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What We’re Reading: Cybersecurity, Tablets in CUs and Consumer Spending

May 13, 2013 By Banking.com Staff Leave a Comment

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.

Cybersecurity Should Not Come at Expense of Privacy: White House

American Banker

The White House says the nation needs new laws to reinforce its cyber defenses but that the push should not come at the cost of privacy. The House of Representatives on April 18 passed the Cyber Intelligence Sharing and Protection Act, or CISPA, which would encourage owners of financial networks, utility grids and other critical infrastructure to share information about digital threats with the government and one another. The White House has threatened to veto the bill, saying it lacks sufficient privacy protections. Civil liberties groups and other critics of the measure charge that it would allow companies to share people’s emails and text messages with U.S. intelligence agencies.

Small Business Owners Big on Mobile Technology

American Banker

A survey of 1,305 small business owners conducted by Constant Contact in March found that 66% currently use a mobile device such as a smartphone or tablet in their work. Of the non-mobile users, 65% have no plans to use a mobile device in the future, many citing a lack of demand for mobile access from their customers. This segment is partial to Apple devices, according to the survey — 66% use iPhones, while 39% use Android phones. About 49% use iPads; only 15% use Android tablets.

Keep Wal-Mart Out of Financial Services, Bankers Ask

BusinessWeek

A group of bankers advising the Federal Reserve urged U.S. regulators to consider preventing Wal-Mart Stores Inc. from offering some financial services. The Federal Advisory Council, a body of bankers that includes PNC Financial Services Group Inc. and BB&T Corp., said at a Dec. 19 meeting that Wal-Mart’s sales of prepaid cards warranted greater federal oversight. Minutes of the meeting were obtained yesterday under the Freedom of Information Act.

Consumers spending nearly 10% more than in 2009

CNN Money

American consumers are spending nearly 10% more than they did four years ago when the country was reeling from the effects of the financial crisis, according to an analysis of the spending behaviors of millions of Mint.com account holders. In the first quarter of 2013, the average household spent roughly $4,220 per month — up from about $3,870 in the same period of 2009, according to the inflation-adjusted consumer spending index released Wednesday by Intuit, which owns personal finance site Mint.com.

Why CUs Can’t Afford To Be Left Behind On Tablets

Credit Union Journal

It’s estimated that nearly half of the U.S. Internet population will be using tablets by 2014, which means increasing pressure on credit unions to adapt and conform to the trend. “The proliferation of tablet devices in the U.S alone is impacting everyone who manages their finances via a digital channel, including credit union members,” said Kenneth Hans, executive director of Blackstone Technology Group’s Financial Services Practice. “Much like banks, credit unions are looking for ways to cater to this latest form-factor that offers the power of a laptop in a much smaller and convenient size.” Among credit unions encouraging members to use tablets is the $5.3-billion Suncoast Schools FCU, which has 549,303 members that it has traditionally served via its 53 branches, but mobile devices such as tablets have changed that equation somewhat.

Credit Cards – Game ON!

Gonzo Banker

Credit cards in circulation hit a peak in 2007 at 710 million cards, according to a 2013 Nilson Report. Then the crash of 2008 hit, the Card Act went into play in 2009, and consumer spending changed. From the low point in 2010, the number of cards increased by roughly 50 million in 2011 and continues to climb today, when we have 520 million cards in circulation. Credit card interchange has not been Durbin-damaged as of yet, and interchange is still high. In the United States, 10 issuers own 85.4% of the cards on the market (Source: The Nilson Report, February 2013).

New Fed Report: U.S Mobile Payments Landscape – Two Years Later

Payments News

The Federal Reserve Bank of Boston in conjunction with the Federal Reserve Bank of Atlanta has just published a new report titled “U.S. Mobile Payments Landscape – Two Years Later.” Based upon ongoing meetings of the Mobile Payments Industry Workgroup (MPIW) convened by the Federal Reserve, the report updates an earlier paper from 2011. It examines changes in the evolution of mobile POS retail payments over the past two years, characterized by an expanding fragmented market environment and frequent technology innovations.

Filed Under Industry News Tagged With American Banker, behavior, credit cards, credit unions, mobile, mobile payments, payments, spending, tablet, Wal-Mart, what we're reading

What We’re Reading: Malware, Fees and Tablets

April 18, 2013 By Banking.com Staff 3 Comments

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.

Prepaid Cards Still Have Lots of Fees: Survey

American Banker

A survey by Bankrate.com compares 24 prepaid cards based on the fees they charge consumers. For example, the 2012 survey found that 14 of 18 prepaid cards charged customers a balance inquiry fee on at least some automatic teller machines. This year, 18 of 24 cards charged such a fee on at least some ATMs. In last year’s survey six out of 18 prepaid cards charged fees for at least some declined transactions. This year, nine out of 24 cards did.

