Six Tips for Using P2P Payment Apps

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By Dave Wall

In today’s digital world, most of what we do is somehow attached to our smartphones.  From our communication and social media to shopping and dining, you probably use a mobile app to get things done.  That includes banking.  Most of your banking features are available on right in the palm of your hand, including the ability to send money instantly.

In a world where many of us pay for just about everything with mobile apps and credit cards, the one thing that isn’t quite as easy as making an online purchase is sending money – at least not until money transfer apps like Zelle launched.  Zelle is one of several popular apps that can be attached to your bank account to send money to anyone you know instantly.

Whether it’s to easily split a lunch bill with friends, pay for your fantasy sports league, reimburse your Mom for a gift, pay your sitter, or any other reason, Zelle makes it as simple as handing cash over.  The difference is you don’t have to worry about carrying cash and you can do it at any time using your bank’s mobile app.  The only qualification is you and the other party both need to have Zelle connected to your bank accounts.

But, while P2P payment apps are very convenient, there are a few best practices you should follow to keep your money safe.

Use it like cash

Even though it’s a digital banking tool, think of Zelle like using cash.  If you have $50 in your pocket, once you spend it, it’s gone.  Once you send a payment through an app, you can’t cancel it.  It’s like handing cash to someone – once it’s gone, it’s gone.

Only send to people you know and trust

Because you can’t cancel payments once they have been made, make sure you know who you’re sending money to and why, and make sure you are sending to the correct Zelle user.  If you’re not sure, confirm with whomever you’re sending to.  The instantaneous nature of these payments is one of their best features, but they can also work against you if you’re not careful.

Make sure you send money to the right person

Once you send, the money is gone, so you want to make sure you are sending to the right person.  Many account names are very similar.  It’s good practice to confirm the accounts you’re sending money to so your payment doesn’t end up in the wrong hands, and you have to send more to then get it to the right person.

Know your app policies

Some apps charge fees for certain kinds of transactions.  Some charge for sending money using a credit card.  Some charge for transferring money back into your bank account (Zelle does not).  Regardless of what app(s) you are using, make sure you are aware of any fees you may be responsible for before you start sending or receiving money.  Carefully reading the terms of service is a good place to start.

Beware of scams

Make sure you know what you are getting when you use payment apps.  Scammers often try to get paid using apps because it’s very difficult for you to get funds back once they are sent.  If you see a deal that seems too good to be true, there’s a good chance it is.  Also understand that reputable sellers will offer multiple payment options.

Use available security features

Remember that while you should spend money through payment apps like cash, they aren’t quite the same because they require access to your financial information.  Make sure you are using the most recent version of your app, which should have the most up-to-date security updates.  Also look at what security features you can enable on your app and enable those that give you the highest level of security.

Following these simple guidelines will help you protect your savings, while allowing you to enjoy the ease of P2P payments, so you can send money to anyone you know, for any reason, instantly.

10 Tips for Safe Online Banking

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It’s not surprising to see digital banking continue to grow, considering nearly everything else we do is accessible online.  Over the past several years, online and mobile banking has grown as the primary banking method by almost 25%, according to the FDIC.  It’s not hard to imagine that growth continuing this year, especially as the pandemic closed many branches temporarily and people generally trying to avoid risk.  That’s not to say people aren’t visiting branches – they are.  In fact, 80% of households that used digital banking as their primary banking resource still visit branches.  But, the growth is a clear indicator that the convenience of online banking is real, and with banks providing many of their services online and through mobile apps, customers are taking advantage.

Of course, as with other online activities, online banking comes with risks if you’re not careful.  Banks take security seriously and ensure they have the best security measures in place to protect your accounts.  But, there are two sides to every transaction and, if you’re not practicing safe online banking habits, you could be exposing your information to hackers.

Here are a few tips to help you keep you digital banking information secure.

No sharing – Your personal and banking information is yours; keep it that way.  If you get a call or email from someone asking for sensitive information, it’s very likely a scam.  Even if you think there’s a chance it’s a legitimate request, hang up (or don’t respond to the email).  Look up the company’s phone number and call them to confirm.  Remember that your bank will never call asking you for your card numbers, security codes, PIN numbers, or other sensitive information.

