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Essential Banking News: Zelle Arrives, Openbank Goes Digital, and BofA Cuts Costs

By Jon Ogden on Jun 19, 2017 9:05:00 AM

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The Three Disconnects in Financial Services: An Interview with Craig McLaughlin of Extractable

By Jon Ogden on Jun 14, 2017 9:09:00 AM

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Essential Banking News: House Passes Financial Choice Act, Apple Releases P2P Payments, MX Partners with COCC

By Jon Ogden on Jun 12, 2017 12:17:42 PM

Get up to speed with banking news in less than 5 minutes.

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Essential Banking News: Durbin Amendment Stays, BBVA Opens APIs

By Jon Ogden on Jun 5, 2017 9:43:00 AM

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How the Four Biggest US Banks Generate Income and Revenue

By Jon Ogden on May 15, 2017 10:54:00 AM

October 2008: The global financial crisis led major banks to make acquisitions in an effort to shore up deposits and stave off systemic collapse. Wells Fargo aquired Wachovia; Bank of America acquired Merrill Lynch and Countrywide; J.P. Morgan acquired Bear Stearns and Washington Mutual. In addition, some floundering banks were sold off in pieces post-crash, creating a hodgepodge of disintegrated banking structures.

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Banking and the Devices of the Future

By Jon Ogden on May 4, 2017 2:36:40 PM

 

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How home buyers save $15,000 or more by digitizing the process: An interview with the CEO of Homie

By Jon Ogden on Apr 26, 2017 12:04:03 PM

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Three Megatrends in Banking Technology: A Discussion with Shara Evans

By Jon Ogden on Apr 12, 2017 4:58:52 PM

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Biggest US Banks Listed by Net Quarterly Income - 2017

By Jon Ogden on Apr 7, 2017 5:17:58 PM

We've found that it's often harder than it should be to find data on banks in the United States. Because of this, we've compiled simple views on data, such as this one on asset size.

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What 10 Thought Leaders in Fintech and Banking Have to Say About Becoming Data Driven

By Thomas Walter on Mar 30, 2017 10:12:24 AM

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The 5 Essential Components of a Brilliant Data Strategy

By Jon Ogden on Mar 24, 2017 2:47:58 PM

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Top 250 Credit Unions by Income (Interest Income and Non-interest Income)

By Jon Ogden on Mar 17, 2017 3:56:49 PM

We've found that gathering data on income on banks and credit unions is often more difficult than it should be. To make things easier, we've gathered data on both interest income and non-interest income from the National Credit Union Association (NCUA) and displayed it here. Feel free to use it in your research.

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Top 250 Banks by Deposits — 2017

By Jon Ogden on Mar 7, 2017 5:38:36 PM

We've found that it's harder than it should be to find a list of the top banks according to total deposits, so we've gone ahead and created one. The data is from FDIC as of March 2017. Feel free to use this as a resource in your research.

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CFPB RFI Around Consumer Access To Financial Records Draws The Battle Lines Between FIs And Aggregators

By Jeff Meredith on Mar 2, 2017 4:40:47 PM

On November 14 the Consumer Financial Protection Bureau (CFPB) announced an inquiry into the challenges consumers face in accessing, using and securely sharing their financial records. This came on the heels of CFPB director Richard Cordray telling a Money 20/20 audience in October that the agency believes consumers should be able to access their financial data and give permission for third party companies to access it as well. The bureau was acting in the wake of high profile cases where banks — including Wells Fargo, JPMorgan Chase and Bank of America — cut off access to third-party sites and apps like Mint. 

Topics: Regulation
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A Future Where The CFPB Is Ineffectual Or Ceases To Exist?

By Jeff Meredith on Feb 20, 2017 12:55:06 PM

Despite all the talk about shrinking government it is relatively rare that a federal agency is eliminated. In 1998 Congress dissolved the U.S. Information Agency, a public relations wing of the government that communicated to 150 nations at the height of the Cold War, with its responsibilities being absorbed by the Department of State. In 1996 Bill Clinton and Newt Gingrich had a rare moment of agreement as they eliminated the Interstate Commerce Commission, which had regulated everything from telephone companies to railroads for more than a century. But the last two decades have been dominated by many more instances where politicians talked a big game about slashing government — particularly plans to dismantle Cabinet-level agencies such as Education, Energy and Commerce — and ran into roadblocks.

Topics: CFPB
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Biggest US Banks by Asset Size 2017

By Jon Ogden on Feb 9, 2017 4:33:00 PM

We've found that it's harder than it should be to obtain a current list of the biggest banks by asset size, so we decided to put it here.

These numbers come from the FDIC in February 2017.

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Biggest US Credit Unions by Asset Size — 2017

By Jon Ogden on Feb 9, 2017 10:56:00 AM

We've found that it's harder than it should be to obtain a current list of the biggest banks by asset size, so we decided to put it here for easy access. No need to go digging through a database. Here it is. 

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Dodd-Frank, DOL Fiduciary Rule On The Chopping Block

By Jeff Meredith on Feb 3, 2017 5:27:40 PM

On Friday President Donald Trump signed an executive order calling for his administration to review the Dodd-Frank Wall Street Reform and Consumer Protection Act and issued a memorandum to delay — and potentially cancel — the Department of Labor’s Fiduciary Rule.

Topics: Regulation
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Citi: Chinese fintech investments are scorching hot

By Kenneth Dabkowski on Jan 26, 2017 11:03:15 AM

The Great Khaleesi Daenerys Stormborn Targaryen from Game of Thrones wasn’t the only one riding dragons to victory last year. So-called Chinese "fintech dragons" have breathed some financial fire of their own in 2016, capturing the top spot in the fintech investment space. The big question is whether winter is coming for US and EU fintech firms, or whether this is just a temporary shift in focus from venture capitalists.

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The decline of department stores is a sign of what's to come for laggard banks

By Jon Ogden on Jan 19, 2017 10:47:15 AM

Bloomberg.com just showed why traders are shorting department stores en masse, and the proof should concern banks that are still focused on branches. Put simply, department stores accounted for 9% of all retail sales in the early nineties but now account for less than 3%. At the same time non-store retailers (including Amazon.com) now account for over 10% of all retail sales.

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Three Macro Bank Tech Trends to Watch In 2017

By Kenneth Dabkowski on Jan 17, 2017 11:07:32 AM

The year 2016 was a banner year for bank technology lingo and acronyms.

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2017 Economic and Banking Trends That Will Give You an Edge

By Jon Ogden on Jan 10, 2017 11:34:57 AM

In many ways, 2017 is looking positive for financial institutions. Quarterly net income is trending upward, lending is up, the stock market is up, unemployment is down, interest rates have started to rise, etc.

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The Biggest Challenge Facing Banks in 2017 and a Checklist to Overcome It

By Jon Ogden on Jan 9, 2017 11:53:00 AM

The Biggest Challenge Facing Banks in 2017

When Moorad Choudhry, author of The Principles of Banking, was asked what’s the biggest challenge facing banks right now, he said that it’s “to stay engaged with the customer.”

Topics: Design fintech
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Treasury Nominee Could Have Far-Reaching Effects

By Jeff Meredith on Dec 7, 2016 12:03:00 PM

Treasury Secretary nominee Steve Mnuchin, a former head of Goldman Sachs’ mortgage-backed securities desk, banker, hedge fund manager and film financier, was no doubt a strange choice for a candidate who bashed Wall Street on the campaign trail and warned that Goldman Sachs controlled rivals Ted Cruz and Hillary Clinton. He also represents a sea change for a federal government that has regulated banks more stringently in the wake of the financial crisis and focused on limiting corporate tax avoidance over trimming rates.

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4 Fintech Trends to Watch in 2017

By Kenneth Dabkowski on Dec 5, 2016 12:09:11 PM

From Brexit in the UK to Trump’s election in the US, this year has been a wild ride for global capital, financial markets, and political institutions. As we look forward to 2017, let’s take a moment to step back and assess the impact of these changes on the financial technology marketplace. One thing 2016 taught us? Forces of convergence and divergence continue to push and pull at our interconnected world, generating new opportunities and risks for the fintech sector. Here’s what to watch in 2017:

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Navy Federal Named Best Overall Online Banking Leader By Javelin; BBVA Compass, Citibank, SunTrust and USAA Garner Financial Management Praise

By Jeff Meredith on Dec 1, 2016 3:06:01 PM

Navy Federal, USAA, Bank of America, Citibank, BBVA Compass, Bank of the West, BMO Harris, SunTrust and PNC lead the pack in the inaugural edition of Javelin’s Online Banking Scorecard, a competitive analysis of the nation’s top 30 retail banks and credit unions. Navy Federal Credit Union earned the 2016 Best Overall Online Banking Leader award while being awarded 67% of the total points possible. Javelin's scorecard assesses more than 200 features offered by FIs across the categories of Financial Management, Money Movement and Customer-First Banking, the latter encompassing personalized guidance from product selection to financial well-being.

Topics: Technology
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CFPB Launches Inquiry Into Challenges Consumers Face In Sharing Access To Their Digital Financial Records

By Jeff Meredith on Nov 18, 2016 12:57:46 PM

If financial institutions make it difficult for consumers to share access to their digital financial records, they’ll be blocking a new generation of consumer-friendly products and services, warned Consumer Financial Protection Bureau director Richard Cordray at a field hearing in Salt Lake City yesterday.

Topics: fintech
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How the Trump Election Changes Banking

By Kenneth Dabkowski on Nov 15, 2016 4:36:50 PM

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Banking APIs Resources and Blockchain: Getting Into the Weeds

By Kenneth Dabkowski on Nov 11, 2016 10:19:17 AM

Every week, financial services companies are launching new and improved APIs (Application Program Interfaces). Some APIs are aggressively targeting service lines or sector market share and others are targeting customers by addressing needs with greater efficiency. Financial firms have been late to the game, but most now realize that business sectors and revenue centers could be disrupted if they do not launch progressive API and Banking as a Platform (BaaP) initiatives.

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Essential Fintech Reading: Oct 28-Nov 4

By Jon Ogden on Nov 4, 2016 3:59:50 PM

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4 Steps to Attracting Top API Development Talent

By Kenneth Dabkowski on Nov 2, 2016 10:44:10 AM

Are you a financial firm looking to offer solid APIs (Application Program Interfaces)? If you are a little late to the party, not to worry…this article will explain the basics of what you need to get started.

Topics: api
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Money20/20, Blockchain, Brett King, CFPB — Essential Fintech Reading: Oct 22-28

By Jon Ogden on Oct 28, 2016 3:14:41 PM

The CFPB Sides With Consumers on Data Aggregation

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US Banks Must Follow Europe's Lead and Improve API Standards

By Kenneth Dabkowski on Oct 26, 2016 11:10:26 AM

With the threat of a hard Brexit looming on the horizon, the European banking system is at a tipping point. For the casual American observer, the politics of closed border, closed systems and closed economies appear to have won.

But there’s more going on in European banking than meets the eye.

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Wells Fargo Considers New Performance Metrics, Venmo Grows Rapidly: Essential Fintech Reading Oct 15-21

By Jeff Meredith on Oct 21, 2016 4:58:08 PM

The Hardest Job In Banking? 

Emily Glazer of the Wall Street Journal writes that Mary Mack, the head of retail banking at Wells Fargo & Co., must change the sales culture of the firm. In the wake of a settlement with regulators Wells Fargo scrapped sales goals for retail bank employees but the bank has not abandoned cross-selling, efforts to sell multiple product to individual households.

Topics: fintech
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Balancing API Speed to Market with Data Security

By Jon Ogden on Oct 18, 2016 1:41:59 PM

Is your company working to develop or select a strong API (Application Program Interface) environment? If the answer is no, hustle quickly to remedy that problem. Over the past few weeks, MoneySummit has covered some of the benefits of re-orienting bank APIs towards Bank to Developer (B2D) and Banking as a Platform (BaaP) models. This week’s API focus: How can your company balance API speed to market with data security considerations?

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Fintech5 Podcast, Advanced AI, and Paribus — Essential Fintech Reading: October 8-14

By Jon Ogden on Oct 14, 2016 4:31:51 PM

Fintech5 by Sam Maule

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API Hub – A Vision for Banking as a Platform (BaaP)

By Kenneth Dabkowski on Oct 12, 2016 11:05:28 AM

For decades, banks have been located at the center of communities. Go to any town or city and most likely you will find a common space with a religious building, a government building, and a bank smack dab in the middle. The advent of the (Internet-connected) smartphone changed this organization and shifted the hub of community activities to wherever anyone happened to be online. Most banks responded to this shift by offering traditional products and services online, hoping that their offerings would generate revenue and preserve relevance as a central institution. However, as online competition grew, service fees and revenues eroded leaving banks in a difficult position on the periphery.

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Don't Reinvent the API: The Rise of B2D Banking

By Kenneth Dabkowski on Oct 10, 2016 10:18:29 AM

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Third Wave of Fintech, VCs, Mobile Banking — Essential Fintech Reading: Oct 1 - 7

By Jon Ogden on Oct 7, 2016 4:42:13 PM

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How To Make Solid ROI With Your API

By Kenneth Dabkowski on Oct 3, 2016 10:23:10 AM

In recent weeks, the banking chickens have come home to roost. The leaders of two of the world’s largest banks, Wells Fargo and Deutsche Bank, are staring deeply into the abyss – probably wondering how things got so far off course. The answers seem pretty clear. A lack of transparency, poor management, and complex fraud caused customer revolt, regulatory penalties, and massive stock devaluations.

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Wells Fargo Scandal Invites Greater Scrutiny Of Big Banks: Essential Fintech Reading Sept 24-30

By Jeff Meredith on Sep 30, 2016 4:56:45 PM

Wells Fargo Scandal Means Renewed Scrutiny Of Big Banks

Lucinda Shen of Fortune writes that the Wells Fargo scandal "could again force regulators to take a deeper look at bank culture. Banks have been increasingly pressured to widen profit margins despite low interest rates and heavier regulation since the financial crisis ... Advocacy groups have also noted aggressive sales tactics, similar to those that led Wells employees to create fake accounts" at other financial institutions.

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Why Fintech Companies Must Collaborate via APIs

By Jon Ogden on Sep 29, 2016 1:31:37 PM

Topics: fintech
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Same-Day ACH, Bad Data Costs, EY Report — Essential Fintech Reading: Sept 17-23

By Jon Ogden on Sep 23, 2016 4:00:54 PM

Topics: fintech
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Mobile Deposit Key To Customer Satisfaction, Wells Fargo Enters Damage Control Mode: Essential Fintech Reading Sept 10-16

By Jeff Meredith on Sep 16, 2016 5:07:32 PM

Wells Fargo Attempts To Repair Image, Regulator Highlights Risks Of Cross-Selling

The LA Times reports that Wells Fargo will eliminate all sales goals for credit cards, checking accounts and other retail banking products as the bank tries to repair its image. The U.S. Comptroller of the Currency, Thomas Curry, said on Thursday that other banks should review what risks arise from efforts to cross-sell to existing customers. Curry's office was among the regulators with whom Wells Fargo reached a $190 million settlement last week, following claims that it had created two million accounts that customers did not want.

Topics: fintech
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How To Improve Bank Cross-Selling *Without Making Up Fake Customer Accounts

By Kenneth Dabkowski on Sep 16, 2016 9:30:17 AM

In case you missed it, last week there was a bit of a dust up at Wells Fargo. While investigations are still ongoing, current reports allege that Wells Fargo employees illegally used current customer data to open upwards of 1.5 million fake or unauthorized accounts. Thus far, Wells Fargo has agreed to a $100 million fine and $85 million in penalties and restitutions – and the company’s stock and brand has been significantly devalued. Richard Cordray, Director of the Consumer Financial Protection Bureau, says the Wells Fargo investigation puts “the entire banking industry on notice.

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How to Use Data to Acquire New Account Holders

By Kenneth Dabkowski on Sep 12, 2016 9:39:59 AM

Retail banking is at an impasse. Fintech startups are poaching bank service channels left and right, providing strong competition for new and current customers.

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Finovate, Wells Fargo, Proactive Banking — Essential Fintech Reading: Sept 3-9

By Jon Ogden on Sep 9, 2016 11:28:49 AM

This week we've been celebrating Finovate (aka known as "the Disneyland of Fintech") in New York City. You can follow our live-blogging of the event here and here to catch up on what was presented.

