US online banking hits 70m

More than two million American households adopted online banking and bill payment during the past year, raising the total to nearly 70 million, according to a new survey from financial services technology firm Fiserv, reports Bizjournals.com.

Brookfield, Wisconsin-based Fiserv said 69.7 million households, representing four out of five households with Internet access, now use online banking services.

They are primarily accessing balance and account history and transferring money between accounts. In addition, 64.4 million households pay at least one bill online, either at a bank Web site or directly through a company Web site.

The Reserve Bank of India has issued a directive, mandating all banks issuing credit and debit cards to level up the security provided for online card transactions from 1 August onwards, states Rupee Times.

The measure adds a new dimension to the existing security measure for online card transactions.

This security measure will require cardholders to register each of their card holdings with the respective merchants - Visa or Master - and set up a security password, after which the card will be activated for any online transactions.

Big regulatory changes often have a seismic impact on the IT infrastructure at various companies, says FierceFinanceIT.

With overhauled credit card regulation likely to become a reality, financial companies are facing the prospect of higher IT costs.

Notes Bank Technology News: "Everything from customer service technologies, billing and payment processing systems, disclosure processes, and pricing models must all be rewritten or replaced. Best guess is that most lenders will band-aid existing systems to meet the deadline - or face stiff fines - and overhaul down the road."