Rich Karlgaard (publisher of Forbes magazine) had an interesting post on his blog yesterday in which he said the new economy has made leaders in the lodging industry out of firms like Residence Inns, Hyatt Places, and Holiday Inn Express. They “are mostly new and surprisingly good. In countless ways, they are better–new beds, flat-panel screens, self-serve breakfast buffets and free wireless broadband.”

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It’s no easy task for banks to attract new customers these days, given all the negative news surrounding financial companies. Dissatisfied or nervous customers are no doubt on the lookout for a more stable - and/or a more generous - bank to move their money to. Perhaps the best way to get a new customer through the door remains the good old-fashioned referral from a trusted friend. Here, we’re seeing at least one big bank ramping up its efforts to encourage referrals. Continue Reading »

Walking to work this morning, I saw an ad for Fidelity, which read something like, “Jobs change. Dreams don’t. Take control over your 401(k).” That resonated with me in the same way recent Schwab ads do, which I discussed here.

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Social media continues to spur innovation in the financial services industry. Case in point: trade MONSTER’s new Feedback Forum. This online forum allows clients to submit suggestions to trade MONSTER regarding changes they’d like to see made to the platform, including new features and bug fixes. This concept in itself is not new; firms like Scottrade and Zecco also solicit feedback from clients via their boards (see below). trade MONSTER takes the concept further, though, by letting clients vote for the ideas they like, a techique used by TurboTax and discussed in our Social Media: Trends and Tactics in the Financial Services Industry report. Continue Reading »

Mobile investing and social media are two key industry issues we’ve recently discussed in our Consulting Insights newsletter. Wireless brokerage has been revitalized in the last few years thanks to a new generation of wireless devices, better connectivity, and stronger platforms from brokerage firms like E*TRADE and Fidelity. Social media is one of the biggest new trends in the financial services industry, one we first identified in our Spring 2008 issue and that we then covered in depth in our recent report, Social Media: Trends and Tactics in the Financial Services Industry.

Scottrade managed to tap into both of these themes recently when it released a beta version of its new Mobile Trading platform - m.scottrade.com - and asked its Online Community members for feedback. Continue Reading »

This past month, the term “March Madness” could just as easily have described the frenzy of activity within the financial services industry as it does the annual NCAA college basketball tournament. New investment ideas, online resources and marketing efforts highlighted an especially busy March.

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April Fools’ prank? Glitch? Computer virus? Easter miracle? Whatever the explanation, a number of clients of discount online brokerage firm Zecco woke up on April 1st with buying power of up to $13 million instead of the down-to-earth totals they had last logged out with. An uncertain number disregarded the voice of reason and took the opportunity to place big trades they wouldn’t have been able to afford otherwise - trades that somehow cleared. As you can imagine, this would not end well.

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Over the past several months, adjustments to benefit riders for variable annuity contracts have (almost exclusively) followed a reduction trend. As a result of capitalization pressure on many financial institutions, some variable annuity benefit riders and guarantees were eliminated altogether.

There are, however, some notable exceptions. Two firms covered by Annuity Monitor – Hartford Life and Prudential – have recently enhanced some of their benefit riders. Continue Reading »

Advisors have long relied on mutual fund firms for tools and materials to help them sell products and services to investors. Who guides these financial institutions through developing resources that advisors truly value? Dow Jones provided some answers with a webinar entitled Winning the Allegiance of Top Financial Advisors for behind-the-scenes executives. Continue Reading »

In February, our Credit Card Monitor Report publication released a research report on Universal Rewards Cards, those issuer-branded cards that offer generalized point-earning capabilities and a diverse array of redemption options. This report has generated a lot of media interest due to the continuing struggles of the American economy. With most major issuers currently receiving some level of government bail-out money, card holders (and competitors) are keen to know if and how rewards cards are being effected.

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