Five Key Takeaways from the MEF Banking App Study

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By Matt Kelly

There are more smartphones in circulation today than ever before, so it should come as no surprise that mobile banking app usage is on the rise again too. In fact, 61 percent of people use their bank’s app on a daily basis, according to a Mobile Ecosystem Forum’s “Mobile Money Report”, released earlier this year.

The report, a consumer study spanning 6,000 individuals in nine countries, highlights the continued emergence of banking apps as a critical touch point between financial institutions and their customers.

Let’s take a deeper dive into some of the significant details of the report below:

Consumers place trust in their devices. In the MEF report, consumers were asked which processing method they trusted most when using a credit card. A quarter of respondents preferred mobile-optimized websites or simply storing credit card data within a mobile app. Only 17 percent felt better handing a card to a store’s employee, while only 6 percent felt safe reading details over the phone.

Mobile experience is as vital as branch experience. 28 percent of respondents to the MEF study said they preferred to do their banking at branches. However, app users are quickly gaining ground, with 26 percent preferring that option. Financial institutions must recognize the value of mobile experience, and those that create a seamless experience between apps and branches will likely gain a competitive foothold in the years to come.

Engagement is up, but visibility is down. With the introduction of mobile banking solutions, financial institutions are seeing more engagement with customers on a daily basis. 78 percent have made a mobile purchase over a six month time frame. 44 percent check their balances, while 29 percent pay bills with their smartphone. So while banks may not necessarily be seeing their customers every day, our devices are enabling us to make banking a more significant part of our day-to-day lives.

Privacy remains a top priority. 31 percent of MEF survey respondents claimed that they had abandoned purchases in the past because they were asked for too much personal information. With customer privacy a critical factor in cybersecurity conversations taking place within the financial industry, banks must work together with the retail industry to find ways to streamline purchasing processes while simultaneously shoring up consumer concerns at all points in the customer journey.

Apps aren’t the new plastic—yet. Only 18 percent of consumers have used their phones to pay for goods inside a brick-and-mortar store. The question is whether or not this figure is going to continue climbing or simply stagnate. But clearly, apps are now being developed to play an even larger role in your financial decision making. MEF suggests, though, that if such apps continue to expedite consumers’ financial transactions, it may become more popular.

At The Milford Bank, we’ve worked hard to provide our customers with as great an experience in our app as you’d have by stopping by one of our Milford or Stratford office locations. To learn more about how we’re keeping up in this ever-changing world to support you and your family, click here.

Equifax Data Breach Hits 143 Million Americans

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By Susan Shields

These days, there aren’t many big financial decisions that you can make without a credit report. You’ll need one to buy a home, lease a car, and maybe even land a job. But if you had your credit report put together by Equifax, you may be one of 143 million Americans with personally identifiable information now up for sale on the black market following a data breach at the agency.

According to Equifax, the breach began in mid-May and lasted through July. Among the information obtained by hackers includes peoples’ names, social security numbers, birth dates, addresses and even driver’s license numbers. Additionally, over 200,000 individuals had their credit card numbers stolen.

If you’ve been affected and fail to act, an individual who obtains your records can devastate your life. You may be on the hook for faulty loans, parking tickets, and any other poor choice made by a criminal in your name.

Recently, the FTC put together a set of recommendations to see if you’ve been impacted and, if so, what you can do about it. Read on to check out the steps you need to take to ensure the security of your credit. But be sure not to begin until you’re on a secure Internet connection.

  • First, see if you were affected. You can find out by clicking here.
  • Check your credit reports from Equifax, Experian and TransUnion for irregularities.
  • Put a credit freeze on your files—you’ll have to unfreeze them to do another credit report, but it will also be harder for someone else to make a new account in your name.
  • Monitor your existing credit card and bank accounts for charges you don’t recognize.
  • If you decide against freezing your credit, place a fraud alert on your files to warn creditors to verify the identity of anyone who attempts to use your information to secure a line of credit.
  • File your taxes as soon as you get the necessary information so that scammers don’t beat you to the punch and steal your refund.

There’s no arguing that the financial technology at our disposal today can make banking more convenient and cost effective. But we must always remember that emerging technology must be respected and handled with the utmost care. As long as you maintain a strong cybersecurity strategy, you’ll be able to stay ahead of the would-be scammers that seek to take advantage of the unsuspecting today.

To learn more about how you protect your finances, check out our Online Learning Center. You can also stop by any office of The Milford Bank in Milford or Stratford for more support.

Unlucky in Love? Your Credit Score—Not Your Game—May be to Blame

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By Trish Townsend

Based on the results of a recent Lending Tree survey, Americans are not paying close enough attention when it comes to their credit scores. The report revealed that 60 percent of people around the country do not know their own credit score.

