TOP FINTECH STORIES 09/11/15
The wake-up call for banks to pay attention to FinTech continues while banks use mobile devices for payments, check deposits, and transaction efficiencies. More this week on mobile payments, along with developments in the financial-services tribes. Plus an exploration of the very concept of money.
It’s been just about a year since the launch of Apple Pay, and you can find stories on both the rise and decline of the service. Doug Yeager, writing in BankInnovation, cites evidence of declining use. As a result, banks can reassert their trusted relationships with consumers and “take back control of their tap-and-go experience on their own terms.” Overall, he notes, mobile payments are still on the rise. The launch this week of Samsung’s mobile payments for Andriod devices won’t hurt either. Bryan Derman of payments consultancy Glenbrook provides an overview of mobile in the context of U.S. payments systems.
Alex Rolfe reports in Payments Cards & Mobile that “one in seven Americans have used mobile cheque deposit using a mobile device within the past year – up from one in eight Americans last year. The recent American Bankers Association survey also notes that “of those who have used mobile cheque deposit, 54% report using it at least once per month.” The lesson: convenience attracts consumers.
Now you can “start a transaction on your phone and complete it at a teller line or an ATM,” reports the Charlotte Observer. The technology enables consumers to log into a banking app at home or on their mobile to “pre-stage” the transaction. Banks are promoting increased security as well as speedy completion.
As FinTech firms increasingly seek to make parts of the banking value chain better, faster, and less expensive, banks may want to consider which battles to fight, how to leverage FinTech firms, and what they need to change to make that happen. Hat tip to @leimer for the link.
Chris Skinner continues his exploration of digital banking strategy with this question: Why would a successful bank decide to decimate branches, invest all in digital and reorganise around customers rather than products? Two tribes have emerged around the answer, rebuilders and adapters. The classic Frankie Goes to Hollywood video embedded in the post is worth watching, too.
“Awareness about the concept of money is making a comeback,” states the inimitable Zero Hedge. “Gone are the decades in which the global citizenry was fooled to leave this subject to economists, governments and banks – a setup that has proven to end in disaster.” It’s a clear-headed background that the rise of cryptofinance is becoming increasingly important. For a historical treatment, see “Aristotle on Money.”