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.
- Banks Vow to Be Flexible with Customers Affected by Shutdown
Banks are stepping up to meet the needs of customers who could miss their next paycheck or two due to the government shutdown. Several banks in the Washington, D.C., region say they are urging customers affected by the shutdown to contact their local branches if they are concerned about meeting loan payments or getting socked with hefty fees for overdrawing their accounts. Some, including Capital One Financial (COF) in McLean, Va., are actively promoting assistance programs while others say they will handle situations case by case.
- Bank of America Launches Next Gen Banking Centers
Bank of America has announced the launch of five additional “express banking centers” dedicated to offering self-service technology to handle services and common transactions in Boston, Charlotte and New York City.
- MRDC Fraud Alert: Double-Triple Dipping
The headline on the story at an Oklahoma television station’s website said it plainly: “Mobile Banking Used To Steal Thousands From OKC Business.” The story elaborated that Paris Limo in Oklahoma City had been looted of some $15,000 by an employee who apparently made it a habit to deposit the same paycheck in multiple checking accounts, effectively doubling or tripling his income. Jimmy Paris, the company owner, acknowledged that nobody reconciled the payroll account on a monthly basis. All of which raises the question: how widespread is double dipping with mobile remote deposit capture? Alan Bernstein, president of Vertifi Software, a CUSO that offers MRDC to hundreds of credit unions, said, “This is totally contrary to what we have experienced in the three years we have provided MRDC.”
- The Morph from Vendor Management to Vendor Performance Management
These days, when we are asked to work with any FI on looking at alternatives to systems, it very seldom is for quantitative reasons – vendor stability, financials, etc. At the end of the day, almost 100% of the time, it is because the FI does not feel that the vendor met commitments and managed the relationship well. And, when the incumbent vendor bids to keep the business, conversations always center on what went wrong with the relationship and how the vendor will promise to fix it. At that point, it’s usually too late for the promises to be credible.
- Gartner: 50% Of Enterprises Use Hybrid Cloud By 2017
Actual hybrid cloud computing deployments still “rare,” Gartner says, tempering optimism about future adoption rates. Gartner predicts that almost half of large enterprises will be engaged in a combined, public/private cloud operation, often described as “hybrid” cloud computing, four years from now. Gartner analyst Thomas Bittman makes the projection in an Oct. 1 report, “Private Cloud Matures, Hybrid Cloud Is Next.” The report implicitly assumes that the opposition to public cloud, which looms large in many enterprise IT surveys, will fall away in the near future, at least for limited hybrid operations.
- Online Bank Customers Are Surprisingly Short-Tempered
42% of digital banking users will leave a website or mobile site after experiencing poor customer service. Survey respondents may not be coming entirely clean with study researchers, at least when it comes to showing patience online. “Of all of the survey questions we posed to consumers in this study, the answer that was most surprising is that 22% of consumers are willing to wait up to three seconds for pages and images to load on a bank’s website or mobile site,” says Jared Polidoro, vice president of U.S. client services at Maxymiser. “But what they were telling us doesn’t match their actual behavior.”
- Android biometric sensors on way ; Tech alliance pursues standard
Michael Barrett cringes every time he has to enter a password on his smartphone. But six months from now, Barrett says, he will be able to choose from the latest Android models that will come equipped with a biometric sensor capable of letting him swipe his fingerprint to access a wide range of his online accounts. That’s the scenario being proactively pursued by the FIDO Alliance, a group of 48 tech companies, led by PayPal and Lenovo, hustling to implement a milestone technical standard. “The intention of FIDO is absolutely that it will allow consumers to have access to mobile services that they can use with very low friction, while keeping good security,” says Barrett, president of the FIDO Alliance. “That’s explicitly what we want to build.”