On a day-to-day basis, you might not think it matters that much. But the reality is that your credit score impacts everything from the car you drive, where you live, and maybe even what you do for work.

If you’re still not convinced that you should be paying closer attention to your credit score, Discover Financial Services and Match Media Group—parent company of Tinder and other dating sites—just released new data that may be able to compel you after all.

In a study of 2,000 online daters, the joint study revealed that today’s dating pool places a high priority on the ability to manage money. Half of respondents claimed that having a good credit score was more attractive than having an impressive job. 58 percent said it was more attractive than having a nice car. 40 percent of respondents even said that a fit credit score was better than a fit body.

But why are today’s singles so drawn to individuals with high credit scores? It’s what the figure represents. 73 percent of survey respondents claimed that a good credit score suggested responsibility. Roughly 40 percent said it reflected a sense of trustworthiness and high intelligence, too.

Helen Fisher, the chief scientific adviser at Match.com and senior research fellow at the Kinsey Institute, put it in more academic terms, calling credit scores “honest indicators of who you really are,” as well as “Darwinian mechanisms for measuring your reproductive ability.”

While we may not be able to help you think up any one-liners to test when you go out to mingle on Saturday night, The Milford Bank is more than ready to help you take a closer look at how to improve your credit score. To learn more about how to set yourself up for sustained financial growth, stop by any office of The Milford Bank, or check out more resources at our Online Learning Center here.

 

New Poll Reflects Americans’ Preferred Long-Term Investment Strategies

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By Patty Gallagher

There is no one-size-fits-all solution when it comes to long-term investment planning. Every individual, and every family, has different needs and wants, expenses and assets. As such, it can be difficult to get the right context to help you make an informed decision that will suit your needs. And while you cannot make your financial decisions based on what works well for others, it certainly helps to understand how the rest of the community is choosing to plan for the long haul.

If you’re a Milford or Stratford resident thinking about where your assets would best serve your long-term savings strategy, consider the results from a recent Gallup poll which ranked Americans’ favored long-term investment vehicles.

Let’s take a closer look at the numbers:

Real Estate: According to the Gallup poll, Americans seem to have regained their confidence in the real estate market following the Great Recession of 2008. In the past six years, the percentage of poll respondents choosing real estate as their preferred long-term investment has climbed from 19 to 34 percent—making it the most popular of all poll choices.

Stocks and Mutual Funds: Similarly, consumer confidence in the stock market appears to have recovered from the Great Recession as well. Today, 26 percent of survey respondents cited that their go-to method for long-term savings was the stock market, up from just 17 percent in 2011.

Gold: Oftentimes, people will invest in precious metals like gold or silver when the stock market is turbulent and unpredictable. Such was the case following the Great Recession—in 2011, gold was by far the most popular long-term investment vehicle for survey respondents, with 34 percent making it their go-to option. But as the economy has rebounded, that number is now down to just 18 percent.

Savings Accounts and CDs: While the return on your investment won’t always be as high as with other vehicles, savings accounts and CDs present a conservative and guaranteed rate of return. Interest rates, however, have remained flat in the subsequent years following the Great Recession, which has resulted in little change in the popularity of these types of investments. In 2011, 14 percent of Gallup poll respondents cited savings accounts and CDs as their preferred long-term savings option. Today, that number still sits at 13 percent, largely unchanged.

Bonds: While all the other survey options mentioned in the Gallup poll all gained in favorability (besides gold), the one investment vehicle which lost ground was bonds. Bonds were more popular at the height of the Great Recession during less certain times, but now that the economy has leveled off, bonds have become less of a priority for a majority of Americans.

If you’re still uncertain about where your long-term savings should go, you’re not alone. Clearly, Americans’ saving preferences are varied and subject to change as their lives do. But there’s no reason to go it alone: The Milford Bank has been helping families save for their futures for generations. If you’re a Milford or Stratford resident looking to grow your retirement account, stop by an office location in your area today. You can also learn more by checking out our Online Learning Center.

New Study Reveals Shifting Consumer Expectations for Financial Services Industry

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By Jorge Santiago

The proliferation of connected technology over the past decade or more has reached a point of near ubiquity, with smartphones, tablets and other Internet-enabled devices just about everywhere we look today. These devices, and the power to connect, has given rise to a drastic shift in consumer expectations and behavior, forcing all industries to rethink their strategy for engaging and retaining customers.

The financial services industry has been no different, based on the results of a recent Accenture Consulting study. The study of nearly 33,000 banking customers spanned 18 markets throughout the world and found that five key attributes were reported consistently.

