A Technology Takeover on BankDirector.com

For the next 5 days, I set up shop in my former home of New York City for FinTech Week NYC.  Hosted by Bank Director’s FinXTech in conjunction with Empire Startups, the week can best be understood as a confluence of conferences, round-table discussions, demo days, meetups and networking events across the city.

If you’re not familiar with the various events taking place, here is a quick snapshot of three we’re primarily involved with starting today and running through Friday, the 28th.

The common thread throughout each of these days? A desire to help leaders in the financial sector to better understand how when/where/why to engage with emerging technologies.

Given our cultural mindset to help make others successful, we’re kicking things up a notch with our on-line efforts.  Indeed, we’re “taking over” BankDirector.com and loading the site up with strategic issues and ideas that a bank’s CEO, board and executive team can immediately consider.  In parallel, we’re developing even more content to benefit technology companies keen to work with financial institutions and have some really interesting things planned for our FinXTech.com.  Three examples of this free content:

  • On BankDirector.com, Tips for Working With Fintech Companies by our editor, Naomi Snyder, provides insight from executives at Wells Fargo (one of the country’s biggest) and Radius Bank (a very strong community bank) on how they handle fintech partnerships.
  • On FinXTech.com, Advice for Fintech Companies Working with Banks by our editor-in-chief, Jack Milligan, shares suggestions from SF-based Plaid Technologies and Chicago-based Akouba as to how banks and tech companies can set realistic expectations in terms of cooperating to their mutual benefits.
  • Finally, I authored a piece on a major challenge I see confronting banks when it comes to their digital futures with A Roadblock That Ruins Futures.  As an optimist, things aren’t hopeless; you will see I find inspiration from the CEOs of U.S. Bancorp, PNC and Fifth Third.

Banks Vs. Fintechs

By Al Dominick, CEO of DirectorCorps (parent co. to Bank Director & FinXTech) | @aldominick

Quickly:

  • I’m in from Dallas at the Consumer Bankers’ Association “CBA Live!”
  • Thanks to Richard Hunt, the CEO of the CBA, for inviting me to participate.  Richard spoke at our Acquire or Be Acquired conference in January + I hope to live up to his great speaking standards when I’m given a mic tomorrow.
  • The rapid pace of change in the financial sector took center stage during yesterday’s opening session.

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Since arriving in Big D on Sunday evening, I’ve met quite a few interesting men & women from great financial institutions at this annual event for the retail banking industry.  This year, more than 1,300 are at the Gaylord Texan (with some 550 being senior-level bankers) to talk shop.  Personally, I’m looking forward to presenting on “Economic States of America” with Amy Crews Cutts (Chief Economist, Equifax), Robert Dye (Chief Economist) of Comerica Bank and Cathy Nash, the CEO of Woodforest National Bank tomorrow morning.  From credit trends to banking consolidation, if you’re in Dallas, I invite you to join us for this Super Session as we explore the economic state of our union.

Before then, I thought to share a few interesting takeaways from a “FinTech vs. Bank” general session that pit SoFi and Kabbage “against” PNC and BBVA.  As part of the panel discussion, CBA posed a number of interesting questions to the audience; most notably, “do you believe fintechs are built to last.”  Given our upcoming FinXTech Summit in NYC, I thought the answer (which reflects the thoughts of many of the biggest banks in the U.S.) was interesting, but not surprising.

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Further, I found the results of this question pretty telling (given we asked a similar question at this year’s Acquire or Be Acquired conference and received a similar response from an audience of CEOs, CFOs, and members of a bank’s board).

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Finally, I think the results of this question best represent the types of conversations I’ve found myself in when I explain what I do + who I meet with.

