The U.S. House of Representatives passed a bill this week that would allow consumers to open bank accounts online, without having to visit a physical branch.
Currently, due to inconsistent state laws on swiping or copying state-issued identification cards, banks face challenges verifying online and mobile banking accounts.
The Making Online Banking Initiation Legal and Easy (MOBILE) Act (H.R. 1457) would allow financial institutions to use electronic copies of identification for purpose of identity verification. The bank would also be allowed to store the information electronically. It ensures measures that would ensure consumers are protected by the bank’s identity theft and financial fraud policies.
The Consumer Bankers Association (CBA) commended the passage of the bill, which was introduced by Reps. Scott Tipton (R-CO), Randy Hultgren (R-IL), Patrick McHenry (R-NC), David Scott (D-GA), Terri Sewell (D-AL), and Krysten Sinema (D-AZ).
“Consumer banks have the capabilities and willingness to help millions of consumers, including many unbanked or underbanked Americans, gain access to banking products and services,” CBA President and CEO Richard Hunt said. “We would like to thank Representatives Tipton, Hultgren, McHenry, Scott, Sewell, and Sinema for leading this important effort which will allow for greater consumer use of mobile and online banking methods. We hope the Senate will consider the MOBILE Act in a timely fashion.”