Community banks who want to make faster and smarter lending decisions, drive efficiency in their back-office processes, and improve customer satisfaction are implementing digital transformation by enabling API platforms.
One of the major themes of this year has been disruption. Whether driven by competition from non-banks and challenger banks, demand for the newest products, or behavioral changes from the pandemic, most banks have launched digital transformation initiatives.
When I was a kid, “Telephone” was one of my favorite games to play.
If you’ve never played, here’s how it works: The first person in the game is given a message and is instructed to pass it on by whispering it in the ear of the next player, who then whispers it in the ear of the player after them, and so on. When the message reaches the final player, they announce it out loud, and the results are often hilariously, nonsensically different from what the initial player started with.
I’m sure there’s a metaphor in there about the dangers of gossip or why it’s important to get your information right from the source. But what strikes me today in my current career is how easy it is for things to break down in translation from one platform to another.
Can you imagine life if the lights and appliances in your house weren't connected to the power grid? What if each morning when you woke up, you had to find a power source for each light, connect it, and then turn it on? In a sense, that's what happens every day with critical functions in the financial technology industry. But it doesn't have to be that way.
The great bassist, Robert Trujillo, once said, “As long as there is communication, everything can be solved.” It is then safe to assume that a lack of communication can lead to frustration and even ruin.
Fiserv is spending $22 billion to acquire First Data in a deal to build Fintech scale. What does this mean for Fiserv’s core banking clients? While they’re likely to benefit from the combination of financial technology and payment processing giants in the long run, in the short term many banks and credit unions are worried that disruption is likely to result from the massive integration and cost-cutting effort the two firms will be embarking on.