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Live Blogging Finovate Fall: Day Two (Sept 9)

By Jeff Meredith on Sep 9, 2016 7:26:31 AM

It's Finovate Fall's 10th anniversary and MX is proud to cover the festivities from New York. Throughout the event we'll be profiling fascinating fintech companies and their technology advances.

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Live Blogging Finovate Fall: Day One (Sept 8)

By Jeff Meredith on Sep 8, 2016 9:10:02 AM

It's Finovate Fall's 10th anniversary and MX is proud to cover the festivities from New York. Throughout the event we'll be profiling fascinating fintech companies and their technology advances. 

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How to Merge Traditional Marketing with Digital Marketing: Interview with Katelin Cweika of Avidia Bank

By Jon Ogden on Sep 7, 2016 9:00:00 AM

Topics: Interview
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Zelle, Visa's Payments Ring, Pay via Siri — Essential Fintech Reading: Aug 27 - Sept 2

By Jon Ogden on Sep 2, 2016 5:12:09 PM

Who will Win the Battle for Millennials - Zelle or Venmo?

Neil O'Brien, SVP Director Digital Banking at Santander, analyzes whether Zelle offers enough advantages to persuade millennials to leave Venmo behind. His analysis is consistently astute, and I agree with his conclusions — which are that it's going to be a difficult win. 

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Rate Hike Looms & Banks Ponder Charging For Mobile Apps: Essential Fintech Reading Aug 20-26

By Jeff Meredith on Aug 26, 2016 5:40:10 PM

Could Your Bank Charge For Its Mobile App?

According to an S&P Global Market Intelligence Survey of 4,000 U.S. bank app users, 21% would pay as much as $3 a month for their banking app and 40% would be willing to pay $1 a month. Telis Demos of the Wall Street Journal reports that banks could generate as much as $500 million more in revenue, with the bulk going to Bank of America, Wells Fargo and J.P. Morgan Chase. 26% of Bank of America's users indicated they would be willing to pay $3 a month. Demos writes that banks may still hesitate because younger consumers often cite fees as a reason they switch banks.

Topics: fintech
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Opti-Channel and the Future of Banking: Interview with Susan Wolfe of Mintel

By Jon Ogden on Aug 25, 2016 11:18:40 AM

Topics: fintech
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Why Banks Should Use APIs from Fintech Partners

By Kenneth Dabkowski on Aug 22, 2016 10:00:59 AM

Have you ever tried to build a Tesla automobile using parts from a 1974 Datsun?

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Mobile Banking Trends, Millennial Debt, Wall Street Revolution: Essential Fintech Reading: Aug 13-19

By Jon Ogden on Aug 19, 2016 5:28:39 PM

This week we look at the latest mobile banking numbers from the Federal Reserve, the latest trends from millennials and debt, and changes on Wall Street.

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Build the Banking Experience You Would Want For Yourself

By Jon Ogden on Aug 18, 2016 9:10:55 AM

In an interview with MoneySummit, CarrieAnne Cormier of Avidia Bank told us about a negative experience she once had while banking.

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3 Ways Retail Bank Customer Service Is Changing (and How To Keep Up)

By Kenneth Dabkowski on Aug 15, 2016 7:00:00 AM

In 2014, TD Bank produced a commercial showing off its new concept ATM, also known as an “Automated Thanking Machine.” In the commercial, the ATM technology understands everything about particular customers and offers the customers “thank you” gifts based on their needs and life situations. While large U.S. banks have improved customer service over the last year, TD Bank’s customer service technology concept is not particularly scalable or cost effective industry wide. That being said, this commercial does highlight an important point. Customer service, whether in-person or digital, can be enhanced by developing empathy with customers.

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Machine Learning And Blockchain Key To Banks' Future: Essential Fintech Reading Aug 6-12

By Jeff Meredith on Aug 12, 2016 6:16:27 PM

Blockchain And Machine Learning Key To Banks' Future

Writing for American Banker, Paul Schaus makes the case that banks must tap the power of blockchain technology and machine learning or "risk losing millennials to fintech companies that aren't bogged down with old technology."
Topics: fintech
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Why Are Banks Beating Credit Unions In Mobile Banking Utilization?

By Jeff Meredith on Aug 11, 2016 8:34:23 PM

Banks are beating credit unions in mobile banking utilization and it’s not even close. As a group, banks with a mobile app boast 27% enrollment whereas credit unions stand at 12.6% enrollment. In an age where mobile banking has a huge impact on overall customer satisfaction and plays a vital role in capturing the millennial and emerging affluent segments, the quality of one’s mobile offering is crucial. Moreover, increased mobile banking usage drives improved financial performance for FIs. A successful mobile banking app drives customers to a lower cost channel; Chase cites a cost of 65 cents for each teller deposit vs only 3 cents using mobile. As big bank customers have flocked to the mobile channel and become less dependent on in-person interactions, that has allowed these institutions to eliminate branches and reduce cost structure.

Topics: Technology
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Banks Should Focus on Feeling and Fintech Partnerships: An Interview with Joe Sullivan

By Jon Ogden on Aug 9, 2016 5:31:37 PM

We interviewed Joe Sullivan, CEO of MarketInsights. Sullivan outlines what has changed in financial services marketing as well as examples of how to best navigate the change. Ultimately, he says, banks and credit unions must think about how consumers feel in order to win their business loyalty.

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The Underbanked, Millennials, and Mobile Payments: Essential Fintech Reading Aug 1 - 5

By Jon Ogden on Aug 5, 2016 9:00:00 AM

 
 
In their must-read 48-page white paper, PwC writes about the need to appeal to the unbanked and the underbanked. They say it's an opportunity that could bring $360 billion in "unmet banking deposit demand" globally, with the biggest opportunities in the Middle East, Africa, and South Asia.
 
The white paper also looks extensively at how to appeal to millennials, a demographic that is more interested in saving up for travel than saving up for retirement. Millennials are also digital natives, which makes them far more comfortable with  and more vocal in their demand for solid mobile solutions.
 
In their white paper, PwC includes a list of challenges financial institutions must overcome to reach millennials:
 
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Bankers Now Need to Learn a Variety of Roles: An Interview with Sam Kilmer

By Jon Ogden on Aug 4, 2016 3:33:25 PM

We talked with Sam Kilmer, Senior Director at Cornerstone Advisors, about how banks and credit unions need to adapt for the age of digital technology. Kilmer talks through the need for bankers to learn a variety of roles and focus on their skills with technology. 

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Essential Fintech Reading: July 23-29

By Jeff Meredith on Aug 2, 2016 9:54:23 AM

Mobile Banking Investments Drive Customer Satisfaction Improvement

The mobile banking investments of the big banks — Bank of America, Chase, Wells Fargo, Citibank — are creating a huge uptick in their customer satisfaction scores, reports Jim Marous of the Financial Brand“The large banks’ satisfaction scores increased by more than 50 points between 2012 and 2016, and are now slightly higher than the scores for both regional and mid-sized banks. Why? Increased investment in digital delivery by the largest banks has to be one important reason," Ron Shevlin, director of research at Cornerstone Advisors, tells Marous.

Topics: fintech
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How Credit Unions Can Improve Their Marketing Efforts Through Advocacy

By Jon Ogden on Jul 28, 2016 1:30:00 PM

We interviewed Mark Thompson, VP of Growth and Brand at Mazuma Credit Union, about how credit union marketing can be positively impacted by community and member advocacy, and the importance of creating a strategy to reach the millennial audience. 

Topics: Marketing
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Mobile Banking Technology Breakthroughs Help to Build Trust and Enhance Security

By Kenneth Dabkowski on Jul 28, 2016 8:57:22 AM

Last year in the U.S., over 500 million financial records were hacked and over half of the U.S. adult population had their data stolen. "We're in a day when a person can commit about 15,000 bank robberies sitting in their basement," said Robert Anderson, executive assistant director of the FBI's Criminal Cyber Response and Services Branch. Data breaches are occurring at banks, on the web, in consumer brand databases, and deep within government databases. As the barrage of attacks on consumers continues to grow, banks are stepping in and improving their security measures. But, will these measures provide enough security to keep customers safe and happy?

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Bankers Need to Adapt Because the Primary Point of Interaction Has Changed: An Interview w/ Ron Shevlin

By Jon Ogden on Jul 25, 2016 11:54:25 AM

 

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Essential Fintech Reading: July 16-22

By Jeff Meredith on Jul 22, 2016 5:51:53 PM

Bank of America Mobile App Redesign Brings Enhanced Functionality

Deon Roberts of the Charlotte Observer reports that Bank of America has redesigned its mobile app, providing a Spanish language option, allowing customers to redeem credit card rewards and view their credit scores. “We want to be where our customers are, which is why we are proud to deliver these new features that provide increased convenience to our 20 million active mobile users,” said Michelle Moore, head of digital banking. Bank of America said its number of active mobile banking users grew 15 percent in the last year. Mobile transactions cost the bank one-tenth of what it would cost to conduct them in a branch.

Topics: fintech
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Banks Must Change Their Revenue Model to Survive: A Focused Look at Consumers and Data

By Kenneth Dabkowski on Jul 21, 2016 11:06:11 AM

In a recent retail banking review, Accenture defines three bank business models that together could double bank revenue growth while “reducing cost to serve by 20 percent or more”:        

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Ways to Build a Great Bank Brand: Interview with Glenn Van Deusen

By Jon Ogden on Jul 20, 2016 3:42:34 PM

Glenn Van Deusen is a co-founder at Van Deusen and Levitt Associates, a corporate branding firm. In this interview we talk about how banks and credit unions are increasingly aware of the need for branding, the importance of asking "why?", and the importance of quantitative research.

Topics: Interview
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Essential Fintech Reading: July 9-15

By Jon Ogden on Jul 15, 2016 11:28:10 AM

Topics: fintech
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Tell Account Holders What You Can Give Them, Not What They Can Give You: An Interview with Cyprus CU

By Jon Ogden on Jul 14, 2016 3:59:44 PM


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Bank Progress Proceeds One Retirement at a Time: An Interview with Dan Latimore

By Jon Ogden on Jul 11, 2016 2:29:33 PM

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Essential Fintech Reading: July 2-8

By Jeff Meredith on Jul 8, 2016 5:00:46 PM

Mobile Banking Capability Lures Small Businesses To Mega-Banks

The demand for mobile banking solutions is rising among small businesses according to new data released by Raddon Financial Group. 52 percent of SMEs surveyed by Raddon indicated that they rely on mobile banking platforms to manage and access their accounts, a number that rises to 68 percent among millennial SME owners.

Topics: fintech
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Financial Institutions Must Evolve for the Sake of the Consumer: An Interview with James Robert Lay

By Jon Ogden on Jul 7, 2016 3:40:59 PM

We talked with James Robert Lay, CEO of CU Grow, about the state of marketing in financial services and the importance of exceeding consumer demand for digital solutions.

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Don't Forget the Fundamentals in the Pursuit of the Latest Financial Technology

By Jon Ogden on Jul 6, 2016 10:20:52 AM

 

We talked to Tom Fishburne, Founder and CEO at Marketoonist, about the state of marketing in financial services, what bank marketers should be focused on, and how to focus on micro-moments. "I feel like sometimes there's a bit of a herd mentality that people get so excited about the shiny new thing that they can sometimes forget about the fundamentals, what's really meaningful to audiences," Fishburne says.

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Essential Fintech Reading: June 25 - July 1

By Jon Ogden on Jul 1, 2016 3:05:44 PM

More U.S. Adults Who Break Up With Banks Go Online-Only or to Nonbanks
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How One Fintech Firm Makes Debt Repayment and Savings Stick: An Interview with the CEO of SaveUp

By Kenneth Dabkowski on Jun 30, 2016 10:20:01 AM

“Make fun of debt.” – Paul J. Burt, Chairman/CEO of SaveUp

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What Banks Should Do to Increase Empathy: A Conversation with Ethology

By Jon Ogden on Jun 30, 2016 6:00:00 AM



 

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Banks Should Be Experience Providers, and Blockchain Can Help

By Jon Ogden on Jun 29, 2016 9:13:50 AM

This week we interviewed Gregory Simon, co-founder at Loyyal. Loyyal is a startup company that uses blockchain and smart contract technology to create solutions for the loyalty rewards industry. Simon says that as technology continues to change, financial institutions need to think of themselves as experience providers.

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Mobile Banking Is About the Experience, Not the Device

By Jon Ogden on Jun 28, 2016 10:49:57 AM

Topics: Interview
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Essential Fintech Reading: June 18-24 [Brexit, Retirement, & Supply Chains]

By Jon Ogden on Jun 24, 2016 12:59:46 PM

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Projected $53.4 Billion US Retirement Shortfall Shows the Need for Smarter Money Management

By Kenneth Dabkowski on Jun 23, 2016 1:39:56 PM

The future of retirement is changing rapidly.

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Interviews With Fintech Thought Leaders

By Jon Ogden on Jun 23, 2016 12:49:51 PM

 

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How to Get Account Holders to Willingly Pay Fees

By Jon Ogden on Jun 22, 2016 11:56:59 AM

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Teaching Students to Be Financially Fit: A Look at PwC’s Earn Your Future Program

By Jon Ogden on Jun 20, 2016 6:00:00 AM

Mitch Roschelle, Partner and Business Development Leader at PricewaterhouseCoopers (PwC), has spent a lot of time in New York schools. He’s part of PwC’s Earn Your Future initiative, which sends financial educators into schools to train students on best money management practices.

Topics: Interview
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Essential Fintech Reading: June 11-17

By Jeff Meredith on Jun 17, 2016 5:41:17 PM

Digital Revolution Drives More Job Cuts At Bank Of America

Topics: fintech
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BankMobile Aims to Acquire 10x More Customers a Day Than a Traditional Bank

By Jon Ogden on Jun 16, 2016 2:51:40 PM

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The Future of Financial Education – 6 Apps That Build Saving and Investing Fundamentals

By Kenneth Dabkowski on Jun 15, 2016 4:06:13 PM

Not all debt is created equal but we can all agree that Americans have a lot of it.

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Why Banks Need a Digital Transformation

By Jon Ogden on Jun 14, 2016 5:37:20 PM

 

Topics: Interview
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How Fintech Enhances Credit Advisory Services

By Jon Ogden on Jun 13, 2016 11:58:18 AM

This week we talked to Jeff Mandel, CEO and President of ApprovalGUARD & iQual Corporation, a national credit advisory service in the United States. ApprovalGUARD helps consumers understand what their credit information means and what to do about it. For example, if a consumer has a credit-related goal — wanting to buy a mortgage, get a car, open a credit card, build credit, rebuild credit, etc. — ApprovalGUARD provides them with information and education via their their advisors who have an average of 18 years of industry experience.

Topics: Interview
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Essential Fintech Reading: June 3-10

By Jon Ogden on Jun 10, 2016 3:25:38 PM

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A Joyous Romp Through the Future: Review of Brett King’s Augmented

By Jon Ogden on Jun 9, 2016 3:05:03 PM

The first thing to note about Brett King’s book Augmented is that it’s a joy to read. You can flip to any page and find a fascinating trend, data point, or anecdote about the future of technology. What’s more, King’s tone is consistently one of exuberance and wonder. You can’t help but feel his optimism shine through on each page.

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The Future of Retail Banking: How to Save Retail Banking From Itself

By Kenneth Dabkowski on Jun 9, 2016 9:48:19 AM

A bank with a two-week wait list to join? No, that’s not a typo. After Simple, a fee-free Internet only replacement bank launched in 2013, so many customers inundated the fintech startup with requests to join that Simple had to institute a two-week wait list.

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Essential Fintech Reading: May 28-June 3

By Jeff Meredith on Jun 3, 2016 2:46:43 PM

Mobile Cross-Selling And Contextual Money Management Capabilities Underdeveloped At Largest Banks

Forrester’s US Mobile Banking Functionality Benchmark, evaluating offerings from the five largest retail banks, reveals that mobile cross selling is underutilized. “Too few banks use the context of a customer’s current product portfolio, recent life events, physical locations, past behavior or other factors to offer personalized marketing in their mobile apps,” writes Forrester. The report also reveals that contextual money management tools are largely lacking at the five largest retail banks. Wells Fargo is a notable exception, with the bank providing money management graphics within its mobile app. In analyzing Forrester’s research, Jim Marous also notes that “one of the biggest opportunities (and shortfalls) at the vast majority of financial institutions is not having the ability to open a new account entirely on a mobile device. A notable leader with mobile account opening noted by Forrester is Bank of America, where a customer can apply for multiple accounts directly from their mobile app.”

