Credit Union, Federal Reserve, CIO discussed on Bank-Fintech Fusion
So so. Do you often advise people look. You're building this thing. But no one's going to know about it. No no you so you have a great account opening software or exist how will how are People GonNa know shore or are they thinking about? It are the their marketing people thinking about on this list. Picky about it I mean. Don't get me wrong. These individuals very self aware and they understand the challenges. There they understand how they make money lose money. They understand the challenges of technology Just on different places on the COF- adoption right and I don't think I ever really gonNA conversation and they'll in somebody says to be you know we have the skills to do this. But it's obvious that they don't that's not usually it's usually like you know we want to do this but we also know we have to change the improve the skillset. Ad- addict tease Additional training etc. We only need to love. This is a new capability for the institution right like I said. Only twenty percent by Credit Union in America have online account opening so that means eighty percent of them have no existing capability. There right they have to learn it right in some form in. So it's not it's not particularly revolutionary to think that that that's going to need to happen and that's not a two week process hiring people who and I know this Ramon Company catalyst you guys. Fischl see this. Is You know that takes time. Yeah are you seeing a lot of outsourced? It at these at the banks. You're talking to. We are seeing that more and more and actually I was in an interesting regulatory conversation. Recently with the Fed regulator and particularly talking to smaller banks and credit unions situations with obviously increasing regulation which is also very topical in the industry. One of the things that the examiner said is you know. Cybersecurity is a big risk. And one of the bank is Short. He's an icon in particular roosting ICON. Giving get really good cio with security expertise to apply to work at mine solution right and there might be a four hundred million dollar bank in a potentially rural community. It's it's difficult and the regulators said. I hear that a hundred percent and I have no objection to five of getting together and getting a fifth of out so cio interesting right. And so. I think you're GonNa see that more and more particularly at the lower asset level where it just. It's just so burdensome. Sounds more like a credit union thing just on the face of it. They're they're a little bit more about the sharing sharing resources. But you know that's that I heard a regulators say to a group of banks. The banks will not even saying. That's a very practical approach to this. Because you're right like this expertise needs to happen. It needs to happen from a growth perspective with something like mantle but are also needs to happen from a security perspective from an Infosec perspective Mesaba security perspective. These banks need to to have that expertise or somebody who call on. So I'm definitely seeing it outsource more and more. I'm also seeing digital marketing. Outsourced also think that that is is is one of the better ways for bank to learn to start with right Have somebody come in do for a little while to get going but oh set while they doing the training the talent that you have internally yeah right it's not to say that somebody that's in marketing or it is an expert of the core banking systems an expedited outdoor advertising cannot learn digital. They absolutely can. They just need some time to get the cover on it right and so we're seeing that a lot. Yeah it does seem like you're you're giving something up outside your walls and I think a lot of these guys I can understand the reluctant so I guess too I for a lot of people to outsource in that sense. Absolutely but yeah the challenges. You can't have everything inside your walls. What new technology are you most excited about? What are you? What are you keeping your eye on that you think is going to have a positive impact in banking Yup. So I'm a little different in that. I don't necessarily think you know I'm not going to sit here. And say you know blockchain's GonNa Change everything or anything like that. Although I do think it's an interesting thought. Experiment if the. Us dollar was on a blockchain. Ray China's going to do that right China's pudding and I think that's the bull case for for blockchain technologies because it would avoid it would then have puffy taxation and no money laundering because the Federal Reserve could see everydollar moved in the in the economy right But I think that the two things that I look at it and I think a really interesting over the next twenty four months which I think is a little bit more actionable these. Everybody's talking about payments payments getting foster the flipside of payments getting foster and community regional banks. Don't have his capability today. The big is starting to Israel time transaction monitoring if you increase the velocity of payments you need to increase the velocity of the checks. You're doing on this payments right now. The big AML providers that are feeding a lot of these laws and things like that all the regulatory mccombs from perspective a batch and so banks finding out about transactions twenty four forty eight hours after their initiated. When they're already out and Ethan and that's a Cape tential potentially in a in a World War Two three days to settle but that is absolute death from a risk perspective and a compliance perspective in real time. Well and so I think a lot of attention goes to the real time payments and not enough attention to time transaction monitoring. It's an area that we've been working on With a with a a a great friend and partner of outscored alloy here. And you'll fintech great company. Great Company at Tommy Charles and Laura wholesome and I think that that's something that's going to be really interesting and then kind of the flip side and I think you know institution go out with real time and don't have that other piece you know again. Unfortunately get hurt. I think the other thing. And that's and that's now you can do that today right now in you could have done that last year but it would cost in a leg in the big guys could afford it that construction starting to come down and I think it's going to go mainstream as we'll time payments mainstream so it's interesting. The second thing I'd say is that the industry generally has had has made huge leaps and bounds on the consumer side in terms of automation and customer experience..