What We’re Reading: Dodd-Frank, Isis and Mobile Banking Security
Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below or Tweet @bankingdotcom.
- As Dodd-Frank Turns Two, Where Are the Tech Solutions?
On the second anniversary of the Dodd-Frank bill, the technology to handle it is far from complete. But it’s no wonder, given that only 10% to 30% of the actual rules and regulations implementing the sweeping reform bill have been written, observers say. “There’s a tip of the iceberg issue here,” says Jason Marx, vice president and general manager, residential and indirect lending at Wolters Kluwer. “A fair amount of work has been done on the regulations, but the market still hasn’t seen the full scope of the regulations as a result of the legislation.”
- Bank of America Adds Chips to Consumer Credit Cards
Bank of America (BAC) is offering EMV chip technology for many of its consumer credit cards. Credit cards with EMV chip technology are embedded with a microprocessor chip that encrypts and stores the account information. Many countries outside the U.S. have already converted from magnetic stripe to this technology. This technology will increase acceptance and security of cards for international travelers, the Charlotte company said Monday. Customers will be able to request the chip card options through a branch or via the telephone beginning this week and online later this year.
- 5 Critical Strategies for Mobile Banking Security
By 2013, one-third of mobile phone users are expected to use mobile banking services. Already, one out of five Americans accesses financial information through a mobile phone, according to March 2012 research conducted by the Federal Reserve Board’s Division of Consumer and Community Affairs. Yet the increasing use of mobile financial services has been accompanied by increased risk. According to Javelin Strategy’s 2012 Identity Fraud Report, smartphone owners are one-third more likely to have been victims of identity fraud in the past year.
- Isis mobile pay service may start trials in August
Isis, a joint venture among Verizon Wireless, AT&T, and T-Mobile USA, will likely start trials of its mobile-payment service in August, according to a person familiar with the launch plans. The August target, however, isn’t set in stone. CNET has gotten indications elsewhere that the timing may change. A representative for Isis only said the service would begin trials in Salt Lake City and Austin, Texas, this summer, pushed back from the prior forecast of a mid-year launch. Isis will join Google Wallet in its attempt to get people to start paying at cash registers with their smartphones instead of a credit card or cash.
- Report: Consumers prefer mobile wallets from banks over other providers
Consumers would choose mobile wallets provided by banks over other non-traditional mobile wallet providers, according to Auriemma Consulting Group’s (ACG) lastest Mobile Payments Report. ACG’s report found that 18.4% of consumers would choose a mobile wallets provided by a bank (American Express, Barclays, Lloyds TSB, etc.), while 11.6% of consumers would prefer mobile wallets from digital/mobile payment providers (PayPal, Skrill, Neteller, etc.), and 9.5% would get their wallets from mobile operators (O2, Vodafone, etc.). Only 5.1% of consumers said they would acquire wallets from external providers like Google, Apple and Facebook. “The mobile wallet is poised to gain strong momentum and usage over upcoming years, so in order to capitalize on the strong consumer interest, banks will need to consider their preferred path moving forward in this space,” said ACG.
- BofA, Wells Fargo Rolling Out New Mobile Banking Services
Bank of America Corp and Wells Fargo & Co are rolling out more retail services accessed by mobile phones, including check deposits, as the banking sector races to cut costs in a tepid economy. Starting Thursday, Bank of America will allow customers to make deposits by submitting a photo of a check through their smart phones, the bank’s online and mobile banking executive, Aditya Bhasin, said on Monday. The No. 2 U.S. bank is also rolling out a service allowing customers to send money to other individuals using their email address or mobile numbers, as well as expanding a coupon service that can be used by mobile customers. Wells Fargo launched its mobile check deposit service earlier this year and will gradually expand it across the United States by the end of the year, said Brian Pearce, head of the retail mobile channel at the bank.