Boston, MA 03/11/2014 (wallstreetpr) – Innovators are always one step ahead of competition and U.S. Bancorp (NYSE:USB) knows this very well. The financial markets are now fiercely competitive and financial institutions have to use technology to stay ahead in the race.
U.S. Bank’s mobile approach:
Internet banking has now become a way of life. U.S. Bancorp (NYSE:USB) is now working on using technology and using an innovative approach to attract and retain customers. Smartphones have become a way of life and customers particularly the younger generations are using them to complete their tasks. Shopping and financial transactions are some of them. Many of the customers may not have seen the inside of a branch. U.S. Bank has taken a lead in integrating images and voice commands. It has also been honored by the Bank Innovation Awards recently for initiatives in this area.
The other innovations:
However, internet banking and mobile banking suffer from a serious security flaw. Though networks are becoming more resilient, hackers seem to be one step ahead as the recent hacking incident at Target Corp (NYSE:TGT) showed. One breach resulted in millions of IDs as well as PINs being stolen. The financial losses run into millions of dollars. Though insurance will cover most of the losses, the insurance company will raise its premiums to compensate for the loss. The company may also suffer loss of customer faith; this will be difficult to compensate.
In order to tackle this, U.S. Bancorp (NYSE:USB) is trying several options like photo function of the smartphones. It is already credited with bringing mobile deposit capture to its banking customers and is expected to follow suit with a host of services. The second option is audio commands and voice biometrics. Biometrics is used in various fields to identify a person. The bank hopes to replace manual password entry with voice biometrics. Manual password entry is proving to be difficult on smartphones as the screen sizes are small and smartphones are replacing traditional keyboards with touch screen options.