What We’re Reading: Mobile Bankers, Millennials, Cyber-Attack Trends

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.

  • Mobile Banking Increases the Need for Mobile Bankers

American Banker

Ask a thousand bank managers what makes their bank a better choice than the competition, and about nine hundred and fifty will tell you “our people.” I won’t argue that. In an increasingly commoditized industry, our people can be one of the few true differentiators left. But the model that has them forever sitting in buildings that fewer and fewer people utilize makes less strategic sense each year. The term “universal banker” has become pretty ubiquitous. Universal bankers (usually) can handle anything from assisting with a teller transaction, to opening an account, to performing varying levels of financial needs analysis.

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  • Banking Cyber-Attack Trends to Watch

Bank Info Security

The key for banking institutions in 2014 will be to focus on detecting and mitigating multiple risks across multiple channels. “We will see more blended attacks that combine DDoS with some form of attempted data compromise,” says Doug Johnson, vice president and senior adviser of risk management policy for the American Bankers Association.

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  • Three Ways Millennial Business Owners Differ from Your Traditional Business Customers

Barlow Research

Barlow Research recently hosted a Webcast panel-discussion on the millennial generation entitled “Banking the New Face of Business: Millennials, Boomers and Dynamos.” Our panel included three very knowledgeable panelists: Himmat Randhawa from Digital Insight, and John Yarley and Alfred Chin from Visa. Through the course of the panel discussion on millennials, we learned three important things about this generation. 1. Instant Gratification Is Expected. Himmat Randhawa from Digital Insight believes that a challenge that financial institutions have with understanding the millennial generation has to do with their usage of technology and their channel preferences. “The vast majority of millennials are tech-savvy and think about the online channel as their primary channel with very little interaction with the offline channels. Millennials want anytime, anywhere access to information and don’t have an expectation to do that in-person.”

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  • Top Reasons Card Data Breaches are Here to Stay

Credit Union Times

By far, the main reason thieves have begun to steal card data from U.S. firms, some experts say, is because they can. “The U.S. payments industry has become the one household in the neighborhood that has not upgraded its security system while everyone else has,” explained Karisse Hendrick, program manager in payments and fraud for the Merchant Risk Council, an international trade group that is organized to help firms fight card fraud. “When you are perceived to have security that is the easiest to beat, she added, thieves will try to beat your security.”

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  • Ally Bank launches app for Windows Phone 8

Finextra

Ally Bank, the direct banking subsidiary of Ally Financial Inc., has expanded availability of its popular Ally Mobile Banking app to include a version designed exclusively for Windows Phone 8 users, enabling even more customers to access and manage their money “on the go” using the Bank’s award-winning app.

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What We’re Reading: Facebook, Google Glass and iPads

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.

 

  • Facebook Design Changes Could Benefit Banks, If They Adapt Quickly

American Banker

Facebook’s latest update to the way it presents shared information to users could help bank marketers. A battery of changes will include larger photos and four new feeds (to keep tabs on all friends, the photos friends are sharing, music the user has indicated he likes, and the latest news from pages and people the user follows). The new feeds could help bank customers keep up with what their financial services companies are sharing, assuming they “friend” their banks.

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  • Google Glass Will Change Your Branches

American Banker

Google has teased us once more with an augmented reality future. The company has released images and video heralding what appears to be the imminent launch of their Glass augmented reality devices. Not surprisingly, commentators are predicting a seismic shift that will match the launch of the iPhone. That has created a wave of excitement, as banks and technology providers speculate how these innovations will turbo-charge mobile banking.

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  • Who is Your Borrower in a Virtual World?

Bank Systems & Technology

The traditional, documentary method of verifying the identity of a customer is for an employee of a financial institution to look at a government-issued photo ID and manually check it against customer-provided information. The non-documentary procedures start with obtaining information from the applicant that can be compared to information in the public record from third party sources. The developing best practice is to cross check nonpublic personally identifiable information that is input by the applicant against the information on credit reports. Through API exchanges with the major credit reporting agencies the personal information input by the applicant can be verified against the information independently provided in the credit report.

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  • iPads, Other Tablets to Drive Mobile Banking

Billing World

One in four tablet PC users will use their devices to pay bills by 2017, says a new report. Juniper Research found that a growing user acceptance of “push” mobile banking and a sharp rise in tablet adoption will drive users of transactional tablet banking services to almost 200 million in 2017. This will represent approximately one-fifth (19 percent) of total mobile banking customers in 2017, compared to just 9 percent this year. The report finds that, adoption of mobile bill presentment and payment (MBPP) transactional banking by tablet users will be higher than mobile handset users, especially in developed areas where there is a higher adoption of tablets. The report says as consumer tablet adoption continues to rise, there will be significant migration of purchasing and transaction activity from laptops and desktops to tablet devices.

