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.
- 43 retail banking myths—busted!
With the financial services industry changing so quickly, it should come as no surprise that many assumptions banks and credit unions believed to be true for years could actually be rendered obsolete. Myth 1. Banks must embrace big data to be successful. Reality: Most banks and credit unions have not fully leveraged insight that is currently available within their firewalls. Account ownership, demographics, product use, and other behavior data should be used for offers and communication before adding unstructured data from outside the organization.
- Holidays Drove High Use of Mobile Banking Apps
December was a busy month for mobile banking, as on-the-go holiday shoppers actively logged into their accounts to check balances or see if purchases went through. In American Banker’s monthly survey of mobile banking activity, more than 65% of respondents said that volume was up in December from a month earlier, while just 2% said activity declined. The rest reported that activity was roughly the same month to month. Several respondents attributed higher activity to the fact that their mobile banking app is relatively new.
- Mobile Banking: Making Security and Convenience a Package Deal
The key to mobile security success is a multi-layered approach that enables companies to verify who their customers are and what they are authorized to do. The clash between convenience and security has been in motion as the world has shifted to mobile devices, but this is only the beginning. While highly-connected companies have been managing these challenges for years, the speed, scale, and scope of the ongoing business transformation are enormous.
- Chase’s Quick Checkout: Leveraging the Power of ChaseNet
A digital wallet, which stores customer’s payment credentials and shipping details, and pre-fills them at checkout. Like other digital wallets, Quick Checkout is “open” – i.e. customers can register their non-Chase cards. However, their Chase cards will be automatically available and kept up-to-date in the wallet when they get replaced in case they expire or get lost or stolen.
- Capital One Ups the Punching Power of ClearXchange
Person to person (P2P) payments are quickly becoming a regular feature of today’s banking industry. ClearXchange, the P2P payment platform that developed as a partnership between Bank of America, Chase, and Wells Fargo, has announced that it has added Capital One to its list of owners. Capital One is the second FI to join clearXchange (the first institution was the regional FI FirstBank) and is scheduled to go live with the service later in 2014. According to Javelin data, the addition of Capital One now gives clearXchange the capacity to reach 40% of all U.S. banking adults and 53% of all adult credit cardholders.
- It’s Time to Uncork Commercial Relationship Revenue
There is a brutal feeding frenzy occurring in the banking industry today: the complete commoditization of mainstream commercial and commercial real estate lending. Like a pack of vultures picking at the flesh of a potential new mini-perm deal or term loan, liquidity-rich banks are feverishly bidding down pricing into the zone of shareholder destruction. We see fixed-rate deals for 7 to 15 year terms that carry coupons lower than many banks’ net interest margins. Despite calls for sanity from every senior loan committee across the country, the brinksmanship continues. Business customers have grown savvy, and even the most loyal now send their credit needs out onto the street for competitive RFP bids. Loyalty these days seems to buy about 10 basis points for the banker.
- Banking Trojans emerge as dominant mobile malware threat
Kaspersky Lab’s latest mobile threat landscape report portends more ominous news for mobile device users as the number of new malicious programs tailored for smartphones and tablets more than doubled to nearly 100,000 malicious modifications in 2013. The vast majority of the most damaging mobile malware targeted users’ money and bank cards, according to the security software firm’s latest data, and more than 2,500 attempted infections by banking Trojans were blocked last year alone.