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