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Wells Fargo Unveils Cardless ATMs to Boost Digitalization
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In this era of digitalization, the banking giant – Wells Fargo & Company (WFC - Free Report) – has officially initiated cardless technology at 13,000 ATMs. The new technology will allow customers to use ATMs without physical debit cards.
Notably, customers need to log into their Wells Fargo mobile app which will provide an eight-digit code usable at all the company’s ATMs around the country. With this, the debit or ATM card Personal Identification Number (PIN) will enable customers to access the ATM.
“At Wells Fargo, we believe the future is cardless, and the launch of One-Time Access Code provides our 20 million mobile banking customers another convenient way to manage money,” said Brett Pitts, head of digital for Virtual Channels. “This new ATM feature exemplifies Wells Fargo’s commitment to innovation,” Pitts further noted.
Later in 2017, Wells Fargo plans to initiate near-field communication or “NFC” technology at its ATMs. This will enable customers to carry out their ATM transactions through smart phone-generated PIN codes. Notably, ATM users will be required to log in to their respective mobile wallets and then tap their smart phones to the machine’s NFC point in order to confirm the transaction. Notably, over 40% of the bank’s ATMs have this capability presently.
Among others, Charlotte-based Bank of America Corporation (BAC - Free Report) has also incorporated the cardless technology into its ATMs. In 2016, the Wall Street biggie initiated 8,000 cardless ATMs. Later, the bank added 500 ATMs.
Apart from BofA and Wells Fargo, JPMorgan Chase & Co. (JPM - Free Report) is also headed toward rolling out cardless ATMs. At present, the company is working on a code-based system that will generate a temporary password to facilitate the transaction through its mobile banking application. Notably, such a feature prevents pass codes from being misused or stolen.
This apart, BofA and JPMorgan intend to incorporate additional features like pre-setting ATM transactions, which will not only help customers save time, but also lower security concerns owing to shorter duration.
Why this Change to Digitalization?
Customers have been increasingly using their smart phones for financial transactions. Further, banks have been witnessing tremendous growth in number of active mobile users. Hence, in order to capitalize on this trend, banks are rolling out the cardless ATM technology. In addition, this is in sync with the industry-wide focus on right sizing branch networks and enhancing customer satisfaction.
Introduction of digital technology remains cost effective for banks as well. Additionally, increasing competition from the financial technology firms (FinTech) is driving banks to digitize their operations.
Therefore, banks are trying all possible ways to enhance customer experience, reduce expenses and improve profitability.
Currently, Wells Fargo carries a Zacks Rank #3 (Hold).
Shares of Wells Fargo gained 22.3% over the last six months, underperforming 28.4% growth recorded by the Zacks categorized Banks – Major Regional industry.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
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Wells Fargo Unveils Cardless ATMs to Boost Digitalization
In this era of digitalization, the banking giant – Wells Fargo & Company (WFC - Free Report) – has officially initiated cardless technology at 13,000 ATMs. The new technology will allow customers to use ATMs without physical debit cards.
Notably, customers need to log into their Wells Fargo mobile app which will provide an eight-digit code usable at all the company’s ATMs around the country. With this, the debit or ATM card Personal Identification Number (PIN) will enable customers to access the ATM.
“At Wells Fargo, we believe the future is cardless, and the launch of One-Time Access Code provides our 20 million mobile banking customers another convenient way to manage money,” said Brett Pitts, head of digital for Virtual Channels. “This new ATM feature exemplifies Wells Fargo’s commitment to innovation,” Pitts further noted.
Later in 2017, Wells Fargo plans to initiate near-field communication or “NFC” technology at its ATMs. This will enable customers to carry out their ATM transactions through smart phone-generated PIN codes. Notably, ATM users will be required to log in to their respective mobile wallets and then tap their smart phones to the machine’s NFC point in order to confirm the transaction. Notably, over 40% of the bank’s ATMs have this capability presently.
Among others, Charlotte-based Bank of America Corporation (BAC - Free Report) has also incorporated the cardless technology into its ATMs. In 2016, the Wall Street biggie initiated 8,000 cardless ATMs. Later, the bank added 500 ATMs.
Apart from BofA and Wells Fargo, JPMorgan Chase & Co. (JPM - Free Report) is also headed toward rolling out cardless ATMs. At present, the company is working on a code-based system that will generate a temporary password to facilitate the transaction through its mobile banking application. Notably, such a feature prevents pass codes from being misused or stolen.
This apart, BofA and JPMorgan intend to incorporate additional features like pre-setting ATM transactions, which will not only help customers save time, but also lower security concerns owing to shorter duration.
Why this Change to Digitalization?
Customers have been increasingly using their smart phones for financial transactions. Further, banks have been witnessing tremendous growth in number of active mobile users. Hence, in order to capitalize on this trend, banks are rolling out the cardless ATM technology. In addition, this is in sync with the industry-wide focus on right sizing branch networks and enhancing customer satisfaction.
Introduction of digital technology remains cost effective for banks as well. Additionally, increasing competition from the financial technology firms (FinTech) is driving banks to digitize their operations.
Therefore, banks are trying all possible ways to enhance customer experience, reduce expenses and improve profitability.
Currently, Wells Fargo carries a Zacks Rank #3 (Hold).
Shares of Wells Fargo gained 22.3% over the last six months, underperforming 28.4% growth recorded by the Zacks categorized Banks – Major Regional industry.
Stocks to Consider
Comerica Incorporated (CMA - Free Report) has been witnessing upward estimate revisions for the last 30 days. Further, the stock surged over 39% over the past six months. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere
1 billion iPhones in 10 years but a new breakthrough is expected to generate more
than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging
phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>