By Steve Bartels
The ability for community financial institutions to recapture large commercial customer accounts from big banks has long been hampered by the strain on back-office resources. The lack of automation to serve commercial customers has seen market share among community FIs drop drastically. Community banks with fewer than $10 billion in inflation-adjusted assets held 57 percent of deposits in 1994, according to a December 2018 Harvard report on bank consolidation and financial inclusion. Today, they hold just 20 percent. It’s no surprise that the largest FIs in the country have doubled their collective market share. With larger development and back office teams, big banks have built robust offerings that address risk and fraud more comprehensively to service large business customers.
By Tom Bengtson
Was anyone surprised when the Fed announced Aug. 5 it would create a real-time payment and settlement service? The Fed has been the backstop clearing house for payments for more than a century; the evolution of those payments to digital is no reason for the Fed to back away from the crucial work of facilitating payments and settlement.
By Tim Klatt
If yours is a bank rooted in tradition, you’ve probably spent decades building your customer base and establishing your business and brand within your community. You know your community, and it knows you. Though tradition can and should be a core part of your financial institution’s identity, it can threaten forward progress if it leads to a “status quo” way of thinking.
By Jessica Cheney
industry is in a time of tremendous digital transformation. The question today is
what are the big steps banks need to undertake in order to meet the unique challenges
of their customers and win business.
By Amandeep Khurana
It has been more than a year since the General Data Protection Regulation went into effect in Europe, and financial institutions are already preparing for the 2020 start of the California Consumer Protection Act (CCPA). However, this is far from the end of the process. New privacy regulations are coming both in the U.S. and around the world. Financial institutions that look at satisfying each new regulation as a separate project requiring incremental changes across their increasingly complex and global data infrastructures will struggle to meet compliance deadlines and ensure accuracy.