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The Future of Credit Scoring: Hopeful or Not?

By Kenneth Dabkowski on Jun 1, 2016 4:56:11 PM

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Essential Fintech Reading: May 21-27

By Jon Ogden on May 27, 2016 5:20:05 PM

This week we hear from Fortune, American Banker, Recode, and more.

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Speaker Highlights from Financial Brand Forum 2016

By Jon Ogden on May 23, 2016 11:31:58 AM

The annual Financial Brand Forum was an enormous success — full of great speakers and networking opportunities.

Topics: Marketing
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Essential Fintech Reading: May 14-20

By Jeff Meredith on May 20, 2016 6:17:38 PM

HSBC Trims Branch Network In India

HSBC is halving its branch count in India to 26, focusing its attention on digital banking. “This change reflects changes in customer behaviour, who are increasingly using digital channels for their banking,” HSBC said in a statement. Rethish Varma, head of research at Aditya Trading Solutions, told Bloomberg that “this move suits HSBC as their target retail customers are mostly in urban centers and are affluent with access to digital-banking channels.” Among HSBC’s competitors in India, Singapore’s DBS Group Holdings Ltd. has also pursued a digital strategy.
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The Future of Wearable Point-of-Sale (POS) Technology

By Kenneth Dabkowski on May 18, 2016 4:27:36 PM

Banking technology is undergoing a period of rapid innovation. The financial technology industry (fintech) is developing a suite of technologies to improve every feature of the financial services industry. Large banks, insurance companies, and other financial services intermediaries are being pushed daily to innovate or lose market share. These innovations are expected to incrementally improve security, speed, access, and customer experience, but what hidden convergences will become massive breakthroughs? While we can never be certain of the future, in this six-part series, we will examine the future of banking through six distinct lenses…starting with the convergence of wearable technology and point-of-sale.

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Essential Fintech Reading: May 7-13

By Jeff Meredith on May 13, 2016 4:31:22 PM

LendingClub CEO Ousted, Loan Buyers Flee

LendingClub CEO Renaud Laplanche was fired after the peer-to-peer lending firm acknowledged it had sold $22 million worth of loans that did not meet a buyer's criteria. While LendingClub quickly bought the loans back from the buyer, investment bank Jefferies, the news triggered a chain reaction.

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Checks, Balances, and Bitcoin: The Genius of the Blockchain

By Kenneth Dabkowski on May 11, 2016 9:14:08 AM

"The Founding Fathers didn't set up a government based on trust. They could have designed a government based on trust in our ability to govern fairly but they knew that power corrupts so they invented checks and balances. That was genius.” – Senator Arnold Vinick, The West Wing 

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Why behavioral data is critical in assessing consumer credit: An interview with Zaydoon Munir

By Jon Ogden on May 10, 2016 3:27:35 PM


This week we talked to Zaydoon Munir, the founder & CEO of RevolutionCredit, a company that uses behavioral data to help consumers and financial companies interact with each other more effectively.

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Essential Fintech Reading: May 1-6

By Jon Ogden on May 6, 2016 12:58:05 PM

From 60 Minutes coverage to a weird story about the founder of Bitcoin, this week opened with some big fintech news.

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What makes for an effective bank + fintech partnership: Interview with Radius Bank

By Jon Ogden on May 5, 2016 11:41:14 AM

This week we talked to Chris Tremont, EVP of Virtual Banking at Radius Bank. Chris talked to us about what it’s like to be part of a relatively young bank, how digital has changed banking forever, and what makes for a good fintech partnership.

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Can Personal Finance Tools Reinvigorate Online Banking?

By Jeff Meredith on May 4, 2016 6:46:03 PM

The rapid proliferation of mobile banking raises the question of where online banking will fit in the future. As mobile becomes the preferred channel for basic transactions, Javelin predicts that online banking will have to deliver a richer experience defined by insight, coaching and advice, trust building interactions that will drive consumers to their primary FI for loans, wealth management and other services.

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Hype or Hope? Will Blockchain Based "Smart Contracts" Save Society?

By Kenneth Dabkowski on May 2, 2016 11:30:00 AM

The world is gathering in New York City this week to “make blockchain real.” Over the last few weeks, we have provided an introduction to blockchain technology and a background on the current state of blockchain based cryptocurrency technology. This week, we examine blockchain based “smart contracts” to determine if the buzz around this technology is hype or the “killer app” that the Internet was invented for.

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Essential Fintech Reading: April 23-29

By Jeff Meredith on Apr 29, 2016 3:30:00 PM

Personal Capital Rejects Chase Proposal That Would Limit Aggregators

JPMorgan Chase CEO Jamie Dimon has expressed concern as customers have allowed outside parties, including aggregators, to access their accounts. While he sympathizes with Dimon's concerns over data security, Personal Capital chief marketing officer Mark Goines tells Samantha Sharf of Forbes that not using all available data "borders on malpractice because it means not analyzing a person's full financial picture." Dimon has proposed switching to a system where banks would "push select information to third parties with customer permission, rather than the current set up where third parties pull data from banks as they see fit." Goines rejects this proposal as well. Sharf notes that Chase and Wells Fargo shut off Mint and other aggregators' access to data feeds for a few days last fall. Both banks told the Wall Street Journal that the blackouts were a result of security and traffic management decisions "rather than attempts to be anti-competitive."

Topics: Marketing
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Banks have a multiline advantage over competing fintech startups: Interview with Andy Harmening

By Jon Ogden on Apr 25, 2016 7:30:00 AM

We sat down to talk with Andy Harmening, Vice Chairman of the Consumer Banking Division at Bank of the West. Harmening details how improvements in digital technology have changed the industry and how banks and fintech providers can work together to move the industry forward.

Topics: Interview
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How Fintech Is Revolutionizing Small Business Lending: An Interview with the CEO of Lendio

By Jon Ogden on Apr 23, 2016 4:04:00 PM

We talked to Brock Blake, founder and CEO of Lendio and a contributor at Forbes.com, about the state of small business lending and financial technology in general. 

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Announcing the MoneySummit podcast

By Jon Ogden on Apr 23, 2016 10:48:00 AM

We've built a growing collection of interviews at MoneySummit with the biggest names in fintech and banking.

Since we've always recorded the audio for the interviews, we've decided to also release a podcast in conjunction with the interview series.

Topics: Design Interview
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CEO of Credit Karma on How Fintech Democratizes Data

By Jon Ogden on Apr 22, 2016 4:13:39 PM

"“The cost of access has gone down while the accuracy has gone up.”"

— Kenneth Lin, Credit Karma CEO

Kenneth Lin, CEO of Credit Karma, talked to us about how the rise of fintech has given consumers more access to their data than ever before. By walking through how Credit Karma increases transparency for end users, Lin shows that the financial industry is about to change in big ways. He also explains how banks and fintech companies can get on board.

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Forrester's Predictions For The Future Of Digital Banking

By Jeff Meredith on Apr 22, 2016 4:08:47 PM

Banks may not die off and go the way of Blockbuster but they face the dual threats of disintermediation and commoditization and will have to innovate digitally in order to remain relevant. In a January 14 webinar Forrester Research analyst Peter Wannemacher shared a series of predictions for 2016 and beyond, keying on the strategies that digital executives will have to employ in order to better win, serve and retain customers.

Topics: Design
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5 Ways Banks and Credit Unions Can Do More With Their Video Budget

By Jon Ogden on Apr 22, 2016 4:06:52 PM

Hiring a videographer might be a new concept for many banks and credit unions, especially for those institutions that have a marketing team of one or two people. However, since video is becoming a mainstay in the digital age, having an in-house team makes more sense now than ever before.

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5 Design Tips Every Bank Should Use to Outsmart the Competition

By Jon Ogden on Apr 22, 2016 4:05:37 PM

If you were to ask professional designers for a list of industries that are setting trends in design, chances are that none of them would include the banking industry. That’s in part because bankers haven’t felt pressure to set design trends. They’ve been satisfied with building traditional bank branches and releasing functional (if not always user-friendly) apps and websites. In the past, this was okay since all of their competitors did the same thing.

Topics: Marketing
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4 Pillars of Successful Local Marketing for Banks & Credit Unions

By Michael Harrington on Apr 22, 2016 4:02:48 PM

As with all industries, modern-day marketers of financial institutions are tasked with fulfilling on a myriad of items unique to the digital age. Websites, marketing automation software, social media strategy, paid advertising options, and a staggeringly long list of potential content types make up the selection of new tasks these marketers need to wrestle with. Given the breadth of options, and the often limited resources of financial institution marketing teams, decisions have to be made where to invest time and money. Especially in the case of smaller financial institutions, there is one channel that is essential to drive growth, increase awareness, and establish a competitive edge: local marketing.

Topics: Marketing
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Feeling the Pinch in 2016 From Our 2015 Holiday Spending [Infographic]

By Amanda Elam on Apr 22, 2016 4:01:51 PM

From decorations to greeting cards, from holiday meals to cookies and treats, the end of the year also brought the season where we not only spent time with family, we also spent a whole bunch of money.

Topics: Design
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These are the best SEO strategies and resources for banks and credit unions

By Michael Harrington on Apr 22, 2016 3:57:23 PM

Given that 4 out of 5 consumers use search engines to research local businesses, you run the risk of not being found online if you don’t have a strong search engine optimization (SEO) and paid search strategy.

Topics: Marketing
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Mobile Banking Outpaces Branch For The First Time

By Jeff Meredith on Apr 22, 2016 3:55:52 PM

In the past five years the percentage of weekly mobile banking users has more than tripled — from 9% in 2010 to 30% in 2015 — while weekly branch visitors fell from 40% to 24% in the same time frame. 2015 marked the first time that weekly mobile bankers (30%) exceeded branch bankers (24%) in Javelin’s survey. “What is driving this incredible growth? Smartphones and tablets are gaining rapidly in consumer adoption but it’s also a function of the fact that mobile banking services have not only proliferated but increased in the quality and features they offer consumers,” said Javelin analyst Daniel Van Dyke during a January 27 webinar reviewing the firm’s Mobile Banking, Smartphone and Tablet Forecast.

Topics: Technology
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Here are all the Super Bowl 2016 ads for fintech and banking

By Jon Ogden on Apr 22, 2016 3:55:11 PM

Between watching padded athletes slam into each other, viewers of this year's Super Bowl were barraged with ads for junk food: Skittles, Doritos, Taco Bell, Jack in the Box, Mountain Dew, Pepsi, Coca Cola, Butterfinger, Bud Light, and so on. Make a meal out of all that, and you'll be set to... fall into a sugar coma.

Topics: Design Marketing
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Essential Fintech Reading: Apr 16-22

By Jon Ogden on Apr 22, 2016 3:55:00 PM

Fintechs' Goals Are Changing, VCs' Appetite Is Not

American Banker's Penny Crosman covers the news about the continued fintech boom. Given the dramatic rise of venture capital money in 2015, many analysts wondered what would happen in 2016. Now we know. The first quarter of 2016 brought a 67% investment increase over the same period in 2015, indicating that fintech is still hot.

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Using fintech to help debt-ridden students save $14,000: An interview with CommonBond

By Jon Ogden on Apr 22, 2016 3:54:25 PM

We synced up with Zack Friedman, VP and Head of Finance at CommonBond, to talk about the state of fintech.

Topics: Design Interview
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Economic Conditions, Regulations & New Entrants Threaten Bank Lending

By Jeff Meredith on Apr 22, 2016 3:53:44 PM

While there is continued growth in consumer loans thanks to auto finance and credit card lines, mortgages and HELOCs continue to languish and cap FI revenue growth. During a February 11 American Banker webinar, Aite analyst Christine Pratt said that U.S. economic conditions have slowed consumer demand for credit and lender growth, along with significant regulatory hurdles that could continue for two years. “For regulated FIs, demands for compliance and transparency result in less time for customers,” said Pratt, noting that these demands severely impact IT and operations’ available resources.

Topics: Marketing
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5 tips for bankers who want to start content marketing

By Jon Ogden on Apr 22, 2016 3:52:08 PM

Content marketing has been around for decades, but the concept is still generally unfamiliar to the world. Some people call it “inbound marketing” because it serves as a useful contrast to “outbound marketing,” while others call it “permission marketing” because it serves as useful contrast to “interruption marketing.”

Topics: Design
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Alternative lenders and banks can work together to help consumers: An interview with Prosper

By Jon Ogden on Apr 22, 2016 3:51:35 PM

This week we talked to Ron Suber, President at Prosper Marketplace, about the rapid rise of alternative lending and what financial institutions should be doing about it. Suber recounted Prosper's fast growth and gets into details about how banks and fintech companies can better work together to help consumers.

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How Marketers and Lenders Should Work Together [Interview]

By Jon Ogden on Apr 22, 2016 3:50:33 PM

Christopher Liechty, VP of Marketing at Bank of American Fork, owned a marketing design firm for 15 years. After working with several financial services companies, including American Express, Liechty entered the finance industry and has remained here for the past 8 years. We talked to him about how bank marketing has changed, and what can be done to balance logical and emotional appeals within banking.

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How To Infuse Banking With Fresh Thinking: An Interview with Lani Hayward of Umpqua Bank

By Jon Ogden on Apr 22, 2016 3:50:01 PM

We caught up with Lani Hayward, EVP of Creative Strategies at Umpqua Bank, to talk about the innovative ways that Umpqua has navigated the shift to the digital age. From making use of a 40-foot dome to simplifying a 147-step loan process, Umpqua is consistently leading the pack when it comes to fresh thinking. Hayward shows how other financial institutions can replicate Umpqua’s efforts below.

Topics: Design Interview
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Primary In Name Only? "Silent Churn" Is A Profit Killer For Small FIs

By Jeff Meredith on Apr 22, 2016 3:48:22 PM

Many community banks and credit unions have become primary FIs in name only as a significant number of their customers turn to secondary FIs for credit cards, mortgages and other loans. This "silent churn" —where customers open up a checking account with their primary FI but buy other banking products elsewhere — is a profit killer that poses an "existential threat" to community banks and credit unions. Javelin presents these findings in its latest report, Bank Switching: Combating 'Silent Churn' To Maximize Primary FI Status. "In a way, it could be said that consumers are 'cheating' on their smaller FI primary relationships with secondary relationships that are transactional and commoditized," writes Javelin. "Unfortunately, this behavior is centered  on the most profitable loan products."

Topics: Technology
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Digital Has Changed These 7 Roles in Banking

By Jon Ogden on Apr 22, 2016 3:47:15 PM

If you were born before digital banking became a mainstay of the financial services industry, your first banking experience likely occurred inside a branch. Perhaps your parents took you to meet with a customer service representative who helped you set up your account and then gave you a paper ledger to keep track of your expenses.

Topics: Design Marketing
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Digital Account Opening: Crucial In Staking Claim As Customer's Primary FI But Threat Of Fraud Looms

By Jeff Meredith on Apr 22, 2016 3:46:18 PM

Digital account opening is critical for financial institutions seeking to attract and retain profitable account holders but expect a surge in fraud as a result of data breaches compromising personal data. These are the findings of a Javelin white paper, Making Digital Account Opening Simpler, Safer and Seamless, which were discussed during an October 22 webinar. "We expect expect a new account fraud surge will ripple through the industry," said Mark Schwanhausser, Director of Omnichannel Financial Services at Javelin. "It's a damage to the brand reputation and of course it hurts the consumer who has to undo this and may hold a grudge against the bank and may change their behavior in where they shop and how they use their cards."

Topics: Marketing
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The ROI of Fintech Is That You'll Survive the Next 5 Years

By Jon Ogden on Apr 22, 2016 3:43:52 PM

If history is a sign of things to come (and it is, as you’ll see below), companies that ignore fintech do so at their own peril. Luckily, there’s still time to get ahead of the curve and start innovating. Forward-looking financial institutions will reap rewards for years.

Topics: Technology
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How to Woo Your Competitors' Wavering Customers

By Danielle Stratton on Apr 22, 2016 3:43:04 PM

Technology affects nearly every aspect of our lives. Almost everyone has shopped online, found entertainment online, even dated online – shouldn’t the banking industry also be digital? As consumers we expect everything to be available digitally, providing on-the-go access to fit our busy lives. This digital shift is pressuring even slower-moving industries like banking to accommodate.

