Let's look into how iOS 11 can change mobile banking and the increasing student loan burden.
With new version of iOS imminent, banks are already sprinting
In September, Apple will be releasing machine learning APIs as part of iOS 11. As a result, financial institutions need to prepare for another app update if they want to fully meet user demands. As American Banker's Brian Eha writes, "The more popular mobile banking becomes, the less choice banks have: They can either stay on the cutting edge or lose market share to companies that do. Forward-thinking institutions have responded by making their digital teams more nimble and responsive to trends."
The share of student loan borrowers owing more than $20,000 has doubled
MarketWatch reveals some startling data about the state of student loans in the U.S. — something to keep an eye on in the years ahead. “The share of student loan borrowers who entered repayment owing $20,000 or more doubled — from 20% to 40% — between 2002 and 2014, according to a report published Wednesday by the Consumer Financial Protection Bureau. What’s more, the share of borrowers entering repayment with $50,000 or more in debt tripled during the same period, the CFPB report found, jumping from 5% to 16%.”
Can't Stop The Crypto-ICO-Music
Brett King writes on LinkedIn about the rise of ICOs (initial coin offerings), which enable cryptocurrencies to quickly raise capital across the globe. As you can see in the chart above, in the past two months, this market went from $300 million to almost $1.8 billion — an increase of nearly six times. King estimates that this sharp increase indicates imminent regulation from governments around the world. "All time funding by ICOs hit $1.8 billion this week," he said, "and with the way it's tracking, I wouldn't be surprised to see that pass $5 billion by year's end. Despite the SEC's Investor Bulletin on ICOs just last month, things aren't slowing, they seem to be speeding up."
Emerging Technologies Outpacing Digital Banking Transformation
As shown in the chart above, The Financial Brand gathered data from PricewaterhouseCoopers highlighting that a majority of financial institutions expect to grow revenue because of their investment in digital technology. Jim Marous says, “The scope and scale of technological change in the banking industry is unprecedented, with many firms falling behind. How equipped are banks and credit unions to handle the technological changes that have occurred – or will soon occur – in the banking industry?”
Leveraging The Power of Behavioral Science in Banking
In his most recent piece featured in The Financial Brand, Jon Ogden gives five examples from various industries that show what actually motivates change in end users. He says, “One of the benefits of advanced analytics and digital technology is the ability to better understand consumer behavior. In financial services, organizations are creating differentiation by using machine learning to assist consumers in managing their financial lives.”
Seeking Banking Balance Between Physical And Digital
For the latest Digital Banking Tracker, PYMNTS speaks with Jamie Armistead, EVP of Digital Solutions for Bank of the West, about how the bank works alongside fintechs to innovate digital and physical capabilities. PYMNTS points to a persisting problem as banks are decreasing the number of branches as they try to find that balance: "Maintaining physical infrastructure, that can be costly, but downsizing locations can risk alienating the customer base. Can banks have it both ways?"
Barclays pairs banking data with third party apps for SmartBusiness Dashboard
Barclays announced a single view that shows business customers a range of information from third-party providers, including bookkeeping, sales and inventory, marketing and analytics and workforce management. Ian Rand, CEO for Barclays Business Banking says the service will help SMEs to manage their cashflow, compare data and make improvements to help sales growth and add in marketing insight while removing the burden of admin.