Wells Fargo rolls out card-free ATMs
(BI Intelligence)
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Wells Fargo is rolling out a smartphone ATM withdrawal feature, which lets customers access the machines without their cards, according to Reuters.
Bank of America and JPMorgan Chase were the first megabanks in the US to roll out the feature to some of their ATMs, but Wells Fargo will reportedly be the first major bank to bring the feature to its entire network, which includes 13,000 machines. Wells Fargo’s card-free approach also differs from its competition in key ways.
Wells Fargo’s option is more complicated than other banks, but more secure than some.
The bank uses a lengthy two-step authentication process. Wells Fargo customers will need to request a passcode within the mobile banking app, manually enter it at the ATM, then also enter their PIN. The process is lengthy, making it a poor option for customers who have their card on them. Chase, in contrast, allowed customers to more easily access cash with a pass code alone, but as security blog Krebs On Security detailed, this allowed criminals who stole the users’ online username and password to withdraw funds at the ATM. One customer lost $2,900 a single day.
Card-free ATMs will become mainstream when they’re both easy and safe. In late 2015, the Wall Street Journal reported that Citibank was developing an ATM that could let users access the ATM by having it scan their iris. That would offer high security while requiring little effort on the part of users – it reportedly takes as little as ten seconds. No news has come of the pilot since, suggesting the technology may not be ready for the mainstream yet. But other banks have solutions on the market today with solid ease of use and security – for example, Bank of America customers with Android phones can simply hold their device to select ATMs to take out cash using Android Pay.
The bank hopes digital features will lure in customers in the wake of its scandal. Banks have increasingly taken to advertising cutting-edge mobile features in order attract customers, a strategy which arguably began in earnest when Chase’s television ads first pushed its mobile deposit feature over six years ago. Wells Fargo in particular should be highly motivated to attract new customers.
Following the bank's fake application scandal, credit card applications fell 55% in February, and new checking account applications dipped 43% over the prior year, according to CNN. Investing in cutting-edge mobile banking features may help the bank, but Wells Fargo, like the rest of the banking industry, should also focus on improving to digital account opening to drive up new customers as well.
Nearly every global bank is experimenting with blockchain technology as they try to unleash the cost savings and operational efficiencies it promises to deliver.
Banks are exploring the technology in a number of ways, including through partnerships with fintechs, membership in global consortia, and via the building of their own in-house solutions.
Sarah Kocianski, senior research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on blockchain in banking that outlines why and in what ways banks are exploring blockchain technology, provides details on three major banks' blockchain efforts based on in-depth interviews, and highlights other notable blockchain-based experiments underway by global banks. It also discusses the likely trends that will emerge in the technology over the next several years, and the factors that will be critical to the success of banks implementing blockchain-based solutions.
Here are some of the key takeaways from the report:
Most banks are exploring the use of blockchain technology in order to streamline processes and cut costs. However, they are also looking to leverage additional advantages, including increased competitiveness with fintechs, and the ability to use the technology to create new business models.
Banks are starting to narrow their focus, and are increasingly honing in on tangible use cases for blockchain technology that solve real problems faced by their businesses.
Regulators are taking an increased interest in blockchain technology, and they're working alongside major banks to develop regulatory frameworks.
Blockchain-based solutions will start to emerge in different areas of financial services. The most successful solutions will solve specific problems for banks and attract a large enough network to create widespread benefits.
In full, the report:
Outlines banks' experiments with blockchain technology.
Details blockchain projects at three major banks — UBS, Credit Suisse, and Banco Santander — based on in-depth interviews.
Discusses the likely trends that will emerge in the technology over the next several years.
Highlights the factors that will be critical to the success of banks implementing blockchain-based solutions.
Interested in getting the full report? Here are two ways to access it:
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