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Mobile Banking Outperforming Online Banking By A Longshot

mobile-banking

 

Dislike being asked for your name, account number, and password every time you call the bank? Well, times are a-changin’. Banks are turning to mobile technology for help more than ever before. Bank of America is leveraging thumbprint verification technology that enables customers to automatically be identified, as well as carry out their banking business. The North Carolina-headquartered bank, along with JPMorgan Chase, is also planning to roll out card-less ATMs that can be accessed via mobile phones, to help curb fraud.   Read the rest of this post »

The 18 Unicorns In FinTech

financial-services-unicorn-companies

 

A few days ago, I shared a list, a much smaller list, of unicorn companies that sit in the healthcare and biotechnology industries. To refresh your memory, a unicorn is a technology-related organization with a valuation of more than $1 billion, typically a start-up, and with no real track record of success.

In a recent report, VentureBeat and Spoke Intelligence found there are 229 unicorns at the moment, generating a total of $175 billion in funding. All together, these companies are valued at $1.3 trillion.  Read the rest of this post »

Mobile Payments Rising In Popularity, Especially Outside The U.S.

mobile-payments

 

Have you heard? Some retail establishments, in countries like the Netherlands, don’t accept cash anymore. As I mentioned in a previous post, digital money is making big waves – everywhere. While it’s starting to make a serious dent in the United States, the use of mobile payments are much more widespread in other countries.

Below are 10 interesting tidbits from an article in The Conversation, which discusses the use of mobile payments in financial services around the world:  Read the rest of this post »

One Way Digital Technology Is Changing FinTech

digital-money

 

I really don’t like carrying cash. And, the only reason I do is because that’s all my barber accepts. I prefer using digital money. Huh, digital money?

According to Investopedia, digital money is “any means of payment that exists purely in electronic form.” In other words, think of digital money as using any payment method that doesn’t leverage cash, coins, or a physical credit card. Digital money is about technology. Think of your mobile Starbucks app or bank card. Think of the Amazon Dash Button or Amazon Payments. Think of Uber.  Read the rest of this post »

The Year in Review | Top 10 Financial Services Posts of 2015

Top 10 Financial Services Blog Posts

There was a lot to talk about in 2015, but our most popular posts centered around compliance, security and risk management. Here are your favorite posts of the year:

 

Ten | How to drive the most value from your compliance investments

Compliance is a strategic imperative for financial services organizations. This post discussed how to get the best value out of your systems.

 

Nine | Leverage data to improve compliance like the SEC and FINRA

How to leverage data analytics to identify the potential for misconduct.

 

Eight | SIFMA AML Highlights: Compliance, Enforcement and Preparing for Tomorrow

Highlights from SIFMA’s Anti-Money Laundering and Financial Crimes Conference.

 

Seven | What is a Bank Anyway?

The term bank is becoming less and less synonymous with an actual physical structure. So, what IS a bank?

 

Six | Financial services firms challenged in using data to serve customers

Big data is no longer just a buzz word. It’s a business imperative.

 

Five | Banks Have a Handle on KYC, Lack KYV Guidance

What is the impact of a failed risk management program resulting from vendor actions?

 

Four | The 5 Most Significant Compliance Issues in Financial Services

Compliance is a big concern for the financial services industry. These are the most significant issues to be aware of.

 

Three | Deflategate: Lessons Learned for Financial Services Firms (and the NFL)

What does an NFL scandal have to do with financial services? More than you might think.

 

Two | Turning Digital Disruption into Digital Transformation in Banking

The importance of digital disruption and digital transformation in the banking industry.

 

One | Risk and Compliance Trends to Watch in 2015

An infographic of the biggest trends to watch for in 2015.

 

Stay on top of financial technology news next year by subscribing to our weekly blog digest below.

Walmart Introduces It’s Own Mobile Payment Service – Walmart Pay

Walmart Pay

Instead of opting to accept Apple Pay or Android Pay, Walmart has decided to launch its own payment service called Walmart Pay.

The largest retailer in the world describes Walmart Pay as “a fast, easy and secure way for customers to pay with their smartphones in Walmart stores,” and it is compatible with both iOS or Android devices.

This announcement makes Walmart the only retailer that offers its own payment service that is compatible on both iOS and Android and can be used with all major credit, debit, pre-paid or Walmart gift cards. The service is available via the Walmart app, which is already being actively used by twenty two million customers. The Walmart app is also ranked among the top three retail apps in both the Apple and Google app stores.

How does it work?

The customer will visit any register in the store and open the Walmart app. From there, they can select Walmart Pay and activate the camera. At this point, the user will scan the QR code displayed at the register. The store associate will check the customer out as usual and a receipt will be sent to the app.

