May be forced to offer plastic cards
Movenbank may be forced to offer customers plastic cards in order to comply with US regulations. The US-based start-up prides itself on being a mobile-only, branchless and cardless bank.
According to CEO Brett King, the company is working with MasterCard to issue customers with contactless stickers they can attach to mobile phones. The projected launch date is February 2013. Discussions are underway to determine whether this approach is in conflict with the Durbin Amendment to the Dodd-Frank Act of 2010 relating to cards and interchange fees.
Consequently, King concedes that Movenbank may be forced to offer a card option to customers in order to comply with US regulations. Yet he maintains the firm will remain ‘anti-card’ advising customer to maintain an ‘emergency only’ approach to using their cards. Although the introduction of plastic would increase business for Movenbank, it conflicts with the company ethos according to the CEO.
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