FDIC on Social Media Risks

Bank Info Security

As the use of social media grows among banking institutions, federal banking regulators warn those institutions need to be mindful of phishing and spoofing schemes. Drafted guidance issued by the Federal Financial Institutions Examination Council now details how banks and credit unions can prepare to mitigate the new and emerging risks social media poses. The drafted guidance, issued in January, references applicable laws and regulations banking institutions should consider when planning and conducting their activities related to social media, says Elizabeth Khalil, of the Federal Deposit Insurance Corp., which is part of the FFIEC.

Creating A Customized Banking Experience With Big Data

Bank Systems & Technology

Big data opens the door for banks to group their customers according to their banking preferences, which can make customers more satisfied and more profitable. Banks have been increasingly focused on customer experience in recent years, but they’ve been taking an approach that is too broad, says Dean Nicolackis, a partner at PwC’s banking and capital markets practice. While many banks are trying to configure a customer experience that is consistent for every customer across every channel, the key to a really great customer experience is providing a different personalized experience that fits different customer segments, Nicolackis contends. Different customers just want different things – and are willing to pay for different things – from their bank.

Are Tablets Their Own Channel And Does It Matter?

Business 2 Community

The latest research from Javelin Strategy and Research indicates that the tablet users are older; between the ages of 35 to 54, have an average household income of $75,000, and half of them consider themselves to be early adopters. When compared with mobile banking, statistics show that users spend more time on tablets. The question though is not whether it should be considered a separate channel. However, whether separate or not, the bottom line, from a customer experience point of view, the service has to be consistent, and that is the key – it has to be fully integrated into all the other channels and the interchange between the channels has to be seamless.

SaveUp Program, Other Tools Target Millenials

Credit Union Journal

Frankenmuth Credit Union CEO Vickie Schmitzer is continually focused on implementing industry innovations to attract members of all ages, but especially Millenials. That focus stems from the credit union’s work in the field. “We work as much as we possibly can with our local public and parochial schools at every grade level,” said Schmitzer. “We know they are our credit union’s future and that new technology is what attracts them to a financial institution or business of any kind, for that matter,” said Schmitzer.

First Tech Also First CU to Launch Windows App

Credit Union Journal

First Tech FCU, the credit union for Microsoft Corp., said it has introduced a new Windows Phone mobile banking application, the first credit union in the U.S. to introduce a native Windows Phone mobile banking app complete with integrated mobile deposit and bill pay functionality. First Tech launched its new Windows phone app on-site at the main Microsoft campus in Redmond, Wash., giving employees of Microsoft an in-depth look at this new platform. Microsoft employees and First Tech members will be able to view the app on a giant Microtile phone display, chat with First Tech App experts and personalize their Windows Phone at a laser engraving station.

Malware Attacks Growing, Getting Smarter, Targeting Android: Report

eWEEK

In 2012, 95 percent of malware threats targeted Android, says a new report. Malware attacks are increasing, getting smarter and targeting Google’s Android mobile operating system, according to a new report from NQ Mobile, a mobile security solutions provider that based the report on the findings of its Security Lab. Mobile malware threats increased by 163 percent in 2012, and 95 percent of all threats were targeted at Android, said the report. The firm estimates that 32.8 million Android devices were infected in 2012, an increase of 200 percent from the 10.8 million infected in 2011.

Banks Are Designing Branches to Look Like Apple Stores In a Struggle to Remain Relevant

Go Banking Rates

There are a few regional banks, like Umpaqua, that fully embraced “smart banking” years ago. For major, national banks, it was Citi that sparked the trend. In 2008, beginning with its Singapore location, the bank began constructing futuristic branch prototypes that swapped tellers for touchscreens, size with efficiency, and gave locations the overall look and feel of Apple stores.. Rather than reinventing the wheel when it came to modern design, Citi actually hired the services of Eight, Inc., the architectural and strategic design firm behind Apple, according to The Financial Brand.

Filed Under Industry News Tagged With app, data, malware, mobile, security, social media, tablet, what we're reading

What We’re Reading: Cyberattacks, Mobile Bill Pay and Social Media

March 21, 2013 By Banking.com Staff Leave a Comment

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.

More Banks Hit by Cyberattacks than Initially Thought

American Banker

Last week’s cyberattacks against U.S. banks were more widespread than reported, industry experts say. Though JPMorgan Chase and BB&T are the only big banks to confirm a denial of service attack on Tuesday, roughly a half dozen institutions endured digital assaults at around the same time, according to Radware, a security firm that has investigated cyber intrusions on behalf of financial firms. Tuesday’s attacks “were the largest attacks we’ve seen to date in scale,” Carl Herberger, a vice president of security solutions at Radware, told American Banker. “The one that was advertised to the world was Chase, but I can tell you that almost on an hourly basis banks were being attacked, which is a very substantial campaign.”

