All posts by Alex Johnson

Risk & Compliance Banking Innovation: Why 2018 is the Year it Puts on its Overalls

Jan052018

’Tis the season for 2018 predictions, and numerous financial industry practitioners, observers and experts (including my colleagues at FICO) are getting in on the fun. I don’t have a concrete prediction for the next 12 months (which makes it much easier to avoid being held accountable to the accuracy of that prediction this time next year). I do, however, have an observation around banking innovation. In The Financial Brand’s impressively well-researched and very informative annual “Top 10 Retail Banking Trends and Predictions” piece, an interesting statement caught my eye: Interestingly, with the exception of one trend (testing and use of blockchain technology), the trends and order of these trends were the same as last year… The fact that the list of trends identified by the financial services industry has remained relatively consistent could be a symptom of a greater problem. The banking industry is moving much too slow, and legacy... [Read More]

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Risk & Compliance Real or a Red Herring? What Should Banks think of the Fintech Threat?

May222017

By now, you likely know the talking points by heart… Silicon Valley is coming Millennials hate banks, so much so that a majority would rather visit the dentist than listen to what banks are saying New fintech products—across a wide range of areas including lending, wealth management, and payments—are going to lead to the unbundling of the financial services industry These talking points are deeply embedded in your brain because they are literally inescapable. If you have attended an industry conference, picked up a trade publication, or followed the conversation of the fintech intelligentsia on Twitter, you’ve been exposed to it. It can be difficult to separate the facts from the hype. However, it is vital that we do so. The question of whether fintech poses a significant competitive threat to financial institutions’ customer relationships, especially with Millennials (consumers age 22-37) and Gen Z (consumers age 18-21), has enormous implications... [Read More]

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Collections & Recovery What is it Costing You to Collect? Are the Odds in Your Favor?

May042017

If you are considering a new collections platform, you are probably already aware that the upfront price isn’t the only cost that you will pay over the lifetime of the system. How much time and effort you actually want to spend calculating the potential total cost of ownership (TCO) as part of your purchase is an individual choice. Many organizations tend to generalize, knowing that TCO isn’t an exact science, and that a new system’s benefits tend to outweigh other factors. As a starting point you should spend some time understanding where common, easily-avoided pitfalls lurk. With this knowledge you will be able to make the right choices that can shift the TCO odds in your favor. Two areas—a platform’s flexibility and security—can have a huge impact on an organization’s exposure to risk and result in unforeseen expenses if not properly supported. Flexibility The ability for a platform to easily... [Read More]

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Risk & Compliance Financial Health: The Key to the Future of Customer Acquisition

Feb092017

For all the differences between traditional banks and new online lenders, there is one business challenge that unites both groups: acquiring new customers. Despite the advancements made by online lenders in many traditional financial services processes (such as account opening), the methods most online lenders use to advertise to and acquire new customers come straight out of the bank marketing playbook – third-party brokers, television ads, and even direct mail solicitations. While online lenders experiment with offline marketing tactics, banks are aggressively ramping up their online marketing efforts, with total digital ad spend by U.S. financial institutions predicted to top $10 billion in 2019 (up from $5.3 billion in 2013). This shift is being motivated by continuing declines in branch activity and the increasingly-evident risks of branch-based sales strategies. The result is that both groups are converging on a set of established acquisition techniques that are compatible with a post-branch... [Read More]

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