WiFi security – Make sure you have followed best practices for home WiFi, including using a strong, unique password.  It’s a good idea to leave that network for you immediate family’s use.  Most modern WiFi routers allow you to easily set up a separate guest network for others to use (make sure to use a different password for the guest network).

Public WiFi – Quite simply, don’t do it.  There’s too much risk and limited security on most public networks.  They are meant to enable access to the internet, but they are typically not safe for financial transactions.  If you have access to a VPN, use that or your mobile network if you have to make banking transactions before your get home.

Passwords – Just as you do for your WiFi, use strong, unique passwords for your online and mobile banking apps.  Not all sites use the same high levels of security as banks.  Using unique passwords means that, even if one password is stolen from a site with weaker security, your banking information will not be exposed.  Check our post on creating strong passwords to help.

Sign out – Remember to sign out of your online banking accounts when done to avoid exposing your accounts in the event your devices are compromised.

P2P payments – There are many great tools for easily sending and receiving money from friends or family members.  It’s a smart habit to limit your P2P activity to people you know and trust explicitly.  If someone asks you to pay for a purchase using a P2P product, you should think twice about it.  These options are great for quickly sending money to someone, such as when splitting a bill, but they don’t offer you recourse for recovering lost funds.  On the other hand, other payment options, like credit cards and digital payment platforms like PayPal, Google Pay, and others, offer fraud protection (check before you use them to make sure you understand what is covered and what isn’t).

Mobile security – Even if you’ve secured your home devices, don’t forget your smartphones.  Treat your mobile devices just as you would a laptop or desktop with good security software.  Many security solutions available for consumer use package mobile security apps in their solutions.  If you subscribe to security software, check to see if it comes with a mobile solution.  As with your home devices, always make sure your security software is current.  Consider allowing your security software to update automatically to make sure you always have the latest protection.

Firewalls – Make sure you have an active firewall for your broadband connection to reduce risk.  Your operating system or security software should include a firewall option that you can enable.

Contact info – Make sure you update your bank and your mobile accounts if you get new contact information.  It will help your bank communicate with you and will make sure you continue receiving important information, including your account activity alerts.

Monitor your accounts – Banks have good fraud detection in place to protect your accounts, but cyber criminals are also good at what they do.  Checking your accounts regularly can double down on your bank’s efforts and spot any questionable transactions.  It’s easy to do with your online portal or mobile app and won’t take you much more time than checking email.  You can also set up automated alerts via text or email to let you know each time a transaction is made.  Alerts It will help not only help you manage your spending, but will alert you immediately of any suspicious account activity so you can contact your bank and take appropriate steps.

Online banking has become extremely convenient.  With all the digital tools available for many of your banking needs, you will rarely have to physically visit a branch if you don’t want to or are just not able to.   But, you need to make sure you’re taking precautions and following best practices for online activity to avoid putting your financial information at risk.

Staying Financially Healthy During the Coronavirus Pandemic

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By Pam Reiss

As the world continues to cope with the COVID-19 pandemic, life as we know it has come to a grinding halt. Millions of us are working from home, our children are getting their schooling through videoconferencing, and our normal social and sports activities are in limbo.

Unfortunately, the situation can create some uncertainty around how to manage financially. Whether you’re currently working or not, it’s very likely you’ve been thinking about how to manage your finances during this time. The good news is at least some typical spending has naturally been cut because we’re all staying at home. But, there are many ways you may be able to keep your financial situation as stable as possible and stretch your budgets a bit.

Takeout vs. cooking – Ordering takeout or delivery is a great way to support local businesses during the crisis, but if you need to cut your spending, since you’re at home anyway, try limiting how often you order out. Instead, enjoy more home-cooked meals. There are many resources online for inexpensive, healthy meals. You can plan your entire week’s meals, make a complete shopping list, and make just one trip to the grocery store. You can even have one night of the week reserved for leftovers. If you want to continue to support a few local restaurants, set aside one or two days of the week for that.

