What We’re Reading: Biometrics, Photo Bill Pay, Mobile Wallet

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.

  • U.S. Bank Pushes Voice Biometrics to Replace Clunky Passwords

American Banker 

When U.S. Bank announced Wednesday that it’s testing voice biometrics for possible use by customers to access account information, it joined a line of banks that have been testing this technology, including Wells Fargo (WF) and Barclays. Voice biometric software users log in to an application or website by speaking a word or phrase. That word or phrase is compared to a previous recording the customer has made, to verify it’s the same user. Many industry observers have been saying for at least a year that the password is dead and more secure alternatives to authentication, such as voice biometrics and iris scans are needed to verify a user’s identity when banking online or via a mobile device. Some press accounts Wednesday stated that the goal for U.S. Bank’s pilot is to improve customer data security.

Read more

  • Mobile Photo Bill Pay Continues Shaky Start

Credit Union Times

Major players are investing in mobile photo bill pay as a natural next step to mobile deposit checking but the tool may have a long way to go to catch up with taking pictures of checks with smartphones. In the past year, 600 to 1,000 banks have installed mobile RDC and less than a dozen have done the same with mobile photo bill pay, said Bob Meara, an Atlanta-based senior analyst for the New York-based research firm Celent. “Mobile RDC is this wonderfully convenient invention and it scores highly on all the consumer surveys, but if you ask the same question about mobile photo bill pay, people just don’t get as excited about it, for a variety of reasons,” Meara said. “It’s just not as compelling.”

Read more 

  • It’s Time to Rise Above the Risk and Compliance Whining

Gonzo Banker

According to The Cornerstone Report, 7th Edition, bank assets per enterprise risk management FTE decreased from $147 million in 2010 to $55 million in 2012. Furthermore, the gap between median and 75th percentile performers was much wider than the gap between 25th percentile and median performers.

Read more

  • MCX and Paydiant Mobile Wallet – and Capturing the Consumer

Javelin Strategy & Research Blog

MCX announced it would be adopting the Paydiant mobile wallet, a cloud-based, white label platform. MCX is a consortium of 70 prominent brands with 110,000 locations representing over $1 Trillion in annual payments volume and 700,000 loyalty cards. MCX includes companies like Wal-Mart, Best Buy, CVS, Bed Bath & Beyond, Target, Exxon, Southwest, and today it extended to QSRs like Wendy’s. FIS, rated Javelin’s Best in Class Mobile Banking Vendor provides MCX with payment processing, routing and settlement for mobile commerce transactions.

Read more

  • Study finds small business mobile banking services lacking in US

Mobile Payments Today

U.S. banks need to make a greater effort to capitalize on their small business customers’ appetite for mobile banking services, according to research by Aite Group. This will involve providing their clients with business-specific mobile banking offerings instead of rebranded consumer mobile banking services, the U.S. consultancy says. In September 2013, Aite Group surveyed 1,003 U.S. companies with revenues of under $20 million for two reports: “Monetizing the Small-Business Opportunity” and “Why Banks Should Offer Mobile Banking to Small Businesses.” The survey found that about 32 percent of those businesses bank via mobile devices, according to Christine Barry, research director for Aite Group’s Wholesale Banking practice.

Read more 

  • Banks See More Confidence But Face Threat From New Providers

Wall Street Journal Blog

After a period of sharp decline coming out of the financial crisis, the banking industry has seen a rise in consumer confidence for two years in a row, according to a new survey of 32,000 banking customers in 43 countries. The study, by Ernst & Young, showed that globally, one-third of customers reported an increase in confidence in the banking industry compared to a year ago.  This marks a rise from Ernst & Young’s prior survey in June 2012, when just 22% reported an increase in optimism. In 2011, only 13% percent reported an increase in confidence in the banking industry, compared with 44% who reported a decrease.

Read more 

What We’re Reading: Underbanked, Mobile Game App, DDoS

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.

  • They May Be Underbanked, But They’re Highly Networked

American Banker

A remarkable 68 million Americans today lack full access to traditional financial services, such as a bank account or credit card, or choose not to use them. Interestingly, though, these financially underserved individuals are far from disconnected. They are actually more active users of mobile phones and social media than the population at large. The vast majority of the so-called “underbanked” are highly networked, using their mobile devices to connect via social media, purchase goods online and, increasingly, conduct financial transactions.

Read more

  • BB&T Teaches Leadership Creed with Mobile Game App

Bank Systems and Technology

The Winston-Salem, N.C., bank released a mobile app this month called Legacy: A BB&T Leadership Challenge, in which users play the role of a medieval hero enlisted by King Alpheus to help the land of Failburg succeed. (The king is named after BB&T founder Alpheus Branch.) Players gain influence – and proceed to the next level of the game – depending on how they interact with the characters.

Read more

  • Biometrics Has Potential in Mobile Banking Apps

Barlow Research

Apple finally delivered on its much hyped biometric capabilities in September when it released its new iPhone 5S with a built in fingerprint identity sensor, Touch ID. It had been rumored to be in the works for several years and the public was finally able to view how the finger printing technology works. Touch ID has some great benefits; it is a user-friendly way to let users get to their information quicker and it also allows a fingerprint to authorize a purchase from the iTunes or App store. These two capabilities have potential for the future of mobile banking apps.

Read more 

  • DDoS Growing; CUs Unprepared

Credit Union Times

The DDoS threat keeps growing. Third-party experts and credit union executives—primarily speaking anonymously on the subject—said most credit unions have done nothing to protect themselves against the threat, which has been increasingly linked with theft of funds at financial institutions. “They are remarkably naive,” said an expert, who asked to remain anonymous, of credit unions. Added a senior engineer at a Northeast credit union with more than $500 million in assets, who also requested anonymity, “We haven’t had any outages and we haven’t installed any new defenses.”

Read more

  • Top 100 Banks & Credit Unions Adding The Most New Facebook Likes

Financial Brand

The top 100 banks and credit unions on Facebook ranked by their new ‘Likes’ in the last 90 days through September 2013.

Read more

  • Executives see no letup in mobile trend

Miami Herald

There are 7 billion activated cellphones worldwide, about the same as the population. About 6 billion hours of video are accessed on YouTube every month. Of that, 70 percent is from outside the United States; 25 percent is accessed on mobile devices. On Friday morning, panelists at WorldCity’s Tech Connections event — executives Marcelo Caputo of Telefonica, Jose Antonio Rios of Celistics, Mark Hans-Joachim Crofton of SAP, Juanjo Duran of YouTube and Richard Wadsworth of MasterCard Worldwide — shared these numbers as well as a glimpse into the future. The consensus: There will be no letup in the speed of mobility or big data, particularly in Latin America.

Read more