So what were the five key attributes that consumers today expect from their bank? Let’s take a closer look below:

  1. Service expectations: The modern consumer expects a high level of customer service and is not afraid to look elsewhere if expectations are not met. According to the results of Accenture’s study, a majority of consumers want banks to match tech providers’ digitally-driven service level.
  2. Personalization: Consumers today are willing to share data with their bank, this study shows, but they view data as a currency and want something in return. Banks must add value with data by personalizing experiences, from offering tools for financial management or real-time offers based on location.
  3. Appetite for innovation: Over half of survey respondents said they would want to be able to receive instantaneous financial advice via mobile communications. This exemplifies the type of innovation consumers today demand, in which new ways of accessing banking products and services can make a tangible impact in their day to day lives.
  4. Seeking self-service: While consumers do expect a high degree of customer service from their financial institutions, a majority of customers still want the availability to resolve a majority of inquiries without any assistance. This even extends into services themselves: 61 percent of survey respondents said person-to-person payment tools would be useful, while half of respondents wanted tools providing direct access to digital currencies.
  5. New branch experience: While we’re certainly living in a Digital Age, consumers still have plenty of use for their local branch too. However, they do expect that experience to change. Two-thirds of consumers say it is important to have devices that allow them to access their online banking in the branch, and that it is important to have advanced ATMs at the branch.

At The Milford Bank, we’ve taken extensive steps to stay at the cutting-edge, eagerly bringing technological innovation into our branches to facilitate a greater degree of care for our customers without sacrificing the personalized, community bank experience that makes us unique. To learn more about all the ways The Milford Bank is stepping up to meet the changing needs of our customers in the Digital Age, click here.

The Milford Bank Presents: The Weird World of Financial News!

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By Brenda Norris

At The Milford Bank, we’ve been committed to helping Stratford and Milford families improve their quality of life for generations. And given how long we’ve been at it, we thought we’d seen it all. But if you’ve seen the headlines lately, you’d realize that these are truly unique times that we live in.

While it is important to remain disciplined and responsible when it comes to your finances, it is equally as important not to let the stress of managing your money take over your life either. That said, this week’s blog post will take a break from helpful hints, savings strategies or methods for finding your family the perfect home. Instead, we’ll take a look around the world to learn about some of the craziest stories making news in the finance sector today.

Texas man accidentally deposits himself at Corpus Christie ATM

It may be easier than ever to make a deposit right at your ATM, but if you’re not careful you may just end up depositing more than you asked for. Such was the case for a Texas ATM repairman, who became stuck inside the machine when the locking mechanism closed behind him while he worked.

He was rescued three hours later after successfully passing a message through the receipt slot when a customer made their own withdrawal. After police were notified, it took them thirty minutes to kick down the door to reach the man who was angry, but unscathed.

Japanese Bank deploys world’s first robotic banker

The next time you’re passing through Japan’s historic capital and find yourself looking for a bank, head down to the central office of Japan’s largest lender, the Bank of Tokyo Mitsubishi UFJ. There, you’ll be able to catch a glimpse of a rare sight—the world’s first robotic banker. Nao, which the robot has been named, greets customers when they enter and can assist with all the bank’s main services in Japanese, Chinese and English.

What would you do with 300,000 pennies?

Meanwhile, back in the States, a Virginia man was so frustrated with the customer service he was getting from his local DMV that when the time came to pay sales tax on his two cars, he gave employees at the Lebanon, Virginia location his two cents—rather, his 300,000 cents.

After an exhaustive debate that began over improperly signed paperwork for his son’s new car came to a pass, the Virginia resident headed to the DMV to pay a $3,000 sales tax, entirely in pennies. The coins filled up five wheel barrows, and took until 1:00 AM the following day for employees to get a final count.

Bank error in your favor, collect $2 million

Several years ago, an Australian man opened up a high-limit credit card account with his local bank. Due to an administrative oversight, however, his funds were not shut off when the line of credit was exceeded. Realizing this, that man continued to withdraw and re-invest funds for the next several years before finally being caught. During that time, he was able to withdraw $2 million, which he spent on travel, sports cars, collectibles and more. He did, to his credit, continue to pay his mortgage, insurance and other bills too. But in the end, he was sentenced to roughly five years in jail for his deception.

To learn about how you can make the most of your financial situation the right way, stop by any office of The Milford Bank in Milford or Stratford today. You can also learn more by checking out our Online Learning Center here.

With the Stock Market Surging, Should You Be Investing?

