What We’re Reading: Tablet Apps, Mobile Security and Mobile Wallets
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.
- Downloadable Tablet Apps Said to Be ‘Next Frontier’ to Win Younger Customers
Developing the slickest mobile-tablet applications that enable consumers to manage routine credit and debit card spending through their larger touchscreens will be essential for large banks looking to hold on to younger, more affluent consumers over the next year, new research suggests. As distribution of tablet devices such as Apple Inc.’s iPad surges, the race is on among banks to develop the most feature-rich applications for diverse banking products for the newest generation of devices, says Mary Monahan, executive vice president and research director, Javelin Strategy & Research. And the banks that do it best likely will keep sought-after younger consumers that prize mobility and who are enamored of downloadable tablet apps that offer brighter, more colorful touchscreen account-management features, she predicts. By 2016, Javelin expects the total number of U.S. tablet owners to reach 87 million, or 40% of consumers.
- Community Banks Fret Over Mobile Security
While small banks already face a mobile banking adoption deficit to their larger competitors, some community institutions are still questioning the channel’s safety, weighing emerging security threats against consumer expectations of new mobile banking services. “Mobile is still an emerging technology and it isn’t fully mature,” says John Caton, executive vice president at BankFIRST, a $680 million-asset bank based in Winter Garden, Fla. Caton says the bank is not offering the latest mobile banking native apps. Part of the concern is the possibility of infiltrations to the native apps’ operating system.
- Arizona Credit Union Hopes New Tech Will Attract Small Businesses
While the ability of credit unions to lure disaffected consumers away from large banks is debatable, Desert Schools Federal Credit Union believes it can use technology to lure small businesses away from the banks they use for transaction processing. “How many of our members own their own business? And how many of them might do their business banking with us, but instead take their business accounts to the bank down the street?” says Kevin Lewis, division executive of the credit union’s business and commercial services.
- Bank Mobile Wallets: NFC or Cloud?
FIS, a large technology and services provider, has announced a new m-payments system, developed in partnership with Paydiant, a mobile technology company Celent clients may recall a recent report, “What’s In Your Mobile Wallet? Winning the Battle for Mobile at the Retail POS” where we described the four major domains which represent the key battlegrounds for bringing mobile payments to the physical stores in the developed markets. With the announcement from FIS, it seems that banks can take on the cloud-based wallet providers at their own game. FIS and Paydiant developed a cloud-based solution that can be integrated into the bank’s mobile app and simply requires downloadable apps for consumers and retailers. Because the app resides in the cloud, no payment credentials need to be exchanged at the POS, giving everyone an additional piece of mind and alleviating the retailers from PCI compliance requirements.
- Credit Unions Are No Oldsmobile
During Javelin Strategy & Research’s report on the impact Bank Transfer Day had on the industry, founder Jim Van Dyke made the inflammatory statement that credit unions aren’t cutting the mustard in the area of technology and could eventually become dinosaurs (or an Oldsmobile). “It turned out that technology and individuals’ inertia really won the day in favor of the large banks,” he says. “If this continues, these small institutions will go the way of the Oldsmobile.” Van Dyke refers to the way big banks woo and capture a valuable emerging consumer base–young adults. He contends that young adults demand a high level of sophisticated technology and if credit unions don’t put it into high gear they aren’t going to make it.
- ACI closes S1 acquisition
ACI Worldwide, Inc. (Nasdaq: ACIW), a leading international provider of payment systems, today announced that it has accepted for payment all shares of S1 Corporation (Nasdaq: SONE) common stock tendered in the previously announced exchange offer. ACI intends to acquire the remaining S1 shares pursuant to a merger as provided in the October 3, 2011 transaction agreement between ACI and S1. In the merger, all remaining publicly held shares of S1 common stock not purchased in the exchange offer will be converted into the right to receive $6.62 in cash, without interest, and 0.1064 of a share of ACI common stock, less any required withholding taxes. Following completion of the exchange offer and the merger, S1 will be a subsidiary of ACI and its shares will no longer be publicly traded.
- Why Windows 8 tablets could be a bonanza for start-ups
We’ve known for more than a year that there will be two completely different kinds of apps for Microsoft’s next version of Windows. You can think of them as “desktop apps” and “mobile apps,” but that’s not quite right. It’s better to think of them as old apps and new apps, or yesterday’s apps and tomorrow’s apps. Old apps are the ones you’ve been using forever on Windows: They require mice and keyboards and usually run in a window taking up a small part of your screen. They’re given full control over your machine, which is sometimes good and often terrible.