A sneak peek at Monday’s “FinTech Day” at the NASDAQ’s MarketSite in New York City — a collaboration between the exchange and Bank Director that celebrates the contributions of financial technology companies to banks in the U.S.
Well, it was bound to happen. According to an August 31 column on Re/code, Apple reached an agreement with American Express to work together on its new iPhone payments system. For Apple, “the introduction of its own iPhone payments product will end years of speculation about when it will take advantage of its massive file of hundreds of millions of credit cards from iTunes and App Store customers to create its own mobile wallet.”
This new payment system is just one of many very real threats to financial institutions’ business models posed by non-bank competition like Apple, PayPal and Walmart. Admittedly, I’ve spilled my fair share of digital ink on myriad fintech companies purporting to transform the banking universe. While some compete with established institutions, I find I am more inclined to focus on those supporting banks’ growth initiatives. After all, the barriers for new players to enter our industry are significant. Coupled with the snarling complexities of regulation and compliance already beating down most established institutions, it strikes me that collaboration rather than competition should be the buzz word at technology companies thinking about banking business today.
Not so coincidentally, I will explore the issue of competition — along with innovation — with the Managing Director of Strategic Growth Initiatives at BNY Mellon, Declan Denehan, on Monday afternoon. The two of us will share the stage — and concurrently, the video camera — for an hour-long session that looks at how bank executives can encourage new, innovative business efforts. BNY Mellon is not just one of the oldest banks in the U.S. — its origins stretch back to the establishment of the Bank of New York in 1784 by Alexander Hamilton — it is also the largest deposit bank in the world. So as the organization invests and/or partners in companies with strategically important business models or technologies, I’m eager to get Declan’s take on:
- Innovation frameworks (think cost saves, incrementalism, etc) that may benefit institutions of all sizes;
- The emerging technologies every bank’s CEO and board should have on their radar; and
- How banks successfully work within the startup ecosystem.
Thanks to our friends at the NASDAQ, our Q&A will be live-streamed at 2 PM ET (click here to register for free). I invite you to log on and watch on their site or bookmark BankDirector.com (once the video posts to our homepage, I’ll update this site and share via Twitter). Additionally, a webcast of the NASDAQ Closing Bell will be available at https://new.livestream.com/nasdaq/live or http://www.nasdaq.com/about/marketsitetowervideo.asx if you are keen to see how we wrap up FinTech Day.