This is Luckie and Company's monthly Trend Tracker newsletter for the Banking Industry

1. March 13, 2009

2. Wonga, a company in Great Britain, has launched a new microloan program that allows
users to apply for instant loans of £50-200, repayable within 30 days.
The offering is unique in two ways. First, the user interface offers an instant snapshot of
what the loan amount will be, what the term of the loan will be and what the repayment
will be including interest. Second, Wonga is rewarding good customers with merit points
that can be used in future loans to get more favorable terms.
Wonga takes the concept of microloans out of its usual context — peer-to-peer loans
typically offered from people in developed countries to borrowers in emerging ones —
and puts it into a quot;localquot; banking-consumer relationship.
Even though most consumers are turning to cash and debit cards, there is still a need for credit in small, manageable
amounts.
Transparency of terms is a key best practice, and Wonga amps it with an easy-to-navigate application process and
calculator. Plus, rewarding successful borrowers with premium terms will keep them coming back.
Source: Iconoculture
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3. An online banking group has managed to combine finance and social networking by allowing users to display their savings
goals and status on their Facebook or MySpace pages.
U.S.-based SmartyPig has teamed up with Australia’s ANZ to deliver what it calls a “virtual bank account,” into which the
family and friends of users can also contribute money through the Facebook widget.
SmartyPig users flag savings goals in their account of a certain amount. The user can then choose to redeem the saved cash
plus interest or put the money into a gift card to be used at any store of an ANZ retail partner. The ANZ retail partners will
also give an extra 6% if the user transfers money into a gift card.
ANZ general manager of deposits, Mandy Simpson, says the new venture is targeting Generation-Y in an attempt to teach
financial responsibility and promote savings, rather than further their reliance on credit. “a big part of this is the social
banking side — you can go public with it, and you can share your goal with family and friends.”
Source: SmartCompany.com
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4. I Can Bank It is a Web site, from Brazilian Banco Itau that tries to teach the younger members of Gen Y how to save some
money or, at least, to spend it in a better way related to their lifestyles.
For example it asks “how many minutes do you spend on your mobile every day?” Then responds by saying “do you know
that reducing the costs of your calls could help you save enough money to buy a laptop?”
Source: Adverblog
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5. Discover Financial Services recently launched a biodegradable Discover Card option, the only U.S. biodegradable consumer
credit card currently available in the marketplace. The biodegradable Discover Card is made of biodegradable PVC, a
substance that allows 99% of the card plastic to be safely absorbed when exposed to landfill conditions.
The card plastic will begin to break down in soil, water, compost or wherever microorganisms are present; with it fully
degrading within five years. The biodegradable card can be identified by the biodegradable symbol that will be visible on the
back of the card.
“The biodegradable Discover Card is another way for environmentally conscious consumers to do their part to help protect
our planet,” said Kelly Tufts, director of marketing at Discover.
Source: FierceFinance.com
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6. In January billboards and broadcast commercials suddenly popped up all over the U.S. urging citizens
to “feed the pig.” The campaign features a talking pig in a pink suit coat. His name is Benjamin, and
he has a disturbing slot in his head, to which he points and intones, “Feed me!”
The Ad Council and the American Institute of Certified Public Accountants are behind the effort with
the point being to encourage Americans to learn how to save more.
Coincidentally, the nation of Finland has launched a competing campaign that shows an evil piggy
bank with devil’s horns. The evil pig urges, “Don’t feed the recession,” arguing that economic malaise
will continue if people don’t begin to spend more freely.
Everyone, at least everyone in the U.S., seems to be jumping on the thrift bandwagon. The U.S. Treasury, the National
Endowment for Financial Literacy and now the American Institute of Certified Public Accountants have all launched public
education campaigns to urge consumers to learn more about managing their personal finances, protecting their credit
ratings, and saving more than they spend.
Source: Iconoculture
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7. Led by the Filene Research Institute, Save to Win just launched at eight Michigan credit unions in a pilot project testing
consumer response to prize-linked savings.
New and existing members compete for monthly and grand prizes by making deposits into one-year, federally insured
certificate accounts. At the end of the pilot, one member will take home the $100,000 grand prize, while others share $40,000
in monthly cash prizes.
To encourage savings, account holders earn an entry with each $25 deposit, up to 10 entries per month. One emergency
withdrawal is allowed during the certificate’s term, but if the depositor closes the account, all entries are void.
Source: Filene.org
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8. You’d think that seven months after Apple launched the App Store for the iPhone, it would no longer be news when a U.S.
bank adds an application to the store. But it is news since the addition of PNC Bank brings the grand total of bank-specific
apps to four, five if you count PayPal. Even if you include the several dozen banks supported by Firethorn’s multi-bank app,
there are still no more than 40 banks supported. Here are the five App Store participants in order of their appearance:
• Bank of America and PayPal were both in the App Store when it first opened in July 2008
• IBC Bank launched in September 2008
• Chase Bank launched December 2008
• PNC Bank launched late January 2009
• Wells Fargo has an iPhone app that’s not yet shown up in the App Store
Along with balance and transaction activity, the PNC app includes bill pay, funds transfer and an ATM finder with location-
based capabilities.
Source: Netbanker.com
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9. Nobel Peace Prize winner Muhammad Yunus is expanding his New York state-based Grameen America microlender to other
parts of the U.S.
The institution has lent $1.2 million to 440 self-employed, low-income women (with a 99.5% repayment rate) since its
opening in November 2007. Grameen America plans to expand to North Carolina, New Jersey, Nebraska, Louisiana and other
U.S. states.
Unlike typical lending institutions, Grameen America lends to those who do not have collateral. More than 70% of the
borrowers are Latino. Bad credit, low incomes and lack of collateral have made it difficult for Latinos and other minorities to
get traditional business loans. Grameen America's micro-lending formula can help recession-racked families escape poverty.
By offering small lines of credit, Grameen gives lenders a greater return on their investment with a smaller amount of risk.
Minorities tend to be reluctant to borrow from banks. Micro-lending does not saddle borrowers with large debt and the small
business success rate builds hope in depressed communities.
Source: Iconoculture
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10. ING has created an application for the Google Phone that allows users to find the nearest ATM. Making good use of the
phone’s internal GPS and its camera, the application converts the phone into a compass. So looking down the street through
the screens of their phones, users get pointed literally to the right location in real time.
The application is called ING Wegwijzer, and it’s available for free through Google’s Android Market. Right now, though, it’s
limited to the T-Mobile G1 phone and ING bank’s home stomping grounds — the Netherlands.
“Augmented reality” may well form the core of Web 3.0, as more and more applications are developed for mobile phones and
other PDAs.
Source: Iconoculture
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