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No Country For Old Men: Innovate or Perish

By Preston Wittwer on Apr 22, 2016 3:42:21 PM

In his American Banker article “There Will Be Blood: The Era of Engagement Banking,” thought leader Bradley Leimer discusses the future of the banking industry. Leimer suggests the next big challenge facing the industry is the full-on shift to a mobile platform. He goes on to say that the economic imperative to innovate and shift has finally come to an industry not known for innovation. Inspired by signs of mobile adaptation, an entirely new financial market and business model emerged — financial technology, or fintech for short.

Topics: Technology
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Breaking Down Fintech Silos

By Alyssa Call on Apr 22, 2016 3:41:46 PM

Fintech is about disruption. Making life easier for financial institutions to manage their responsibilities and easier for account holders to manage their full financial picture. Some fintech companies partner directly with financial institutions, while some offer products directly to account holders, completely bypassing the financial institution. Other companies seek to replace financial institutions completely, such as Moven and GoBank, referred to as NeoBanks.

Topics: Marketing
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Do You Let Users Add External Accounts? All Your Competitors Soon Will

By Jon Ogden on Apr 22, 2016 3:39:54 PM

Picture this:

Topics: Technology
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Moneyhawks: The Most Profitable Customers You Don't Know You Have

By Preston Wittwer on Apr 22, 2016 3:39:20 PM

In 2011 Javelin Strategy & Research quietly introduced a new way of segmenting and studying different types of account holders. This new theory of consumer segmentation was not shaped by age or income per usual, but instead broke down the general banking public by regular use of online and mobile banking. The group that represented the apex of this digital-first mentality was given a truly sexy name: Moneyhawks.

Topics: Marketing
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Moneyhawks, Gen Y Embrace Mobile Deposit But Hurdles To Wider Adoption Remain

By Jeff Meredith on Apr 22, 2016 3:33:46 PM

The consumer shift to mobile continues to reduce service costs for financial institutions but not everyone is eager to jump on board. Chase cites a cost of 65 cents for each teller deposit vs only 3 cents using mobile but 35 percent of consumers use direct deposit for all checks, 31 percent prefer depositing checks in person and another 22 percent worry about the security of mobile deposit. Javelin detailed these adoption roadblocks in a September 30 webinar titled "Connecting the Dots with Mobile Imaging to Create a Full Mobile Banking Experience."  

Topics: Design
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Adblocking In iOS 9 Is A Sign That Banks Need To Rethink Ads

By Jon Ogden on Apr 22, 2016 3:33:14 PM

Adblocking on Mobile

The newest version of Apple’s mobile operating system, iOS 9, is unnerving publishers and advertisers alike. For the first time, Apple has opened the way for content blocking on Safari, enabling developers to create “a fast and efficient way to block cookies, images, resources, pop-ups, and other content.” Just like that, paid advertising has been cut from the most widely used mobile browser in the United States. That’s a dramatic change.

Topics: Technology
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Mobile P2P Payments Race Leaves Smaller Financial Institutions In The Dust

By Jeff Meredith on Apr 22, 2016 3:32:35 PM

The sharing capabilities of social media have led consumers to expect the same ease in moving money and a mobile-first mindset has them demanding a way to do it with their smartphone. Mobile P2P users, who digitally transfer money over a mobile device, are expected to grow from 69 million adults in 2015 to 126 million by 2020, reported Javelin Strategy & Research during an October 21 webinar. However, giant banks are sweeping the field, as 46 percent of their mobile device users have utilized mobile P2P while only 21 percent of credit union and 13 percent of community bank users have.

Topics: Marketing
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How FIs and Fintech Can Work Together: An Interview w/ John Waupsh

By Jon Ogden on Apr 22, 2016 3:31:09 PM

John Waupsh is the Chief Innovation Officer at BancVue where he helps spearhead technology and marketing solutions such as Kasasa. His upcoming book, Bankruption, is set for release in 2016. We talked to him about the state of fintech today.

Topics: Design Interview
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Sundance Fintech Festival: Live Blog

By Jon Ogden on Apr 22, 2016 3:30:29 PM

This morning we're up at Sundance for the MX Fintech Festival talking shop with thought leaders in financial services. We have a master series of panelists lined up, and we'll give the highlights here as they happen.

Topics: Marketing
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Small FIs Suffer "Silent Churn" As Customers Turn To Giant Banks For Credit Cards, Mortgages

By Jeff Meredith on Apr 22, 2016 3:28:04 PM

Consumers double the number of relationships they hold with financial institutions between age 20 and 35 but most of the financial products they're purchasing go to secondary FIs, largely giant and regional banks that dominate in credit cards, mortgages and HELOCs. While 35 percent of checking accounts are opened with community banks and credit unions, these institutions only account for 14 percent of credit cards, 19 percent of mortgages and 25 percent of HELOCs. Ian Benton, a research specialist in Javelin's Omnichannel Financial Services practice, told attendees of MX's Fintech Festival that this presents an existential threat to smaller FIs. "Silent churn is where you have your checking account, primary relationship with a bank but all of these other secondary relationships for other products," said Benton, who shared upcoming research with MX's audience on October 22. "The primary FI is losing out on those additional products and they don't even know it."

Topics: Marketing
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Digital Investment Imperative As Credit Unions Woo Millennials

By Jeff Meredith on Apr 22, 2016 3:26:43 PM

Credit unions know that they have to appeal to younger, tech savvy customers in order to survive and thrive but their path to digital transformation is littered with challenges. Digital leaders cite the fragmentation of product types requiring support in payments and wearables, difficulty wooing talent and the threat of disintermediation from fintech startups that are unbundling the relationship credit unions hold with account holders. An American Banker webinar on Nov. 3 highlighted some of the strategies being employed by Ent Federal Credit Union, DuPont Community Credit Union and CFE Federal Credit Union as they court millennials — the first generation of digital natives — and transform the digital banking experience. 

Topics: Marketing
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Building a Digital Banking Strategy From the Front Line Up: An Interview with CarrieAnne Cormier

By Jon Ogden on Apr 22, 2016 3:24:52 PM

CarrieAnne Cormier has worked at Avidia, a $1.2B community bank outside of Boston, for 10 years. Now serving as the Head of Retail Operations and Strategy, she has helped Avidia work with vendors to lead the transition to digital — launching online account opening in 2008, mobile in 2009, remote deposit in 2012, P2P payments in 2013, and cardless cash this year.

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Banks and Fintech Must Partner to Build an Advice Culture: An Interview with Ron Shevlin

By Jon Ogden on Apr 22, 2016 3:22:17 PM

We caught up with Ron Shevlin, author of the blog Snarketing and the book Smarter Bank, to talk about the state of fintech and financial services. Read what he has to say about the possibility of a large fintech competitor, a conversation he had years ago with Elon Musk, the need for banks and fintech companies to build a culture of advice, and why he chooses to be snarky.

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Finovate Fall 2015, Day One: Live Blog

By Jon Ogden on Apr 22, 2016 3:21:37 PM

FinovateFall 2015 has 72 presenting companies and over 1,500 attendees. We're here and ready to live blog!

Topics: Technology
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Finovate Fall 2015, Day Two: Live Blog

By Jeff Meredith on Apr 22, 2016 3:20:20 PM

Session One

9:05am: Bizfi demonstrated an online marketplace with SBA loans, equipment finance loans, term loans and lines of credit targeting business owners. Bizfi is also a lender on the platform. The platform collects a business owner's information and then narrows down the field of lenders that would suit their needs. A funding concierge walks business owners through the pros and cons of each option available to them. A pilot program was launched in Japan four months ago with Credit Saison.

Topics: Design
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How One Community Bank Is Making the Shift to Digital: An Interview with Dan Mercurio

By Jon Ogden on Apr 22, 2016 3:18:46 PM

Dan Mercurio is the SVP of consumer banking at Cambridge Savings Bank (CSB), where he oversees retail banking and residential and consumer lending. He develops strategic initiatives and manages performance metrics in each of these areas.

In this interview we talk about how Cambridge Savings Bank has navigated the shift to digital banking.

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Financial Institutions Will Have To Make A Stronger Case For Consumers To Turn Off Paper Statements

By Jeff Meredith on Apr 22, 2016 3:16:55 PM

While financial institutions and billers have saved $2.2 billion since 2010 by turning off paper statements, a surprising number of consumers are hesitant to switch to digital. Javelin's recent study, "Paperless Banking and Billing 2015: Closing The Digital Commitment Gap," found that consumers pay 72 percent of their bills through digital channels but only 39 percent of their bill statements are delivered digitally. And while 83 percent of checking accounts are now accessed online, only 58 percent of checking account statements are received digitally. Double dipping — the practice of consumers receiving both digital and paper statements — has also increased from 20 to 24 percent since 2010.

Topics: Marketing
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Review: Life on Bitcoin Documentary

By Jon Ogden on Apr 22, 2016 3:16:06 PM

Last night the full-feature documentary Life on Bitcoin had its official hometown screening in Provo, Utah — the city where most of the movie was filmed.

Topics: Marketing
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A Simple Formula to Develop True Customer Advocacy at Financial Institutions

By Jon Ogden on Apr 22, 2016 3:15:33 PM

Customer advocacy has become a hot topic, but there is some ambiguity about what it really means. Does it mean creating customers that are advocates for your organization? Or that your organization acts as an advocate for your customers?

Topics: Design
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Envestnet Acquisition Of Yodlee Produces Mixed Reactions From Press And Analyst Community

By Jeff Meredith on Apr 22, 2016 3:14:02 PM

The August 10 acquisition of financial data mining and personal financial management solutions provider Yodlee by Envestnet sent shockwaves across the industry, heralding a new age where personal financial management and wealth management converge. While the deal signaled a desire to build up Envestnet's capabilities for financial advisers and place them in a better position to see a client's entire financial picture, its implications for banks were far less clear.

Topics: Technology
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7 Charts: What Account Holders Really Want in Banking

By Jon Ogden on Apr 22, 2016 3:13:20 PM

As part of our research process for our latest white paper, "The Banker's Guide to Digital Advocacy," we surveyed 504 random U.S. consumers and asked about their digital banking preferences. Here are 7 charts we made based on the results.

Topics: Design
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Bradley Leimer: Banks Must Create an Advocacy Model

By Jon Ogden on Apr 22, 2016 3:12:30 PM

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The Fintech Landscape in One Infographic

By Jon Ogden on Apr 22, 2016 3:11:20 PM

Fintech investment nearly tripled in 2014, making it difficult to keep track of the various players in the industry.

Topics: Marketing
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Quiz: Are You a Digital Advocate For Your Account Holders?

By Jon Ogden on Apr 22, 2016 3:10:40 PM

We've created this quiz to complement the release of our white paper "The Banker's Guide to Digital Advocacy."

Take it to find out whether you're a leader, a learner, or a laggard (terminology from JP Nicols).

Topics: Technology
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The Future of Geomarketing in Financial Services

By Jeff Meredith on Apr 22, 2016 3:08:24 PM

How do you get the right message in front of the right person at the right time? For years it wasn't within the grasp of marketers.

Topics: Design Interview
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5 Ways Financial Institutions Can Advocate for Millennials

By Jon Ogden on Apr 22, 2016 3:05:19 PM

In a recent white paper titled The Millennial Generation and the Future of Finance: A Different Kind of Trust, Innotribe shows that when it comes to business interactions, millennials generally favor using technology over going into a branch. Specifically, Innotribe says, “Because millennials trust technology even more than face-to-face relationships and the ‘brick and mortar’ user experience, they are looking for entirely new digital products that are relevant to their daily lives.”

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Are Community Banks Falling Behind? An Interview With Chris Nichols

By Jon Ogden on Apr 22, 2016 3:02:46 PM

This week we talk to Chris Nichols, Chief Strategy Officer at CenterState Bank. Nichols outlines the state of community banking and strategies for the future, including the possibility of offering an omnibus account.

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How Banks Can Use the Lean Startup to Build Smarter Marketing

By Jon Ogden on Apr 22, 2016 2:28:44 PM

In the age of Google, account holder expectations have changed. It’s no longer acceptable for financial institutions to wait around for quarterly reports on account holder profiles. That’s way too long in the digital age. Google works in milliseconds not quarters, and financial institutions should follow suit.

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San Jose's Still Rocking

By Jon Ogden on Apr 22, 2016 2:28:04 PM

Finovate is off and running.  I am sitting elbow to elbow with hundreds of other FinTech enthusiasts at the Civic in San Jose.  I just hope I don’t spill my coffee on the guy next to me.  The Civic is home to several rock legend performances including Buddy Holly, The Beach Boys, and Fleetwood Mac.  Ugh…I have to admit as a long time resident of the San Jose area, I had NO IDEA so many famous acts came through here.  Now financial technology rock stars are playing their tunes at FinovateSpring [INSERT AIR GUITAR RIFF].

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Advice from Dead Copywriters on How to Give Life to Your Fintech Headlines

By Jon Ogden on Apr 22, 2016 2:27:32 PM

Three dead copywriters — Claude Hopkins, John Caples, and David Ogilvy — can show you how to get users to click your content.

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PFM, Mobile Wallet, and Mobile Payments

By Jon Ogden on Apr 22, 2016 2:26:48 PM

FinovateSpring is off and running.  Session 1 jitters are out and we are now on to Session 2. I’m up the press room surrounded by pictures of rock legends who have performed here; Tower of Power, Chicago, Jefferson Airplane.  There is no picture of Dionne Warwick singing “Do you know the way to San Jose.”  I need to get on that. Does anyone know her?

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Battling Post-Lunch Lethargy

By Eric Dunstan on Apr 22, 2016 2:15:21 PM

The Finovate crowd now has the lethargy (is this a word?) associated with a huge lunch.  Finovate lunches are generally really good.  I over ate like everyone else and I’m now double fisting coffee.  Wait, how do I double fist coffee while I’m typing?  He he…it’s a skill I learned in college. 

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Starting Off Strong on Day 2

By Bradley Leimer on Apr 22, 2016 2:14:19 PM

Day Two at Finovate is here. 

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Do You See Disruption Or Opportunity?

By Bradley Leimer on Apr 22, 2016 2:13:27 PM

The one constant over the past two days at Finovate is incremental change. Outside of the PrivatBank topless ATM demo (easily one of the top five demos in the seven year history of Finovate), much of what we’ve seen is an incremental improvement of services, selective disruption and movement toward bank-like services through new form factors and non-bank service providers. All of these efforts - from the clean interfaces of FinBuddy and SaveUp, automation of advice in Yseop, to the ongoing focus of the securitization of transactions with companies like Encap - are collectively moving financial services forward. 

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Finovate and the Context of Fintech

By Bradley Leimer on Apr 22, 2016 2:09:37 PM

I’ve been thinking about the genesis of Finovate in 2007 and just how much this conference has influenced the financial services industry. Before Finovate, no single conference provided a venue to demonstrate the latest technology impacting our customers - whether that meant a solution that a bank or credit union could deploy - or whether that meant some form of disruption that we had to be concerned about.  

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The Home Stretch

By Jon Ogden on Apr 22, 2016 1:28:14 PM

Session 3 of Day 2 is ALWAYS a struggle.  Festivities from the night before catch up to everyone. I see a lot of heads nodding off and people checking their Facebook app as a distraction to stay awake. Ugh…given this, it’s tough presenting on Session 3 let alone Session 4.  Some great things were presented in Session 3. Highlights for me include Yseop, SaveUp, Zumigo and….of course…PrivatBank.

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How a remote control for credit cards creates value for consumers and banks

By Eric Dunstan on Apr 22, 2016 1:27:47 PM

Last week I attended FinovateSpring in San Jose.  I was excited to see the latest innovations around mobile payment technology from companies including Loop, Quisk, WePay and Red Giant.  However, I was most intrigued by what Ondot presented and the value the technology provides to consumers and to financial institutions.  Their technology was so well received last week that Ondot won a Best of Show award. 

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Millennials and Moneyhawks Crave Personal Finance Apps and Big Banks Know It

By Jon Ogden on Apr 22, 2016 1:15:45 PM

Last week Novantas, a banking analytics firm, published a 3,000-person survey that demonstrated how personal financial management (PFM) apps are on the rise.