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As I’ve shared in recent posts, an increasing number of financial institutions are using partnerships with technology companies to improve operations and better meet customer needs.  Given the input on these questions from various heads of retail, product lines and product development + compliance, risk and internal audit, I feel these three pictures are worth noting — and sharing.  Agree or disagree?  Feel free to leave a comment…

 

“Statement”: I Am All In On IoT

By Al Dominick | @aldominick

Quickly:

  • Thanks to companies like Amazon, we are closing the gap between the physical & digital world.
  • Given our industry’s relentless pace of change, I think banks should place a big bet on figuring out how to “get involved” with the Internet of Things (IoT).
  • I am personally intrigued by the potential of car-based payments.

Getting smarter about the Internet of Things has been a focus of mine since talking with US Bancorp’s CEO, Richard Davis, in January.  He shared various areas of technological interest for the 5th-largest bank in the U.S. (e.g. biometrics & security to machine learning… distributed ledgers to digital identify). However, his take on our interconnected world and the promise of IoT really captured my attention and imagination.  Since then, I have taken much deeper dives into the world of Amazon’s Web Services, IBM’s Watson and Salesforce’s IoT Cloud.  I’ll not break any new ground for those well versed in the underlying technologies or principles with this post, but I would suggest that those in the banking world think about how connected devices might catapult their businesses forward.

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Take, for example, the potential of a Tesla.  Last week, I had a chance to see one of their high-end model S cars here in DC.  Spectacularly designed, I couldn’t shake the idea that the way we bank might radically change given innovations taking place at companies such as this one.  (*To be fair, I had recently read a McKinsey report that suggests a linking of the physical and digital worlds could generate up to $11.1 trillion a year in economic value by 2025).

Still, if I were running a bank today, I would immediately make a commitment to figuring out what we can do to intersect with the waves of new opportunity being created by companies like this.

I would dedicate both time and resources to figuring out how emerging technologies might enhance our institution’s insight into revenue opportunities, areas of unexpected risk and emerging customer expectations.  I’d welcome as many new ideas in now while I have the chance to consider what remains strategically possible.  Basically, I’d stick a sign on our front door with a simple word: Ambitious.

3 Examples of Next’Gen Partnerships

News & Notes from February 13 – 17
By Al Dominick, CEO of DirectorCorps (parent co. to Bank Director & FinXTech) | @aldominick

A few weeks ago, I made note of an interesting new relationship between a bank and a technology firm.  Specifically, BBVA Compass’s announcement that it has been piloting Amazon Lockers in eleven of its Austin-area branches.  This is the first time Amazon Lockers are available with a bank in the United States — and may provide a creative spark to those thinking about how to increase traffic into an existing branch network.

Since sharing my observation on this partnership, I’ve made note of a number of new relationships that reflect the changing nature of the financial industry.  This week, three things caught my eye:

In addition, I took note of Wells Fargo forming a new innovation team (called Payments, Virtual Solutions, and Innovations) to better build out its digital banking experiences.  The three pillars of this effort revolve around payments, artificial intelligence and APIs. For Wells Fargo — and banks in general:

  • Payments are a critical driver of relationships for consumer, small business, and commercial and corporate banking customers.
  • In terms of artificial intelligence, the bank sees an increasing number of opportunities to better leverage data to provide personalized customer service through its bankers and digital channels.
  • Application Programming Interfaces (APIs) technology enables commercial and corporate banking customers to integrate products, services and information into their own digital environments.

So as financial institutions continue to search for new growth opportunities, I intend to share weekly recaps like this as a way to share what I find compelling.  Let me know what you think — and if there are other news & notes I might share.

10 Banks and Fintechs Doing it Right

In advance of April’s FinXtech Summit
By Al Dominick, CEO of DirectorCorps (parent co. to Bank Director & FinXTech) | @aldominick

Quickly:

  • An increasing number of financial institutions are using partnerships with technology companies to improve operations and better meet customer needs.
  • For the past few months, banks and/or fintechs submitted case studies on specific technology solutions helping financial institutions produce real, quantifiable results to our team at FinXTech.
  • With more then 100 submissions in hand, a committee of FinXTech advisors worked with our team to compile a top-10 list during Bank Director’s Acquire or Be Acquired Conference in Arizona last week.