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By Celeste Lohrenz

Following a July 26th announcement from the Federal Reserve Chair Janet Yellen that the Fed would not be keeping interest rates unchanged through later this year at the least, the Dow Jones Industrial Average closed out that day at a new record high.

This caps off half a year of gains for the market, which has already seen an incredibly 25 record highs in 2017. And while investors might be doing well, many Americans are wary of putting their money into the stock market. In fact, half of Americans don’t have any of their money invested in stock or stock-based investments such as mutual funds.

While the stock market can be more risky than other investment vehicles, there is clearly opportunity given current market conditions. But it is necessary to assess your own needs, your financial limitations and your overall savings strategy before you dive in.

If you’re a Milford or Stratford resident wondering whether or not the time is right for you to invest in the stock market, here are several considerations that must factor in to your decision:

How much can you reasonably budget to invest?

The stock market is riskier than investments that guarantee a return. As such, you should not invest unless your budget allows for it. In figuring out what your budget will allow, ask yourself a simple question: how much can you stand to lose before your family’s quality of life is impacted? Answer that, and don’t exceed your limit.

Can you still find great deals in a bull market?

Those who invested prior to the market’s current hot streak will be reaping the rewards now. But eventually, there will be a correction. The market will always go up and down, so maximizing your return is simply a matter of timing. You may have missed the boat on some of the hot tech companies that have seen huge gains this year, but there are likely to be opportunities for companies and industries that have suppressed stock prices for one reason or another, and are due for a bigger close to the end of the year.

What is your overall investment strategy?

Because the stock market is a riskier investment, it is wise to mitigate your financial exposure by counterbalancing the rest of your portfolio with more conservative investments. You cannot ignore the importance of a simple savings account, but there are also plenty of other ways to put your money to work for you, from certificates of deposit to whole life insurance.

At The Milford Bank, we’ve been consulting customers on how to diversify their investments for generations. If you’re looking to learn more about how you maximize the value of your nest egg, stop by any office of The Milford Bank. You can also learn more by checking out our Online Learning Center here.

Five Ways to Save On Your Back-to-School Shopping List

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By Tina Mason

Though the days are still long and warm, summer is eclipsing sooner than anyone would like to admit. And as the summer winds to a close, parents will be flocking to stores to do a record amount of back-to-school shopping, according to recent figures from the National Retail Federation.

According to the NRF, spending for school and college is expected to reach $83.6 billion in 2017, a 10 percent increase from last year’s numbers. Of course, all students will need new supplies for the coming year. But taking care of your childrens’ back-to-school needs shouldn’t have to break the bank either.

If you’re a Milford or Stratford parent with back-to-school shopping to do, check out these five tips to save money on your list this year.

Shop on tax holidays: Every year, the state of Connecticut suspends sales taxes for a week in late summer in order to stimulate the economy and help families get their children the school supplies they’ll need. This year, Connecticut’s tax holiday will take place from August 20th through August 26th. Shopping during this period will help you save at least the six percent sales tax on all purchases in the state.

Build a network with other parents: Your family isn’t the only one looking to cross everything off your shopping list without draining your bank account. Reach out to other families in the community and set up a network so that you can share items as needed—whether that be passed down clothing or school supplies themselves.

Do a scavenger hunt at home: Notebooks, pens, binders, calculators—all the things that your child needs for school, you may already have hidden away around the house. Take an afternoon to scour your closets, home office, musty boxes in the basement and all your junk drawers. You may be surprised to find many of the costly supplies you need already waiting for you!

Check out thrift stores and tag sales: The end of summer is a great time to find bargains at tag sales and thrift stores. As families stock up on new supplies, many will send old clothing and school items to thrift stores, or put on tag sales to get rid of unwanted items. Take some time to look up tag sales in your area and get up early during the weekend to drive around. Swing through your local thrift store while you’re out—you never know what you’ll find.

Set a budget: One of the best ways to save is to set a hard limit for yourself and be disciplined enough to stick to it. It can be difficult when your children are clamoring for the latest tech gadget, but that doesn’t change the limitations with which you must live.

If you’re a Milford or Stratford resident with children heading back to school, we understand that your financial planning doesn’t end once the school year begins. We have a full range of financial services designed to help you maximize your wealth and improve your quality of life regardless of what your circumstances may be. To learn more, check out our Online Learning Center or stop by any office of The Milford Bank today.

Is Generation Z About to Transform the Real Estate Market?

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By Paul Mulligan

After spending years living in the shadow of the baby boomer generation, Millennials have now taken center stage. As a demographic, Millennials represent the largest percentage of the labor force, and recently reached a record high in spending power.

