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


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.

Here's what else has been going on:

5,300 Wells Fargo employees fired over 2 million phony accounts

Wells Fargo was in the hot seat this week because thousands of their employees opened phony accounts, moved their customers' money to the new accounts without the customers' permission, and then charged those customers overdraft fees when the original account dropped below zero. Why did the employees do this? To exceed their quotas for account openings. Wells Fargo has fired 5,300 employees in the aftermath.


MIT released a document about the rise of digital banking. In it they cover three waves of digital banking: 1) the incrementalists 2) digital hybrids 3) digital natives. The question is, what are the requirements for a bank to truly be considered a digital native? They show some of the answers in this chart:


Moving from a Reactive to Proactive Digital Culture

This article from The Financial Brand addresses a long-standing problem that banks and credit unions face in becoming a truly digital bank: Short-term thinking, driven by quarterly results. That is, bankers need to focus on proactive measures that might even be painful for the next few years if they want to lay the foundation to become a digital bank.