What We’re Reading: Retail Banking, Square, Voice Biometrics
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.
- What’s Behind the Mobile Banking Boom (video)
Mobile banking has expanded beyond the market for youthful early adopters and is rapidly becoming a mainstream product. American Banker reporters discuss who else is logging on and the hurdles the industry faces to keep the momentum going.
- Report: IT Spending in Retail Banking Will Reach $152.5 Billion By 2018
Back-end investment for compliance and investment in digital channels will drive strong growth in IT spending among North American banks, according to Ovum. Retail banks will grow their IT spending to $152.2 billion by 2018 in response to rising customer expectations and investment in digital channels, a recent report by analyst firm Ovum predicted.
- Navy Federal Promotes Square For Small Business Payments
Mobile payments provider Square could get a big boost from the nation’s biggest credit union. Navy FCU is promoting Square’s mobile card reader and payment processing services to its small-business members. The $56 billion credit union’s website now hosts a page that allows members to sign up for Square. By partnering with Square, Navy Federal is providing members with an easier way to accept credit card purchases and track their sales, according to Jim Salmon, vice president of business services at Navy Federal.
- Banking Insider: U.S. Bank tests voice biometrics to replace passwords
U.S. Bank is joining a short list of large financial institutions that are testing voice biometrics as a potential replacement for the traditional password. That list includes Wells Fargo & Co. and Barclays Plc. Voice biometrics software users log in to an application or website by speaking a word or phrase. The word or phrase is compared to a previous recording the customer has made to verify it’s the same user. U.S. Bank employees are piloting the software and using a simple passphrase such as “my voice is my password” to access credit card account balances, search transactions and make payments on accounts using a mobile device.
- Why There Is No Amazon Of Banking
There are no Amazon-branded products or services. As a result, there are no Amazon product managers with a vested interest in selling their product over some other brand. Can you walk into a Citibank branch and open up a JPMorganChase checking account? Nope. Can you go to the Bank of America web site and apply for a Wells Fargo mortgage? Nope. But you can go to Amazon’s web site and buy just about anything that anybody else sells.
- Here’s the One Stat Big Bank CEOs Are Freaking Out About
A new survey shows that nearly a third of consumers haven’t actually set foot in a bank branch in six months, and one expert predicts that number could rise to 50% in just five years. According to Bankrate.com, 30% of respondents to a new survey haven’t gone to a bank branch in six months. And more than two-thirds of those — 21% of respondents — haven’t set foot in a bank in the past year or more.