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What's in your contract about mobile?

“Blurging” of customer lifestyles and mobiles carries implications

Obvious and mediocre won’t be found here—but “Why didn’t I think of that?” will! Challenging the banking status quo is Dan Fisher’s personal mission. Obvious and mediocre won’t be found here—but “Why didn’t I think of that?” will! Challenging the banking status quo is Dan Fisher’s personal mission.

What’s in your contract?

My firm, the Copper River Group, always recommends that you read your vendor contract before you sign it, and be certain that you fully understand each and every clause.

Observation: If you think today’s technology is complicated, read your technology contract and you will be amazed—and concerned—about how much you don’t understand.

There are things you need to know before you sign, and if you find reading and understanding a technology contract difficult, retain an experienced resource to assist you and guide you through the process. It will make a difference.

With mobile services taking center stage for many bank customers, the time has come to really understand what you are signing.

“Blurging” of mobility

The lines that separate access to banking services and lifestyle have not only blurred, but also merged—hence, “blurging.”

In essence, mobile devices have become an extension of the individual in any context—business, social, fun, and money. Consequently, the mobile device is used for almost every aspect of daily life, and the availability of apps and services grows daily.

No point even mentioning how many apps you can find. The number will keep growing while the numerals are being keyboarded.

Mobile banking and mobility based products have become the centerpiece of the customer relationship and this phenomenon is expanding. From the smartphone to the tablet, the customer desires any-time, any-where access to their banking services. Furthermore, they have included in that “RFP” payments and the ability to send and receive payments using the mobile device and make deposits.

Looking over the horizon, soon—and in my lifetime—we will see financial services open and available 24 hours a day and 365 days a year. Not just Monday through Friday. That means real-time payments on Sundays AND holidays!

Will your contract blow up in your face?

Which brings us back to your vendor contracts: What do they say about mobile? What don’t you know that you need to know?

Here’s what we know:

In response to the changing lifestyle, vendors have decided to expand on the “Restrictions” clause of the use of Mobile Banking products section of the contract.

We are not lawyers and we are not giving you legal advice. We are only saying that you should thoroughly review these sections and then seek legal guidance.

The changes are significant and place a huge burden on financial institutions. The restrictions pertain to beer, wine, liquor, games, and even funeral services and the use of a mobile device.

And there is more…

So, what’s in your contract?

Take some time to find out!

—The Wombat!

Dan Fisher

Dan Fisher is president and CEO of The Copper River Group, a consulting firm headquartered in Fargo, N. D., that focuses on technology and payment systems research and consulting for community financial institutions. For nearly 30 years, Fisher has worked in the financial industry using technology to improve the bottom line. He was CIO of Community First Bankshares (now part of Bank of the West), has served as a director of the Federal Reserve Board of Minneapolis, the chairman of the American Bankers Association Payment Systems Committee, and was a member of the Independent Community Bankers of America Payments Committee. Fisher has written numerous articles on banking technology and the payments system. He has authored or co-authored six books and recently published a book titled, "Capturing Your Customer! The New Technology of Remote Deposit." You can contact Fisher at [email protected] or at 701-293-6222.
P.S. To understand Dan's nickname, check out "About the Wombat" on his website.       

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