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Combating Cyber Attacks with a Credit Card On/Off Switch

By Eric Dunstan on Apr 22, 2016 1:12:20 PM

eBay is yet another giant consumer brand that has fallen victim to a cyber attack. Like many of us, I raced to change my password when I heard the news break early Wednesday morning. Of course the news media and many eBay users assumed the worst had happened and that personal and financial information had been breached. Fortunately, the attack was limited to a corporate network and only a small amount of employee login credentials were breached. eBay’s PayPal business unit did not show evidence of user personal or financial information being exposed. Phew.

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Millennials Love Big Banks, Even When They Say They Don't

By Jon Ogden on Apr 22, 2016 1:11:48 PM

You might say that millennials hate Wall Street.

After all, millennials made up more than 60 percent of the Occupy Wall Street protesters in 2011, and they listed all four of the biggest US banks among their top 10 least loved brands.

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Marc Andreessen, Ron Shevlin, and Innovation: How Banks Can Best Adapt in the Digital Age

By Jon Ogden on Apr 22, 2016 1:11:16 PM

Andreessen's Twitterstorm

The recent twitterstorm from Marc Andreessen outlines why timing is so crucial to the success of startups. He says that startups typically overestimate the importance of being first to market and that being too early can be a bigger risk than being too late. In fact, Andreessen goes so far as to say that the moment when a startup worries that they’ve missed the window of opportunity might be the sign that the timing is just right.

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What a Day!

By Jon Ogden on Apr 22, 2016 1:03:17 PM

What a day!  So much great technology and innovation was presented throughout the day.  I admire everyone who gets up there to present.  It’s tough.  Being up on stage is much different than rehearsing in the mirror or in front of your colleagues in a conference room.   I have empathy for those that have to present in the final session of the day…yet alone the final session of the last day.  If I ever have to present during the final session of the last day I will be maximizing the entertainment factor replete with fireworks and maybe even a FinTech inspired musical number as a nod to Broadway. 

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Business Insider Just Released Their FUTURE OF DIGITAL Deck. These Are the Slides That Directly Relate to Banking.

By Jon Ogden on Apr 22, 2016 12:04:04 PM

Business Insider published 121 slides on the future of digital today, and they're full of amazing info. We pulled a handful of the slides that relate to banking, but the whole deck is worth checking out.

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Here’s Why Smartphones and Account Aggregation Are the Future of Omnichannel Banking

By Jon Ogden on Apr 22, 2016 12:03:24 PM

The Wave of Mobile Banking Users

Recently we wrote about the oncoming wave of users who prefer mobile banking to other channels, and last week Juniper Research confirmed how real this wave is. Juniper predicts that mobile banking users will exceed online banking users within five years. In addition, they predict that within five years the 800 million people worldwide who currently use their phones for banking will more than double to 1.75 billion.

There’s no reason to think that this wave toward greater convenience will ever reverse. In fact, Nielsen shows that mobile media consumption has skyrocketed since 2012. One of their recent studies reveals that while TV is still king when it comes to captivating consumer audiences, the future isn’t trending in TV’s favor. Instead, people are increasingly drawn to their smartphones.

 

“Mobile banking users will exceed online banking users within five years."

What’s even more telling is that since 2012 the amount of time spent using the Internet on a computer has decreased in parallel with the increased time spent browsing the Internet on a smartphone:

Source: Nielsen via MarketingLand
Source: Nielsen via MarketingLand

What does all of this mean for financial institutions? Well, for one thing, it means that if you’re not pursuing mobile banking aggressively, you’re not prepared for the future. It also means you need to start thinking about mobile as the keystone of the banking experience. Your users now expect to start interacting with your products via a smartphone and then be able to continue the process exactly where they left off when they use a desktop or visit a branch. This mobile-first concept is a core part of any omnichannel experience.

Omnichannel Banking

A majority of retail banks understand this. A survey from CEB TowerGroup shows that 66 percent of respondents said delivering a consistent customer experience across channels will be a major focus for the next 12 months:

This segment of respondents understands the state of the financial industry. They understand what BAI’s internal data showed them, which is that omnichannel banking can:

  • Boost sales of complex products such as mortgages by up to 60%
  • Dramatically increase productivity of valued specialists
  • Deliver double-digit improvement in customer net satisfactions

Omnichannel banking does away with the siloed and fractured banking experience, replacing it with something cohesive and seamless. It’s the key to winning wallet share in the digital age.

The Problem

The problem is that many financial institutions aren’t anticipating how account aggregation could drastically help or hinder their mobile strategy. That is, many banks and credit unions don’t realize that once a competitor offers a mobile banking app with the ability to aggregate outside accounts, users will lose the need for multiple financial apps.

Picture this: You have two financial apps on your smartphone. One lets you aggregate all your accounts in one view; the other doesn’t. Which one do you think stands the best chance of becoming your primary financial application? If you’re drawn to the one that lets you see all your accounts in one place, you understand the increasing consumer impulse to enjoy that same benefit.

Once consumers choose a primary financial application, they’ll spend more and more time with the institution that offers it. At that point the institution that offers the primary financial app will quickly steal wallet share from their competitors. The smartphone then becomes the portal to the total banking experience.

A recent study from Google shows why this is the case. It says, “[Smartphones] have the highest number of user interactions per day and serve as the most common starting point for activities across multiple screens.” As we covered in a prior post, the Google study also shows that 59 percent of financial management activities were started on a smartphone, and 56 percent of those activities were continued or finished on a desktop. It’s clear from data like this that the smartphone opens up a way for users to become more loyal to particular financial institutions — institutions that offer a primary financial application.

59 percent of financial management activities were started on a smartphone.

 

The Future

Within a few years, a majority of financial institutions will understand how the convenience of account aggregation affects their wallet share. The institutions at the frontier of fintech already understand this. They know, for instance, that 72 percent of millennials would bank at companies like Wal-Mart, T-Mobile, or Google if these companies offered such services. They also know that companies likeLending Club have already started to encroach on the traditional lending business model. For the first time, major competitors to financial institutions can build a banking experience that fits in a user’s pocket. Never before has banking been so easy to access. Clearly, fintech is the way of the future. 

In order to meet the demands of the rising wave of mobile users, financial institutions should quickly adopt the fundamentals of fintech and offer a primary financial application that will pull them through the next five years and beyond.

Banks that respond now, rather than wait for the ‘all clear’ signal, will be handsomely rewarded by attracting new generations of customers, retaining existing customers, avoiding disintermediation, and generating new revenue streams by delivering the innovative omnichannel services customers are demanding.
— Cisco
 

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Moven Partners with MoneyDesktop [Video]

By Jon Ogden on Apr 22, 2016 11:58:46 AM

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MoneyMinute: Grant Parry

By Preston Wittwer on Apr 22, 2016 11:57:44 AM

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MoneyMinute: John Schulte

By Preston Wittwer on Apr 22, 2016 11:57:15 AM

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Brett King's Think Finance 2014 Speech

By Jon Ogden on Apr 22, 2016 11:54:25 AM

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How thinking like a retailer helped this Oregon bank grow assets from $140M to $25B

By Jon Ogden on Apr 22, 2016 11:53:19 AM

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MoneyMinute: Chris Melendez

By Preston Wittwer on Apr 22, 2016 11:52:43 AM

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3 Ways Financial Institutions Can Build a Culture of Data Analytics

By Jon Ogden on Apr 22, 2016 11:51:44 AM

"Today, if you are not a data-driven company you will not survive." - Peter Diamandis, author of BOLD

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Mobile-first Account Holders Are Younger, More Profitable & Less Loyal

By Jeff Meredith on Apr 22, 2016 11:50:00 AM

Mobile-first account holders have high profitability, but they're more likely to switch primary financial institutions than online and branch-first account holders and would most likely do so because of fee sensitivity. Only 13 percent of account holders are identified by Javelin Strategy & Research as fitting into this segment but they represent 31 percent of deposits. They trend younger (average age of 39) than online first (50) and branch first (53) customers and are largely concentrated at giant banks.  

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5 Cultural Changes to Support New Digital Banking Strategies

By Jon Ogden on Apr 22, 2016 11:48:32 AM


As bankers see fewer people visiting the branch, they’re realizing they need a strategy for the digital age. The old mailers aren’t cutting it anymore, and the need for adoption of digital products is higher than ever.

Here are a five tips that can help you make the transition.

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Banks vs. Fintech? The Great Debate Recap and Analysis

By Jon Ogden on Apr 22, 2016 11:48:04 AM


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How Banking Should Use Big Data to Be More Like Google

By Jon Ogden on Apr 22, 2016 11:47:01 AM

Below is an excerpt from our white paper, "How Banking Should Use Big Data to Be More Like Google."


In the last few years Google has rapidly expanded into new markets — selling laptops, inventing wearables, producing self-driving cars, etc. And yet nearly 70 percent of the company’s revenue still comes from a single source: Advertising.

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How to Build Digital Banking: Mobile First, Seamless Across All Devices

By James Hodges on Apr 22, 2016 11:45:22 AM

Mobile First

The rise of mobile in the past few years has been drastic. 85% of consumers say mobile devices are a central part of everyday life. Furthermore, at a number of financial institutions, mobile has now become the primary channel for Millennials and Gen X. For example, BECU in Seattle, Washington shared at our March Fintech Festival that it has found mobile to be the number one channel for members aged 18-44.

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How TD Bank Uses Analytics to Create a Richer Customer Experience [Interview]

By Jon Ogden on Apr 22, 2016 11:44:48 AM

Parin Kothari leads the strategy and communications practice for digital channels at TD Bank, North America. In this interview we talk about how TD Bank is using analytics to create a richer customer experience.

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How Millennials Bank: Nine Stats

By Jon Ogden on Apr 22, 2016 11:44:16 AM

By 2017 millennials will have more buying power than any other demographic in the United States. That means that banks and credit unions can’t risk ignoring this demographic.

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Financial Institutions Should Take Note as Personal Capital Pays End Users to Link an Account

By Jon Ogden on Apr 22, 2016 11:43:02 AM

This morning Personal Capital sent out an email offering $10 to every end user who links an account to their service. Here's their email header image, followed by some of the text in their email:

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White Paper: 7 Tips to Lead the Digital Banking Revolution

By Jon Ogden on Apr 22, 2016 11:42:23 AM

We’re excited to announce our first white paper.

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An Elevated Brand

By Michael Moulton on Apr 22, 2016 11:41:19 AM

When we first began discussing the idea and concepts behind Money Summit, we knew that we wanted to create something more than a typical "blog." Money Summit was to be a forum where cyclical chatter was rejected in favor of purposeful dialogue — less talk, more action. Really it boiled down to people breaking down the walls of "client" & "vendor," and working together to make interacting with money a better experience for everyone involved.

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Banking Unchained: A Look at the Wave of Mobile Users and What to Do About It

By Jon Ogden on Apr 22, 2016 11:40:38 AM

 

"“Banking is no longer somewhere you go, but something you do.”"

— Brett King
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Why Channel Switching Doesn't Matter Anymore: The Need for Omnichannel in a Multi-Screen World

By Danielle Stratton on Apr 22, 2016 11:40:05 AM

 Customer satisfaction is a drastically different game than it was a few years ago. Today, consumers expect companies we interact with to provide us a consistent, relevant experience when we shop and to remember our preferences.  As consumers ourselves, how many of us have been pestered by retail clerks to open a line of credit with a company every time we shop there? As if being asked more times will cause us to change our minds, when in fact the opposite is probably occurring - the more times we’re asked, the more frustrated we become.

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7 Illustrator Presets All UI Designers Should Consider

By Jon Ogden on Apr 22, 2016 11:39:10 AM

 

Why We Use Illustrator Presets

At MoneyDesktop, we do most of our UI design in Illustrator. We find that the vector workflow keeps file sizes small and allows us to scale assets for any resolution without losing quality. Overall, Illustrator is a great tool, but out of the box it’s optimized for print design and illustration. Swatches are set to CMYK instead of RGB, graphic styles are preset with busy patterns, and the stock set of symbols is hideous. (I mean, who uses a “Gerbera Flower” or “Vector Grime”?)

UX White Paper Booklet

In order to optimize Illustrator for our needs as UI designers, we initially just created a style guide with a set of patterns. These patterns gave the UI more consistency, but it was cumbersome to enter the same values repeatedly and left a lot of room for accidental deviation from the style guide.

Instead of limiting ourselves to patterns in a style guide, we created a totally new library of presets (which did away with the useless ones Illustrator comes with out of the box). This new library of presets makes it easy for us to adhere to our design patterns by making those patterns easily accessible. By doing this, we’ve built a dynamic style guide that grows and changes as we use it.

Once you have a solid library of presets established, it becomes obvious when new patterns emerge. If you find yourself manually entering the same values over and over, it’s time to consider adding a new preset to the template.

Our Process

Here is how we optimize Illustrator for building user interfaces.

We started by building a template file (.ait file) that loads art boards that are sized for our phone, tablet, and desktop apps. Then we created the following seven presets:

1. Grid System

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Why Traditional PFM Is Dead

By James Hodges on Apr 22, 2016 11:35:48 AM

Personal financial management (PFM) software has existed since the earliest days of the PC, and yet consumer adoption of the products has often been lackluster. Rick Claypoole, Director of Retail Product Management and Marketing at Cadence Bank, tells one reason for the low adoption. He says, “Looking back at early PFM solutions, the only consumers who would really use those tools were the hardcore budgeters... And, while the early solutions were pretty cool for those users who wanted to do a lot, they were not very user friendly. And, in reality, almost nobody wants to do a budget, so the potential market for the solution was limited. It’s a chore, it’s laborious, and it’s not fun.”

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Banks Should Focus on Relationships — An Interview with Chris Skinner

By Jon Ogden on Apr 22, 2016 11:34:42 AM

We recently talked with Chris Skinner, Chairman of the Financial Services Club and author of the book Digital Bank, about why banks should focus on relationships.

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What Banking Can Learn from Selfies, Siri, and Snapchat

By Jon Ogden on Apr 22, 2016 11:34:03 AM

Selfies, Siri, Snapchat

When I think about the current state of consumer software, three words immediately spring to mind: Selfies, Siri, and Snapchat. This trio symbolizes a standard of right-now, me-centered service, which is what we’ve all come to expect. We expect to take a picture of ourselves and instantly share it. We expect to say, "Siri, how can I get a cup of coffee?” and get an immediate answer. In short, we expect instant service through the supercomputers in our pocket.

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Mobile Is Not Just About Technology — An Interview With Scott Bales

By James Hodges on Apr 22, 2016 11:28:54 AM

We recently caught up with Scott Bales, author of Mobile Ready and the previous Chief Mobile Officer for Moven. He believes mobile is not about the technology but about behavior, context, and utility. He has found that when you embrace this idea, technology as an issue disappears. We delved into this topic in this interview, and you can also read more about it in his book here.

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Banks Need to Offer an Experience That's as Personal as GPS Software

By James Hodges on Apr 22, 2016 11:27:53 AM

GPS software learns users' personal behavior and then gives them customized options based on their preferences. Banks can do the same.

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The Future of the Digital-only Bank [Interview w/ CEO of Fidor Bank]

By James Hodges on Apr 22, 2016 11:26:40 AM

We recently caught up with Matthias Kroner, CEO of Fidor Bank, one the world’s most innovative banks. Fidor has completely rethought the traditional concept of banking and produced an outstanding digital-only bank. All charts have come from Slideshare (here and here).

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2015 Consumer Survey: 7 Fintech Charts That May Surprise You

By James Hodges on Apr 22, 2016 11:25:14 AM

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Re-imagining The Entire Customer Experience In Financial Services

By James Hodges on Apr 22, 2016 11:23:31 AM

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Atom Bank: The New Mobile-delivered Bank [Interview w/ Anthony Thomson]

By James Hodges on Apr 22, 2016 11:21:57 AM

We recently caught up with Anthony Thomsonthe Former Chairman and Founder of Metro Bank, the first bank to launch in the UK in over 100 years. After a successful venture there, here’s now spearheading a new mobile-first bank named Atom Bank

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MoneyMinute: CEB Towergroup, Cadence Bank, Wells Fargo

By Jon Ogden on Apr 22, 2016 11:19:49 AM

In our three latest MoneyMinute videos below, we hear from Craig Focardi, Senior Research Director at CEB Towergroup, Rick Claypoole, Director of Retail Product Management and Marketing at Cadence Bank, and Pankaj Parekh, VP of Mobile Banking at Wells Fargo.

