What We’re Reading: Mobile, Big Data and More
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.
- Integrating Mobile and Branch Banking Will Increase Customer Loyalty
Mobile banking has finally come into its own. Almost one-third of the 5,200 consumers that Bain & Company surveyed recently used their smartphones or tablets for some type of banking interaction during the three months prior to the survey, up sharply from one-fifth of respondents in 2011. The survey finds that mobile banking is more likely to increase a customer’s likelihood to recommend his or her bank to other people than any other channel interaction. For retail bankers battling to retain customers and sell more financial products, digital channels have become a powerful means of building loyalty. Digital banking also reduces branch visits, setting the stage for major branch redesigns in order to serve a mass market efficiently.
- $850 Million Scheme Exploited Facebook
There’s good news in the fight against cybercrime. Authorities have arrested 10 individuals allegedly tied to a global phishing scheme that exploited Facebook and relied on a botnet to compromise more than 11 million computers and steal more than $850 million. But arrests alone aren’t enough to combat online banking fraud. Experts say banking institutions need to take several important steps to support the ongoing cyberfight, including sharing more information with law enforcement and using stronger authentication and end-user security. “I think it’s a good strike against the bad guys, but it just reinforces my view that the FBI is good at coordinating the arrests,” says Dave Jevans, head of online security firm IronKey and a member of the Anti-Phishing Working Group, an international organization of online security thought leaders. “You need private companies to help you know who to arrest.”
- How Paper Bills Could Protect You From Cyber Theft
Hackers are increasingly wiring money directly out of victims’ online bank accounts – without ever typing a keystroke. Three safeguards to avoid being hacked: 1) Use long phrases and symbols in passwords; 2) set up two Web browsers — or better yet, two computers — to keep sensitive data walled off from everything else; 3) on websites that offer it, sign up to receive text-message alerts if someone tries to break into your account. And a new tip that might upset anyone who has a “think before printing” disclaimer in their e-mail signature: Don’t use paperless billing.
- Using the Branch to Sell Mobile
American Banker published an article last week describing Bank of America’s quest to bolster the ranks of its mobile banking customer base. According to the article, the bank is outfitting its teller stations with quick response (QR) codes that can be scanned by mobile devices to download the mobile app. For too long, most financial institutions have limited the merchandizing of mobile banking capabilities. Even after investing in sought after capabilities such as mobile remote deposit capture, many banks enrol mobile banking users primarily through the online channel.
- Mobile Banking Expected To Triple
A new report from the Aite Group indicates mobile banking users will triple between 2012 and 2016, and that smart phones and tablets will each serve different banking functions as mobile expands. “Aite Group anticipates that mobile banking users in the United States will triple between 2012 and 2016,” predicted Ron Shevlin, senior analyst and author of the report. “Tablets will become financial management devices, and smart phones will become financial transaction devices. Financial institutions should invest accordingly.” Among smart phone owners, 36% use the device to check their bank account balances, nearly three in 10 get account alerts sent to the device, and roughly one in six use it to transfer funds, pay bills and view their monthly bill statements.
- Intuit Survey: Mobile Banking Is Pathway to Profits
Think digital banking is only for Gen Y and younger? Think again, think older. Much older. That is the sharp message contained in a new report from Intuit on the ongoing digital banking revolution. The other key finding: mobile banking is a pathway to profitability. In an interview, Intuit senior analyst Jason Weinick elaborated that retention rates for members who use mobile banking services are sharply higher than for those who are online banking only customers.
- 7 Steps for Millennials to Take for Gaining Control Over Their Financial Future
Fortunately, one of Millennials’ greatest strengths is their comfort with technology. While this has translated into using LivingSocial and Groupon to save money, you can also use the Internet to manage your overall cash flow. Sites like Mint and Yodlee MoneyCenter will track your expenses online for free and allow you to access the information on your smartphone as well. You can then have the sites alert you by text or email if you start going over budget in any area.
- Strike One for Retailers, But Still Up at Bat in the Payments Business
Earlier this week, a federal appeals court refused to expedite a merchant group’s appeal of the recently proposed $7.25 billion settlement with Visa and MasterCard in a credit card related price-fixing case. A setback for merchants, but one that is unlikely to deter their persistence in advocating and working for change in the payments business. According to Javelin’s newly published report –10 Trends for Financial Services in 2013 – in the coming year, merchants will continue active litigation efforts designed to address and control payment costs. Following the 2011 implementation of the Durbin Amendment, retailers have are continuing to recognize their ability to achieve broad influence and collective power.
- How Main Street will fight big business with ‘big data’
Intuit, the maker of financial management products for small businesses, currently has hundreds of engineers tasked with bringing the benefits of big data to Main Street. The company envisions a future where small businesses will be armed with data to help them make strategic business decisions and drive consumer sales. It’s turning its database of small business finances into tools to help its customers save time and money. Small businesses have a “treasure trove of data” In an intimate meeting at the company’s San Francisco office, CEO Brad Smith told reporters that Intuit is stressing three things: privacy, innovation, and the accessibility of data.