But Generation Z is hot on the heels of Millennials, and based on findings from a recent National Association of Realtors report, this unique group is poised to transform the real estate market. But what is so different about Generation Z? How will their characteristics shape real estate? And what will this mean for members of this maturing generation from Milford and Stratford that will be looking to become first time homebuyers in the next five to 10 years?

Let’s take a closer look at some of the key findings from this report:

Co-habitation is on the rise: David Reiss is a professor of law and research director at the Center for Urban Business Entrepreneurship at Brooklyn Law School. In the National Association of Realtors report, he wrote, “Since the financial crisis there has been an increase in multigenerational households, driven in large part by financial limitations and insecurity as well as by marital status and educational attainment. Young adults are more likely to live at their parent’s home in recent years than they have been for more than a century.”

What does this mean for the real estate market? You can expect to see greater interest in multi-unit dwellings as Generation Z reaches maturity. Similarly, it will not be uncommon for aging Baby Boomers to purchase larger homes with their children in mind, rather than downsize as has traditionally been the case.

Digital services inform architectural design: Generation Z, much like their Millennial predecessors, are all about technology. They can manage most of their lives directly from their phones, and this factor may disrupt the new construction market. For instance, food delivery services that can bring fresh groceries and ready-to-cook meals right to your door greatly minimize the need for a refrigerator. As these types of services become commonplace, it is likely that builders will have to make unique design decisions reflective of changing needs, wants and expectations.

Generation Z will flock to passive homes: 72 percent of respondents aged 15 to 20 stated that they’d be willing to pay more for products or services from companies committed to positive social and environmental impact. As it pertains to real estate, younger buyers are looking for environmentally-friendly properties. Passive homes, oriented around solar power, filtered fresh air and high-efficiency insulation, are expected to be in high demand.

Walkable neighborhoods: Pushed out of cities by high prices and disinterested in the calm of the suburbs, Generation Z is expected to flock to neighborhoods just outside of major urban centers. These emerging population centers are going to be developed into “walkable neighborhoods”, which have all the necessary conveniences within several blocks.

If you’re a Milford or Stratford resident getting ready to buy your first home, call, click, or stop by any office of The Milford Bank today. Our experienced personnel will guide you through the process, from pre-approval to closing, ensuring that you find the right home for your family. You can also get more great educational resources on our Online Learning Center here.

Survey Reveals Most Americans Have Financial Regrets

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by Patty Gallagher

Hey, Milford and Stratford residents—have you ever done something you regret with your money? Maybe there’s an expensive pair of shoes collecting dust in the corner of your closet. Or maybe you had an investment go belly up. Whatever your example is, remember this: you’re not alone.

In a new survey from Bankrate, it was revealed that 4 in 5 Americans has some form of financial regret. What were the most commonly reported causes for regret?

  1. Retirement Savings: Not saving enough for retirement was the leading financial regret of the 1,000 Bankrate survey respondents. 22 percent of those individuals cited not saving enough for a comfortable retirement.
  2. Emergency Savings: Similarly, a large percentage of people claimed they regretted saving enough for emergencies. At 16 percent, this was the second most common financial regret.
  3. Credit card debt: 9 percent of survey respondents claimed that they had regrets about the balance of their credit card. These individuals report carrying more credit card debt than their budgets can bare.
  4. Student loan debt: Student loan debt continues to be a national issue, which is clearly reflected in this survey. 9 percent of respondents claimed that they regretted the amount of debt they had to take on in order to get their college degree.
  5. Children’s education: While graduates continue to grapple with student loan debt, many parents are feeling regret themselves. 8 percent of respondents had regrets about the amount that they had saved for their child’s education.
  6. Buying a home: 2 percent of survey respondents claimed that they had regrets about buying a house that was too expensive for their budget.
  7. Something else: This is where the expensive shoes and bad investments come into play. 7 percent of survey respondents had regrets about a wide variety of other financial decisions they’d made.
  8. No regrets: One out of five respondents claimed that they had no financial regrets whatsoever. And while it is noble to live without regrets, the previous examples clearly demonstrate that financial decisions cannot be taken so lightly. The choices you make today will impact you for a lifetime. If you have a family, your financial regrets can seep over across generations. Take the example of education savings, for instance. If more parents had done a better job saving for their child’s education, it is likely that fewer graduates would report regrets about student loan debt.

But if you have your own financial regret, it is important not to let it define you. Every difficult financial situation can be addressed and improved with the right strategy and network of support behind you. At The Milford Bank, we offer a diverse portfolio of financial services to help you make the smartest decisions with your money, as well as an experienced team ready to help you meet your financial challenges head on. You can also learn more on our Online Learning Center, or stop by a branch location in Milford or Stratford today!