Mid-tier regional banks, community banks and credit unions are under increasing pressure from larger, national banks intent on luring away their customers. Seeing their deposits pulled away by these competitors is one of the most ominous trends in the industry right now. To put the problem in perspective, whereas average annual deposit growth industry wide is 4.6 percent, JP Morgan Chase, one of the nation’s largest banks, has seen its deposits grow 9.5 percent since 2014. Other large national banks,
Today’s consumer is accustomed to constantly being connected via mobile, social media, and real-time technology. With the increased use of on-demand applications and services and the influence of social media, the way people connect, share and communicate has resulted in more demanding customers requiring a high level of service. They expect personalized services in a timely manner delivered the way they work themselves. It should not be news that consumers compare their online banking experience to every other online experience they are offered. Banks that don’t measure up
Nearly every management team working in financial services today is focused on the digital channel. It has become a competitive mandate. According to a recent Accenture North American Consumer Digital Banking Survey, virtual banks and payment providers saw a net 15 percent gain in new customers in the past year. Banks must continue to refine and expand their digital capabilities or be left behind. But where to start? We’ve been watching this space closely since 2009, providing strategy and
The news that TD Bank Group will migrate its technology platforms to the cloud — in a similar vein to what Capital One Financial did earlier this year, but using a more gradual approach — may have come as a surprise to some. As American Banker editor at large Penny Crossman pointed out: at one time financial institutions thought their data and their customers’ data was too sacrosanct to ever store in a public cloud. It was no surprise here.
Like many companies, your business may be migrating to the cloud, building new systems or solutions in the cloud, or both. Businesses are moving to cloud computing because it’s economical, scalable, fast, and advanced—with more and better features than conventional technology. With cloud computing, companies can avoid extensive integration and maintenance efforts, because cloud services offer nearly everything you need in a single platform. Cloud-certified professionals Whether you’re designing a new, cloud-based system or solution or moving an existing application to the cloud, you’ll likely need the help of IT
It’s not news that consumers are looking for the latest and greatest in digital and mobile technology in their everyday activities—including banking. To get what they want, these consumers are not averse to looking beyond traditional financial institutions to fintechs and other third-party providers. Banks and credit unions are working hard to meet the same consumer demands, but they are often hobbled by inflexible, siloed legacy systems. That’s where open architecture comes in. Adopting an open architecture platform allows financial institutions to engage with third-party developers through open
As Amazon Web Services (AWS) and other cloud service providers continue to gain ground, many banks are moving their fintech applications to the cloud. They have sound reasons for doing so, as cloud computing saves costs, boosts efficiency, and offers layered security approaches as well as automated deployment models. Moreover, the barriers to entry are lower than ever before. Lower-cost, more efficient Cloud computing is less expensive and more efficient than traditional computing in a number of ways. With cloud services, organizations only pay for what they use; they
Financial institutions have vast stores of data about their customers. As systems become outdated, needs evolve, and/or regulations change, banks often have to move this critical data from one system to another. In fact, data has to be migrated any time a bank installs a new server or software platform. To avoid losing critical data or hampering access to it, banks need to have a strategy and plan in place before starting the migration process. Lessons learned from other FIs Experience has
As banks increasingly focus on customer experience, they are seeking to work around legacy back-office systems that often impede digitized customer journeys. These legacy systems are core systems and thus not easily replaced—a total replacement can be likened to a human heart transplant. Rather than take this radical step, financial institutions are replacing existing services incrementally, over time, thanks to newer technologies like open APIs and microservices.