Walmart Pay will be introduced in some stores starting this month and will be rolling out nationwide throughout the first half of 2016.

 

American Financial Technology Awards 2015 – And The Winners Are…

American Financial Technology Awards 2015

The American Financial Technology Awards were announced on Monday evening in New York. A full-write up of the award winners will be forthcoming, but here is the list of the leaders in financial technology for 2015:

 

Mobile Payments Add Fuel to the Economic Engine

Electronic Payments Fuel the Economy

As a consumer, I like electronic payments because they make my life easier and they save me an extraordinary amount of time.

As a retailer, electronic payments make it easier for people to buy from you with the touch of a button, thus growing the bottom line.

Electronic payments are designed to make the buying process easier for both buyers and sellers, but there is one big beneficiary in this equation that isn’t always mentioned: the economy.

“Electronic payments are highly efficient, offering advantages such as speed, reduced costs, and accuracy,” said Dr. Ray Perryman, President and CEO of The Perryman Group.”These enhancements have contributed significantly to the expansion of the US economy, increasing liquidity and stimulating personal consumption.”

Throughout history, humans have been seeking better and better methods of payment:

  • Bartering
  • Trading livestock
  • Shekels
  • Shells
  • Coins
  • Leather Money
  • Paper Money
  • Wampum
  • Gold
  • Gold-backed dollars
  • Credit cards
  • Dollars
  • Mobile payments

Each progression has made our lives easier and has made it easier for the exchange of goods and services.

The advent of electronic payments has dramatically increased ease, while simultaneously decreasing costs. How many times have you logged into Amazon to order one thing and ended up spending over $100 because it’s easy?

“The electronic payments system is the force behind one in five jobs because employment in the United States is 20% higher than it would be if the system had never existed,” said Dr. Perryman.

Every time that buying and selling is simplified, the opportunity exists for the economy to get a boost. So, go ahead and hand over your Starbucks app in the drive thru. The economy will thank you.

 

 

Financial services firms challenged in using data to serve customers

data science in financial services is such an important aspect of the future.“Retailers are light years ahead of Wall Street in analyzing their data to find out what their customers want,” said to Peter Giordano, managing director at Oppenheimer & Co. “Instead of analyzing customer data, the industry still relies on salespeople, relationships and actual trades to tell us what clients want.”

Big data might be a fun buzz word at the moment, but it’s an actual business imperative. The opportunity for organizations to extract value from the data they collect and store has never been greater.

If you look at Giordano’s comment above, you would think that financial services firms would easily be able to leverage the data they have on client behaviors to recommend great products to their clients at the right times. Certainly, executives in this industry are talking about it.

IBM conducted a study called “Analytics: the real world use of big data (PDF).” The study accurately identifies the big data opportunity that financial institutions face as they work toward transforming into customer-centric organizations:

“By improving their ability to anticipate changing markets conditions and customer preferences, banks and financial markets organizations can deliver new customer-centric products and services to quickly seize markets opportunities while improving customer service and loyalty.”

In this study, they found that financial services executives are acknowledging big data and talking about it, but the extent that they are currently using it to benefit their businesses varies greatly. “With no physical products to manufacture,” says the report, “data – the source of information – is one of arguably their most important assets.”

Read the rest of this post »

What is a Bank Anyway?

What is a bank?

 

 

 

 

 

 

 

 

 

 

 

 

When the word “bank” is used as a noun, it is referring to either an institution that manages financial transactions or the building that houses the institution. As technology moves forward, the term bank is becoming less and less synonymous with an actual physical structure.

When I was 5 years old, my mom took me to a bank where I opened up my first bank account called The Squirrel Club. I would save up my change at home and we would drive to the bank where I would hand over my bag of hard earned cash.

The bank was a place that I went with my mother.

Now, it’s an app.

My daughter is one year older than I was when I opened my first bank account. She has been inside of an actual bank one time in her life. We had moved to a new city and needed to open an account. Other than that, she has little concept of a bank being an actual place that she can visit.

Last week, Bank of America announced a series of improvements to its mobile banking app (Android, iPhone and iPad), including fingerprint and Touch ID sign in. The improvements offer eligible customers a secure and convenient way to log into their app without the additional need of a passcode.

Banking used to mean grabbing your checkbook, your check, your car keys and your kids. It meant 30 minutes (or more) of your time. It meant a building.

In a relatively short amount of time, we have moved from driving to the bank to touching our finger to a screen. You can now do your banking with one hand while making dinner with the other.

Your bank is now an app.

Your phone is now a bank.

Any questions?