U.S. Bank Expands Mobile Alerts to ATMs, Debit Cards

Print
Email
Reprints
Comment
Twitter
LinkedIn
Facebook
Google+

U.S. Bank, which was one of the first banks to offer mobile fraud alerts to credit card customers three years ago, has expanded its alert program to ATM and debit card holders. These alerts are part of a larger effort on the bank's part to provide customers with near-real-time financial tracking.

"This streamlines a number of processes for the consumer," says Dominic Venturo, chief innovation officer, U.S. Bank, adding that the service can be useful in cases such as expense management and fraud mitigation.

"It's in a broad context of making the mobile device a place to go to get information about an account," he says.

The alerts are designed to draw attention to and quickly resolve fraud issues and to report on ATM withdrawals and other debit and check transactions. They're delivered via SMS, email or both. The content is created internally, and is configured for and delivered to various telecommunications carriers by the bank.

On the fraud detection side, the new real-time alerts notify cardholders when suspicious or irregular activity has been detected. For instance, if a consumer in Westport, Conn. gets an alert about a transaction on his card made at a winery in Moldova, he can immediately text to cancel the transaction. The mobile channel lets the consumer verify his identity or confirm a transaction much faster than he could through manual or phone-based verifications. 

On the budget management side of alerts, a customer can elect to be notified via mobile alert when a transaction meets or exceeds a predetermined amount, such as a monthly food budget. Cardholders may also receive real-time alerts for international transactions, gasoline purchases, ATM withdrawals, declined transactions or for online, mail-order or telephone transactions where the card is not present.

"The alerts are set to meet a certain criteria," Venturo says. "I may want to be notified of any transaction over a certain dollar amount, any card not present transaction or any ATM transaction."

Cardholders enroll via the bank's web banking site by specifying the alerts they want to receive on each account, then choose the channel. The alerts are free from the bank, but subject to message and data rates from the customer's wireless carrier.

The new alerts are part of an aggressive strategy by U.S. Bank to build out mobile-enabled services over the next few years. Among its other initiatives is a mobile shopping concierge, which will match a mobile handset's location-based technology to coupons sent to the phone.

In addition to being a mobile alert pioneer, U.S. Bank was an early test bank for separate near-field communication (a wireless communication standard being used to build contactless mobile payments) pilots offered by both Visa and MasterCard in 2009. And in the past year, it's added myriad functions to its mobile payments suite, including a MicroSD pilot with DeviceFidelity, FIS and Monitise, as well as the launch of a full-suite mobile banking product with bill-pay capabilities.

And by offering alerts in "real time" (actually a few moments), the bank is playing on the front lines of the transaction alert battle, joining banks such as Bank of Montreal, which in June introduced a free alert service that works across all channels to help consumers track personal expenditures.

JOIN THE DISCUSSION

SEE MORE IN

RELATED TAGS

'We Don't Want to Wage this Proxy Contest in the Gutter': Week's Best Quotes

The most notable quotes from American Banker stories of the previous week. Readers are encouraged to add their own observations in the Comments fields at the bottom of each slide.

(Image: Fotolia)

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.

The FinTech 100

FIS and Tata once again top the annual FinTech 100 list of vendors, ranked by revenue; IBM and Hewlett-Packard lead the pack of tech companies serving multiple industries; and Bionym and Silver Tail are among the 10 Tech Companies to Watch.
DAILY ENEWSLETTER UPDATE

A Newsletter featuring Bank Technology News' top stories plus special reports and data

This feature displays payments industry news and analysis from American Banker sibling brand PaymentsSource. Registration is required; for more information contact customer service.

TWITTER
FACEBOOK
LINKEDIN
Already a subscriber? Log in here
Please note you must now log in with your email address and password.