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.
The Fintech 2.0 Paper: Rebooting Financial Services
Santander released a white paper this week that outlines the differences between fintech 1.0 and fintech 2.0. Ultimately, the paper asserts that going forward banks and fintech companies should work together. "If you can't beat them," the white paper says, "you should join them to achieve Fintech 2.0." According to Santander, this united effort will produce a better, frictionless experience for end users.
Goldman Sachs Plans to Offer Consumer Loans Online, Adopting Start-Ups’ Tactics
The New York Times tells the news about Goldman's latest efforts into consumer lending, which should make the ears of competing loan officers perk up. As the Times reports, "Goldman has ambitious plans to offer loans of a few thousand dollars to ordinary Americans and compete with Main Street banks and other lenders." Goldman is teaming up with existing fintech companies to do this, which solidifies the concept that the future belongs to bank/fintech conglomerates.
5 Ways Mint.com Is Stealing Your Customers
Jim Marous of The Financial Brand writes about how Mint's recent growth is terrific for them but detrimental to most banks. Marous walks through an example of a customer who signs up for Mint.com and slowly loses interest in his primary financial institution. In short, Mint is teaming up with a select group of financial institutions and fintech companies to shake up the industry. The article also highlights MX's recent webinar as an example of terrific user adoption.
Mobile Banking Satisfaction Drops As Digital Expectations Rise
Sandeep Sood, CEO of Monsoon Company, gathers data that shows there has been a shift in mobile banking expectations. This chart shows some details that banks and credit unions should be aware of:
This chart perfectly summarizes why banks and credit unions should work with fintech companies to amp up the mobile banking experience.