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The Partnership Series – Volume Four: Financial Institutions and Alternative Lenders

Posted by Paul McCulloch

Fri, Feb 21, 2020 @ 08:30 AM

Why should a financial institution (FI) care about the many alternative lending options their consumer and commercial customers have today? 

First, let’s define what alternative lending means. It’s a broad term that describes a wide range of loan options to consumers and business owners outside of a traditional bank or credit union loan. These alternative lenders are most commonly used when an individual or business owner cannot obtain a traditional loan from their FI for any number of reasons. Another reason is because of the delays and difficulty associated with applying for and being approved for traditional banking loans compared to the speed and ease of use being provided by many of the new alternative lenders today.

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Topics: Commercial Lending, Partnership

Simple Ways Credit Unions Can Gain and Retain Today’s Modern Member

Posted by Nicole Harper

Wed, Feb 19, 2020 @ 11:23 AM

“We’re here to help with your car loan process.” – my auto loan provider.

I joined a local credit union to get an auto loan.

My auto lease was nearing its maturity. Since I like my car and drove less mileage than expected during my lease term, I decided to convert my lease to a purchase. I worked with my auto dealer who presented me with a great auto loan rate from a leading local credit union. I signed the papers and was happy to become a member of a second credit union.

So, what went wrong?

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Topics: Credit Unions, Modern Membership

“All right stop, collaborate, and listen”

Posted by Jody Brown

Wed, Feb 12, 2020 @ 10:18 AM

It’s hard to believe that Robert Van Winkle (AKA Vanilla Ice) gave us such sage advice back in 1989. OK, maybe his opening line is the only nugget of wisdom in the lyrics of “Ice Ice Baby” – but following its wisdom can naturally lead to more trusting, and ultimately more fruitful, partnerships.

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Topics: Commercial Lending, Partnership

The Partnership Series – Volume Three: Fintechs, Big Data, and Third-Party Risk Management

Posted by Guest Author

Fri, Feb 07, 2020 @ 08:30 AM

As discussed in previous posts in this series, the degree of collaboration within a financial institution’s technology partnerships will play a significant role in determining future success.

While there are advantages to partnering with fintechs and other third-party vendors, increasing the number of these relationships comes with its own set of strategic, tactical, and regulatory challenges.

How do you overcome third-party vetting challenges and scale your vendor risk management program to accommodate more dynamic partnerships?

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Topics: Commercial Lending, Fintech, Data and Analytics

A Proven Approach for Enhancing Your Cyber Security and Business Continuity Testing

Posted by Tom Williams

Wed, Jan 29, 2020 @ 10:28 AM

Over the past several years, I’ve had the pleasure of working with many financial institutions (FIs) reviewing and testing both their Incident Response Plan (IRP) for Cyber Security and Business Continuity/Disaster Recovery Plans (BC/DRP). I am pleased to say that most FIs have plans in place to deal with unplanned outages, whether cyber or disaster related. However, the effectiveness of those plans to truly protect the FI and its customers is highly dependent on testing the plan at various levels.

One of the challenges of testing is keeping people involved and excited about the testing process. Getting them to show up for the tests, and more importantly, to follow up and modify their portion of the plan based on the test results.

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Topics: Information Security, Cybersecurity, Risk/Fraud

The Partnership Series – Volume Two: Fintechs Working Hand-in-Hand to Enhance the Small Business Lending Experience

Posted by Mark Messick

Fri, Jan 24, 2020 @ 08:30 AM

Fintechs, by their very nature, have sought more efficient ways of solving routine manual processes. Frequently, these providers have found that by partnering with one another, they can eliminate speed bumps from multiple systems and improve the user’s overall experience. This melding of technologies is a cornerstone principal in the philosophy of so many fintech providers. A partnership with any of them will most likely include more than one valuable piece of functionality.

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Topics: Commercial Lending, Fintech, Partnership

To P2P or Not P2P: That is the Question

Posted by Jennifer Geis

Wed, Jan 22, 2020 @ 10:12 AM

Person-to-person (P2P) payments has been a hot topic in the financial services space. Zelle can already reach more than 50% of all direct deposit accounts (DDAs) in the U.S., and Zelle’s partnership with Mastercard and Visa will soon allow it to reach approximately 97% of all DDAs.1 As P2P has grown, more alternative players have gotten into the mix. Google is attempting to entrench itself into financial services by offering DDA accounts, leading to allegations on how P2P will be further leveraged via Google Pay. Facebook expanded its P2P payment solution to enable additional commerce between marketplaces and platforms. Amazon Pay plans to enable voice-based bill payment which is likely to create a new wave of P2P innovation. Being able to say to your mobile device, “Send Susan from Facebook $80 to pay for my share of dinner last night,” might be closer to reality than we think. We have to concede that competition, especially from unconventional providers, is expected to get even more convoluted in 2020.

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Topics: Financial Institution, Payments, Digital

Sleeper Strategies for Winning Real-Time Payments

Posted by Lee Wetherington

Tue, Jan 21, 2020 @ 11:13 AM

I grew up in payments.

In the mid-90s, I cut my teeth on Standard Entry Class codes, Return Reason codes, and the logistics of batch clearing and time-based risk in ACH. I know. Sexy, right?

In Payments Land, geeks like me loved to talk shop. Still do.

Comic-Con and Star Trek conventions have nothing on regional payments conferences where payments nerds brandish obscure acronyms and flex arcane knowledge in passive-aggressive conversations about who’s liable for fraud in unusual transaction scenarios.

Today, most payments pros still think of payments in terms of technical categories based on who’s sending the payment, who’s receiving the payment, and which rules apply.

But this tactical mindset creates big blind spots; and blind spots can be dangerous, even fatal, when disruption is at the door.

Accenture predicts that banks risk losing $280 billion in payments revenue by 2025 as more payments become instant, invisible, and free.

So. What to do?

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Topics: Financial Institution, Payments, Digital

The Future of Legacy Data Conversions

Posted by Jason Mayhall

Wed, Jan 15, 2020 @ 10:22 AM

When was the last time you took a roll of camera film to be developed? How about taking out a phone book to look up a number? When was the last time you bought a CD or LP of your favorite band? Physical music (CDs, records, cassettes), camera film, print media (phone books, encyclopedias, newspapers), pay phones, and landline phones. These are just a few examples of items used frequently for more than 100 years that are now virtually gone within the past two decades. Technology has evolved to make these items nearly obsolete, which no one could have fathomed just 20 years ago. The same is happening to the world of data conversions.

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Topics: Financial Institution, Data Management, Future Ready

The Partnership Series – Volume One: Financial Institutions and Technology Firms

Posted by Patrick True

Fri, Jan 10, 2020 @ 11:29 AM

The financial services industry seems to be transitioning into a new phase of technological advancement. The last 10 years have seen the beginning of a technological renaissance in many areas of the industry, affecting the way that both consumers and businesses interact with financial institutions. From payment services to lending and risk management, financial institutions continue to focus their resources on creating the best user experiences for clients and the most efficient workflows for employees. While the first 10 years of this process was shaped by the birth of new financial technology providers, the next 10 will more likely be driven by collaboration and partnerships between these companies and financial institutions.

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Topics: Commercial Lending, Partnership, User Centricity

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