Director of Strategic Insight for Jack Henry & Associates, Inc.®
Amazon financial services? Apple Pay Cash? Voice banking? Chatbots? Machine learning? Artifical intellegence (AI)? Should you replace your staff with chatbots or showcase your staff within digital channels? Is there really demand for voice banking, and how will you differentiate your offering? And should you really care about AI at this point? Join Lee Wetherington for a bottom-line review of what's new and what actually matters and when for community financial institutions.
"Fintechs are disrupting us!" "Branches are going away!" "Gen Y hates us more than dentists!" Wrong. Wrong. Wrong. The hype cycles distorting developments in technology and shifts in demographics can lead financial institutions astray strategically. Falling victim to hyperbole that hardens into “conventional wisdom” can do real damage to FIs navigating the future of financial services. Join Lee Wetherington for the bottom line on fintechs, mobile, Gen Y, branch transformation, blockchain, etc.—and learn how to navigate the most strategically important challenges and opportunities ahead.
Bad UX in payments is not without consequence. Slower checkout times, dip-and-stay eternities, and jarring buzzer sounds are putting a new (and better) light on mobile payments at the Point-of-Sale. But the biggest problem plaguing card payments right now is the false decline…and the micro-humiliation that follows. As issuers tighten authorization criteria in response to growing Card Not Present (CNP) fraud, they are also increasing the frequency of false declines for cardholders. 40% of declined cardholders never use the card again. An additional 25% use the offending card less. According to MasterCard, issuers lose 4X more in revenue from false-decline fallout than they do from actual fraud. Join Lee for an entertaining tour of all that sucks right now in payments.
Most financial institutions and industry experts agree that “seamless integration with 3rd parties” is a key capability going forward. 2018 will be marked by more “fintegration”, i.e., the coming together of FIs and fintechs by way of powerful platforms that (1) integrate spot solutions using APIs, (2) expedite evolution of digital channels, (3) enable mobile-first services, and (4) improve user experience (UX). These platforms are what will ultimately give FIs the flexibility to partner with a growing array of best-of-breed fintechs. RepreZen, Nevatech and MuleSoft are powerful examples of this nascent industry trend. Join Lee Wetherington for a look at the “platformification” of financial services and what it means for the average FI.
Payments are the fastest changing franchise in financical services, yet 87% of financial institutions do not have a payments strategy, and few understand the threats posed by faster payments (Same-Day ACH), real-time payments (Zelle & RTP), and remote or automatic payments (Mobile-Order-Ahead-and-Pay and Buy-Online-PickupIn-Store). Join Lee Wetherington for a review of the biggest trends in payments, what these trends mean, and the strategies and tactics that will best protect and extend the payments revenues that subsidize your financial institution’s deposit operations.
A current look at the biggest fraud challenges impacting financial institutions and the technology investments your peers are making to combat fraud. Debit/credit card fraud and check fraud remain top concerns for most FIs, but application fraud and account takeover (ATO) fraud are growing in the post-EMV environment. The rise of synthetic identities is complicating the detection of application fraud and ATO fraud, and synthetic identity fraud is growing among demand deposit accounts (DDAs) and credit cards. Join Lee for a review of the new fraud solutions FIks are deploying, including card solutions, mobile, identity, ACH and wire, behavioral analytics, contact center, and small-business and commercial fraud solutions.
“Alexa, I want one.” “Alexa, add it to my shopping list.” “Alexa, me want now.” Consumers now have the ability to buy anything from Amazon using only their voices—by way of Echo, Amazon’s voice-enabled wireless speaker. Google’s Home and Apple’s Siri are in hot pursuit. But what does the voice-first era mean for the future of financial services and payments? Join Lee for the answers.
Many community financial institutions fear fintechs, but that fear is misplaced. Relationships at secondary financial institutions remain the biggest threat. While community FIs own a significant share of primary checking relationships in the U.S., they own less than have that share of secondary relationships, and these secondary relationships are both more meaningful and profitable—think mortgages, credit cards, and auto loans. In short, many community FIs are “primary” in name only, and most fail to recognize the difference. Join Lee Wetherington for a look at the silent churn that is quietly devastating many community FIs…and what to do about it.
Most financial institutions consider revenue the top driver of their overall business, with User Experience (UX) coming in second. Industry experts say UX should be the top driver, with cost reduction coming in a close second. In fact, UX drives both revenue growth and cost reduction. UX is the foundation of success in both physical and digital channels, but few FIs operate with a concrete, measurable definition of UX. If user interface (UI) is what consumers see, UX is what they feel. UI is only as good as the UX it creates. Bringing consumers from negative to positive money emotions on a reliable and repeatable basis is the very definition of engagement. And engagement creates the trust upon which both revenue and costs rise and fall. So, how does good UX drive revenue and reduces costs? And how does bad UX decrease revenue and increase costs? Join Lee Wetherington for the bottom line impacts.
What consumers see (UI) is only as good as how it makes them feel (UX). In the rush to build out digital channels, many financial institutions get lost in the mechanics of moving money and lose sight of money’s meaning to the parties at either end of a transaction. To remain relevant, FIs must not only shift their focus from money movement to money management, they must also master the art of engagement, i.e., the ability to create repeated, satisfying interactions that enhance the emotional connection between consumers and their FIs. What does that look like? And how can your financial institution leverage digital services to replace the negative emotions of money (anxiety, guilt, impulse) with positive ones (control, confidence, empowerment)? Join Lee for an eye-opening look at the future of financial services.
Blockchain is a powerful distributed ledger protocol that allows for the direct “trustless” exchange of value between two parties. As such, its potential is staggering. As a more efficient replacement of standard double-entry bookkeeping, some predict distributed ledgers could ultimately reduce operational costs 20-50%. Since value transfers have been historically facilitated by financial institutions, blockchain applications could conceptually eliminate financial institutions as trusted intermediaries for faster payments and the buying/selling of houses, stocks, loans, trades, or anything of value. But that won’t happen. To understand why, join Lee Wetherington for the bottom line on distributed ledgers, permissioned-vs-permissionless networks, and what it all means for financial institutions and their future viability.