Funny Ads, Social Media Can Help Small Banks Stand Out

American Banker

Small banks would attract more young customers if they embraced social media and got more creative in their advertising, according to bankers who have turned to more daring marketing. About 87% of people between 18 and 29 use social networking sites and 61% bank online, according to materials from a session called “Developing & Marketing Products Aimed at the Younger Generation.” The research from the Pew Internet & American Life Project found that Among those ages 30 to 49, 68% use social networking sites and 68% bank online. In contrast, only 30% of community banks use social media such as Facebook or Twitter, while 60% provide customer account alerts by email, according to a 2012 ICBA technology survey.

Should Banks Charge Fees for Mobile RDC?

Celent Banking Blog

Last week, the Chicago Tribune broke a story that PNC was considering charging fees for its mobile remote deposit capture (RDC). Hundreds of US financial institutions now offer mRDC and that number will likely double in the next year. RDC is quickly becoming a staple mobile banking capability and all but two financial institutions offer it free of charge. The revenue opportunity is uninteresting. Most mRDC users deposit just a few checks per year.

1 in 4 Tablet Users to Pay Bills via Their Devices by 2017, Juniper Report Finds

Fierce Mobile IT

The new Juniper report, Mobile Banking: Handset & Tablet Market Strategies 2013-2017, found that as consumer tablet adoption continues to rise, there will be significant migration of purchasing and transaction activity from laptops and desktops to tablet devices. Indeed, the development of the ‘couch commerce’ trend within the payments industry will be increasingly replicated within the banking industry.

Bitcoins and Amazon: Bringing E-Commerce to a Country Near You

Javelin Strategy & Research Blog

It is a testament to the tenacity of bitcoins that the virtual currency has managed to survive the roller coaster it has been riding for the past two years. As Javelin has documented in multiple blogs, the currency has been linked to drug trafficking, been the target of a Trojan virus, had the value of the coins plummet after being hacked by a Hong Kong-based hacker group, had nearly $250,000 worth of bitcoins stolen from the virtual currency exchange Bitfloor, faced direct criticism from the Attorney General and DEA, and was the subject of the FBI’s Intelligence Assessment report. Any one of these catastrophes alone would normally mean the decimation of a fledgling currency, but bitcoins have managed to not only survive, but to increase functionality in the wake of disaster. Consumers today can now use their bitcoins to make online transactions and have the purchases shipped throughout the globe, using Amazon’s shipping service.

Should you switch to an online-only bank? The growing appeal of Web-based checking and savings accounts

MarketWatch

With financial institutions making a push into online-only checking and savings accounts, some industry insiders say this could be a defining year for Internet banking. But does it make sense for customers to adopt a purely web-based model? Overall, online-only banks saw their deposits rise to $364 billion in 2012, up 32% from 2010 and more than 400% from 2004, according to Novantas, a research firm. More players large and small have been wooing those migrants: New Jersey-based financial firm CIT, for example, recently announced that it has landed 50,000 customers and $5 billion in deposits in less than 18 months since the launch of its internet-only CIT Bank.

Report: Tablet boost to mobile banking

Mobile World Live

A quarter of tablet PC users will use their device to pay bills by 2017. That is one of the headline findings of a new report by Juniper Research. Because of a sharp rise in tablet adoption, Juniper calculates that users of transactional tablet banking services will number almost 200 million in 2017. The research firm says this will account for around 19 per cent of total mobile banking customers in 2017, up from 9 per cent this year.

Next in Mobile Banking: Photo Bill Payments

New York Times

U.S. Bank this week introduced a mobile “photo bill pay” service, which allows its online and mobile banking customers to snap a photo of a paper bill with their phone and have the information automatically loaded into their account; Then, they can pay the bill electronically. First Financial Bank in Abilene, Tex., began offering the service earlier this year, too. U.S. Bank is offering the service as part of its mobile banking app, which is available on Android phones as well as the iPhone and iPad. Niti Badarinath, the head of mobile banking at U.S. Bank, said that only about 20 to 30 percent of active online banking customers at the biggest banks use e-bills. And those who do prefer e-bills still have to deal with merchants that don’t offer them — and it’s not just mom and pop stores, but sometimes larger companies, too.
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Social media regulatory guidance for U.S. banks: a road map for the finance industry

Reuters

In January 2013, the Federal Financial Institutions Examination Council (FFIEC) addressed the risk of the use of social media without specific guidance by federally supervised banks, and certain nonbank entities (collectively, banks), called the Social Media: Consumer Risk Management Guidance (PDF). It completes the set of guidance available and confirms that all major regulators are adopting a similar risk-based approach to adaptation of traditional rules for social media. It makes two points: 1. The same traditional standards apply that have applied to pre-electronic forms of communication; 2. The financial firm must apply a risk-based approach in building a compliance program to manage the new, largely operational risks created by social media.

Filed Under Industry News Tagged With ads, advertising, bill pay, cyberattacks, feeds, Juniper Research, RDC, social media, tablet, what we're reading

What We’re Reading: Cybersecurity, Tablets in CUs and Consumer Spending

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