NEW YORK—There are seven mobile banking debit card management tools available that not only help FIs save money and prevent fraud, they drive adoption of the digital wallet, according to one new analysis.
The tools, such as a card on/off switch, are managed by the cardholder, notes a new white paper from Malauzai Software, Mobile Banking Card Management, which states that community banks are well ahead of the money center institutions in offering the tools.
“To date, no money center bank has implemented debit card management while over 80 community banks are already there,” the paper stated.
Malauzai suggests that by turning card management into a self-service application, available in the mobile banking smart app, a community financial institution can cut down on calls to the call center and visits to the branch related to simple tasks associated with the debit card, such as asking for ATM and point-of-sale increases. “This has an immediate impact by moving service to a more cost-effective channel,” the report explained.
Credit unions and banks can fight fraud by putting in the hands of the consumers and business a tool to turn on and off the card in real-time, Malauzai said. “By denying transactions at the source, directly within the core banking platform, fraud is stopped in its tracks.”
Malauzai points out that demand for mobile banking card management features is picking up rapidly as consumers want more control over their security. Among the institutions the company has helped deploy mobile banking debit card management, in a typical month, approximately 15% of active mobile banking consumers and businesses use the feature-set, the Malauzai reported.
Malauzai outlined seven primary components to mobile banking debit card management:
Card status and listing: The “main-door” to card management—this feature allows an end-user to see the status of all of their cards. Multiple cards can be viewed regardless of how many accounts the consumer or business maintains. This is a simple and effective way to see what cards are turned on and off with a single glimpse, Malauzai said.
Card on/off switch: An end-user can turn on and off a card in real-time. The feature is directly connected to the core banking system so the account associated with the card can be shut off immediately and then turned back on.
ATM limit increase requests: ATM transaction limit increases can be requested in real-time. End-users can either ask for a specific limit increase or can choose from pre-determined choices set up by the credit union or bank.
POS increase requests: Point-of-sale transaction limits can also be increased automatically using the mobile banking feature. As with ATM limit increases, the end-user can choose from predetermined limit increases or request a specific increase.
International access settings: Cards can be configured to allow an end-user to utilize the debit card outside of the United States. End-users can turn on and off this capability in real-time, saving them from having to call the credit union or bank when they leave the country and want to use the debit card, Malauzai explained.
Merchant and card limit management: The card can be limited to work at certain merchants and specific limits can be set for certain categories of merchants. Also, certain card limits can be managed so that secondary cards associated with an account can be limited and managed by the primary account holder.
GEO fencing: The usage of the card can be limited to certain geographic areas. The consumer or business can decide on a specific geography and change this setting in real-time. Malauzai explained that it is important to understand that the GPS feature of mobile devices does not come into play here.
“Where the mobile banking SmartApp is and where that consumer or small business is, does not get factored in as the mobile banking SmartApp is not used to make the payment. Rather, where the card processing transaction takes place is what drives this feature. A consumer or business uses mobile banking to configure this ‘geo-fence’ only.”
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