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Required Fintech Reading: Aug 25-29


Banking on Demand Part One, Part Two, Part Three and Part Four
Next Bank’s @Chris Skinner on how the re-engineered financial supply chain is the biggest disruptor of all in the financial space.

“Most big banks believe they have to be responsible for everything across all parts of the map. They have to manufacture, process and deliver all financial products and services in all markets: retail, commercial and investment banking. That model was broken years ago and is haemorrhaging today, as more and more players nibble at the pieces of the map. The new players specialise in each area and do it better.”

The Digital Divide - The Difference Between Banking Opportunity and Failure
OmniChannel & Digital Banking’s @David Gibbard responds to the Credit Union Management piece “Seven steps to success with your largest ‘branch.’”

“Here is the problem. The subheading, Seven steps to success with your largest 'branch' implies that digital channels are another form of a branch. In fact, the largest branch. That is the approach most credit unions and banks take today. They consider digital banking as another branch or an extension of the branch network. That perspective will result in digital banking channel failure.” 

Financial Services Startups: What in it for the banks?
Computer Weekly's @Karl Flinders on the relationship between fintech and banks.

"There has been a paradigm shift in banking IT. No longer does everything need to be built in-house. Third-party suppliers are seen as viable for even the most core IT systems. But it is the digital revolution that is driving the biggest change."

Mobile Banking Not Keeping Pace with Digital Growth
The Financial Brand’s @Jim Marous on how FIs are slowly responding to increasing mobile and digital banking consumers.

“To effectively keep pace with the demands of the mobile consumer, institutions need to determine where they want to be on the spectrum of being a ‘Digital Bank.’ There is no single perfect answer, since each organization has their own unique competitive set, internal strengths and weaknesses and customer/member base. ‘Following the herd’ or taking a ‘wait and see’ approach could be a road to disaster in an industry being impacted by increased consumer demands and expanded competitive options.” 

Banks Are Not the Yardstick for Digital Customer Experience
Bank of the West’s Jamie Armistead on what Google can teach banks about digital development.

"Having spent nearly 20 years entrenched in Web and mobile for banks, I understand the legal and compliance hurdles and antiquated backend systems that make delivery particularly difficult. As a result, we tend to have a culture of: 'Design it once and we’re done.' Contrast that with Google’s relentless focus on its suite of mobile apps." 

Our Sources Say the Next iPhone Will Include NFC Mobile Payments
Wired’s @Christina Bonnington on the potentially massive impact of Apple launching a payments program.

“Apple is in the perfect position to launch its own mobile wallet. The Cupertino company has a vast trove of credit cards already on file thanks to iTunes (over 800 million, in fact), and a huge pool of potential users, thanks to the millions of iOS devices out there. And mounting evidence has indicated that the company is investing in such an endeavor.”

Banking in 1914 vs 2014: Nothing Is Different, But Everything Has Changed
Money Summit’s @Jon Ogden on what 1914 economist William Scott’s definition of the four main banking services means in 2014.

"In his book, Scott outlined the four main services that commercial banks performed:

  1. The safekeeping of money and other valuables
  2. The making of payments
  3. The making of loans
  4. The making of investments

Some bankers might look at that list and feel assured that nothing is different today. And in a sense, they're right. The services outlined by Scott are pretty much the same in modern banking. But the methods for performing each of these services has changed — and as a result everything has changed."