IBM released a report about the enormous costs of poor data — $3.1 trillion yearly in the US alone. These costs surface when data is incomplete, incorrect, or outdated, and they stem from communication breakdown between various employees and departments, as illustrated below:
Penny Crosman argues that fraud detection technology isn't just about protecting a bank from outside attacks, but that it can also help banks and credit unions save themselves from the kind of headache Wells Fargo is currently suffering from. She shows how algorithms that contrast normal behavior from abnormal behavior could be one way to solve these problems.
BancVue's John Waupsh says that financial institutions need to get away from defensive questions and start proactively focusing on growth instead. This includes thinking about scale, target audiences, which products to cut, and more.
Are Banks Still Relevant?
Jeffrey Pilcher, of The Financial Brand, analyzes a new report from EY showing that while a majority of consumers (75%) still consider a traditional financial institution to be their primary go-to for financial services, many consumers (40%) say that they're no longer as dependent on traditional players as they used to be. This spells trouble for banks and credit unions — possibly indicating that they need to rethink their product offerings.
Nacha, which is funded by financial institutions and manages ACH payments, has now set same day ACH live. Most of the top institutions will implement this change by the end of 2016, according to their estimates.