Just last month I published a report, Quasi-Merchant, Meet the Quasi-Terminal: Merchant Acquiring Growth via the Mobile Device, in which I wrote that providing payment acceptance solutions to self-employed individuals would yield almost US$1 billion in net revenue by 2016. I also wrote the following: “Bank acquirers, in particular, seem well positioned to deliver solutions to this market. Their extensive distribution capabilities across consumer and small-business markets, pre-existing relationships with all different types of consumers and small businesses, extensive risk management capabilities, core competencies in the merchant acquiring space, and branding infrastructure should make them ideal candidates to penetrate this … Continue Reading →

As a consumer positioned in an arthritic, eye-sight-challenged generation, it is my firm belief that mobile phones have significant drawbacks as a tool for loan origination, no matter how clever the application. I am also completely convinced that tablets (the iPad in particular) lack drawbacks. From a delivery-channel perspective, the lightweight tablet, with its adjustable type size and ease of input, appeals to baby-boomer and Gen-Y customers alike. The deployment of mobile tablet technologies for the opening of demand deposit accounts (DDAs) and loans is receiving a good deal of interest and investment by lenders and bankers. In fact, survey … Continue Reading →

The mobile recording technology market has responded to the U.K. Financial Services Authority’s (FSA’s) requirements to introduce mandatory call recording for what the regulations describe as “relevant conversations” by those who provide financial advice and execute financial transactions by mobile phone. The scope of the technology varies. Compliant Phones, for example, has developed second-generation Inline Mobile Recording to work across any network worldwide, overcoming limitations of network-only-based solutions for global customers, while BT and Teleware have announced the immediate availability of a network-based recording service for mobile devices, specifically to address the requirements under the U.K. FSA regulations. Cross-border phone … Continue Reading →

The updated Federal Financial Institutions Examination Council (FFIEC) guidance on online fraud mitigation has finally been released. My first reaction: Why did this take more than six months to finalize? The preliminary draft of this guidance was published on the National Credit Union Administration (NCUA) website last December, and a side-by-side comparison reveals very few changes. With all of the activity and commentary on the preliminary draft, I expected to see a more adjustments to this iteration. The only significant changes are as follows: The recommendation that institutions consider offering multifactor authentication to retail customers has been removed from that section and added … Continue Reading →

Another year of NACHA’s Payments conference has come to a close. The exhibit floor has emptied, and attendees have headed back to their homes and offices. The Payments conference has a collegial feel; as described by one attendee, “I’m with my tribe.” It is true that many people return year after year. Just as we catch up with each other, we catch up with industry trends and new topics. The keynote address this year focused on payments challenges and opportunities in healthcare. That speech set the stage for the inaugural healthcare track of presentations — many banks and technology vendors … Continue Reading →

At the RSA conference in mid-February 2011, the CTO of Mobile Active Defense described mobile phone app stores as “the greatest malware distribution platform ever invented.”  While I think e-mail still holds that crown, the commentary does highlight a point of ignorance on the part of many consumers — a possible new frontier for financial fraud. A recent study by Nielsen projects that 50% of mobile phones in the United States will be smart phones by the end of 2011. A key feature of a smart phone is all the cool apps that can be downloaded to the phone, increasing … Continue Reading →