
Was the mobile phone stolen? To scale back dangers, Nubank launches “avenue mode”
- BusinessEntertainmentFinanceNewsSportsTechnologyTravel
- October 15, 2022
- No Comment
- 313
Inspired by airplane mode, new app functionality limits operations when the customer is away from home
The technology that makes life easier for account holders by placing the bank on their cell phone screen is also making life easier for robbers. A wave of smartphone theft has put digital banks on the list of consumer complaints, between requests for chargebacks and requests to improve the security of the app – since you can’t count on street safety.
Nubank, which grew up offering an easy-to-use app for the customer, found itself at the top of this list and decided to use technology once again to try to get around the problem. David Vélez’s bank today announced a new feature: “street mode”.
With the new function — initially only available to some users — it will be possible to limit the amount for transfers and payments outside the home, a way to reduce consumer losses (and the constant complaints in Nubank’s service). In the first semester, the purple one became the champion of account invasion complaints on Reclame Aqui, with 299 complaints.
“Innovation is in Nubank’s DNA. Our challenge is to provide customers with peace of mind, avoiding and solving their pain, always staying one step ahead. In the face of current public safety issues, prevention is more important than ever,” said Cristina Junqueira, co-founder and CEO of Nubank in Brazil in the release note.
The tool limits the value of Pix, TED and Boleto payments. Soon, the ability to make loans and purchases on the card can also be turned off by users.
The security mechanism will be possible because the application recognizes which are the secure wireless internet networks: from the client’s home or work. When reconnecting, the platform automatically switches off “street mode”, a name borrowed from “airplane mode”.
In an emergency or unforeseen moment, however, it will be possible to dribble the device. For this, the user needs to do a facial recognition at the time of purchase or transaction. The biometrics system will not recognize photos or images from the gallery, preventing the tool from being circumvented if the device is stolen.
The device is a differentiator for the app that, in the opinion of Nubank co-founder and global CEO David Velez, still competes with large banks. The statement was made to analysts at Goldman Sachs a few days ago, in a study of the bank. At the meeting, the executive highlighted customer experience and technology as two great assets of neobanks and, in particular, of the company itself.
“Given its large customer base, Velez sees Nu’s main competition coming from incumbent banks. He believes that consumers will choose from two to four brands to partner with. Therefore, he sees solid user experience and high customer engagement as differentiating factors,” wrote analysts led by Tito Labarta.
Goldman maintained a buy recommendation for Nubank’s shares, with a target price of US$ 11 – an upside of 134.5% from the price of the paper before the publication of the report, last Friday.
The new “street mode” function adds to other security devices that have already been offered by the Nubank app, such as a scam warning, multifactor authentication, artificial intelligence help and predictive risk analysis, as the bank points out in a note.
Source: Value Pipeline