|April 18, 2014|
It is earnings season as our banks release their quarterly reports, and the key takeaway is: Mobile is boosting the bottom-line.
of America’s CEO Brian Moynihan said during his earnings call mobile
banking efforts have reduced costs at the consumer banking business by
about 4 percent from a year earlier. Mobile was involved in 10 percent
of total deposit transactions at Bank of America in the first quarter,
up from 6 percent in the prior-year’s quarter. One year ago, this
statistic did not exist.
According to data from Javelin Strategy
& Research, the average cost of a mobile transaction for banks is
10 cents, about half the cost of a desktop-computer transaction and much
less than the $1.25 average cost of an ATM transaction.
not just about saving money on expenses, but giving consumers choices.
Data from AlixPartners shows about 60 percent of smartphone or tablet
users who switched banks in the fourth quarter said mobile banking was
an important factor in the decision, up from 7 percent in the second
quarter of 2010.
Remember Chase’s Barry Sommers' comment at CBA
LIVE: “Today’s customer expects to bank when they want, how they want,
and where they want.”
CFPB Revises International Money Transfer Rule
CFPB revised its international money transfer rule allowing banks an
additional five years to fully comply with certain new disclosure
requirements. Banks now have until July 20, 2020 to estimate third party
fees and exchange rates if they can’t determine the exact amounts. We
appreciate the CFPB’s recognition of the complexity of disclosures
associated with international money transfers. This action will ensure
uninterrupted access for consumers and their families, who rely on these
CFPB Gives Insight on Debt Collection Practices
week, Dong Hong served on a panel at the America Bar Association’s
Business Law Section Meeting in Los Angeles, where he discussed the
CFPB’s advanced notice of proposed rulemaking which seeks industry input
on reforming debt collection practices. In his remarks, Dong expressed
the opinion of the banking industry that the Fair Debt Collection
Practices Act (FDCPA) does not cover first-party collection activities
and how the CFPB should not seek to extend FDCPA-like requirements to
In response, CFPB managing counsel Tom Pahl, a fellow
panelist, noted the CFPB would likely use its UDAAP powers, not its
rulewriting authority under the FDCPA, to impose new standards on
first-party collectors. Given the ANPR comment period only recently
closed on February 28, 2014, it is a bit disconcerting the CFPB already
is developing firm opinions about the directionality of its rulemaking
CBA Team News
Krzic joined CBA on April 14, 2014 as our Education Coordinator.
Kristin is a graduate of Ohio State University of the Big Ten (12 teams)
with a BA in International Studies and Korean Language and a Minor in
Education. Prior to joining CBA, Kristin was an Admissions Counselor for
International Admissions at The Ohio State University.