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Required Fintech Reading: Aug 11-15


Maybe Banks Don’t Have To Innovate
Snarketing 2.0 by @Ron Shevlin looks at definitions for “innovation” beyond technology. @Brad Leimer said of this post, “Best thing I've read all year.”

“One of the things I've learned from writing this blog is that words and their definitions matter. How we define ‘innovation’ here is critical. The constant chorus of calls for banks to ‘innovate’ washes over what I think the Innovation Snobs are really calling for: Banks to change and improve.”

Digital Transformation in Banking Starts With Consumer Needs
The Financial Brand’s @Jim Marous breaks down the CGI study “Understanding Financial Consumers in the Digital Era” to show how “going digital” requires more than just marketing.

“Consumers no longer want to be just a number at their bank or credit union. They expect services to be offered based on what they have done before and what other consumers like them do. ‘Consumers recognize that a bank knows more about them than any other retailer, and they are expecting personalized offers, treatment and schemes. It is no longer acceptable to maintain an anonymous banking relationship,’ stated the CGI research.”

Embracing a Mobile Mentality
Bank Director.com’s Chris Constanzo on what it takes to infuse a financial institution with a mobile-first strategy.

A streamlined method of account opening fits in with the industry’s push toward reduced branch footprints. Banks could even take the show on the road, pushing account openings out to community events, like baseball or football games. Wherever it occurs, the high-tech account-opening process sets the tone for the rest of the relationship. ‘Customers are thinking mobile first,’ [Mitek CTO Mike] Strange says. ‘Banks need to have a process that mimics what customers are looking for.’”

As Facebook Almost Died Over Mobile, Banks Woke Up
The Financial Services Club Blog by @Chris Skinner on what banks can learn from Facebook’s struggle to gain relevance in the mobile space.

"..any industry or marketplace whose products and services can be digitized will see fast cycle change. Is it happening in banking? Yes, to an extent. Banking is just bits and bytes but, until recently, it has depended on a face-to-face engagement for identity management, advice and transactions. Now, those requirements are dissipating. That is why we have seen the digital changes in payments.”

The Absolute Ultimate Guide of Who’s Who in Fintech
Next Bank’s @Duena Blomstrom sorts of her impressive list of fintech thought leaders in categories like The Titans, The Europeans and The (Too) Silent Mega Influences.

“I can’t believe you’re even here reading this considering the abundance of ‘Who’s who’ articles, blogs and quips out there this year but this is the absolute ultimate guide. At least to me. It’s how I saw them. Personally. And I've had it with all these other ultimate guides that are highly subjective! No more. If you are here to find your name on the list and it’s not there, I’m sorry, if it’s any consolation sometimes even the likes of Jim Marous and Chris Skinner find their names missing, hasn't stopped them.”

Tech Giants, P2P Lending, and How Banking Will Change Forever
MoneySummit’s @Jon Ogden on peer-to-peer lending as the possible entry point for the likes of Google or Amazon into the finance industry.

“It’s really not outside the realm of possibility for peer-to-peer lending to eventually become the norm. I mean, if I’m from Tennessee and I’m looking for a good rate on a loan, why do I care what state the money comes from? If a company like Lending Club can get investors from Seattle or Maine or Texas and offer a better rate, I’ll be tempted to take the offer. And once Lending Club grows bigger or gets acquired by a tech giant it will become an instant threat to the traditional banking business model.”

9 Insights for Lasting Banking Relationships with Millennials
@The Financial Brand on how to win millennials in the digital age.

"68% of Millennials use a national bank — Chase, Citi, BofA or Wells Fargo — as their primary financial institution. More Millennials use megabanks than any other generational group (55% for Gen X, and 43% for Boomers). Only 15% use a credit union, while 9% are with a regional bank."