What We’re Reading: Social Media, Mobile Banking Stats and the Federal Reserve

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.

  • SIM Card Tricksters Target Mobile Payments

American Banker

The criminal activity that targets mobile banking has not yet reached the levels of web banking, mostly because the volume of mobile banking to this point hasn’t made it as attractive a target. But as mobile banking grows, that’s starting to change — particularly since mobile banking is vulnerable to a wide variety of criminal threats. A new strain of crime that tricks users out of their subscriber identity module (SIM) cards has quickly emerged to threaten banks and other enablers of mobile payments such as telecoms.”This special attack involves stealing information to generate new SIM cards,” says Orem Kedem, a director at the security firm Trusteer, who described the threat in a recent interview.

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  • Coming Soon: iPads ‘R’ Us

American Banker

Rapid change is the new normal when it comes to technology — and banking. Clunky old computers, even previously “sleek” laptops, are anachronisms now, as computer tablets soar in popularity. In fact, the next generation of consumers may forgo outdated tools like a computer mouse altogether — a move that could have critical implications for bankers, Brett King, the founder of the yet-to-be-launched mobile bank Movenbank Corp. Ltd., said this week. He gave a keynote address at the Best Practices in Retail Financial Services Symposium sponsored by American Banker and its publisher, SourceMedia Inc. To illustrate, King showed a YouTube clip of a baby playing: first with an iPad, then with a magazine.

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  • The Secrets to Chase’s Mobile Success: Exclusive Q&A With SVP Ravi Acharya


Ravi Acharya, ChaseMobile banking has exploded since it was first introduced. In less than 10 years, the channel has evolved from offering basic SMS alerts to providing the rich, fully functional banking experience available on tablets today (and back to text alerts again). JPMorgan Chase ($2.3 trillion in assets) has been at the front of the mobile space from the beginning. Bank Systems Technology associate editor Bryan Yurcan recently spoke with Ravi Acharya, SVP and head of product management for online, mobile and social at Chase, the New York-based company’s retail banking arm, about the evolution of the bank’s mobile offerings, lessons learned and what the future holds for the channel.

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  • Bank for less

Boston Globe

There may be more fees on the way, but you don’t have to pay the price. People say they’re furious at behemoth banks, for myriad reasons: lending practices that helped sink the economy, government bailouts, foreclosures, huge bonuses for chief executives, and now higher fees and tougher account requirements.Here’s what industry analysts and Consumer Reports’ own recent review suggest you’ll find now and in the coming months: Fee increases and tougher account requirements will probably continue, especially while the economy remains weak. Customers with a lot of accounts at one bank might avoid some fees, but they’re not immune.

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  • Study Offers Tips On Effective Social Media

Credit Union Journal

Regular online surveys to keep abreast of member sentiment should be a key part of a credit union’s social media programs, a new study by the Filene Research Institute suggests. The study’s authors recommend conducting periodic member surveys among other strategies included in the new study, “Measuring Social Media Success In Credit Unions.” “There continues to be a correlation between success and credit unions that conduct member surveys two to four times per year and have otherwise active marketing programs,” the authors state. Several key success drivers emerged and solidified during the yearlong study.

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  • Confusion on Hot Topics Mobile, P2P and Social Pay

Credit Union Times

The research by Boston-based AlixPartners exploded on the screen at BAI Payments Connect 2012. Suddenly, out of nowhere, the availability of good mobile services has emerged as a top factor in why consumers choose to change financial institutions, reported Teresa Epperson, AlixPartners managing director.A stunned disbelief settled over the room. Few of the banking and credit union executives present had seen this coming. But, according to Epperson, the facts are the facts.

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  • Fed: One-fifth of U.S. subscribers access mobile banking services

Fierce Mobile Content

The Federal Reserve Board is banking on mobile services to transform the American financial landscape. A new Fed survey issued Wednesday reports that one out of five U.S. subscribers used their mobile phone to access their bank account, credit card or other financial account in the 12-month period ending in January 2012, and an additional one out of five respondents said they would likely leverage mobile banking services at some point in the future. Even more impressive, the Fed speculates usage could increase to one out of three mobile phone owners by 2013. The survey reports consumers between 18 and 29 make up roughly 44 percent of mobile banking users, relative to 22 percent of all mobile phone users; at the other end of the spectrum, subscribers 60 and older–who represent 24 percent of the total U.S. mobile population–account for just 6 percent of all mobile banking users.

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  • Future belongs to mobile banking: Federal Reserve

Banking Business Review

The US Federal Reserve in its Board Survey has found that one out of five US consumers used their mobile phone to access their bank account, credit card, or other financial account in the 12 months ending in January 2012, highlighting the future of mobile banking. In its study, the central banking system said that an additional one out of five indicated they would likely to use mobile banking at some point in the future. The study also highlights that mobile banking usage is expected to increase in the forthcoming years, as it said that one out of three mobile phone users will use mobile banking by 2013.

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Written by Banking.com Staff