MINNEAPOLIS, Nov. 03, 2016 (GLOBE NEWSWIRE) -- A new study recently released by the Federal Deposit Insurance Corporation (FDIC) reveals that consumers are increasingly turning to mobile and online banking to access and manage their accounts.
From 2013 to 2015, the population of U.S. consumers using online banking increased from 55% to 60%, and those using mobile banking grew at an ever greater pace, from 23% to 32%. The FDIC says consumers appreciate the greater control and convenience these channels provide.
The study also showed that the proportion of households that used a prepaid card in the past 12 months increased from 7.9% to 9.8%, with this growth seen broadly across socioeconomic and demographic groups.
FDIC says that about one in five households identified as “underbanked,” and that these households are more likely to rely upon their mobile device as their primary means of managing their financial accounts. The underbanked reported significant benefits from immediate access to account information, including reminders and balance alerts that help keep them on track with their finances.
The FDIC concluded that by providing better and more timely information on balances and transactions, mobile financial services give consumers an important element of control over their financial lives. Mobile financial services can also help address some of the underlying reasons consumers report becoming completely “unbanked,” such as wanting to avoid unexpected fees and worrying about low balances. According to the FDIC, the unbanked now represents more than 15 million adults or 7% of U.S. households.
The FDIC report is good news for the Minneapolis-based Cachet Financial Solutions, Inc. (OTCQB:CAFN), purveyor of Select Mobile™ Money, the award-winning cloud-based SaaS platform used by financial institutions and alternative financial services (AFS) providers nationwide.
Select Mobile Money enables these organizations to offer their customers a full suite of mobile financial services, including prepaid general purpose reloadable debit and payroll cards, powered by an easy-to-use, multilingual mobile app available on both Apple iOS and Android devices.
Cloud-based services include account management, check-to-card fund loading with an option for “instant good funds,” card-to-card transfer and international remittance. The customizable app also features location-based technology that can pinpoint nearby ATMs and supports a national mobile coupon network of 150,000 merchants offering local deals. Powerful back-end analytics enable financial institutions to segment customers based on behavior, and send relevant marketing notifications that keep customers engaged. Apple Pay™ and Apple Watch™ integration is also available.
Cachet also offers several other consumer mobile financial solutions that provide greater consumer convenience, including: Select Mobile™ Deposit, which saves consumers a trip to the bank or credit union by allowing them to snap a photo of their check deposit and submit electronically via a tablet or smartphone; Select Mobile™ Account Opening, which eliminates cumbersome manual entry on a mobile enrollment form by enabling consumers to take a photo of their drivers license or ID with their mobile device and using the data to auto fill the form; and Select Mobile™ NowPay, which enables consumers to use their mobile device to snap a photo of their check payment and submit electronically versus dropping the payment off at a lender branch office or the post office.
“Our easy-to-deploy products and services allow financial institutions to tap into larger, underserved populations without major capital expense or time-to-market,” says Jeffrey Mack, president and CEO of Cachet. “The power, flexibility and security of our products has allowed us to become a trusted partner of some of the world’s largest and most respected financial organizations.”
About Cachet Financial Solutions, Inc.
Cachet Financial Solutions is a leading cloud-based, SaaS technology provider serving the financial services industry with mobile money and remote deposit capture solutions for PC, Mac and mobile. Founded in early 2010, Cachet has quickly grown into a technology leader and trusted partner of some of the largest and most respected financial organizations. With remarkable growth, an impressive client base and award-winning technology, Cachet continues to drive innovation and deliver world-class solutions to financial institutions of all sizes. Cachet believes that its industry-leading solutions can help the company’s clients increase customer retention and revenue opportunities. Cachet's cloud-based technology platform simplifies development, deployment and servicing of consumer and commercial solutions—minimizing cost and accelerating speed-to-market for Cachet’s clients. Enabled by Cachet's suite of business and consumer solutions, financial institutions can better serve the needs of all their customers. For more information, visit www.cachetfinancial.com.
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