Buy what you need – We’re still able to go to the grocery store, despite having to follow public safety guidelines. If you initially stocked up on non-perishables or frozen items, start using those instead of constantly buying more. Also, when you’re at the grocery store, there are still many items on sale each week. You can check out your grocery store’s flyer online to see what’s on sale, and plan your meals for the week accordingly.

Other ways to save – Take a look at some of the other things you’re spending on each week and see where you can cut a little out of your budget. Things to look at include video services. If you’re a cable subscriber, you might think about switching to a lower service tier, at least temporarily, or if you have multiple streaming services, consider cutting one of more of them. The monthly savings can add up quickly, and you can certainly find other ways to entertain your family.

Low interest rates – With interest rates dropping, this may be a good time to look into refinancing your mortgage or student loan, or even consolidating multiple loans. While there will be paperwork involved, lower interest rates can provide significant savings each month.

Emergency fund – If you’ve been following good financial habits and have built up an emergency fund, don’t automatically fall back on it. First take a look at ways you can reasonably adjust your spending. Then, if you find you need to dip into it, you can hopefully use just a little of it. If you’re fortunate enough to be working, this is a good time to add to or start your emergency fund. Since at least some of your normal extracurricular spending has been put on hold, consider putting that toward your emergency fund. You never know when you’ll need it.

Investment funds – It can be difficult watching retirement accounts and other investments lose money with the current market instability. The good news is they have historically bounced back reasonably quickly. Before you move or sell your investments, talk to your financial advisor, who can give you advice on whether it’s a smart move or not. Making a rash decision could actually end up hurting your investment funds.

Protect your credit – If at all possible, continue to pay your bills on time. If you’ve been using your credit cards, at the very least, pay the minimum on those to avoid hurting your credit score. If you are in a situation where you can’t pay some of your bills, contact your lenders. some lenders are allowing extra flexibility with payment terms or interest rates to help during the pandemic. You should also check your credit reports regularly. Fraudulent activity often increases during crises, and consumers and businesses are under a constant barrage from cyber criminals. Be extra cautious with emails, websites, and phone calls. There are thousands of malicious COVID-19 websites out there, and many phishing emails and phone calls looking to exploit uncertainty and fear.

The good news is most of the financial resources you normally have at your disposal are still available, though not in an in-person capacity. But, you can still contact us if you need advice.  Even though we’re all dealing with this pandemic, you can do things to help keep your finances in order and limit any long-term impact.

Why Digital is an Advantage for Local Banking

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It’s no secret that the world has gone digital. So much of everything we do each day happens online with the mobile devices that seem to be attached to our appendages. Mobile and desktop apps and online portals have changed the way we manage our lives, including our finances.

With the Millennial generation now the largest single population group in the workforce, the majority of spenders and financial decision-makers will soon be digital natives. They have grown up in the smartphone era and expect to be able to do just about everything digitally, including banking.

According to a recent report, 69% of Millennials use their laptops or PCs at least once a week to access bank accounts, but 92% do the same thing on their smartphones, and more than half engage in banking activities on their mobile devices more than five times a week.

Interestingly, Gen X is actually ahead of the Millennial generation in terms of laptop banking (82% at least once a week), and not far behind when it comes to smartphones (83% at least once per week and 47% more than five time a week).

The Milford Bank has always prided ourselves on the personal service we deliver and the community and human connections we are able to create. While on the surface it would appear that national banking brands would have an advantage with digital banking, we are happy to be provided the opportunity to build on our relationships we have had with our customers by offering a variety of digital products and services that can be correctly tailored to our customers’ needs and wants. Some of the advantages of this digital shift are:

Expanded customer base – Digital banking allows us to expand our customer bases. Because most people don’t need to visit branches very frequently, offering digital banking products can showcase our brand to new customers. Customers are comfortable doing most of their banking using digital tools, and are within a reasonable distance from a branch to be able to go when they need to.

Quality customer experience – The Milford Bank prides itself on delivering superior customer service. While it may seem digital banking could detract from that experience, it’s actually quite the opposite. Because customers expect to be able to do their banking online, giving them the tools to do it is part of a great experience.

Improved customer engagement – Digital tools create opportunities for increased engagement between The Milford Bank and its customers. That means that we now have more ways to let our customers know about the tools that are available for their banking needs – especially new ones, like partnering with P2P payment networks, and to emphasize the flexibility the combination of local and digital banking offers.

