Proceed carefully with Windows 11
You have plenty of time to carefully test and evaluate Windows 11 before taking the plunge and upgrading your bank systems. [Continue]
When the future doesn’t live up to its hype
Data scientists have concluded at least half of all fintech articles contain the sentence: “Community banks are not known for being on the cutting edge of technology.” I’ve written it many times, and it hurts a little when I do. It happens to be true, but I’m wrong to be glum. Maybe the community of community bankers at large has seen too many tech promises fail to deliver, and so they remain skeptical of the Next New Thing. [Continue]
Automation can reduce disparities in loan approvals
The Paycheck Protection Program included guidance from the SBA to prioritize loans to businesses owned by socially and economically disadvantaged individuals. Yet an October 2021 research paper, published by a group of New York University professors, found a disparity in the approval of PPP loans to Black-owned businesses. These differences in approval rates are not explained by factors like pre-existing bank relationships or applicant behavior. The paper’s authors suggest that preference-based discrimination occurs — and automation can make lending more equitable. [Continue]
Community banks can succeed using data analytics
A company called Aunalytics has a pitch specifically designed for community banks: You can analyze your bank data with the same sophistication as the big banks — at a SaaS price. BankBeat spoke with Katie Horvath, the group’s chief marketing officer, about what’s lurking in the data. [Continue]
Fintech insiders tout community bank partnerships
Digital engagement with bank services — enrollment in online portals or mobile apps, and opt-in rates for electronic statements or billpay — has grown exponentially during the pandemic. Megabanks and super regionals spend big on technology, and continue to gain market share. In order to compete, community banks face pressure to invest in their technology offerings. [Continue]
Four things to consider for your digital transformation
It was just over a year ago that the banking world was turned on its head, whiplashed by financial uncertainty and widespread unemployment-inspired changes in retirement balances and consumer spending habits. But crisis has a way of accelerating innovation and transforming things for good. If they hadn’t already, the Covid-19 pandemic brought to light the fact that banks needed a digital transformation to make communication with loan recipients more flexible and personalized — at a time when bank customers needed them most. [Continue]
Can bank ATMs be adapted to offer Bitcoin?
I recently visited my neighborhood bodega for some paper towels. Okay, okay, it was for some beer, but this trip held a surprise. Still covered in its protective plastic film was a yellow, beehive-themed machine wedged next to the Haagen-Dazs freezer: The Bitcoin Depot. On second thought, maybe the design theme is hornet. Using this machine, you can buy a number of differently branded crypto currencies with other currencies. I had read about them like one reads about UFOs, but I’d never seen one in the wild. [Continue]
How to provide personalization at scale
A personal touch has always been the name of the game — and a competitive advantage — for community banks. Yet, it can also feel that personalization has to be sacrificed in the name of growth. A personalized experience aligns perfectly with community banking, but how can banks collect the information and deliver this type of result across thousands of customers and multiple channels? [Continue]
EWA is a fintech opportunity
Earned wage access is the future of payroll, and community banks should be the ones making it available to companies and their employees. EWA is a service employers offer with their financial institution and payroll processor that makes it possible for employees to collect their pay whenever they want. Forget about the monthly, biweekly or weekly paycheck. With EWA, an employee can receive by direct deposit the money they have earned up to that moment. [Continue]
Look beyond your footprint when recruiting for tech
Joe McIntyre, senior vice president with Robert Half’s technology solutions group, speaks about the difficulty banks are having filling tech positions. “We’re seeing less than a 1 percent unemployment rate for IT professionals, which is creating a real problem for banks trying to hire,” he said. “The supply and demand is really out of whack. There are simply many more jobs than there are candidates.” Digitalization efforts are driving up a demand for experienced IT professionals. [Continue]