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Throughout Bank Director’s annual Acquire or Be Acquired conference, I found myself in quite a few conversations about the continually changing nature of financial services. Many of these discussions revolved around the possibilities generated by traditional institutions partnering with emerging technology firms.  Some of these took place on-stage; for instance, I opened the second full day of the conference by polling an audience of 900+ on a variety of technology-related issues:

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With results like these precipitating editorial coverage from our team and attendees alike, you’ll probably understand why I find the just-released ten finalists for our “Best of FinXTech Awards” so compelling.  Indeed, as the financial landscape continues to evolve, and executives grapple with a fast-changing operating environment that requires partnerships and collaboration, each of these relationships shows what is really possible when leaders explore something new together.

  • Bank of Nova Scotia (Scotiabank) + Sensibill: Scotiabank’s customers can store, organize and retrieve paper and electronic receipts through the Toronto, Canada bank’s mobile banking app and wallet, the result of a partnership with Sensibill, also based in Toronto. The service was launched in October 2016.
  • Franklin Synergy Bank + Built Technologies, Inc.: Built Technologies, in Nashville, Tennessee, improved the loan administration process for Franklin Synergy Bank, in Franklin, Tennessee. The $3 billion asset bank now manages a greater number of construction loans with fewer staff.
  • Green Dot (Go Bank) + Uber: Pasadena, California-based Green Dot Corp., which issues prepaid credit cards, partnered with Uber to provide the San Francisco transportation company’s drivers a fee-free debit card and an instant pay solution that allows drivers to be paid instantly.
  • IDFC Bank + TATA Consultancy Services (TCS): Due to a regulatory mandate, India’s IDFC Bank had just 18 months to expand into rural areas to better serve unbanked customers. The bank’s partnership with TCS, based in Mumbai, India, included the use of micro ATMs, which are modified point-of-sale terminals that expand the bank’s reach in rural areas.
  • National Bank of Kansas City + Roostify: San Francisco-based Roostify improved National Bank of Kansas City’s formerly inefficient and incomplete digital mortgage application process. Customers at the bank, based in Overland Park, Kansas with more than $600 million in assets, can now fill out a mortgage application in a little as 20 minutes, with no need for a phone call or trip to the branch to visit a loan officer.
  • Somerset Trust Company + BOLTS Technologies: BOLTS, based in Bethlehem, Pennsylvania, improved the account opening process at Somerset Trust Company, saving the $1 billion asset community bank in Somerset, Pennsylvania, roughly $200,000 in the first year by better automating the process and reducing error rates. Customers can start and complete the process on multiple channels.
  • Toronto-Dominion Bank (TD Bank) + Moven: TD Bank, based in Toronto, Canada, launched a real-time money management application in April 2016, developed by Moven in New York.
  • USAA + Nuance: USAA, based in San Antonio, Texas, made its website a little smarter in 2016 with the virtual assistant Nina, which provides support for USAA’s members. This use of artificial intelligence is the result of a collaboration with Nuance in Burlington, Massachusetts.
  • Woodforest National Bank + PrecisionLender: Partnering with Charlotte, North Carolina-based PrecisionLender to improve its loan pricing strategy helped $4.8 billion asset Woodforest National Bank, in The Woodlands, Texas, grow commercial loans by 16 percent and gain almost 20 basis points in net interest margin.
  • WSFS Bank + LendKey: WSFS Financial Corp., headquartered in Wilmington, Delaware, with $6.6 billion in assets, partnered with the lending platform LendKey, in New York, to expand the bank’s consumer loan portfolio with a student loan and refinancing product.

All ten of these partnerships demonstrate the strongest combination of collaboration and results.  For those interested, my colleague Kelsey Weaver (the President of our FinXTech platform) announces the three “winners” on April 26, 2017, during the FinXTech Annual Summit, at the Nasdaq MarketSite.

