This year at Money 20/20 USA, William Mills Agency – a public relations and marketing firm for the financial industry – interviewed the Xtensifi team about the biggest themes and takeaways of the conference. In the video recap below, CEO George Kelley shares his thoughts on Open Banking, AI, and the relationship between banks and fintechs. You’ll also hear from EVP Brandon Kunz on the mobilization of data and the Money 20/20 Hackathon.
Financial institutions have come a long way in digitizing payments and payment processes, and many offer robust solutions for P2P (person to person/peer to peer) and B2C (business to consumer) payments. B2B (business to business) payments, however, are still dominated by checks and cumbersome processes, partly due to a technology gap between consumer and retail solutions. What can bridge this gap? One way is to find opportunities to innovate in the lower-risk small business space first. Faster payments solutions Faster payments capability
Financial institutions once viewed fintechs as a threat to their business, but banks are increasingly recognizing the value of partnering with them. Because they are smaller and nimbler, fintechs can typically innovate much faster than banks can. In a fast-moving marketplace, this dexterity can lend banks a competitive advantage. The key to success lies in identifying the right fintech partner. What to look for To lay the groundwork for selecting a fintech, banks should first evaluate their own products and services to
In today’s marketplace, technology develops at lightning speed, and the payments technology market is evolving especially fast. Financial institutions’ payment solutions need to keep up with this pace, yet many FIs cannot move nimbly to new capabilities because they are locked in with vendors through long-term contracts. A five- to seven-year contract with a slow-to-innovate vendor is not usually worth the discount that comes with it. Why the lock-in? Banks get locked into these long contracts for several reasons. First, they usually
Since we last wrote about Zelle, the P2P payments solution has experienced some significant growth (and an anniversary). While we’ve heard our fair share of financial institution executives lamenting the rise of competing P2P platforms from fintechs, the key for Zelle is that it has some differences that make it less a competitor and more of a potential ally for FIs. I recently had the opportunity to discuss some of these differentiating factors in a recent interview with CUJournal,
The ability to open financial accounts digitally—online, via mobile device, or (preferably) both—is in high demand among bank customers. The traditional account opening process is usually a cumbersome one that requires a visit to the branch to close the deal. But today’s customers—especially younger ones—are branch-averse and want to do their banking activities online. It stands to reason, then, that banks currently lacking digital account opening capability should seriously consider adding it soon.
One of the hottest topics in banking these days is “open banking.” In open banking, banking data is shared through APIs (application programming interfaces) between two or more unaffiliated parties to bring enhanced financial services capabilities to the marketplace. Open banking is about to transform the financial services industry in Europe and the UK, but is still nascent in the U.S.
Migrating from one commercial online banking platform to another is no small task. Some institutions make the move in one “big bang,” while others choose to migrate in phases. Whichever approach proves best for a particular financial institution, Xtensifi recommends being rigid about the process while staying flexible with delivery dates.
Fintechs are increasingly finding Amazon Web Services (AWS) to be the perfect vehicle for setting up and going to market quickly and cheaply. AWS provides a fintech everything it needs—networking, multiple layers and segments, and automation capabilities for environment creation, code promotion and other processes—to move from development and testing to staging and production. With automation, this four-layer stack can be created in a matter of minutes with AWS. The fintech has to develop scripts for automation, but once that
As AI (artificial intelligence—machine intelligence that mimics human cognitive abilities such as problem-solving and learning) increasingly becomes a part of our daily lives, banks are discovering how AI can improve the customer experience and boost operational efficiency. Some banks may shy away from a technology that seems too big to grasp, but banks can apply AI discretely, to specific use cases, and still see significant impact.