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


Zelle, the real-time Venmo competitor backed by over 30 U.S. banks, arrives this month — Sarah Perez, TechCrunch

This week, some of the nation's biggest banks and credit unions launched Zelle, a p2p payment platform that enables users to transfer money even faster than what Venmo, Square Cash, or PayPal allow for (we're talking minutes instead of days). More than 86 million end users will have access to Zelle and will be able to search for other users via phone number or email address. 


Santander's Openbank relaunched as 100% digital bank — Finextra

Openbank started as a phone-based banking system in Spain, and it has since undergone a complete revision and is set to launch as a digital bank. Everything — from the onboarding process to account maintainence — will be done online. Though the current focus is in Spain (with a goal of acquiring 30 million customers over the next year), it may expand to include other countries.


BofA Says $53 Billion Expense Target Is Just the Beginning — Hugh Son & Jennifer Surane, Bloomberg

Bank of America aims to cut spending from $57.7 billion in 2015 and $55 billion last year to $53 billion this year. But the bank has plans to go even further. CEO Brian Moynihan proposed a series of questions that are on his mind, including, “How much technology can we do that replaces people? How many things do we have that we can use it? How much big data can we use that helps us target better and not waste our time on certain things?”


Banking Industry Faces a Customer Experience Paradox — Jim Marous, The Financial Brand

Jim Marous writes in The Financial Brand about the disconnect between what bankers say is effective and where they spend their money. He writes"The paradox exists when we look at the high spending increases anticipated for branch transformation against the low value placed on this strategy."

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The nonbank apps digital bankers love — Robert Barba, American banker

American Banker's Robert Barba summarizes a conference panel where bankers outline their inspiration and implement changes because of it. Barba writes that "[BofA] saw a 30% increase in new savings accounts in one month when it streamlined the application for existing customers down to one page."


Data Should be Held Back from Consumers, Says Treasury Report —  PYMNTS

"The Financial CHOICE Act, which was approved along party lines recently, has a stipulation that the CFPB cannot publish consumer data about the complaints that are filed by consumers against various entities, from banks to debt collectors, among others."


Fintech that is advancing banking operations — The Telegraph

“Continued margin pressure and mounting costs are forcing banks to re-examine their operations in an attempt to improve levels of efficiency. Taskize is a problem-solving network for banking operations and a gateway to artificial intelligence and machine learning in the back office.”