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Closing bell ceremony at Nasdaq / Bank Director + FinXTech’s FinTech Day (March 1, 2016)

In advance of that announcement, I invite you to follow me on Twitter via @AlDominick, FinXTech’s President, Kelsey Weaver @KelseyWeaverFXT, @BankDirector and our @Fin_X_Tech platform and/or check out where and how this annual Summit — and these awards — fits into FinTech Week New York that we are hosting along with Empire Startups starting April 24.

A Look Back at AOBA: A Week in Pictures

#AOBA17 – final conference intel
By Al Dominick, CEO of DirectorCorps (aka Bank Director and FinXTech) | @aldominick

Quickly:

  • 686 bankers comprised the 1,076 registered attendees — a figure that reflects the participation of 379 financial institutions.
  • 24 of our awesome team were on-site hosting this year’s event — all are celebrating what we affectionately refer to as “AOBA Day” by taking today off as a company holiday.

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This has become something of a sharing tradition… a look back at a phenomenal week in Arizona.  New this year?  The welcome video we arranged to introduce our team to our guests on Sunday morning.

As I shared in a Sunday afternoon post (Trending at Acquire or Be Acquired), the best way to understand this event’s popularity is to look at this picture from Sunday morning at 8:16 AM (e.g. one minute after I turned the stage over to our first speaker, the CEO of KBW, Tom Michaud).  Already, we had 900+ in their seats for this 2.5 day program.  Let me say that one more time… 900+ in their seats on a sunny Sunday Arizona morning.

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So with that in mind, take a look at some of the photos shared by our on-site photographer, Keith Alstrin (Alstrin Photography).

If you’re interested in what is being discussed for the present + future by some of the industry’s most influential executives, I invite you to follow me on Twitter via @AlDominick along with @BankDirector and its @Fin_X_Tech platform.  To take a further trip back and see what was being shared with (and by) our attendees at Acquire or Be Acquired, we encouraged the use of #AOBA17.  We are excited to do this again next year and hope you’ll save the date!!

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We Are On To FinTech Week

#AOBA17 conference intel (Friday)
By Al Dominick, CEO of Bank Director | @aldominick

Quickly

  • The “bank of the future” is not about technology, it is all about customers.
  • For many financial institutions, the time may be right to retire legacy systems for cloud-based platforms.
  • Numerous financial technology companies are developing new strategies, practices and products that will dramatically influence the future of banking..

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The intersection of technological innovation with strong depository franchises may lead to more efficient banking processes, reductions in fraud and a win/win/win for banks, financial technology firms (fintechs) and consumers.  Globally, nearly $23 billion of venture capital and growth equity has been deployed to fintechs over the past five years, and this number is growing quickly. Still, the nature and extent of impact that fintechs have on the industry remains unclear.

Throughout this week’s Acquire or Be Acquired conference, bank CEOs talked about the continually changing nature of financial services — with fintech often front and center.  For many, collaboration between traditional institutions and emerging technology firms bodes well for their future.  Here, Bank Director’s FinXTech provides authoritative, relevant and trusted content to a hugely influential audience, specifically:

  • Fintechs who view banks as potentially valuable channels or distribution partners;
  • Banks looking to grow and/or innovate with fintech companies’ help and support; and
  • Institutional investors, venture capitalists, state & federal regulators, government officials and academicians helping to shape the future of banking.

We designed FinXTech as a peer-to-peer resource that connects this hugely influential audience around shared areas of interest and innovation.  As a host of FinTech Week in New York City this April 24 – 28 (along with Empire Startups), we bring together senior executives from banks, technology companies and investment firms from across the U.S. to shine a light on what is really generating top line growth and bottom line profits through partnerships, collaboration and investments.

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Given the changing nature of banking today, this week-long event in New York City looks at the various issues impacting banks, non-banks and technology companies alike.  So as we move towards FinTech Week in New York City, I invite you to follow me on Twitter via @AlDominick, FinXTech’s President, Kelsey Weaver @KelseyWeaverFXT@BankDirector and our @Fin_X_Tech platform and/or check out the FinTech Week New York website for more.