Just a few weeks ago, Barclay’s became the first big bank to give its customers unexpected control over their spending. Via Barclay’s app, you can now “switch off” your debit card so that it can’t be used for five specific types of purchases – gambling, “premium-rate websites and phone lines”, restaurants/pubs/bars, gas, and groceries. Once a type of purchase is switched off, any transaction you try with your card at the relevant type of retailer or business will be automatically declined. The idea is to try and help people manage their spending impulses, and is aimed particularly at those with mental health issues or addictions. But, it can also be used to protect yourself from others trying to make fraudulent charges, if you’re worried about that. Barclay’s says it will do the same for credit cards in the near future.
Why It’s Hot:
It’s a bold move for a bank to offer its customers a way to not spend their own money, but it’s clearly aimed at helping people. Unexpected, and a great example of putting people over profits and thinking about the customer experience beyond just transacting with the bank itself. It’s only a halfway house, given that the feature is completely within each person’s control. But even the cue of having your card declined and having to go into the app to turn whatever type of purchase back on would likely make someone who can’t help themselves think twice.
When’s the last time you opened up a bank account? Whether it was applying online or in-person at a bank retail, the process involved ton of paperwork and ID authentications via your driver license, passport, social security card, etc. Most often, we had to visit our nearest bank to get faster services – instead of waiting on the phone with a customer service representative, speaking to my bank rep always expedited my checks and debit cards. But nowthat most service features are automated by our apps, will we still need brick and mortar banks?
Banking startups don’t think so. The new era of banking is mobile-first/mobile-only – Starling Bank UK launched without a single brick and mortar location. You still have to apply online but upon approval of your account, which involves things like photographing your passport or driving license via the app, you are issued a Starling Bank MasterCard debit card that can be used in the U.K. and abroad.
Why it’s hot:
The banks allows you to :
view your current account activity in real time, something most legacy banks fail or fall over trying to do. This takes the form of push notifications and the “Starling Pulse,” a real-time feed that displays all your account activity.
secure the app using biometric identification. In addition to being asked to provide a 6-10 digit passcode, you are asked to record a short video message of you reading out a specific phrase. If you find your fat thumb making passcode mistakes and locking you out, you can voice open the bank app.