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How Digital-First mBank Is Redefining Banking

By Jon Ogden on Apr 22, 2016 11:19:08 AM

In this interview with Michal Panowicz, Managing Director for Products, Marketing & Digital at mBank, we learn the process to become a digital bank and why   it matters now more than ever before.

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Why Banks Are Investing in Bitcoin [Interview]

By Jon Ogden on Apr 22, 2016 11:17:16 AM

Alex Waters is a developer in New York who has been working on Bitcoin for five years. He’s currently the CEO of Coin.co, a company that gives entrepreneurs the ability to reach global markets through the use of Bitcoin.

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Augie Ray Interview: Cannibalize Yourself Before Others Cannibalize You

By James Hodges on Apr 22, 2016 11:10:53 AM

Augie Ray is a customer experience professional at a F100 financial institution. We caught up in Manhattan and had a fascinating discussion about the disruption currently occurring in financial services. Some parts of this article have beenrepurposed from Augie’s blog.  

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"Embrace Technology or Become a Dinosaur": Interview with Kevin Mullins, Community Banker

By James Hodges on Apr 22, 2016 11:06:53 AM

We recently caught up with Kevin Mullins, COO at Sevier County Bank to talk about the state of community banks. Not only does he have 117,000 Twitter followers, but he first became a CFO at age 25. He served as a CFO for 26 years and has been a COO for the last 3 years. He believes that community banks must embrace technology, focus on being personal, and improve financial literacy of account holders.

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Trailblazers and Traditionalists: Interview with JP Nicols

By Jon Ogden on Apr 22, 2016 11:05:19 AM

We recently had a conversation with JP Nicols, president and COO of the innovation analytics and advisory firm Innosect, wherein we discussed the future of banking. Nicols offers useful mental models that will help banks and credit unions lead the digital banking revolution.

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Fintech Book Review: Smarter Bank by Ron Shevlin

By Jon Ogden on Apr 22, 2016 11:04:46 AM

The Problem with the Status Quo

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UX Interview With Moven: Designing to Create a Frictionless Experience

By James Hodges on Apr 22, 2016 11:04:07 AM

We recently caught up with Mohamed Khalil, the Head of Product, Data & Marketing at Moven, to talk about user experience. He shared with us his thoughts and explained how Moven is set to re-imagine how people interact with their money.

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Bradley Leimer Interview: Empowering Lifelong Customer Relationships in a Digital World

By Jon Ogden on Apr 22, 2016 10:59:38 AM


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The Battle To Be Consumers' Primary Financial Institution

By James Hodges on Apr 22, 2016 10:58:10 AM

Whether financial institutions know it or not, the fight to remain top of mind and be the primary financial institution for account holders is THE (or one of the) biggest challenges they face. Consumer trends, banking revenue models, the competitive landscape, and the rise of digital have fundamentally changed the game.

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Banks that use analytics have a 12 percentage point lead in market share

By Jon Ogden on Apr 22, 2016 9:55:31 AM

In the era of digital banking, data is king. Only financial institutions that value it and put it to use stand a chance in the coming decade.

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From the Mouth of a Millennial: Who We Are and Why We’re Important to Banks

By Alyssa Call on Apr 21, 2016 4:10:00 PM

Bank of America recently released a report titled “Year-End Millennial Snapshot” discussing the financial attitudes and preferences of Millennials. Results from the survey found that Millennial financial attitudes are still influenced by a negative perception of the economy established from the Great Recession and influence from our parents and their financial relationships.

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Payments, Branches, and Video Banking: An Interview with Darrick Weeks

By Jon Ogden on Apr 21, 2016 3:28:00 PM

Darrick Weeks, Chief Operations Officer at Wright-Patt Credit Union, has worked with credit unions since 1995. He has been instrumental in helping Wright-Patt expand their digital offerings — including a network of video tellers, which he talks about below.

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Bitcoin is on life support, ether plummets; What’s happening in blockchain-based cryptocurrencies?

By Kenneth Dabkowski on Apr 21, 2016 9:16:34 AM

Last week, we had a bit of fun describing basic cryptocurrency blockchain technology functions using an X-Files analogy. This week, we’ll dive deeper into the blockchain based cryptocurrency fintech space (yes, we are excluding Ripple for now) to identify strengths and limitations of the blockchain application in banking and law.

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How community banks can win at social media: An interview with Jill Castilla

By Jon Ogden on Apr 18, 2016 10:27:17 AM

We talked to Jill Castilla, president and CEO of Citizens Bank of Edmond, about social media strategy at financial institutions. As is clear from this interview, Citizens Bank is setting the standard for community banks on the digital front. They’ve sold their branches, created an interactive ATM experience, and regularly draw 20,000 people to their customer appreciation days. In short, there’s a lot for community banks to learn here.

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Essential Fintech Reading: April 9-15

By Jeff Meredith on Apr 15, 2016 6:03:22 PM

Bank of America CFO: "Branches Are Not Going To Be Places Where People Come To Transact"

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Blockchain Meets the X-Files — An Introduction to Cryptocurrency

By Kenneth Dabkowski on Apr 13, 2016 9:22:42 AM

Blockchain technology is one of the biggest technological breakthroughs of the last half-century. Not since TCP/IP (the building blocks of the Internet) has a technology emerged with the potential to change everything. Many people have become familiar with blockchain technology through Bitcoin, an asset (or currency) that is built upon blockchain technology. While the rise, fall, and future of Bitcoin is a hot topic for pundits, this MoneySummit series will instead focus on the underlying history, technology, and future applications for blockchain technology.

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How banks can build trust with millennials, from a millennial viewpoint

By RyanKey on Apr 12, 2016 11:27:31 AM

I was 12 years old when my father took me to open my first bank account. What initially seemed like an exciting rite of passage turned out to be a bit of a let down. As the account manager described why opening an account was a great decision, I grew bored and complacent. At the time I thought that a bank was just a place where you put money until you needed it, and I didn’t see the point adding this extra step to accessing my funds.   

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Fintech as a partner vs. fintech as a competitor: An interview with David Gerbino

By Jon Ogden on Apr 11, 2016 2:17:08 PM

We recently sat down to chat about the state of fintech with David Gerbino. David is a data-driven marketing consultant for banks and fintech startups who also serves as a board member and director of marketing strategy for NYPAY, New York’s leading forum for innovators in payments and mobile commerce. You can follow him on Twitter here.

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Essential Fintech Reading: April 1 - 8

By Jon Ogden on Apr 8, 2016 7:13:03 PM

Key Tech Takeaways from Jamie Dimon's Annual Letter to Shareholders

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Alleviating Millennial mortgage anxiety (from the perspective of a Millennial)

By TommyWalter on Apr 4, 2016 10:39:28 AM

It’s a shame that home buying isn’t like buying a TV. Go to the store, decide between a few brands, flash the cashier a coupon, and leave excited about your upgraded viewing experience with your new TV. Some aspects are similar, but for good reason, home buying is a weightier process that merits a more thorough review.

Topics: Marketing
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Essential Fintech Reading: March 26-April 1

By Jeff Meredith on Apr 1, 2016 5:11:12 PM

OCC Considering New Fintech Regulations

Topics: Marketing
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From Status To Insight: Financial Alerts That Provide Personalized Advice Will Win The Day

By Jeff Meredith on Apr 1, 2016 10:15:18 AM

The convenience of online and mobile banking threatens to dilute the connection that financial institutions have with their customers, who are less likely to enter a branch and hold face-to-face conversations that position the FI as a trusted authority. Instead of being reactive and waiting for customers to come in, FIs have to be proactive and initiate daily conversations with their customers. In a February webinar Javelin made the case that mobile messaging is a way for banks and credit unions to cement their status as the customer’s primary FI and be their go-to option when that customer looks to open a new account or take out a loan. But it will require a change in the kind of messaging FIs employ. “What I see typically at banks and credit unions is alerting that is reporting someone’s status —confirming a transaction, telling that you’ve got a statement available. That’s a fine place to start but that’s not where we need to go,” said Mark Schwanhausser, Director of Omnichannel Financial Services at Javelin Strategy & Research. “Where we want to be going is to a point where we’re delivering advice or coaching or recommendations. Those are the kind of proactive conversations that can be powerful because they can position a bank or credit union in a place of trust.”

Topics: Design
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Banks and Fintech: A Matter of Co-Opetition, Part 2 — Best Integration Practices

By Kenneth Dabkowski on Mar 30, 2016 11:46:54 AM

In part one of this two part blog series, we examined the need for co-opetition between the fintech and banking industries. In short, fintech firms need to scale quickly and financial institutions need to implement better services and technologies or risk losing market share. Both industries agree that the need for smooth integration is required, but few companies are successfully achieving this outcome. Partnerships between small, nimble fintech companies and large banking institutions are structurally difficult to execute. Regulated and non-regulated industries encounter complex impasses. Industry experts are hard at work analyzing case studies of these problems. In this article, we will highlight their findings and best practices.

Topics: Technology
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5 best social media tips for banks and credit unions

By Jon Ogden on Mar 29, 2016 11:27:19 AM

Social media is a relatively new and quickly evolving field — especially as it relates to the financial industry. The biggest benefit it provides is in bringing you closer to your account holders in an age where they may seem distant and anonymous behind their digital screens. Here are 5 tips to help you master social media.

Topics: Marketing
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Essential Fintech Reading: March 19-25

By Jon Ogden on Mar 25, 2016 5:32:40 PM

A neobank built for entrepreneurs gets acquired by BBVA

Topics: Design
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Can’t We All Just Get Along? Banks and Fintech: A Matter of Co-Opetition

By Kenneth Dabkowski on Mar 23, 2016 9:58:54 AM

“The holy grail for banks is to become the best at ‘fintegration’.” – Andrew Wolberg-Stok, Global Head of Emerging Platforms and Services at Citibank

Topics: Technology
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Essential Fintech Reading: March 12-18

By Jeff Meredith on Mar 18, 2016 4:28:52 PM

Mixed Signals From Millennials

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5 ideas to launch better banking events in the digital age

By Jon Ogden on Mar 17, 2016 10:07:37 AM

At first blush it might seem as though real-world events are a nonstarter in the digital age, but nothing could be further from the truth. Events are still pivotal to good marketing, and digital is only enhanced by real-world efforts. Here are five tips to help you make the most of your events:

Topics: Marketing
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2016 Consumer Survey: Banks, Credit Unions, and Advocacy

By Jon Ogden on Mar 15, 2016 10:14:44 AM

As part of our ongoing effort to gather more data about the banking industry, we surveyed 1000+ random U.S. consumers ages 24 through 65+. We asked them five questions about the industry, and we've listed the results below.

Topics: Technology
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Essential Fintech Reading: Mar 5-11

By Jon Ogden on Mar 11, 2016 5:21:27 PM

The Future of Banking: Uber or Apple? by Don MacDonald on The Financial Brand

Topics: Marketing
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Jim Marous Interview: 2016 Banking Trends Recap

By ogden.jon@gmail.com on Mar 7, 2016 10:10:44 PM

This week we interviewed Jim Marous, owner and publisher of the Digital Banking Report and co-publisher of The Financial Brand. Marous recently released the 2016 Retail Banking Trends and Predictions report, where he and his team present highlights from their panel of nearly 100 financial industry global influencers. The report is worth downloading in full, which you can do here.

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Essential Fintech Reading: Feb 26 - Mar 4

By Jon Ogden on Mar 4, 2016 2:54:55 PM

Jamie Dimon on Finance: ‘Who Owns the Future?’

Topics: Marketing
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Brett King Interview: Branchless Solutions, Contextual Moments, and Smarter Fintech Partnerships

By Jon Ogden on Feb 29, 2016 7:44:51 AM

We recently caught up with Brett King, CEO of Moven, host of Breaking Banks, and author of Bank 3.0 (as well as several other books). In our interview, we talked about branchless banking solutions, contextual moments, the procurement process, institutions that are doing well (USAA, BBVA, Capital One), and an institution that isn't doing so well. We also talked about banking trends to look for in 2016 as well as his new book, Augmented: Life In The Smart Lane, which arrives in May. The interview has been edited for length and clarity.

Topics: Design Interview
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Essential Fintech Reading: Feb 20-26

By Jeff Meredith on Feb 26, 2016 4:57:16 PM

The Age of Analytics

Topics: Design
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Essential Fintech Reading: Feb 6-12

By Jeff Meredith on Feb 12, 2016 2:59:00 PM

Big Bank Lead In Customer Satisfaction Driven By Digital Investments

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Essential fintech reading: Feb 12 - 19

By Jon Ogden on Feb 12, 2016 2:50:00 PM

When it comes to mobile banking ratings, lower could be better

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Essential Fintech Reading: Jan 30-Feb 5

By Jeff Meredith on Feb 5, 2016 3:00:00 PM

Personal Financial Management Primed For Takeoff In The EU?

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Essential Fintech Reading: Jan 23-Feb 1

By Jeff Meredith on Feb 1, 2016 3:02:00 PM

Account Switching Made Easy Doesn't Increase Account Switching In The UK

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Essential Fintech Reading: Jan 16-22

By Jeff Meredith on Jan 22, 2016 2:40:00 PM

Mobile Customers Hold More Products, Bring In More Revenue And Are Less Likely To Leave Their Credit Union

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Essential Fintech Reading: Jan 9-15

By Jeff Meredith on Jan 15, 2016 2:37:00 PM

Bitcoin Pioneer Argues Experiment Has Failed

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Essential Fintech Reading: January 2-8

By Jeff Meredith on Jan 8, 2016 2:34:00 PM

Fintechs Collaborate Rather Than Conquer

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Essential Fintech Reading: Dec 12-18

By Jeff Meredith on Dec 18, 2015 2:29:00 PM

Investment In Digital Banking Startups Triples

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Essential Fintech Reading: Dec 5-11

By Jeff Meredith on Dec 11, 2015 4:02:00 PM

Central Bankers Creating Their Own Digital Currency?

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Essential Fintech Reading: Nov 27 - Dec 4

By Jon Ogden on Dec 4, 2015 8:09:00 PM

Digital Disruption Forces Financial Institutions to Rethink Priorities
Jim Marous summarizes the latest results from a Temenos survey that highlights the major concerns bankers have in 2015. According to the survey, bankers have become less focused on regulatory concerns and more focused on meeting changing customer demands. Ben Robinson, Chief Strategy & Marketing Officer at Temenos, says, “As the burden of new regulation diminishes, banks are concentrating on readying themselves for a more digital world, characterised by lower customer loyalty and new, multiform competitors."

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Essential Fintech Reading: Nov 20 - 27

By Jon Ogden on Nov 27, 2015 4:39:00 PM

Ex-Barclays CEO: Banks are about to have an 'Uber moment' — and it's going to be painful

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Essential Fintech Reading: Nov 14 - 20

By Jeff Meredith on Nov 20, 2015 4:26:00 PM

Digital Convenience Trumps Physical Location

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Essential Fintech Reading: Oct 31-Nov 6

By Jeff Meredith on Nov 6, 2015 4:59:00 PM

USAA Partners With Bitcoin Wallet Provider Coinbase

Topics: Technology
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Essential Fintech Reading: Oct 23 - 30

By Jon Ogden on Oct 30, 2015 9:07:00 PM

Bank Boardrooms Lack Technology Experience
Accenture published a study this week showing that global bank executives are generally ill prepared to lead out when it comes to digital. They show that "only 6 percent of board members and 3 percent of CEOs at the world’s largest banks have professional technology experience.  In addition, more than two-fifths (43 percent) of the banks have no board members – and nearly one-third (30 percent) have only one board member – with professional technology experience."

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Essential Fintech Reading: Oct 17-23

By Jeff Meredith on Oct 23, 2015 8:55:00 PM

Millennials Losing Interest In Banks

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Essential Fintech Reading: Oct 10-16

By Jeff Meredith on Oct 16, 2015 8:14:00 PM

Millennials Eager To Use Their Smartphone Cameras In Banking

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Essential Fintech Reading: Oct 3-9

By Jeff Meredith on Oct 9, 2015 3:34:00 PM

Embrace The Fintech Payments Revolution Or Become Obsolete, Warns BNY Mellon Report

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Essential Fintech Reading: Sept 26 - Oct 2

By Jeff Meredith on Oct 2, 2015 3:23:00 PM

Has Fintech Been Overhyped?

