724 Solutions Inc (Nasdaq: SVNX) shot up 18 percent Tuesday after Bank of America said it would use the company's technology in its first wireless banking and brokerage offering in the United States.
Shares were up 6 5/16 to 44 3/4. Bank of America announced its strategic alliance with 724 Solutions last summer and has since been working with the company to develop the infrastructure to support wireless banking and brokerage.
The service will allow clients to conduct banking transactions over mobile phones and handheld computers. It will be delivered through wireless carriers, including AT&T Wireless Services, Sprint PCS and Verizon Wireless.
The initial implementation will serve clients in Dallas and Fort Worth, Texas; Baltimore; and Washington, D.C.
Bank of America plans to roll out its wireless service to customers and clients in other U.S. markets over the next 12 to 18 months.
Bank of America anticipates adding additional wireless services, including electronic bill payment and brokerage trading through Bank of America Investment Services, in future implementations.
724 Solutions, also announced the appointment of J. Robert S. Prichard to its board of directors Tuesday. Prichard, a professor of law and president emeritus of the University of Toronto, will help fulfill 724 Solutions' commitment to an independent board with a focus on corporate governance, the company said.