Perpetual availability – One of the great benefits of digital banking is its 24/7/365 availability. While offices are closed for holidays, the Internet stays open for business, which means you can access your accounts, pay bills, and send money to your kids in college any time at all – from anywhere.

The bottom line is banking is going digital, and it is important for The Milford Bank to give our customers a diverse variety of tools to choose how they want to bank. As banking competition has moved online, The Milford Bank cherishes the opportunity to blend the personalized experience a customer gets when they visit one of our offices with the ease and convenience of our digital product offerings. Customers like feeling that they matter and it is important for us to provide quality products and services regardless of whether it is in person or online.

What you need to know about using P2P payment apps

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By Lynn Viesti Berube

One of the unique features about today’s app-centric society is there’s an app or just about everything, it seems.  It’s great to be able to download apps and take care of so many things on your mobile devices.   On the other hand, because these apps tend to be fairly targeted – most try to solve a single problem – they don’t always offer quite the level of flexibility or functionality users might want.

Take mobile payment apps, for instance, like Zelle or Venmo, which are becoming increasingly popular.  They are designed to make exchanging funds between individuals easier using digital technology.  But, they are not necessarily intended for all transactions.  Both companies have been clear that their intended use is for payments between friends or other people who know and trust one another.  For things like paying a share of a dinner bill, sending an entry fee for a fantasy sports league, or getting in on a group birthday gift, apps like these make transactions fast and simple.  These are cases where one individual outlays funds for an activity, and others need to pay their share.

But, as with any digital transactions, there are risks that users should be aware of.  Here are a few simple tips to keep your apps, accounts, and money safe while letting you enjoy the convenience of P2P payment apps.

Intended uses – Use the apps as they are intended.  If an online retailer asks you to pay using a p2P app, you should be suspicious.  Reputable online retailers should offer payment methods that don’t require immediate P2P transfers, such as credit cards, PayPal, and other means.  If you’re paying for services, such as a snowplow service in the winter, using a P2P app, you may be using local residents not set up to receive credit card payments, and sending a check each time it snows can be a nuisance, so a P2P app might be the best option.  At the very least, make sure you know who you’re paying, use only reputable providers, and make sure you’ve received the service before paying.  Consider sending a check the first few times to make sure the relationship works out.

Identity – It’s easy to make a mistake when typing an email, phone, number or username.  Double check whatever identifier you’re using to send money to someone.  Once the money has been sent, it’s hard – often impossible – to get it back, so taking the extra time to get it right can reduce potential headaches.

Send a test – If you’re not certain you are sending to the right person, send a small amount as a test and confirm they received it before sending the full amount.

Security – Follow the same security principles as you would for any other application or website.  Use the highest level of security they offer, including using a PIN or fingerprint ID for transactions.  If the application offers two-factor authentication, be sure to use it.  While this adds an additional step when using the app, it also adds an additional layer of protection that help keep you account secure, even if your credentials are compromised.

Deposits – Some apps place funds you’ve received into a mobile wallet until you manually transfer them into your bank account.  This can sometimes take several days to process, so once you have approved the transfer, check to verify that it actually went through.

Fees – Some P2P payment platforms charge fees for certain kinds of transactions.  Make sure you know what your app’s policies and fees are so you won’t be surprised and can account for fees when sending or receiving money.

Settings – Always check your app’s privacy and sharing settings.  They may have default settings that make information available to others that want kept private.

Kids – Many parents want to give their children access to P2P payment apps to make it easier for them to participate in various activities.  You probably don’t want to give them full access to your credit card or bank accounts, so take the trip to your local bank to see what options they might be able to offer, such as a prepaid debit card to link to your child’s app.  If they are part of one of the payment platform networks, they likely are well versed on the best ways to let your kids use them.  Of course, before anything, make sure your child’s device has security protocols enabled, and talk to them about potential security risks and how to avoid them.

 

Peer 2 Peer Payment Apps Give Consumers More Choice

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By Celeste Lohrenz

As it has been with nearly every industry, digital technology is changing the way people bank.  Online tools and mobile apps are making it easier for people to manage their finances, giving them modern options to replace traditional options.  P2P (Peer To Peer) payment apps, for instance, have become highly popular as a means of exchanging funds between individuals.

