Financial institutions vs. tech organizations
By Mark Coronna
Twenty years ago, payment innovation was driven by a combination of two large member organizations: Visa and American Express. A closer look at those two organizations reveals the internal dynamics that prove the larger banks drove innovation first; regional and community banks benefited after.
By Scott Sargent
For the past several years, federal regulators have targeted vendor management risk as one of their top regulatory priorities. The growing reliance on third-party service providers is only increasing the need and demand for effective vendor management programs. On April 2, the FDIC reminded the banks under its supervision that it expects them to comply with the guidance previously issued.
At my day job, I’ve
always tried to hammer home to community banks and credit unions that data is
the key to customer service. Specifically, utilizing customer engagement data
points across all channels, financial institutions can better serve and protect
customers by identifying cross-channel fraudulent behavior.
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 Justin Dullum
Jo Ann Barefoot has been doing a lot of globetrotting lately. Since being named the first female Deputy Comptroller of the Currency in 1978, Barefoot launched a career in the private sector and describes herself as a “serial entrepreneur.” She is currently CEO of Barefoot Innovation Group, something of a think tank for financial technology, regulatory reform and the future of banking. She is a co-founder of Hummingbird Regtech (industry shorthand for regulation technology), and is a senior fellow emerita at Harvard University’s John F. Kennedy School of Government’s Center for Business & Government.