BB&T suffered a technical glitch that knocked out their ATMs, online and mobile banking in February; during a recent earnings call BB&T Chief Executive Kelly King described how they handled the incident and how it effected revenues; there are many lessons other banks can take from BB&T as this will not be the last tech hiccup, ensuring technology is full tested and then tested again is one of the main lessons others can take away. Source.
Banks know they need to update legacy technology, but investors are beginning to question at what cost can the banks innovate versus making profits; ensuring they stay competitive when it comes to technology, though keeping costs from skyrocketing is a tightrope more second and third tier banks are trying to navigate every day. Source.
TearSheet sat down with Megan Caywood, co-founder and chief platform officer at Starling Bank, to talk about the digital bank’s success so far; the interview covers the biggest issues with banking today, the issues Starling Bank is trying to solve, differentiating from other digital banks, customer acquisition and more. Source.
Federal Reserve Vice Chairman for Supervision Randal Quarles told an International Monetary Fund forum that he didn’t think ILCs were problematic; applications should be reviewed and granted based on the strength of the application; this is a shift for the Fed as they have said in the past that ILCs were an issue and that Congress should consider cracking down on them. Source.
American Banker puts together a slideshow on the key trends in digital banking; some of the trends include more customers using digital payments, digital banking adoption is increasing globally, consumers are not happy with PFM options offered by banks and overall banks are still highly trusted for managing money. Source.
In this week’s WeiyangX Fintech Review from Crowdfund Insider they cover Ant Financial and Bank of China’s blockchain collaboration; China Construction Bank created Jianxin Financial Technology Co., Ltd., the first bank based fintech company from a state owned bank; 100Credit secured a big round of capital, JD bought shares in Allianz China General Insurance Company Ltd. and there is a trend of China fintechs starting to head to the Southeast Asian markets. Source.
Last week the sixth annual LendIt Fintech USA conference took place in San Francisco. Here are Peter Renton’s thoughts on some of the ideas that were shared by the keynote speakers as well as a summary of the rest of the event. Source.
Rewriting the Community Reinvestment Act is a welcomed sign by banks like Ally Bank who does not use branches and misses out on benefits awarded to banks with branch networks; focusing on where banks lend would be a better way to assess potential credit instead of where the bank is physically located. Source.
The move by Goldman Sachs into retail banking with Marcus has been a big shift for the bank and thus far has paid off; speaking to CNBC Goldman Sachs CEO Lloyd Blankfein talked about their move to consumer lending, their expansion of digital banking with Marcus and the focus on developing in house technology. Source.
China Construction Bank opened a branch in Shanghai only using technology; they have no human staff and instead use facial recognition, artificial intelligence and virtual reality to provide services; this is the first of its kind in China and the bank says it can handle 90 percent of transactions. Source.