While check payments are still very popular – even with Millennials, new P2P payment users are nearly evenly split between those younger than and older than 45.

It’s really about having options.  If there one thing a digital economy has proven  it is that people want convenience.  They want to be able to transact using whatever methods are most convenient for them at the time.  That may mean going to a local bank office to understand the differences between home equity loans and HELOCs.  It may mean putting a check in the mail for a monthly car payment.  It may mean going to an ATM to take out cash for dinner.  It may mean putting a new TV on a store credit account because of a no-interest offer.  Increasingly, though, it also means using P2P apps to settle with friends, relatives, colleagues, or others.

For instance, Zelle – a mobile payment platform whose parent company is actually owned by seven major banks – delivered $49 billion through 196 million transactions in Q3 2019 alone, a year-over-year increase of 58% in transaction value and 73% in transaction volume. The Milford Bank is happy to now offer Zelle to our customers as a further option to your banking experience.

There are many reasons P2P payment apps such as Zelle are growing, but convenience is at the top of the list. Zelle offers a simple alternative to get money to other users quickly – if both parties are signed up with Zelle for instance, funds may be available within minutes.  Zelle is available on both Android and iOS platforms, making it easy to transfer money to split a dinner tab or utility bill, regardless of what mobile devices your friends use.

But, perhaps the biggest benefit Zelle offers is trust.  The biggest reason consumers avoid mobile payment apps is lack of trust.  In addition to being operated by a consortium of the biggest banks in the country, Zelle partners with other financial institutions so those banks can make Zelle transactions available through their own mobile apps and online resources – as opposed to having to use a third-party app.  Sending or requesting money is as simple as logging into The Milford Bank’s mobile app or online account and choosing the person to send funds to using your mobile contact list or entering their phone number or email address.

Along with The Milford Bank, more than 600 financial institutions have signed up to be part of the Zelle Network, with more than 250 already online and processing transactions.  In all, more users representing more than 5,500 banks have successfully completed Zelle transactions.

How Milford Bank Keeps Customer Deposits Secure

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By Jorge Santiago
Executive Vice President

Every day, millions of people make bank deposits without fear of fraud or identity theft. That’s because banks have worked hard to secure deposits wherever they are made—at an ATM, in a branch, or using a mobile device. The Milford Bank goes above and beyond to ensure that all deposits go through security and fraud detection processes in order to protect your deposits.

One of the most effective forms of security protection The Milford Bank provides is duplicate detection. Duplicate detection allows The Milford Bank to review deposits that have been flagged due to repetitive entries or fraudulent behavior. The system flags the transaction based on set criteria and prevents the deposit from being processed until corrected.

Similarly, unusual behaviors and amounts that have identical qualities to a previously deposited check will be caught during the duplicate detection process. This type of security detection is applied on multiple levels: deposit channel, banking management, and software systems. A strict reviewing process occurs when a deposit is made at a deposit channel.

After the deposit is made, management then verifies each transaction. The deposit is then sent through a fully hosted web portal that secures the deposit and stores the data for comparison against previous and future deposits. Deposit data is maintained for at least 90 days in cases of reconciliation. Therefore, fraudulent behaviors are minimized.

As a result of The Milford Bank’s multi-layer security process, deposits are thoroughly tracked from all deposit channels. This is part of The Milford Bank’s focus on prioritizing the security of its customers and their funds. Customers should rest assured knowing that The Milford Bank provides a highly secure banking experience for its customers.

Five Key Takeaways from the MEF Banking App Study

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By Matt Kelly

There are more smartphones in circulation today than ever before, so it should come as no surprise that mobile banking app usage is on the rise again too. In fact, 61 percent of people use their bank’s app on a daily basis, according to a Mobile Ecosystem Forum’s “Mobile Money Report”, released earlier this year.

The report, a consumer study spanning 6,000 individuals in nine countries, highlights the continued emergence of banking apps as a critical touch point between financial institutions and their customers.