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  • Clay Christensen: Jeff Bezos, Scott Cook, and Steve Jobs Got Disruption Right

Business Insider

In an interview appearing at strategy+business, Clay Christensen argues that many executives are pushed to make decisions that are quick and profitable, and they frequently rely heavily on incomplete data. When asked which executives thought about disruption the right way, Christensen cited ex-Intel CEO and co-founder Andy Grove and his response to inexpensive laptops. As for more recent examples, Christensen said: “Of the managers I’ve known, I think Scott Cook, who is the founder of Intuit, is most prone to think this way…”

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  • Going cashless

Celent Banking Blog

The Dutch looking to get rid of cash. They got rid of checks in 2001 as a payments instrument, and now they’re making moves to go that next step. Yes, it was a publicity stunt (there was also a big sell on contactless for example), but equally they were making payments fun, not something that you can often say! Few countries have managed to get cash to a point where it’s less than 50% of all transactions.

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  • US Bank intros BillPay feature for iOS and Android, lets you set up bill payments with a pic 

Engadget

Judging by recently announced projects like Go Mobile, it’s quite clear that US Bank is working hard at keeping up with the mobile banking curve. With today’s introduction of its new Mobile Photo BillPay feature, the company’s giving customers using an iOS or Android device yet another nifty tool to take advantage of while on the go — one that’s set to make it easy to set up bill payments by simply taking a shot of any invoice and uploading it to an account from within the app.

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  • Dear Mobile Industry: Time To Step It Up On Security

Forbes.com

In less than 10 years, smartphones and tablets have taken over. This year, the mobile industry will ship 1 billion smartphones globally, doubling the number of installed smartphones to about 2 billion. While we may agree that the mobile revolution has greatly benefitted all of us, our mobile devices are far from infallible when it comes to fraud and cybercrime. Many security firms predict 2013 will bring a rise in cyber attacks on mobile devices in general, and smartphones in particular.

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  • Area credit unions continue to gain popularity as the economy recovers

Washington Post

Membership, deposits and loan originations at area credit unions — particularly the largest ones — rose last year as the broader economy continued its climb, according to data released last week by the National Credit Union Administration. The figures mirror a national trend in which membership rose 2.2 percent in 2012, as 2 million new members signed up.
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Fast Facts: Recent Cyber Attacks

The Financial Services Roundtable released its 2012 Fast Facts Book in September, which contains Fast Facts from January 2012 through July 2012. We shared  information on preventing financial exploitation of of the elderly in a recent post. Below are some updated Fast Facts on recent cyber attacks.

FACT:  Since late September 2012, large financial institutions have been the subject of (or threatened to be the subject of) attacks intended to disrupt the availability of their Web sites.  A group that calls itself the Cyber Fighters of Izz ad-din Al Qassam has claimed credit for these attacks.

FACT:  The attacks have flooded certain bank Web sites with an extremely high volume of electronic traffic from thousands of locations around the world.  This flood of traffic, called “a distributed denial of service (DDoS) attack,” is intended to slow down or disable the bank’s Web site.

FACT:  The attacks are not designed to be – and have not resulted in – a data breach, hacking, or unauthorized access to consumer information.

  • Consumers can access their accounts through alternative means, including bank branch offices and call centers.

FACT:  The financial services industry has robust cyber protections in place.

  • Banks collaborate with other banks, federal regulators such as Treasury, law enforcement officials, other government agencies such as the FBI and DHS, Internet Service Providers, and Internet security experts to fully analyze and deflect online attacks and deliver safe and consistent online service.
  • Financial services institutions use sophisticated online security strategies to protect customer accounts and continue to invest in technology to increase capacity and defend against potential attacks.
  • Financial services institutions are regularly examined by their primary federal regulator to ensure their compliance with cybersecurity regulations and information standards, including standards set in the Gramm-Leach-Bliley Act, Payment Card Industry Data Security Standard, and FFIEC Information Technology Examination Handbooks.
  • Financial services institutions collaborate with the Financial Services Information Sharing and Analysis Center (FS-ISAC) which is an industry forum for collaboration on critical security threats facing the financial services sector.

FACT:  While there is nothing in particular that customers can do in response to the DDoS attacks, consumers can improve the general security of their private information by using the following tips:

  • Install on your computer—and keep updated—anti-virus software, firewall and anti-spyware software.
  • Set your computer’s operating system and browser to “automatic download” to ensure your operating system and browser include the latest security updates.
  • Don’t get hooked by phishing.  Do not respond to unsolicited emails requesting personal information and do not download attachments on unsolicited emails.
  • Use strong passwords and change them regularly.  The best passwords are long—a minimum of 8 characters—and complex. Not your birthday or the name of a child or pet.  Use a combination of numbers, symbols and letter; something meaningful to you like an acronym or batting averages, but not easily guessed.

For additional resources and examples of member programs, visithttp://www.fsround.org/fsr/financial_literacy/financial_literacy_corner.asp.