Shortly after Christmas, I made my semi-annual pilgrimage to the AT&T store to pick up a new phone. As an early adopter of the original iPhone®, I’ve stayed with iOS devices over the years, but I know other manufacturers are producing amazing phones of their own. (This article is not about iPhones, it’s about the technological evolution of user authentication and what that means for financial services. If you’re not an iPhone user, this article is still for you!)
One of the biggest trends in our industry these days is big data. Everything is in the data – it’s right there! Can you see it?
If you are like most community banks, the answer is no. The data you have is powerful. Most businesses would kill to have that kind of access to their client’s information, history, decisions, and behaviors. It’s not for lack of information that your financial institution (FI) may struggle with regulatory compliance issues surrounding AML and fraud compliance. It’s for lack of correlation of that information.
According to a recent study by the
Group, the average person receives 121 emails a day while sending 40 emails in the same time span. There is no doubt that more people are competing for our time each year. This can often lead to a sense of overwhelming stress in our
when we cannot seem to keep pace with the glut of information we face every day.
Small Business Market,
While commercial and industrial loan volume has increased annually during the past five years, the rate of increase has continued to decline. That trend is likely to reverse in 2018. Five specific factors are in play that will cause a more robust increase during the year.
Trend (think: skinny jeans)
noun: a general direction in which something is developing or changing
Fad (think: bell-bottoms)
noun: an intense and widely shared enthusiasm for something, especially one that is short-lived; a craze
A new year brings a fresh outlook for the year ahead, both personally and professionally. It’s a great time for reflection and for taking inventory on what to keep and what to toss away. Before I started writing this post I hit the Internet over lunch to see what’s trending in fashion to get ideas for my holiday gift card shopping spree. As I munched on my Yakisoba, I nearly lost my noodles. Here’s what some fashionistas think I should be wearing this year:
As we ring in the new year, we can’t help but look forward to what lies ahead. New Year’s resolutions keep us focused on our goals and help us plan for success. With such historic advances such as real-time payments, artificial intelligence, mobile wallets, and open banking, 2017 has seen unprecedented advancements in the way we pay.
As a risk manager for a company that licenses financial technology, you might assume that I would be a huge advocate for the latest and greatest algorithmic tools to automate small business lending decisions. Without a doubt, technology exists today to access enough information to make an informed decision regarding almost any form of commercial credit. That said, I am extremely cautious about such thinking. I believe strongly in the use of technology to enhance the credit decision process and create efficiencies. But I also believe there is a marked difference between automated credit decisions and credit decision automation. The first produces a credit decision based solely on data. The second uses data and enhanced workflows to facilitate credit decisions in an efficient manner, thus saving cost and increasing profitability. You must ask yourself a simple question. What is the smart credit decision? Simply put, it is the decision that is right for your institution.
Small Business Market,
January is strategically important for the European countries that faced this month’s PSD2 directive deadline. This requires banks to facilitate access via APIs to customer accounts, provide account information to third-party apps, and support payment initiation services upon a customer’s explicit consent. Here in the U.S., some believe open banking is coming, even without a similar mandate. (McKinsey defines open banking as a collaborative model in which banking data is shared between two or more unaffiliated parties to deliver enhanced capabilities to the marketplace.)
Financial services have recently been in the national spotlight for everything from crypto currencies to data breaches – and a lot more in between. There is a shifting focus toward an enhanced customer experience, automation and security that has ushered in many new and interesting technologies. As the industry continues to keep pace with change and disruption, financial institutions must sift through the hype and pay attention to the most impactful and relevant technology movements in order to remain competitive. Below are some areas to watch in 2018.
Financial Services Industry,
“Build a better mousetrap and the world will beat a path to your door.” – Ralph Waldo Emerson
The underwriting process for commercial loans has been evolving slowly for more than 30 years. Yet, for most community-based institutions, the basic components have remained constant – until now. Study after study over the past five years has indicated that borrowers want the friendly, local decisions and customer service that community-based institutions are known for. At the same time, they are demanding faster decisions and more efficient credit application methods.