Let’s take a deeper dive into some of the significant details of the report below:

Consumers place trust in their devices. In the MEF report, consumers were asked which processing method they trusted most when using a credit card. A quarter of respondents preferred mobile-optimized websites or simply storing credit card data within a mobile app. Only 17 percent felt better handing a card to a store’s employee, while only 6 percent felt safe reading details over the phone.

Mobile experience is as vital as branch experience. 28 percent of respondents to the MEF study said they preferred to do their banking at branches. However, app users are quickly gaining ground, with 26 percent preferring that option. Financial institutions must recognize the value of mobile experience, and those that create a seamless experience between apps and branches will likely gain a competitive foothold in the years to come.

Engagement is up, but visibility is down. With the introduction of mobile banking solutions, financial institutions are seeing more engagement with customers on a daily basis. 78 percent have made a mobile purchase over a six month time frame. 44 percent check their balances, while 29 percent pay bills with their smartphone. So while banks may not necessarily be seeing their customers every day, our devices are enabling us to make banking a more significant part of our day-to-day lives.

Privacy remains a top priority. 31 percent of MEF survey respondents claimed that they had abandoned purchases in the past because they were asked for too much personal information. With customer privacy a critical factor in cybersecurity conversations taking place within the financial industry, banks must work together with the retail industry to find ways to streamline purchasing processes while simultaneously shoring up consumer concerns at all points in the customer journey.

Apps aren’t the new plastic—yet. Only 18 percent of consumers have used their phones to pay for goods inside a brick-and-mortar store. The question is whether or not this figure is going to continue climbing or simply stagnate. But clearly, apps are now being developed to play an even larger role in your financial decision making. MEF suggests, though, that if such apps continue to expedite consumers’ financial transactions, it may become more popular.

At The Milford Bank, we’ve worked hard to provide our customers with as great an experience in our app as you’d have by stopping by one of our Milford or Stratford office locations. To learn more about how we’re keeping up in this ever-changing world to support you and your family, click here.

New Study Reveals Shifting Consumer Expectations for Financial Services Industry

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By Jorge Santiago

The proliferation of connected technology over the past decade or more has reached a point of near ubiquity, with smartphones, tablets and other Internet-enabled devices just about everywhere we look today. These devices, and the power to connect, has given rise to a drastic shift in consumer expectations and behavior, forcing all industries to rethink their strategy for engaging and retaining customers.

The financial services industry has been no different, based on the results of a recent Accenture Consulting study. The study of nearly 33,000 banking customers spanned 18 markets throughout the world and found that five key attributes were reported consistently.

So what were the five key attributes that consumers today expect from their bank? Let’s take a closer look below:

  1. Service expectations: The modern consumer expects a high level of customer service and is not afraid to look elsewhere if expectations are not met. According to the results of Accenture’s study, a majority of consumers want banks to match tech providers’ digitally-driven service level.
  2. Personalization: Consumers today are willing to share data with their bank, this study shows, but they view data as a currency and want something in return. Banks must add value with data by personalizing experiences, from offering tools for financial management or real-time offers based on location.
  3. Appetite for innovation: Over half of survey respondents said they would want to be able to receive instantaneous financial advice via mobile communications. This exemplifies the type of innovation consumers today demand, in which new ways of accessing banking products and services can make a tangible impact in their day to day lives.
  4. Seeking self-service: While consumers do expect a high degree of customer service from their financial institutions, a majority of customers still want the availability to resolve a majority of inquiries without any assistance. This even extends into services themselves: 61 percent of survey respondents said person-to-person payment tools would be useful, while half of respondents wanted tools providing direct access to digital currencies.
  5. New branch experience: While we’re certainly living in a Digital Age, consumers still have plenty of use for their local branch too. However, they do expect that experience to change. Two-thirds of consumers say it is important to have devices that allow them to access their online banking in the branch, and that it is important to have advanced ATMs at the branch.

At The Milford Bank, we’ve taken extensive steps to stay at the cutting-edge, eagerly bringing technological innovation into our branches to facilitate a greater degree of care for our customers without sacrificing the personalized, community bank experience that makes us unique. To learn more about all the ways The Milford Bank is stepping up to meet the changing needs of our customers in the Digital Age, click here.