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Essential Fintech Reading: July 16-22

Jul 22, 2016 5:51:53 PM

Bank of America Mobile App Redesign Brings Enhanced Functionality

Deon Roberts of the Charlotte Observer reports that Bank of America has redesigned its mobile app, providing a Spanish language option, allowing customers to redeem credit card rewards and view their credit scores. “We want to be where our customers are, which is why we are proud to deliver these new features that provide increased convenience to our 20 million active mobile users,” said Michelle Moore, head of digital banking. Bank of America said its number of active mobile banking users grew 15 percent in the last year. Mobile transactions cost the bank one-tenth of what it would cost to conduct them in a branch.

Standard Chartered Makes Significant Investment In Video Banking

Emma Dunkley of the The Financial Times reports that Standard Chartered is launching video banking for more than 5 million customers across Asia, Africa and the Middle East as part of a plan to invest $1.5 billion in digital services. The service enables customers to bypass a branch and speak with banking consultants virtually. Dunkley notes that the "expansion marks an accelerating trend among global banks towards digital as customers increasingly shun branches for online and mobile services." Higher net worth customers will be able to use video banking to gain face-to-face investment advice. "Video banking is about giving our clients more choice and more convenience. Now you don't have to come in to a branch to talk to somebody face-to-face," said Karen Fawcett, chief executive of retail banking at Standard Chartered.
 
Fingerprint Authentication, Quick Balance Top Mobile Banking Features Being Added By Credit Unions
 
At this time last year less than 3 percent of credit unions featured fingerprint authentication or quick balance functionality within their mobile offering. Now 15.4% of credit unions offer fingerprint authentication, eliminating the need to type in a password when accessing mobile banking, and 13.3% offer quick balance, allowing members to view the balance of an account without logging in. According to new data from FI Navigator, these are the most added features by credit unions in the last year, followed by mobile deposit, now offered by 70% of credit unions, P2P payments and bill pay, which has risen from 69.9% to 81.7% penetration. 
 
P2P payments are now offered by 20.7% of credit unions, up from 15.5% last year. Third party research demonstrates that credit unions still trail in mobile P2P and risk losing valuable parts of their customer base demanding such functionality. 47.6% of banks holding over $10 billion in assets offer mobile P2P and 70% of those banks over $100 billion.
 
Since fewer credit union customers utilize mobile deposit — 16 percent vs 38 percent at big banks according to Javelin Strategy & Research — credit unions are still at a disadvantage in terms of service costs. Chase has estimated that each teller deposit cost the institution 65 cents while mobile deposit only checked in at 3 cents.
 
Number26 Granted Full License
 
Berlin-based startup Number26 now has a full banking license to operate in Europe, reports TechCrunch“For our customers, it means that our product will become even more real time,” said co-founder and CEO Valentin Stalf. “We are already working on different features — one that will launch soon is expense sharing, which will enable customers to share expenses with a simple swipe between friends. It’s similar to splitting a fare in the Uber app.” Number26 can now proceed in becoming a full-fledged bank, offering savings accounts, investment products, and credit offerings.
 
 

Topics: fintech

Jeff Meredith

Written by Jeff Meredith

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