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It's important to realize that for banks IT is a cost center. They spend only the absolute minimum for IT, because they don't make money with it. I have learned

It's important to realize that for banks IT is a cost center. They spend only the absolute minimum for IT, because they don't make money with it. I have learned it the hard way, by working for some of them (thought must admit, not in the US). They only spend the absolute minimum on anything IT related - if most customers don't complain about it, and auditors are happy, then it means that it is just perfect.

verdverm 3y ago
unless it's something like Zelle, where they want to force you to use a mobile app so they can... <insert nefarious conspiracy here>
- Jtsummers 3y ago
  > ... <insert nefarious conspiracy here> ... retain customers and their money within bank accounts so they can lend it out and make money off of it. Turns out it's not very nefarious, just normal profit motive. Banks make money with Zelle that they'd lose if you Venmo'd money to your fitness instructor who kept it in their Venmo rather than immediately depositing it into a regular checking account. Do people actually have nefarious conspiracy theories about Zelle?
  - verdverm 3y ago
    Why can't I use zelle in a browser? I would use it if I could, but they require a mobile app. Why?
    - Jtsummers 3y ago
      That's not a technical limitation, that's a choice of your bank (and apparently mine). Critically, though, Zelle is competing with Venmo (in particular) and other mobile-only or primarily-mobile apps. Working within the same environment is "good enough" from the perspective of most banks.
- joezydeco 3y ago
  Chase lets you Zelle from the browser.
  - verdverm 3y ago
    Since when? This is not my experience
    - joezydeco 3y ago
      Just logged into my account and it's there. I don't know when it was introduced.
      - verdverm 3y ago
        Have you tried to use it? I know the link is there, but last time it took me to pages where you were instructed to install the app
        joezydeco 3y ago
        There's verbiage all over the site about a "new look" so maybe it is rolling out slowly to sections of the customers. Mine currently looks like this: https://imgur.com/a/iFDVVwl https://imgur.com/a/iFDVVwl
  - blimpy 3y ago
    Capital One does too. I’ve used Zelle through Capital One’s website for years, and have never had the mobile app installed.
jqpabc123 3y ago
It's important to realize that for banks IT is a cost center. Sorry, that argument doesn't float in the overall scheme of things. TOTP is easy to implement, more secure and costs less to operate than SMS verification --- which is widely supported by banks and in many cases is really nothing more than TOTP codes transmitted across the cell network. If IT cost was really the issue, TOTP would likely be the universal default option.
gtirloni 3y ago
> It's important to realize that for banks IT is a cost center Is this a US phenomenon? Where I live, banks are routinely promoting how they are more modern due to their tech. It's far from a cost center and has been like that for at least 2 decades now.
- jqpabc123 3y ago
  It's important to realize the time value of money. "Tech" means faster, easier transfers and processing. This is great for consumers --- but not so great for banks. Banks make a lot of money from "float" --- the lag time between the initiation of a transaction and it's actual completion. The delay between the point in time where money is withdrawn from the sender's account until it is actually credited to the receiver's account. In many cases, this is a day or more in the US. Bottom line --- most US banks have billions of dollars just "floating" on their books --- continuously. This is someone else's money that the *bank* can earn free interest on. "Tech" (aka instant transactions) threatens to eliminate this source of income for banks.

verdverm 3y ago

unless it's something like Zelle, where they want to force you to use a mobile app so they can... <insert nefarious conspiracy here>

Jtsummers 3y ago
> ... <insert nefarious conspiracy here> ... retain customers and their money within bank accounts so they can lend it out and make money off of it. Turns out it's not very nefarious, just normal profit motive. Banks make money with Zelle that they'd lose if you Venmo'd money to your fitness instructor who kept it in their Venmo rather than immediately depositing it into a regular checking account. Do people actually have nefarious conspiracy theories about Zelle?
- verdverm 3y ago
  Why can't I use zelle in a browser? I would use it if I could, but they require a mobile app. Why?
  - Jtsummers 3y ago
    That's not a technical limitation, that's a choice of your bank (and apparently mine). Critically, though, Zelle is competing with Venmo (in particular) and other mobile-only or primarily-mobile apps. Working within the same environment is "good enough" from the perspective of most banks.
joezydeco 3y ago
Chase lets you Zelle from the browser.
- verdverm 3y ago
  Since when? This is not my experience
  - joezydeco 3y ago
    Just logged into my account and it's there. I don't know when it was introduced.
    - verdverm 3y ago
      Have you tried to use it? I know the link is there, but last time it took me to pages where you were instructed to install the app
      - joezydeco 3y ago
        There's verbiage all over the site about a "new look" so maybe it is rolling out slowly to sections of the customers. Mine currently looks like this: https://imgur.com/a/iFDVVwl https://imgur.com/a/iFDVVwl
- blimpy 3y ago
  Capital One does too. I’ve used Zelle through Capital One’s website for years, and have never had the mobile app installed.

jqpabc123 3y ago

It's important to realize that for banks IT is a cost center. Sorry, that argument doesn't float in the overall scheme of things. TOTP is easy to implement, more secure and costs less to operate than SMS verification --- which is widely supported by banks and in many cases is really nothing more than TOTP codes transmitted across the cell network. If IT cost was really the issue, TOTP would likely be the universal default option.

gtirloni 3y ago

> It's important to realize that for banks IT is a cost center Is this a US phenomenon? Where I live, banks are routinely promoting how they are more modern due to their tech. It's far from a cost center and has been like that for at least 2 decades now.

jqpabc123 3y ago
It's important to realize the time value of money. "Tech" means faster, easier transfers and processing. This is great for consumers --- but not so great for banks. Banks make a lot of money from "float" --- the lag time between the initiation of a transaction and it's actual completion. The delay between the point in time where money is withdrawn from the sender's account until it is actually credited to the receiver's account. In many cases, this is a day or more in the US. Bottom line --- most US banks have billions of dollars just "floating" on their books --- continuously. This is someone else's money that the *bank* can earn free interest on. "Tech" (aka instant transactions) threatens to eliminate this source of income for banks.