Ripe for Disruption: Bank Authentication

One thing that still drives me crazy, and doesn’t seem to have changed with banks, is they way they handle fraud detection with the customer. Their sophisticated algorithms detect fraudulent activity, they flag it, suspend the card, and give you a call, leaving a message identifying themselves as your bank and asking you to call back a number — which is not on the back of the credit card you have.

So, if you’re like me, you call back the number given in the voice message and have this conversation:

Hello this is Bank A’s fraud detection team, how can I help you today?
Hi, quoting reference 12345.
Thank you, I need some verification details first. Do yo have your credit card details to hand?
I do, but this number I was asked to call was not on the back of my card, so I need some evidenc from you that you are who you say you are first.
Unfortunately, I don’t have anything that would help there.

So then you have to call the number on the card, and then get passed from pillar to post until you reach the right person.

How is this still the case in 2016, and why have no thoughtful disruptive folk thought up an alternative? Could this be done on the blockchain (only half sarcastic here)? I’d love to see banks, or anyone, doing this better.

A simple one would be for them to have a safe word for each client, I should think, which confirms to me that they are who they say they are. It seems silly that they can’t give some information — it doesn’t even have to be private information — that would show who they are, but only a customer would know.

New investing app for millennials

A quite cute new app called Moneybox launched today in the UK allows millennials to save without thinking and invest in stocks, also without really thinking. 

The blurb: 

The Moneybox app, which launches today in the App Store, enables users to round up their everyday card purchases to the nearest pound and invest the spare change.

For example, when you buy a coffee for £1.80, the purchase will appear in the app and you can choose to ‘round up’ to the nearest pound. The additional 20 pence is set aside to invest across thousands of companies worldwide including Apple, Facebook, Netflix and Disney, via three tracker funds. In addition to round ups, the app also allows users to set up weekly deposits and make one-off payments into their Moneybox account.

To help users decide how they would like their money to be invested, Moneybox offers three ‘starting options’ – cautious, balanced and adventurous. Users can customise their investment choices using a simple slider interface.

Targeted at Millennials, the app aims to make it easier than ever for people to start saving and investing. By enabling users to sign up in minutes from their mobile phone and start investing with as little as £1, Moneybox hopes to open up investing to a new generation.

Yes, it’s kinda sad that you need to make it real simple, but I like the approach.