WASHINGTON—The American Bankers Association has filed a petition with the Federal Communications Commission asking it to remove barriers to sending time-sensitive information to customers when their accounts may be in jeopardy. The ABA is seeking a change in “outdated regulatory restrictions” that prevent banks from sending data security and fraud alerts to customers via their mobile devices.
The prohibition has been in place since the passage of the Telephone Consumer Protection Act in 1991, which could not have foreseen the revolution in ubiquitous smartphones.
“With about 40% of the nation’s households now ‘wireless only,’ the ability to send these automated notifications to mobile phones is critical,” said ABA President Frank Keating. “Unfortunately, the rules were designed for a time when nearly everyone had a landline. Since that is no longer the case, it is dangerous not to update the standards.” Keating is urging the FCC to give the petition prompt consideration.
"Give credit where credit is due: this is a smart idea by the ABA,” said John McKechnie, a partner in Total Spectrum. “One of the best ways to navigate the data security maze is to stay ahead of the tech curve. This notification approach the banks propose will help consumers, and credit unions should do everything we can to follow suit."
CHICAGO—In celebration of International Credit Union Week, CUToday.info has introduced the second of a series of exclusive videos, this one from the New Zealand Association of Credit Unions. CUANZ CEO Henry Lynch gives CUToday.info a tour of its offices and introduces the world to its staff. The video is the second in the series, the first being shot by Dupaco Credit Union in Iowa. To view that video, click here.