This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

U.S. Bank Makes Mobile Credit Card Play

But U.S. Bank hasn't yet rolled out Mitek's Mobile Account Opening product. The ability to open a new checking account using only a smartphone, using the camera to take an image of a driver's license, along with a check image for an initial deposit, would obviously appeal to the 18 to 34 year olds coveted by the bank.

Badarinath says the bank will "eventually" explore the possibility of incorporating Mobile Account Opening. "As we start to look at money management and servicing, the next step will be to look at customer acquisition," he says.

Both U.S. Bank and Mitek expect other large banks to adopt Mobile Photo Balance Transfer and Mobile Photo Billpay relatively quickly, although USB may be in the lead position as mobile innovator for a while.

"Clearly, the bigger banks tend to have longer sales cycles. A number of them are dealing with regulatory and compliance issues. It is very impressive how USB has been nimble and has been able to do what it has done, considering their scale and reach," says Carter.

What does this mean for investors?

U.S. Bancorp has for many years been among the strongest performing large banks in the United States. The company's mean return on average tangible common equity for the 10 year period through 2012 was 18.13%, according to Thomson Reuters Bank Insight. Among the top 10 bank holding companies in the nation, none of the others came close to that performance. USB's return on average tangible common equity for the first three quarters of 2013 was a very strong 18.1%, according to Thomson Reuters Bank Insight.

USB is mainly a commercial lender, but credit card loans are a coveted asset class, especially during a period of very low interest rates. The company reported average credit card loan balances of $16.9 billion for the third quarter, increasing 2% from a year earlier.

The mobile balance transfer option will provide the bank with quite a market advantage, at least for a while.

Please see TheStreet's earnings coverage for details on USB's latest financial results.

U.S. Bancorp's stock closed at $37.83 Friday, returning 19% this year. Despite the high double-digit return on average tangible common equity, USB's stock trades for a relatively low 11.8 times the consensus 2014 earnings estimate of $3.20 a share, among analysts polled by Thomson Reuters.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs