March 1 is FinTech Day

Tomorrow is FinTech Day… here is what you need to know in advance of this exclusive one-day event.

What: Bank Director’s FinTech Day

When: Tuesday, March 1 2016

Where: Nasdaq’s MarketSite (4 Times Square – 43rd & Broadway)

Overview: The next few years promises to be one of profound transformation in the financial sector. Clearly, the fabric of the industry continues to evolve as new technology players emerge and traditional participants transform their business models. At FinTech Day, we address trends like the personalization of banking, the challenges of scaling a company in our highly regulated industry and what shifting customer expectations portend for all.  For the full agenda, click here.

Who is coming: Attendee lists are provided to all confirmed; unfortunately, we are at capacity and cannot accept any additional registrations.  Below, I highlight the various businesses represented.

A look at who is coming to Bank Director and FinXTech's FinTech Day on March 1

FinXTech: In addition to connecting participants from across the community, I am  excited to introduce a new digital division — FinXTech — to provide authoritative, relevant and trusted content for (a) Fintech companies who view banks as potentially valuable channel or distribution partners; (b) Banks over $1B looking to grow and/or innovate with fintech companies’ help and support; and (c) Investors and services firms interested in helping to shape the future of banking.

Misc: To follow the conversation, I invite you to follow me @aldominick or use #FinTech16.  In honor of the occasion, I will be ringing the closing bell (flanked by Joan Susie, Chairman of Bank Director and Kelsey Weaver, Publisher of Bank Director + our speakers and various executives from fintech companies and high performing banks).  So if you want to see how we wrap things up at 4:00 PM ET, I invited you to turn on CNBC, MSNBC, etc.

Fintech in 2016: A Whole Lot of Collaboration

While some of the largest and most established financial institutions have struck relationships with various financial technology firms (and not just startups / early stage), opportunities for meaningful partnerships abound.  At Bank Director’s annual FinTech Day at Nasdaq’s MarketSite in Times Square next Tuesday, we explore — with executives from the companies depicted above — what’s really possible when banks and fintechs collaborate to help each other’s businesses accelerate and scale.

By Al Dominick, President & CEO, Bank Director

A fundamental truth: individuals, along with business owners, have more choices than ever before in terms of where, when and how they bank. So a big challenge — and dare I suggest, opportunity — for leadership teams at financial institutions and fintech companies alike entails aligning services & product mixes to suit core customers’ current interests and prospective one’s expectations.

Yesterday, I shared how the fabric of the financial industry continues to evolve as new technology players emerge and traditional participants transform their business models. Indeed, many fintech companies are developing strategies, practices and new technologies that will dramatically influence how banking “gets done” in the future. However, within this period of change — where considerable market share will be up for grabs — I believe that ambitious organizations can leapfrog both traditional and emerging rivals.

Clearly, bank CEOs and their teams must seek new ways to not just stay relevant but to stand out.  While a number of banks seek to extend their footprint and franchise value through acquisition, many more aspire to build the bank internally. Some show organic growth as they build their base of core deposits and expand their customer relationships; others see the value of collaborating with fintech companies.

For a bank CEO and his/her executive team, knowing who’s a friend, and who’s a potential foe, is hugely important.  Personally, I have found this to be quite difficult for many regardless of their size or market.  Moreover, I find this to be a two-sided challenge in the sense that for a fintech founder or executive, identifying those banks open to partnering with, investing in or even acquiring a company like the one they run presents as great a challenge as it does opportunity.

So as more & more fintech companies look to partner with legacy players — and banks warm to such a dynamic — I am excited to think about the creative new partnerships that can be explored to ease payment processes, reduce fraud, save users money, promote financial planning and ultimately, move our giant industry forward.

FinTech Day is One Week Away

The fabric of the financial industry continues to evolve as new technology players emerge and traditional participants transform their business models. Through partnerships, acquisitions or direct investments, incumbents and upstarts alike have many real and distinct opportunities to grow and scale.  If 2015 was all about startups talking less about disruption and more about cooperation, I see 2016 as the year that banks reciprocate.

By Al Dominick, President & CEO, Bank Director

Next Tuesday, at Nasdaq’s MarketSite in Time Square, our team hosts our annual “FinTech Day.” With so many new companies pushing their way into markets and product lines that traditionally have been considered the banking industry’s turf, we look at what fintech means for traditional banks. Likewise, we explore where emerging fintech players may become catalysts for significant change with the support of traditional players.  When it comes to trends like the personalization of banking, the challenges of scaling a company in our highly regulated industry and what shifting customer expectations portend for banks and fintechs alike, we have a full day planned. Take a look at some of the issues we will address.

Riding The Wave Of Change
Al Dominick, President & CEO, Bank Director
Robert H. McCooey, Jr., Senior Vice President of Listing Services, Nasdaq

At a time when changing consumer behavior and new technologies are inspiring innovation throughout the financial services community, we open this year’s program with a look at how collaboration between traditional institutions and emerging technology firms bodes well for the future.

Banking’s New DNA
Michael M. Carter, CEO, BizEquity
Vivian Maese, Partner, Latham & Watkins
Eduardo Vergara, Head of Payments Services & Global Treasury Product Sales, Silicon Valley Bank
Moderated by: Al Dominick, President & CEO, Bank Director

With continuous pressure to innovate, banks today are learning from new challengers, adapting their offerings and identifying opportunities to collaborate.  With this opening session, we focus on the most pressing issues facing banks as they leverage new tools and technologies to compete.

Who Has the Power to Transform Banking
Jeana Deninger, Senior Vice President, Marketing, CoverHound, Inc.
Brooks Gibbins, Co-Founder & General Partner, FinTech Collective
Colleen Poynton, Vice President, Core Innovation Capital
Moderated by: Al Dominick, President & CEO, Bank Director

While fintech startups continue to spearhead the technological transformation of financial services, recent efforts by systemically important financial institutions call into question who reallly has the power to tranform banking. From an investment perspective, recent market turmoil may put some opportunities on hold – while others now have a higher, sharper bar to clear. In this session, we talk to investors about the traits that they look for when backing a venture in the context of a changing economic environment.

Opportunities to Reinvigorate the Banking Industry
Tom Kimberly, General Manager, Betterment Institutional
Thomas Jankovich, Principal & Innovation Leader, US Financial Services Practice, Deloitte Consulting LLP
Pete Steger, Head of Business Development, Kabbage, Inc.
Moderated by: Al Dominick, President & CEO, Bank Director

Many fintech companies are developing strategies, practices and new technologies that will dramatically influence how banking gets done in the future. However, within this period of upheaval – where considerable market share will be up for grabs – ambitious banks can leapfrog both traditional and new rivals. During this hour, we explore various opportunities for financial services companies to reinvigorate the industry.

Opportunities to Financially Participate in Fintech
Joseph S. Berry, Jr., Managing Director, Co-Head of Depositories Investment Banking, Keefe, Bruyette & Woods, Inc. A Stifel Company
Kai Martin Schmitz, Leader FinTech Investment LatAm, Global FinTech Investment Group, International Finance Corporation
Moderated by: Al Dominick, President & CEO, Bank Director

While large, multinational banks have made a series of investments in the fintech community, there is a huge, untapped market for banks to become an early-stage investor in fintech companies. Based on the day’s prior conversations, this session looks at opportunities for banks to better support emerging companies looking to grow and scale with their support.

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While this special event on March 1 is sold out, you can follow the conversations by using #Fintech16 @aldominick @bankdirector @finxtech and @bankdirectorpub.  And as a fun fact, I’ll be ringing the closing bell next Tuesday flanked by our Chairman and our Head of Innovation.  So if you are by a television and can turn on CNN, MSNBC, Fox, etc at 3:59, you’ll see some smiling faces waving at the cameras.

Focused on Financial Analytics

When it comes to tapping the creativity and ingenuity of the financial technology sector, I think this equation says it best.

For me, the term “big data” jumped the shark a few years ago.  Much like investment bankers shelved their  “wave of consolidation” pitch, I remain hopeful that the clichéd data term gives way to something more appropriate, descriptive and dare I say agile?  Nonetheless, the concept of sifting through massive amounts of structured and unstructured information to identify meaningful insights is nothing to scoff at.  Truth-be-told, it has interested me since my time at Computech, a leader in agile and lean application software development and IT operations & maintenance that was recently acquired by NCI.

Figuring out discrete patterns to better prepare for the future is huge business — and I continue to see the largest financial institutions in the U.S. making investments in financial analytics.  I was reminded of this drive to leverage new technologies while re-reading my notes from a Q&A session I had with BNY Mellon’s head of Strategy and Innovation last September at our FinTech day at NASDAQ.  There, I made note of three companies — KenshoDiscern and ClearStory — that had the potential to transform part of the financial sector.  FinTech Focused.001With said notes in hand, I dove a deeper into each company’s background and offerings, finding all three bring interesting new models and technologies to bear on automating and enhancing the investment research process.  So as I’ve done with past posts (Three FinTech Companies I’m Keen On and Spotlight on FinTech), let me share a little about each one:

  • Kensho is pioneering “real-time statistical computing systems and scalable analytics architectures — the next-generation of improvements to the global financial system.”  Backed by Goldman Sachs and Google Ventures, and with clients that range from Wall Street’s global banks to several of the best performing hedge funds, think of the 2013 startup as a “Siri-style service for investors, analysts and traders” (h/t to the FT for the comparison).
  • In the interest of fair disclosure, all three of my siblings have worked for investment management firms, so they may buckle at Discern’s description of “conventional” investment research relying “on solo analysts armed with narrow expertise, simple tools and a personal network of resources. Nonetheless, it’s an important juxtaposition when you look at what its data aggregation platform offers.  If you agree with their assertion that the “earlier one becomes aware of a risk or opportunity, the less it costs” the more attracted you might be to this SF-based company.
  • Finally, the data intelligence company ClearStory works with financial institutions on collaborative research and customer acquisition analysis.  Their premise is to both speed and simplify the cycle of research across distributed teams, including “accessing, merging, analyzing files and a variety of external data sources.”  As they share, “competitiveness on the front lines of business is dictated by the speed of data access and the quality of informed decision-making.”

Personally, it is very interesting to learn about, and subsequently watch, companies like these these spur transformation. If you are game to share your thoughts on FinTechs worth watching, feel free to comment below — or via twitter, I’m @AlDominick, about those companies and offerings you find compelling.

Bank Director’s 2015 Acquire or Be Acquired Conference

Banks are increasingly interested in the topic of mergers and acquisitions, which must have something to do with our record attendance at this year’s Acquire or Be Acquired Conference in Scottsdale, Arizona.

The fun begins at The Phoenician (pictured above) this weekend with Bank Director’s 21st annual “AOBA.”  Last year, we welcomed 435 officers & directors from 271 financial institutions to the Arizona Biltmore.  This year, we have 522 bankers and bank board members from more than 300 banks in attendance. Merger activity is clearly gaining steam, and this is bringing more interested parties to the table.

AOBA15-demographics-2

Three Days in the Desert

Why banks are bought (or sold) involves much more than just the numbers making sense.  Moreover, to successfully negotiate a merger transaction, buyers and sellers must bridge the gap between a number of financial, legal, accounting and social challenges. So allow me to sketch out what’s on tap for this massive three-day event.

On Sunday…

To kick things off, we take a macro-level look at capital markets and operating conditions for banks nationwide. Additionally, we look at how M&A fits within a broad range of strategic options for a bank’s board and how some successful acquirers have aligned transactions to achieve strategic goals.  Of note, we welcome the perspectives of CEOs from high performing banks like Pinnacle National Bank, Banner Corp.First Interstate BancSystem, IBERIABANK and CVB Corp. as part of several presentations. On stage, these men will share their thoughts on what it takes to build and lead successful institutions.

On Monday…

Building on the first day of the conference, we turn our attention to the long-term preparation required by both a buyer and seller.  For instance, regulatory planning remains critical to getting deals done for both sides — especially on compliance issues.  Thematically, Monday builds on Sunday’s presentations, with sessions dedicated to helping a bank’s board make a rational buy, sell or hold decision.

On Tuesday…

To put a bow on this year’s event, we start with a look at what the biggest banks are doing today followed by a series of breakout sessions on more in-depth topics.  To conclude, we welcome the perspectives of our friends from NASDAQ who will look at trends, issues and the “movers and shakers” in the technology world that may impact growth and innovation within the financial community.  As much as AOBA explores one’s financial growth opportunities, this final session examines what’s happening outside of our industry that may precipitate new changes or challenges to a bank’s growth aspirations.  Oh and in the afternoon… we swap suits for cleats, wrapping up AOBA with our annual golf tournament.

Can’t Make it?

For those not able to join us — but interested in following the conversations — I invite you to follow me on Twitter via @AlDominick, the host company, @BankDirector, and search & follow #AOBA15 to see what is being shared with our attendees.

What Is Your Bank Worth

I’m at a 1909 Neoclassical landmark in San Francisco for Bank Director’s “Valuing the Bank” program.  Setting up shop in the beautiful Ritz-Carlton on Nob Hill is a real treat, as is welcoming a number of bank CEOs, chairmen, CFOs and outside directors to the Bay Area.  Let me share a few of my takeaways from yesterday’s conversations and tee up what’s ahead this morning.

The Ritz-Carlton San Francisco
The Ritz-Carlton San Francisco

What Drives Value Creation

To open the day, we reviewed the operating environment in terms of “what drives value creation.”  Beginning with a presentations made by the Hovde Group and Moss Adams, we touched on issues like margin compression, deposit funding, efficiency improvements and business model expansion in the context of the current environment.  One interesting, M&A-specific fact from this session: the market for high-performing banks is at a 5-year high.  Consider the number of deals greater than $25 million in deal value that were priced above 150% of tangible book value: in the last 4 quarters: 44… for the prior 18 quarters: 45.

Understanding Risk in the Context of Determining a Bank’s Worth

I made note that credit unions have seen loans grow 9.8% this past year; far quicker than the 4.9% growth at banks (h/t Hovde Group).  So as much as I’ve recently harped on non-bank competition from players like Apple and PayPal, a stark reminder that banks also need to find a way to compete with lower rates offered by credit unions to reverse this trend of losing loans.  Back to the M&A side of things, it was suggested that to maximize value, potential sellers should consider selling less profitable/smaller/rural branches.

Today’s Agenda

This morning, we will look at corporate governance and talent-specific opportunities to strengthen one’s institution.  After a series of peer exchanges, I am excited to tackle the idea that banks are sold more than they are bought.  Indeed, our final session of this program pairs David Brooks, the Chairman & CEO of  the NASDAQ-listed Independent Bank Group and Jim Stein, Vice Chairman & Houston Region CEO, Independent Bank.  Jim was the CEO at Bank of Houston and sold that bank to David’s, and together, will talk with me about how that deal was struck.

Aloha Friday!

This Week in Pictures

As our editor, Jack Milligan, writes in How One Large Bank Fosters Innovation, “conventional wisdom holds that banks are not very good at innovation — and large banks, with their entrenched bureaucracies and clumsy legacy systems, are probably worst of all. It might then come as a surprise that Bank of New York Mellon Corp. has run a highly successful innovation program that has made a meaningful contribution to the bank’s profitability, and also manages to get most of the company’s 10,000 employees involved in the process.”

Earlier this week, I shared how Declan Denehan, BNY Mellon’s managing director for strategy and innovation, provided his thoughts on staying relevant while engaging with the “startup ecosystem” during Monday’s FinTech Day.  Jack’s article offers a great summation of Declan’s perspectives — and for today’s post, I simply wanted to recap the event as a whole.  The fun for our team started well before the doors opened at 9:00; however, FinTech day kicked off with:

  • A number of video shoots in the NASDAQ studio that we will post to BankDirector.com;
  • Continued with a live-streamed discussion focused on innovation with Declan and me; and
  • Wrapped up with a closing bell ceremony and a lot of great company logos rotating on the exchange’s video board in Times Square.

FinTech Day, a collaboration between Bank Director and NASDAQ OMXattracted over 40 participants from 30 financial technology companies.  For those of you that joined us, I am pleased to share the link to the official photo gallery from the ceremony.  We are happy to send over any that you’d like as our way of saying thank you for joining us.  Simply leave a comment below, reach out via LinkedIn or Twitter and let me know what you’d like.  Below, some of the pictures in the gallery…

Before wishing everyone an Aloha Friday, let me thank the entire Bank Director team — and in particular, Kelsey Weaver, Laura Schield, Michelle King, Mika Moser, Jack Milligan and Joan Susie — for your efforts to make the day a success.  Each of you contributed something special and for that, I am very appreciative and already getting excited for next year (dare we call it FinTech 2.0)!