when two entrepreneurial-minded, Ken Berlin and Reed Hundt, came up with the concept as part of the Obama transition team’s plans for promoting cleaner energy changes in US society. A proposal to enact federally supported green banks was attached to the American Clean Energy and Security Act. The concept never made it as legislation at the federal level. Green bank supporters were not daunted. Consequently, green bank advocates persuaded some states to take up the cause.

Green Banks: Some Statics
Currently, there are at least ten states that have at least one green bank. In addition, they are in the early stages of catching on globally as well. They also exist in Australia, the United Kingdom, and Malaysia. Within the U.S., green banks have already been involved in the funneling of some $3 billion in funds for clean-energy projects.

Green Banks: Their Future Development
With the advent of the Biden presidency, green banks may again find a firmer footing at the federal level. Indeed, in December 2020, Mr. Biden proposed the idea of a national green bank. They appear sure to gain more traction internationally as the desire to dampen climate change takes hold.

Paying With Your Phone

By Jacob Parker-Bowles

On February 23, 2018

In FinTech, Jacob Parker-Bowles

Cashless payment alternatives are increasing in popularity, and there are no signs that it will stop. One big breakthrough is the ability to pay with only your phone, through Apple Pay, Android Pay, or the soon-to-be Google Pay. There are definite pros and cons to paying with your phone, for both convenience and security reasons. Let’s look at some of the biggest.

Pro: Forgot your card? No problem.

We’ve all had that moment where we could have sworn we brought our wallet, or that we put our card away, but we can’t find it. Although it is stressful to lose a card or to not know where your wallet is, paying with your phone can, at the very least, get you out of a sticky situation. Luckily, many stores and restaurants are beginning to accept mobile payments, so you may be in luck next time you have no alternative.

Con: Hackers can steal your data.

While companies like Google and Apple have high-end security, hackers have been able to exploit even the most obscure security flaws to steal your information. With Apple Pay, for example, you store your complete card information on your phone. Hackers have to be extremely skilled to get this info, but it is not impossible.

Pro: Less time in drive-thrus.

Many fast-food chains are implementing mobile payments to reduce wait time and add convenience. Think of the last time you went through a drive-thru. From the time you place your order to the time you have to pay, you have to worry about not holding up a line while searching for a way to pay. Using your phone simplifies this process, as we often have our phones in easily accessible places, while our money may be located somewhere not so convenient.

Con: Processing times can lengthen.

Even though you may not hold up a line by looking for money, you may hold it up due to long processing times. Devices that are meant to read your phone are slow and sometimes can’t detect anything. You may spend twice as long paying via phone instead of paying the old-fashioned way.

Mobile payments are likely going to become standard in the next few years. However, in order to make them efficient and safe, bank institutions, phone manufacturers, and device reader companies need to consider both the good and bad things about this process and change accordingly. Once that happens, you may be hard-pressed to find a place that does not accept a mobile payment.

Convenience Over Customer Service? How Online Banks Appeal to a Changing Clientele

By Jacob Parker-Bowles

On May 8, 2017

In FinTech, Jacob Parker-Bowles

There is an unfortunate tradeoff with the implementation of new technology: the more advanced technology becomes, the less personalized our world is as a result. When simple jobs can be performed by robots, as many now can, there’s no need to invest the money into human labor. At certain restaurants, people can place their orders via iPads. You can pay your friends back through an app on your phone without having to travel to an ATM to take out cash. You can book an entire vacation from your phone. You can place an order online without the need to talk with a human until your food arrives at your doorstep. Luckily, the need and desire for human interaction in the way we conduct business still exists, so technology has not eclipsed customer service entirely. But it seems that things could be headed in that direction, and banks are one sector where we can already see that trend.

Without that crucial customer service element, what remains to retain customers? As paradoxical as it may sound, banks are attracting new customers by keeping them away. “Banks are finding new growth opportunities through online and mobile channels, proving once more that consumers are increasingly attracted to the convenience and speed of mobile and online solutions,” says letstalkpayments.com.

When so many people, especially the millennial generation, turn to their phones for just about everything, it only makes sense that banks would tap into that lucrative channel, prioritizing convenience over customer service. Bank transactions dropped off by nearly 50 percent between 1992 and 2012, as online and mobile capabilities came into play. In order to retain customers, banks have had to play by new rules to appeal to a changing clientele.

Some banks are combining new technologies with traditional banking elements to appeal to a younger generation. For example, Savings Bank of Danbury in Connecticut just opened a new branch, and they pulled out all the bells and whistles to cater to tech-savvy millennials. Instead of a person, a large screen recounting the bank’s history in an ongoing loop greets customers as they walk through the door. The new branch features lounges with iPads and laptops where customers can interact with bank staff through technology, rather than face-to-face in a traditional teller line.

According to Martin J. Geitz, president of Simsbury Bank, the millennial generation are outgrowing the baby boomer generation, and as such are coming to define the economy. Says Geitz:

We are now embarking on the threshold of the millennial generation driving the economy as so many are entering the workforce and their demands and tastes for products and services will really define what banks offer and other consumer-driven products. The millennial generation grew up with a smartphone in their pocket. They have a different relationship with technology than we do. It’s important that we provide functionality at their fingertips.

Banks are offering a variety of features that allow customers to conduct all of their finance needs remotely, without ever setting foot in a bank. For instance, people can now transfer money to one another through cardless ATMs and checks can be deposited through an app on one’s phone just by taking a picture of it. In fact, there is an entirely new breed of banks that’s risen up in response that is moving away from brick and mortar locations entirely, operating solely online. An example of an online bank is Simple, aptly named for its mission to make the banking process as simple and convenient as possible. The bank gained more than 100,00 customers in its first two years and was promptly snatched up by Spain’s second largest bank, Banco Bilbao Vizcaya Argentaria (BBVA).

For the time being, brick and mortar banks are here to stay. They may not be the grand, pillared buildings of years past, with imposing high ceilings and marble floors, but nonetheless, there is a large fraction of the general populace that doesn’t fully embrace or understand technology, and still desires a certain degree of customer service. Mobile banking technology will continue to expand, but it will need to do so in such a way that combines the service of traditional banks with the convenience of online banking.