Fifth Third Unveils Cardless ATMs to Boost Digitalization

In this era of digitalization, banking giant — Fifth Third Bancorp FITB — has officially initiated cardless technology at more than 2,500 ATMs in 10 states. This new technology will allow customers to use ATMs without physical debit cards.

Notably, customers need to log into their Fifth Third mobile app and select an account which will provide the Cardless menu option, and allow the app to access the mobile’s camera. Therefore, in an ATM, just tapping the screen generates a code which can be scanned using the phone’s camera. With this, the debit or ATM card Personal Identification Number (PIN) will enable customers to access the ATM.

“Our customers are continuing to engage more actively on mobile apps and still use ATMS,” Fifth Third chief digital officer Melissa Stevens stated. “We wanted to find a way to connect those better,” added Stevens.

Notably, Fifth Third recorded 40% rise in logins on its mobile app in 2017. Thus, per Stevens, cardless technology is a convenient way through the app for banking services.

Among others, Charlotte-based Bank of America BAC has also incorporated cardless technology into its ATMs. In 2016, this Wall Street biggie rolled out 8,000 cardless ATMs. Later, the bank added 500 ATMs. San Francisco-based Wells Fargo WFC also integrated cardless technology into its 13,000 ATMs in 2017. Apart from BofA and Wells Fargo, JPMorgan JPM is also headed toward rolling out cardless ATMs.

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 smart phones for financial transactions. Further, banks have been witnessing tremendous growth in the 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 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, Fifth Third carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Fifth Third gained 26.8% over the last six months, outperforming 19.1% growth recorded by the industry.

Can Hackers Put Money INTO Your Portfolio?

Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.

Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.

Download the new report now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
 
Fifth Third Bancorp (FITB) : Free Stock Analysis Report
 
Wells Fargo & Company (WFC) : Free Stock Analysis Report
 
Bank of America Corporation (BAC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research