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.
Deutsche Bank Tech Chief Overhauls 145-Year-Old Global Giant
American Banker's Penny Crossman tells of how Kim Hammonds, CIO at Deutsche Bank, is overhauling the way the bank uses technology. Hammonds is outsourcing the bank's wholesale IT infrastructure to Hewlett-Packard and plans to meet with over 500 tech startups this year. She says, "the goal is to drive more innovation into the bank through developing relationships with the startup companies that help the other end of our business."
Mobility, Millennials & Predictive Analytics in Banking
Ross Wainwright, Global Head of Financial Services Industries at SAP, writes about the importance of updating the industry to meet the needs of the new generation. He says that banks and credit unions should focus on three things: 1) enhancing their mobile apps 2) initiating new programs 3) approaching big data in a new way. "The key to the future for the banking industry," he says, "is finding new ways to acquire, engage and retain consumers who are being lured by non-traditional financial institutions."
"The goal for Bank 1.0 (the traditional or incumbent bank) is to get to a place where you can start to learn and figure things out for yourself. A place where you can learn what works for your customers today and moving forward towards the future. This is the true nature of customer-centricity. Putting your customers needs at the center of a new dynamic digital world."
Banking’s Game Plan for Wearables
Shobhit Mathur, Ajay Yadav and Craig Besnoy of Mindtree walk through the challenges and approaches that banks and credit unions should consider as they build wearable products.
"Before saying no to wearables, the leaders of financial institutions are better off giving them the consideration they merit. While this process is a not a painless one, ultimately wearables will serve industries on a new level of unification. The wearable devices makes the operation more convenient and effective as they are hands free and allow the user to multi-task with phone and the wearable simultaneously." For an example of what these apps might look like, see MX on Apple Watch here.
Beyond Apple Watch: Banks Explore Apps for Other 'Things'
Mary Wisnewieski of American Banker talks about how FIS is experimenting with car banking, Wells Fargo is testing features for Oculus Rift, and USAA has updated their mobile app to include an augmented reality feature that will help homeowners make better buying decisions. As Wisnewiski says, "Financial institutions are testing apps for these mostly mundane devices because they could shake up the way consumers interact with their brands and further bridge the physical with the digital realms. With the experiments, banks are hoping to play a deeper role in consumers' lives."
These are the articles that made our essential fintech reading this week. Are there any that we missed? Let us know in the comments section below.