Topics: Design
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Essential Fintech Reading: Sept 19-25

By Jeff Meredith on Sep 25, 2015 10:47:00 PM

Trusting Silicon Valley With Your Money? Skeptics See A Repeat Of The Past

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Essential Fintech Reading: Sept 5-11

By Jeff Meredith on Sep 11, 2015 1:29:00 PM

Betterment Enters 401(k) Market, Appealing To Smaller Employers

Topics: Technology
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Essential Fintech Reading: Aug 29 - Sept 5

By Jeff Meredith on Sep 5, 2015 3:38:00 PM

True Advocacy: The Future of Banking

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Essential Fintech Reading: Aug 22-28

By Jeff Meredith on Aug 28, 2015 2:10:00 PM

Community Banks: Adapt Or Perish?

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Essential Fintech Reading: Aug 15-21

By Jeff Meredith on Aug 21, 2015 3:57:00 PM

Mondo Takes On The Old Guard Of UK Banking
Bloomberg details the plans of Mondo, a mobile-first bank that is seeking a license from the Bank of England to begin taking deposits and lending money. In the past the approval process was lengthy and had substantial capital requirements but new entrants like Mondo can now hold as little as £1 million in capital initially and common equity Tier 1 capital equivalent to 4.5 percent of risk-weighted assets, less than half of what an existing bank would require. Mondo is part of a flourishing fintech scene in the UK, where startups attracted £343 million last year, triple the amount raised in 2013. Mondo's mobile app allows customers to receive alerts when they're close to overdrawing their account and will even offer loans instead of charging them fees in that scenario.

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Essential Fintech Reading: Aug 8 - 14

By Jon Ogden on Aug 14, 2015 3:12:00 PM

Why Fintech Is One of the Most Promising Industries of 2015
Maria Aspan writes about how much the fintech industry has skyrocketed lately — especially the subset of peer-to-peer lending. The essential quote for bankers to pay attention to comes from Kabbage CEO Rob Frohwein. "We're just at the beginning of this renaissance in alternative lending," he says, "and I look forward to the day it's not called alternative." That's the attitude of these rival fintech players, and it's an attitude bankers need to treat seriously.

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Essential Fintech Reading: Aug 1-7

By Jeff Meredith on Aug 7, 2015 3:24:00 PM

How Can Banks Confront Digital Disruption?

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Essential Fintech Reading: July 25 - 31

By Jeff Meredith on Jul 31, 2015 3:42:00 PM

PFM Adoption Driven By Frontline Staff, Deeper Integration Across All Channels

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Essential Fintech Reading: July 18 - 24

By Jon Ogden on Jul 24, 2015 5:13:00 PM

The theme for this week’s Essential Fintech Reading is related to a recent event hosted by MX called the Fintech Festival. During this content-packed educational event, attendees discussed how technology innovators are changing the financial services landscape. The preeminent thought that attendees left with was that financial institutions and fintech companies can work together to produce better results than either could alone. Some industry leaders agree, as can be seen in this week’s collection of fintech reading.

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Essential Fintech Reading: July 11 - 17

By Jeff Meredith on Jul 17, 2015 5:06:00 PM

Banks Hand Fintechs The Keys To Keep Up, Expose APIs

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Essential Fintech Reading: July 4 - 10

By Jeff Meredith on Jul 10, 2015 5:32:00 PM

J.D Power: Mid-Size Banks Need To Spend More On Digital

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Essential Fintech Reading June 27-July 2

By James Hodges on Jul 2, 2015 10:44:00 PM

Mobile Mobile Banking Chase Usage Study

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Essential Fintech Reading: June 20-26

By Jon Ogden on Jun 26, 2015 6:18:00 PM

The Bank as Life Coach: The Quest for 'Everyday Banking'
Mary Wisniewski outlines about the concept of "everyday banking," which she says may very well become the norm moving forward. She says, "the idea is that rather than interacting with customers only when they ask to store or move money, the bank becomes their round-the-clock financial advisor, almost a life coach." Bradley Leimer adds, "We are just starting to chip at the surface of what a bank will look like in the coming decades." See our interview with Leimer here.

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Essential Fintech Reading: June 13 - 19

By Jon Ogden on Jun 19, 2015 6:39:00 PM

The Great Bank Debate: Live Recording
This week featured what may have been the biggest debate in fintech history, as Brett King and Robert Tercek teamed up against Michal Panowicz and Ron Shevlin to argue about whether the future will be owned by banks or fintech companies. King and Tercek placed their bets on fintech companies, while Panowicz and Shevlin defended the banks. Both sides made compelling points, and honestly, the truth probably lies somewhere in the middle. The future will likely be owned by a consolidated number of bank/fintech conglomerates. For more about the debate, see Bank Innovation's writeup.

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Essential Fintech Reading: June 6 - 12

By Jon Ogden on Jun 12, 2015 6:48:00 PM

It's been another fine week of fintech writing! Check out five highlights below.

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Essential Fintech Reading: May 30 - June 5

By Jon Ogden on Jun 5, 2015 11:02:00 PM

 

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Essential Fintech Reading: May 23 - 29

By Jon Ogden on May 29, 2015 9:50:00 PM

Mary Meeker's Deck on 2015 Internet Trends
Anyone interested in the state of fintech should click through these slides to learn the latest Internet trends:

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Essential Fintech Reading: May 16 - 22

By Jon Ogden on May 22, 2015 9:28:00 PM

 

Banking Needs To Put Emotion Into Customer Experience
Duena Blomstrom asserts that when banks and credit unions focus on products instead of emotional needs, they miss the point. Consumers want something that will help them on an emotional level. She says, "People don’t ‘need’ products. They don’t have a checking or current account ‘need’. Consumers have Physiological and Safety needs that these products satisfy. Consumers also don’t have loan ‘needs’, but instead have Belonging, Esteem and Self Actualization needs that a loan would satisfy."

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Essential Fintech Reading: May 9 - 15

By Jon Ogden on May 15, 2015 12:57:00 PM

FinovateSpring 2015 Best of Show Winners Announced
Attendees at FinovateSpring this week witnessed the latest in the world of fintech. By showcasing smart credit cards, money management, data storage solutions and more, Finovate once again upheld its standard of being the best place to be to learn more about financial technology.

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Engagement Leads to Being the Prime Bank — An Interview with Mark Schwanhausser

By Jon Ogden on May 12, 2015 11:24:00 PM

We talked to Mark Schwanhausser, Javelin's Director of Omnichannel Financial Services, about why engaging account holders is critical to becoming the primary financial institution.

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Now That Consumers Can Bank Anywhere, Why Would They Choose You?

By Jon Ogden on May 12, 2015 11:20:00 PM

This is an excerpt from an article we wrote for The Financial Brand. Read the full piece here.

Topics: Design
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Essential Fintech Reading: May 2 - 8

By Jon Ogden on May 8, 2015 5:40:00 PM

 

The Fintech Revolution: A Wave of Startups Is Changing Finance—For the Better
The Economist gives one of the best rundowns I've ever read on why fintech companies are improving the finance industry. They say that fintech disrupters will 1) cut costs for consumers, 2) create new ways of assessing risk, and 3) diversify the landscape. They conclude with this powerful statement: "The bigger effect from the fintech revolution will be to force flabby incumbents to cut costs and improve the quality of their service. That will change finance as profoundly as any regulator has." If you're interested in how fintech companies will alter the industry, this is certainly essential reading.

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Essential Fintech Reading: April 25 - May 1

By Jon Ogden on May 1, 2015 12:06:00 AM

Design Is The New Differentiator In Mobile Banking
Sandeep Sood, CEO of Monsoon Company, talks about how getting design right is crucial to a good banking experience.

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Essential Fintech Reading: Apr 18 - 24

By Jon Ogden on Apr 24, 2015 6:20:00 PM

 

Bank Deals for Digital-Design Firms Highlight New Mobile Priorities
American Banker's Mary Wisniewski says that a string of recent collaborations between banks and design firms indicates that design is becoming more and more critical to the banking industry. She says, "Once regarded by some as trivial, design is becoming central to banks' efforts to differentiate themselves on mobile and other electronic platforms."

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Essential Fintech Reading April 11-17

By James Hodges on Apr 17, 2015 4:20:00 PM

BBVA acquires leading user experience firm Spring Studio

The UX acquisition spree continues. Financial Institutions are finding it increasingly difficult to keep up with consumer expectations in a digital world and thus relying on outside expertise to bring them up to speed.

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Essential Fintech Reading: April 4 - 10

By Jon Ogden on Apr 10, 2015 2:29:00 PM

BBVA Compass goes live with real-time payments
As reported on the Dwolla blog, BBVA Compass is ready for real-time payments. Waiting three days for funds to clear will soon be part of the past.

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Essential Fintech Reading: March 28 - April 3

By Jon Ogden on Apr 3, 2015 12:00:00 AM

Fico targets underbanked with alternative credit scoring system
Finextra outlines Fico's new scoring method, which is based on property records, telecommunications and utility information:

Topics: Design
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Essential Fintech Reading: Mar 21 - 27

By Jon Ogden on Mar 27, 2015 4:15:00 PM

The Future of Fintech and Banking: Digitally disrupted or reimagined?
This white paper from Accenture details the state of banking as it relates to fintech. In one of their surveys Accenture interviewed 25 banks and found that these financial institutions only feel minimally equipped to face the digital revolution:

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Essential Fintech Reading: Mar 14 - 20

By Jon Ogden on Mar 20, 2015 2:44:00 PM

Facebook Introduces Free Friend-To-Friend Payments Through Messages
Techcrunch's Josh Constine dishes out the details about Facebook's entrance into the world of peer-to-peer payments. The new payments feature gives users the option to connect their debit card and send money to friends without getting dinged with fees. It's potentially a game changer since it's built on what is, for most people, their largest digital network.

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Essential Fintech Reading: March 7 - 13

By Jon Ogden on Mar 13, 2015 11:19:00 PM

On Monday, Apple announced more details about the Apple Watch (and perhaps persuaded some people to start saving for a down payment). Citi, Fidelity, and Mint are the first financial service companies set to release apps specifically designed for the watch, as detailed by Finextra. Users can check their balances with Citi, see the latest stock news with Fidelity, and track their spending with Mint. We suspect that other companies may quickly follow as they see how the Apple Watch performs in the market and as they feel the pressure to compete for user engagement.

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Required Fintech Reading: Mar 1 - 6

By Jon Ogden on Mar 6, 2015 3:07:00 PM

How to Make Consumers Feel Better About Banking
Deidre Campbell, Global Sector Chair for Financial Services at Edelman, showcases marketing data about the financial industry. According to the data, 69% of consumers think that when a financial institution asks for data, they're just asking for their own gain. In fact, of all the industries surveyed by Edelman, financial services does the worst on this front. Consumers don't trust them. As we talked about in a post this week on gathering data for the benefit of account holders, it's a situation that desperately needs to change.

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Required Fintech Reading: Feb 21-27

By Jon Ogden on Feb 27, 2015 3:03:00 PM

The fintech scene is so hot, it's boiling
Chris Skinner of the Financial Services Club illustrates how hot fintech is right now. As proof, he shows this image from Venture Scanner.

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Required Fintech Reading: Feb 14-20

By Jon Ogden on Feb 20, 2015 3:14:00 PM

Big Banks Deliver Mobile Shopping Features
Sicily Axton shares the latest efforts of the big banks to engage with consumer lifestyles.

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Required Fintech Reading: Feb 7 - 13

By Jon Ogden on Feb 13, 2015 3:16:00 PM

Our weekly Required Fintech Reading curates the best fintech pieces of the week so you don't have to go digging for them on your own. Enjoy!

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Required Fintech Reading: Feb 1 - 6

By Jon Ogden on Feb 6, 2015 11:10:00 AM

Half of the world's banks set to fall by the digital wayside - BBVA
BBVA CEO Francisco Gonzalez predicts sweeping changes in the banking industry with the rise of digital technology.

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Handling the Generation Gap in Banking Part II: Millennials

By James Hodges on Feb 3, 2015 2:53:00 PM

In Part I of this post, I said that as Boomers get closer to retirement, Gen X & Gen Y (Millennials) are becoming the driving force behind the economy.

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Required Fintech Reading: Jan 24 - 30

By Jon Ogden on Jan 30, 2015 3:27:00 PM

Over 200+ PowerPoint Infographics For Financial Marketers
The Financial Brand released an enormously useful repository of charts this week. If you're interested in anything related to the financial industry, we recommend that you download and look through them all. There's likely not a quicker way to understand the state of banking.

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Required Fintech Reading: Jan 17 - 23

By Jon Ogden on Jan 23, 2015 3:45:00 PM

Bill & Melinda Gates' Next Target: Banking
CNN Money comments on the Gates' decision to make banking one of four exciting breakthroughs in their annual letter.

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Handling the Generation Gap in Banking Part I: Baby Boomers

By James Hodges on Jan 23, 2015 3:31:00 PM

Unless you've been dormant for the last decade, it's pretty clear to all of us that there's a significant demographic shift occurring with consumers.

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How Banks Can Delight and Retain Millennials

By Jon Ogden on Jan 21, 2015 5:47:00 PM

Millennials demand a better mobile experience than they're typically getting from their financial institution. If banks don't improve their mobile offerings, Millennials will look elsewhere. Here's what banks can do.

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The Best Financial Brand Charts for 2015

By Jon Ogden on Jan 21, 2015 3:38:00 PM

Today The Financial Brand released a repository of over 200 banking charts. It's a useful collection not just for marketers (as their headline declares) but for everyone who's involved with banking at any level — bank executives, fintech folks, tellers, etc. Everyone. We recommend that you download the full set of charts.

Topics: Design
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Required Fintech Reading: Jan 10 - 16

By Jon Ogden on Jan 16, 2015 3:48:00 PM

What is 'fintech'?
Chris Skinner of the Financial Services Club gets to bottom of what fintech is all about.

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Required Fintech Reading: Jan 3 - 9

By Jon Ogden on Jan 9, 2015 5:50:00 PM

Banks must up digital game to win over millennials - BBVA Compass
Finextra previews a report from BBVA on how to win millennials.

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2015: Top Banking Priorities

By Jon Ogden on Jan 8, 2015 5:52:00 PM

With so much pressure in the banking industry it can be hard to know what financial institutions should make their top priority in 2015. Should they focus on compliance? Back-end technology? Customer service? All of the above?

Topics: Design
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Required Fintech Reading: Dec 20 - Jan 2

By Jon Ogden on Jan 2, 2015 3:56:00 PM

Didn't follow fintech news during the holiday break? Here's a recap of the best articles you may have missed.

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Lessons from Snarketing 2.0 on How Banks Can Do Content Marketing Right

By Jon Ogden on Dec 30, 2014 4:14:00 PM

This week Ron Shevlin of Snarketing 2.0 announced that his blog will soon become a regular column on The Financial Brand. It’s exciting news because as anyone in the industry knows, Snarketing 2.0 and The Financial Brand publish the best stuff out there on bank marketing, and now they’ll be better together.

Topics: Marketing
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Required Fintech Reading: Dec 13 - 19

By Jon Ogden on Dec 19, 2014 5:04:00 PM

Top 10 Retail Banking Trends and Predictions for 2015
Jim Marous gives an all-encompassing view on what leaders in financial services say we should expect in 2015.

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Banking on Big Data: 5 Essentials for Bankers [Infographic]

By Jon Ogden on Dec 15, 2014 5:12:00 PM

According to a recent study from Gallup Research, over half (53%) of fully engaged customers have received an ad from their primary bank for a product they already had. In the age of targeted marketing, sending general blanket ads to account holders just won't cut it.

Topics: Technology
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Required Fintech Reading: Dec 6 - 12

By Jon Ogden on Dec 12, 2014 5:23:00 PM

For The First Time, A Majority Of US Online Banking Customers Access Their Accounts On Smartphones And Tablets
John Heggestuen on the rise of mobile at the top three US banks.

