There is an ongoing conversation amongst key players in the financial services space about the future of financial data sharing. We recently wrote a white paper that explores this topic in depth and offers a clear path forward for financial institutions and fintech firms. The Future of Fintech’s Access to Financial Data with Open Banking: What Open Banking in the U.S. Means for Financial Institutions, Fintechs and the Consumers and Small Businesses They Serve At the heart of the issue
Financial services is among the most regulated industries. Oversight occurs on every level of government and compliance mistakes can be incredibly costly. While the nation’s largest banks maintain large teams of compliance attorneys and other experts, most financial institutions must do their best to stay within the lines. On a global basis, banks spend $270 billion per year on compliance. Some 10 percent or more of most bank operating costs can be attributed to compliance, and some estimates suggest
It’s a common misconception that a company’s ability to connect its technology platforms directly to a financial institution without the need for a traditional banking portal is something new that fintech firms are bringing to market. However, this kind of metal on metal integration between corporations and financial institutions is not new. What is new is the way the data is flowing between the parties. In
The current health crisis has exposed businesses across the world to many risks that didn’t exist before. Many small businesses are struggling to survive while navigating how to remain relevant without the ability to typically meet customers face-to-face. Even as the country reopens and when this crisis comes to an end, it will take a signification amount of time before everyone feels comfortable returning to their normal lives. The financial services industry hasn’t been spared from the realities of this pandemic.
Until now, consumers and small businesses have provided credentials to fintech firms in order to use their applications. The firms use these credentials to collect data from the consumer’s accounts via screen scraping. And although consumers and small businesses alike have now fully embraced the functionality provided by third-party fintech firms, financial institutions are opposed to the practice of screen scraping as they
At a time where conducting business from a couch or a home office has become the norm, banks have a unique opportunity to find ways to expand their digital presence. The struggle many face is not knowing where to begin. The most successful banks are attracting new and retaining their current small business customers. So, what is the key to success with winning small business customers? Making digital
The outbreak of COVID-19 has changed the way we do business in America. Even though financial services institutions are considered essential businesses, most banks and credit unions have had to make significant changes in their operations with the majority of their staff members transitioning to home offices. The industry has performed quite well through this crisis, despite the tidal wave of work that came out of the Small
In a previous post, we addressed the need for banks and credit unions to invest in enhanced digital capabilities in order to attract and meet the needs of small businesses. Effective digital product management is a critical piece to enabling financial institutions to drive innovation forward in small business focused digital solutions and take more control over what Aha!
The digital revolution in banking continues. The next couple of years will see profound changes in banking as we know it, especially driven by innovations resulting from the COVID-19 pandemic. In part 1 of this two-part blog series, we covered some of the trends we expect to see more of due to the crisis and the constant development of new technology. The areas discussed included how banks are driving new deposits and loan growth, conversational interfaces in customer interactions
Banks and credit unions that diversify their offerings have achieved great success in serving their customers and members. Some of these products are created in-house and others are offered through partnerships with third parties. By offering a full range of banking products, these firms have forged strong relationships with the consumers they serve. While banks have been successful in offering full-product menus to consumers, they have not performed as well when it comes to their small business customers. Instead, fintech firms