New app allows consumers to monitor bank accounts and possible fraud
2011-02-17
According to a recent report from eMarketer, the number of U.S. smartphone users will grow to 73.3 million in 2011, reaching 31 percent of the total mobile user population. Furthermore, this number is set to reach 109.5 million by 2015.

While these numbers foretell a growth in mobile banking, they also present significant challenges for major financial institutions. As more people purchase iPhones and BlackBerrys, the expectations of what they will be able to accomplish with these devices will only grow. To keep up with demand and promote customer loyalty, FIs will need to stay aware of trends and, even more importantly, ensure sensitive account data remains secure.

To address growing security concerns, ClairMail has introduced a new application that provides consumers with a mobile fraud alert when any suspicious activity occurs. The technology will allow consumers to confirm or deny transactions that may seem suspect due to their location, items being purchased or amount being withdrawn or used.

For example, ClairMail's alert system would send a customer who lives in Pennsylvania an alert if a purchase was being made on their phone in Hong Kong, BankTech writes. While the individual in question may be on vacation or on business in Hong Kong, they may not be, allowing them to deny the transaction from their home in the U.S. before any harm could be done.

When such an incident occurs customers will be able to respond via text, alerting the bank immediately to whether or not the transaction is a fraudulent one.

"Enabling consumers to monitor, respond and resolve fraudulent transactions on their mobile device not only deepens the relational trust between that customer and their bank, it reduces costs for everyone by reducing false positives and minimizing the cost and time of fraud resolution," Pete Daffern, CEO of Clairmail, said in a statement.

Currently, fraud costs FIs billions of dollars every year. Furthermore, applications that allow consumers to respond immediately to potential intrusions could create a significant dent in fraud, seeing as most losses occur five days after an initial breach.

"Data suggest that consumers identify one-third to half of fraudulent transactions today through slow means," said CMO Carl Tsukahara in an interview with BankTech.

"Whether this will be a killer app or not, this is a great next step for mobile banking," he added.

Recent Measurement and Insight News

More customers switching banks, survey finds
2011-03-01
While major financial institutions are extremely focused on employing strategies to boost customer retention, a recent survey found that 8.
Citibank survey shows consumer optimism on the rise
2011-02-04
Customer segmentation analysis from researchers employed by Citibank shows that the general economic outlook among most Americans is on the rise, and that increased optimism could directly translate into better spending levels and an overall spike in the health of U.
Consumers and bankers do not see FIs in same light
2011-01-07
Bank executives may want to take heed: They don't feel the same way about the banking industry that consumers do, according to a recent survey - a sign that many financial institutions may need to retool their customer retention strategies.