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Comparing 9 Mobile Prototyping Tools Every Designer Should Consider

By Dave Crow on Dec 10, 2014 11:18:00 PM


Topics: Design
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Required Fintech Reading: Nov 29 - Dec 5

By Jon Ogden on Dec 5, 2014 11:18:00 PM

Fintech CEOs' Candid Advice, Bold Predictions for 2015 [Slideshow]
American Banker presents a series of quotes from fintech CEOs. Here's one from Jeff Yabuki of Fiserv:

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The Shift to Targeted Ads Has Already Hit, and It's Time for Banks to Catch Up

By Jon Ogden on Dec 4, 2014 7:31:00 PM

Amazon, Google, and Facebook have changed the way consumers think of advertising. Generalized offers (say, the kind blasted out to a newspaper’s entire readership) used to be acceptable. Now they’re not. Today’s consumers expect ads that are personal and directly relevant for them. They’re accustomed to digital companies that look at aggregated and anonymized user data and create targeted offers based on that data.

Topics: Marketing
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Required Fintech Reading: Nov 22 - 28

By Jon Ogden on Nov 28, 2014 11:27:00 PM

 

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Required Fintech Reading: Nov 15 - 21

By Jon Ogden on Nov 21, 2014 11:27:00 PM

Go Digital, but Don't Forget Banking's Human Factor
Mikkel B. Rasmussen tells why considering a user's humanity still matters in the digital age.

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The Best Way to Stand Out in Banking: Think Like an Account Holder

By Jon Ogden on Nov 21, 2014 6:02:00 PM

Earlier this week MX sponsored the inaugural Sundance Fintech Festival, with presentations from Mark Schwanhausser, John Best, Ryan Caldwell, Matt West, Dan Rosen and others.

Topics: Design fintech
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Required Fintech Reading: Nov 8 - 14

By Jon Ogden on Nov 14, 2014 2:58:00 PM

Digital banking must go beyond transactional to personalised
@Finextra explains why a check-the-box digital solution won't cut it anymore.

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Required Fintech Reading: Nov 1 - 7

By Jon Ogden on Nov 7, 2014 7:29:00 PM

Money20/20 Highlights, Day 1 and Day 2
Perficient's @Elizabeth Dias summarizes this week's Money20/20 conference. If you missed the conference, this is a good place to turn.

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Required Fintech Reading: Oct 25 - 31

By Jon Ogden on Oct 31, 2014 11:12:00 PM

 

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Fintech Book Review: Chris Skinner's Digital Bank

By Jon Ogden on Oct 30, 2014 3:04:00 PM

A Guide For Bankers in Tumultuous Times

Last week the chairman of Lloyd’s Banking Group warned that the financial industry will see more changes in the next 10 years than it has seen in the last 200 years.

Topics: Marketing
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Game of Loans: Become the HBO of Digital Banking

By Preston Wittwer on Oct 27, 2014 6:08:00 PM

Big Announcements from the Video Industry

Topics: Design
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Required Fintech Reading: Oct 20-24

By Preston Wittwer on Oct 24, 2014 11:16:00 PM

 

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Required Fintech Reading: Oct 13-17

By Preston Wittwer on Oct 17, 2014 10:16:00 PM

Banks Need to Move at the Speed of Innovation
Banktech’s @Mike Strange on the best ways to stay on top of account holder expectations: innovate, experiment and find technology partners.

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Book Review: Why Every Banker Should Read Brett King's Breaking Banks

By Jon Ogden on Oct 15, 2014 6:15:00 PM

Before reading Breaking Banks I'd read Brett King’s earlier books (Bank 2.0 and Bank 3.0) and listened to many of the Breaking Banks radio segments. As a result, I was initially hesitant to dig into this latest work, assuming it'd just be a repeat of what I’d read and heard before. However, I quickly realized that the content of this book was fresh and current — relevant for the year 2014.

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Required Fintech Reading: Oct 4-10

By Preston Wittwer on Oct 10, 2014 3:07:00 PM

This week we saw extended debate about the fluctuating future of the financial industry. How is the digital age changing banks and credit unions? What should financial institutions do with their legacy systems? One proposed solution, supported numerous times in this week's stories, is for financial institutions and fintech startups to collaborate for the good of account holders.

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How (Some) Banks Will Stay on Top as the Industry Consolidates

By Jon Ogden on Oct 8, 2014 5:35:00 PM

In his latest piece, “Sorry, but Disruptive Technology WILL Kill Banks,” JP Nicols takes issue with a Financial Times article that downplays the role of technology in banking.

Topics: Marketing
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Required Fintech Reading: Sept 29-Oct 3

By Preston Wittwer on Oct 3, 2014 7:20:00 PM

Bigger Challenges & New Priorities Face Banking Industry
The Financial Brand’s @Jim Marous on the current period of unprecedented structural change facing the financial services industry.

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3 Words to Win Millennials: Better. Mobile. Banking.

By Jon Ogden on Sep 30, 2014 6:35:00 PM

We’ve said it before and it bears repeating: Millennials like mobile banking. They’re comfortable with it, they like the convenience it provides, and they’re willing to switch banks to get the mobile experience they’re after.

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How All 7 of This Year's FinovateFall Best of Show Winners Hit the Mark With Innovation and Utility

By Jon Ogden on Sep 26, 2014 7:10:00 PM

The Winners

Topics: Marketing
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Required Fintech Reading: Sept 22-26

By Preston Wittwer on Sep 26, 2014 6:51:00 PM

Recaps from FinovateFall 2014:

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Behind the Scenes: Designing a Banking App for Any Device

By Jon Ogden on Sep 23, 2014 7:20:00 PM

As Brett King says, “banking is no longer somewhere you go, but something you do.” This sentiment reflects why account holders increasingly demand a consistent banking experience across devices and platforms. However, as anyone who has worked on a cross-platform app knows, building a consistent experience across channels is a challenging problem to solve. More devices are entering the market every week, and each device comes with its own challenges. 

Topics: Design
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10 Things You'll Learn at FinovateFall

By Jon Ogden on Sep 22, 2014 7:25:00 PM

This is a guest post from @Julie Schicktanz, a researcher and blogger for Finovate. Follow @Finovate for real-time news about FinovateFall 2014.

Topics: Technology
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To Grow Your Profits, Shrink Your Branch

By Preston Wittwer on Sep 19, 2014 7:45:00 PM

When most people are asked whether they think there will be more or fewer bank branches five years from now, the safe bet is on answering fewer. One interesting way to change the question is to first ask whether bank branches will be bigger or smaller in the future.

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Required Fintech Reading: Sept 15-19

By Preston Wittwer on Sep 19, 2014 7:35:00 PM

 

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Required Fintech Reading: Sept 8-12 (Apple Pay Edition)

By Preston Wittwer on Sep 12, 2014 7:51:00 PM

Clearly, this week's topic was Apple Pay. Are you curious about how Apple's new product will affect banks and credit unions? We've gathered the info you need to stay in the know.

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Required Fintech Reading: Sept 1-5

By Preston Wittwer on Sep 5, 2014 7:57:00 PM

 

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Required Fintech Reading: Aug 25-29

By Preston Wittwer on Aug 29, 2014 8:05:00 PM

 

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Banking 100 Years Ago Versus Banking Now

By Jon Ogden on Aug 28, 2014 8:38:00 PM

Banking in 1914

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Required Fintech Reading: Aug 18-22

By Preston Wittwer on Aug 22, 2014 10:40:00 PM

Banks and disintermediation, Part One and Part Two and Part Three
Financial Services Club Blog by @Chris Skinner reminds us all that this isn't the first time the future of the financial industry has been threatened, but is quick to point out the big changes that reshaped the business model.

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Bitcoin: In Search of the Mainstream

By Jon Ogden on Aug 22, 2014 9:01:00 PM

Full disclosure: The author works at Visa, but the views herein are his own and do not represent his employer. The author also owns some Bitcoin. Follow him on Twitter at @ggollerk.

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Marketing Advice for Fintech Start-ups: Know Your Customer First

By Jon Ogden on Aug 20, 2014 9:21:00 PM

This is a cross post, republished with permission. Follow Eric Dunstan on Twitter (@ericdunstan) or through his blog at http://ericdunstan.com.

Topics: Marketing
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Required Fintech Reading: Aug 11-15

By Preston Wittwer on Aug 15, 2014 11:31:00 PM

 

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Tech Giants, P2P Lending, and How Banking Will Change Forever

By Jon Ogden on Aug 14, 2014 9:50:00 PM

The Current Conversation

The anxiety is building over whether a tech giant like Google, Amazon, or Facebook will enter the banking industry.

Just last week, two major articles on the topic surfaced — one from Philippe Gelis, CEO at Kantox, and one from Jim Marous, editor at The Financial Brand. Both articles received considerable attention on LinkedIn and Twitter.

Gelis asserts that the tech giants won’t enter the core banking business of accepting deposits and originating loans because 1) they already have more profitable business models than banks do, 2) they despise the regulatory morass the banking industry is stuck in, and 3) they like to scale fast, and banking doesn’t allow for that.

Marous agrees with Gelis that low profitability and high regulations are a hurdle to the tech giants, but he also draws a careful distinction between “becoming a bank” and “entering banking.” He says that while it’s true that tech giants have strong disincentives for officially becoming banks, they could enter banking at the edges — through the form of payment services, prepaid cards, merchant services, etc. Indeed, there’s evidence with Google Wallet, Amazon Wallet, and Facebook Payments that these companies are already thinking this far ahead. They’re starting to eat at the edges of banking.

Both of these articles present astute analyses on the banking industry. Low profitability and high regulations are legitimate deterrents for tech giants, and there absolutely is a big difference between becoming a bank and entering banking.

That said, there is one area that deserves additional attention when it comes to analyzing how the tech giants could enter the industry.

Peer-to-Peer Lending
At its core, retail banking is about connecting groups of people. Banks and credit unions are intermediaries that take deposit money and use it to offer loans at interest. That’s the core of the business model — it rests on connecting people.

With the advent of the Internet, industries that connect people have changed forever. For example, Amazon altered the book industry, Airbnb changed the hotel industry, and Uber upended the taxi industry.

Here’s what’s going on, in the simplest terms:

  • Amazon connects people who want a book to people who need a book
  • Airbnb connects people who have a room to people who need a room
  • Uber connects people who have a car to people who need a car ride

It’s all about connecting people. The moment it was possible for someone in Tennessee to order a book from Seattle and get it shipped to them for cheap, the need for a physical bookstore in Tennessee started to diminish. Likewise, once it was possible for riders to connect to a driver via phone, the need for a traditional taxicab started to fade. By making global connection easy, the Internet is eliminating traditional methods of intermediation.

Banks and credit unions should take note.

This week Harvard Business Review wrote a piece on the rise of lending technologies. It says that these technologies — powered by companies like Prosper, Square Capital, Funding Circle, Lending Club, and Fundera — have already started to eat into the small business and personal loan market.

So here’s what’s crucial for banks and credit unions to consider: These lending companies are connecting people who want to invest with people who want a loan, and that alone means that traditional intermediaries are in trouble.

Right now, peer-to-peer lending is insignificant in the grand scheme, but what happens when a tech giant acquires one of these companies? And the tech giant doesn’t necessarily have to be Google, Amazon, or Facebook. It could be one of the major US banks (which are becoming tech giants in their own right), it could be Wal-Mart, or it could be someone totally new to the scene. In fact, it could even be a forward-looking community bank or credit union.

However it happens, the very fact that peer-to-peer lending technology exists and is already being used signifies that the core of the banking industry will likely be upended — just like the core of other industries has been.

To see how real this possibility is, look at this ad from Mint.com showing a partnership with Lending Club:

Mint has teamed up with Lending Club — a potential threat to traditional banking.

There you go. If I’m a Mint user, I could already be bypassing my bank or credit union to get a small business loan or an auto loan. That should wake financial institutions up to the fact that Mint is a major competitor to them, and it should wake the bigger banks up to idea that peer-to-peer lending could eventually expand to include larger loans.

It’s really not outside the realm of possibility for peer-to-peer lending to eventually become the norm. I mean, if I’m from Tennessee and I’m looking for a good rate on a loan, why do I care what state the money comes from? If a company like Lending Club can get investors from Seattle or Maine or Texas and offer a better rate, I’ll be tempted to take the offer. And once Lending Club grows bigger or gets acquired by a tech giant it will become an instant threat to the traditional banking business model.

The Future

Of course, the concerns that Philippe Gelis and Jim Marous brought up in their articles still hold sway. Profitability is low and regulations are high. Peer-to-peer lenders will likely soon enough find themselves wading through regulatory sludge and they will discover, if they haven’t already, just how difficult it is to enter banking. But the fact that the technology exists means that banking, like almost every other industry, will never be the same. Banks and credit unions can either adopt these new technologies or find themselves irrelevant soon enough. At this point, it’s only a matter of time before banking changes forever.

“Some bankers and analysts think that Google, Facebook, Amazon or the like will not fully enter a highly regulated, low-margin business such as banking. I disagree. What is more, I think banks that are not prepared for such new competitors face certain death. "

— Francisco Gonzalez, BBVA chairman and CEO
 
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Required Fintech Reading: Aug 4-8

By Preston Wittwer on Aug 8, 2014 10:36:00 PM

Google, Apple, Facebook and Amazon Should Terrify Banking
The Financial Brand’s @Jim Marous pits the finance industry against the tech world and explains the threats to banks and credit unions.

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Required Fintech Reading: July 28-Aug 1

By Preston Wittwer on Aug 8, 2014 2:26:00 PM

Why Other Industries May Gun for Banks
Bank Tech’s Arjun Sethi on the bullseye on the finance industry’s back drawing numerous challengers.

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Ideas Are Not Real: Part 1

By Jon Ogden on Aug 1, 2014 10:57:00 PM

The more software design I do, the more I realize that people need to be able to see and touch something to truly understand an idea. Trying to convey ideas by words alone is difficult for many reasons, but is especially hard because ideas are not real.

Topics: Design
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Digital Banking Trends: A Synopsis of 4 Surveys

By Jon Ogden on Aug 1, 2014 10:17:00 PM

The state of digital banking is in flux like never before. It has only been five years since Bank of America launched the first mobile banking app on the iPhone, and users are now demanding new functionality faster than financial institutions can typically provide it. Today, users want a powerful digital experience, and they’re willing to switch banks to get it.

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MoneyMinute: Mark Schwanhausser

By Preston Wittwer on Jul 28, 2014 2:42:00 PM

Topics: Marketing
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Required Fintech Reading: July 21-25

By Preston Wittwer on Jul 25, 2014 11:20:00 PM

 

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Financial Institutions Unprepared for Digital Future

By Jim Marous on Jul 23, 2014 10:26:00 PM

This post was originally published on The Financial Brand. Read the full piece (with charts) there — and follow Jim Marous on Twitter.

Topics: Marketing
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Required Fintech Reading: July 14-18

By Preston Wittwer on Jul 18, 2014 9:14:00 PM

 

J.P. Morgan says mobile banking jumps 23% in second quarter
Wall Street Journal Market Watch's @Sital S. Patel on the most visited banking portal in the U.S.

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How to Win Back Millennial Haters

By Preston Wittwer on Jul 16, 2014 2:13:00 PM

Recently, Fast Company published an article titled “Sorry Banks, Millennials Hate You.” The article highlights a three-year study from Scratch about disruptive and transformative industries, with a primary focus on the financial services industry. The subjects in the research were described as millennials, a term used to define those born between 1981 and 2000. What’s most interesting is the one word Fast Company used to sum up how millennials feel about banks — hate.

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Bitcoin Self Regulation Required to Increase Adoption

By Jon Ogden on Jul 9, 2014 11:05:00 PM

I remember debating the benefits and dangers of the Euro during a Macro Econ class just as the currency was being rolled out. One of the benefits of the Euro is the ability for consumers to pay for goods and services with one common currency significantly reducing costly currency exchange fees. Clearly if you are a citizen of a less economically powerful country, like Greece for example, the Euro is a big boon. All of a sudden your previously lower valued currency is a moot point and you know have equal buying power as someone from a strong country such as Germany. However, there in lies one of the biggest problems with the Euro. Countries of lower economic strength are now at currency parity with stronger countries….at the expense of the most economically strong. Yes, I understand I’m simplifying the issue, but therein lies a real economic problem.

Topics: Technology
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The Power of Big Data and Account Aggregation in the Digital Banking Revolution

By Jon Ogden on Jul 7, 2014 11:09:00 PM

Last week I bought some Stance socks on Amazon, and you know what showed up on my screen the next time I signed in?

Topics: Technology
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Why MoneySummit?

By Jon Ogden on Jul 1, 2014 4:14:00 PM

Welcome to Money Summit — a hub for all things related to fintech.

Topics: Marketing
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