What We’re Reading: The Paper Check, Mobile & Online Banking and Mobile Payments

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.

  • The Paper Check Prevails but the Future of ePayments Is Optimistic

Barlow Research Newsletter

At Barlow Research’s 2012 Annual Client Conference held in April 2012, a group of thought leaders gathered to discuss the state of the paper check and the electronic payments (ePayments) movement. Specifically, the group addressed questions around the drivers of electronic payments, barriers to adoption, the future of checks and electronic payments. The paper check is an instrument that is universal. It is still the common denominator amongst companies doing business.

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  • Mobile RDC Is Game Changer – NACHA Expert: Onsite Coverage

Credit Union Times

Waving an iPhone, Fiserv executive Gary Brand told the NACHA audience: “This changes everything.” Then Brand explained why: the ease of use of mobile deposit apps on smartphones coupled with the ubiquity of those devices suddenly means that the ability to make remote mobile capture deposits is in just about every hand. And consumers want it: 43% of people will switch financial institutions to get mobile RDC, Brand said at his presentation on Wednesday at NACHA’s PAYMENTS 2012 conference. As mobile RDC proliferates, “this will change everything in your relationship to customers,” Brand said, because many members come into a branch only to make a deposit.

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  • More Than 50% Saw Member Increase in 2011: Credit Union 24 Survey

Credit Union Times

A survey of credit unions conducted by Credit Union 24 has found that more than half of credit unions surveyed (53%) reported seeing their numbers increase last year and that almost half (46%) attributed the increase to Bank Transfer Day. The nationwide ATM and POS network collected the data as part of its fourth annual CU Industry Survey. “The industry took a very aggressive approach to member recruitment during 2011 and it was successful,” said Jim Park, president/CEO of Credit Union 24.  “Bank Transfer Day, robust marketing strategies and an overall increased awareness of credit unions in the consumer marketplace all helped advanced the credit union movement; however, credit unions are rightly concerned with how to keep this momentum going in 2012.”

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  • Checks Die While Online Thrives, But Gen-Y Still Use Branches

The Financial Brand

Despite Gen-Y’s love for all things digital, they don’t just bank online or on their phones. While Gen-Y certainly prefers the digital channel, it’s not like they’ve declared a boycott against physical channels (as many in the financial industry widely believe). Indeed, it’s exactly the opposite. According to the2011 Consumer Trends Survey from Fiserv, Gen-Y consumers are more likely to visit a branch, drive up to an ATM, or call a call center than any other age segment.

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  • Who’s Ready For Mobile Payments? The U.S., Canada…And Kenya

Forbes.com

We are on the verge of one of the biggest changes in decades in how we pay for goods and services. For the first time since the 1980s, what we call the “form factor” – the physical device that initiates a financial transaction – will shift to new technology. Smartphones and tablets are becoming an integral part of people’s daily lives around the world and soon will replace the familiar plastic cards we all carry. In fact, your smart phone will become your “wallet” – replacing a host of cards, coins and cash.

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  • Many Competing Paths on the Road to the Phone Wallet

New York Times

The idea of using a smartphone as a wallet has been slow to catch on in the United States. A big part of the problem has been that most stores do not have the proper physical equipment to allow customers to pay by tapping their phone. These stores also do not have the right equipment to allow the use of smart cards, credit cards embedded with computer chips that are much less susceptible to fraud. But a change is coming that will push both innovations at the same time.

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  • Pew study: Overdraft fees still take account-holders by surprise

Philadelphia Inquirer

Nearly two years after the Federal Reserve began requiring banks to get customers’ permission before subjecting them to controversial overdraft practices, many account-holders are still surprised when they are charged overdraft fees for debit-card purchases or ATM withdrawals that could simply have been declined, says a new study financed by the Pew Charitable Trusts. The Pew study found that more than half of those hit with overdraft fees did not believe they had opted in to the policies, which enable banks to approve purchases or withdrawals for customers short of funds and then charge them fees for the transactions. Pew says the median bank overdraft fee is about $35. Pew has focused on unexpected overdraft fees as part of its Safe Checking in the Electronic Age Project, which says the fees pose financial risk, particularly to younger and less-affluent customers.

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Written by Banking.com Staff