Tag: Technology

Bank Worker Productivity and The Technology Imperative

Bank technology investment
BANK TECHNOLOGY INVESTMENT

Back in the 1980s, there were more banks, smaller banks, and little technology. We were still driving checks around, there was no online banking, and networked ATMs was the latest in bank technology. At the time, the rule of thumb for bankers was that each bank employee produced about $20,000 of operating profit per year. Since each bank had about 100 employees, operating profit was about $2mm per community bank. In this article, we look at how this equation has changed and what it means for the future.

 

Changing Payments and Bank Strategy

Bank Strategy
BANK STRATEGY

One item that should be on every bank’s strategic horizon is how to adapt to the changing face of payments. If you are one of those bankers that say, “Cash won’t go away in my lifetime,” you could be right. However, we would posit that the sentiment is the wrong way to frame the challenge and the rationalization that you don’t have to worry about cash, checks and the payment channel will likely lead you to disaster. In this article, we highlight the newest data from the Fed and what it might mean for every community bank.

 

13 Of The Most Important Mary Meeker Slides Pertaining To Banking

Banking Technology
TECHNOLOGY TRENDS

Starting in 1995, star-analyst Mary Meeker, “The Queen of the Internet,” co-founder at ReCode, and partner at the investment firm Bond Capital delivers a 30-minute presentation on the state of the digital landscape. The presentation is always the talk of the digital town as it has been the definitive source of major trends backed by quantitative evidence. This year, a couple of weeks ago, Mary gave the 2019 update and the presentation stretched to 333 slides.

 

Our 7 Question Test To Prevent Bad Bank Technology

Bank Technology Decisions
BANK TECHNOLOGY DECISIONS

The largest problem with bank innovation is that we see or hear about a sexy piece of technology at a conference or at another bank and then acquire it. The new piece of technology ends up solving a known problem but in the process actually creates more problems, and risk, than it solves. It’s called the “Shiny Object Syndrome” (SOS), and it could be sowing the seeds of destruction for many banks. In this article, we look at the seven strategic questions you need to answer before acquiring any piece of technology.

 

Here Is What Other Banks Spend On Technology

BANK TECH SPENDING
BANK TECH SPENDING

One question we always ask is if we are spending enough on technology? After that question, we get confused and mired in the quicksand of financial reporting, finance philosophy and technology strategy. “Technology” is so pervasive that it is difficult to determine what the difference is between spending on “digital” projects versus “analog” projects. For instance, if we upgrade our phone system from dedicated copper to fiber optics that is an analog project but if we convert over to a slower voice-over-IP system is that a digital project?

Zelle And The Optionality of Bank Technology That Goes Overlooked

The Strategy of Bank Technology - picture of a mobile banking app

Banks think about technology as an added cost. Adding person-to-person payments, online account opening, a data lake, or any other piece of technology is sometimes talked in terms of “being defensive” and an “additional cost of doing business.” Not only is that 180 degree the wrong way to view technology investment but using that framework will lead to sub-optimal decisions that could potentially hurt a bank’s business model. In this article, we explore a person-to-person payment case study and show what we believe is a superior decision methodology.

Preventing The Largest Mistake In Digital Banking

Better Bank Technology

It happens all the time. The next shiny object gets bolted to a bank’s digital platform, and a bank ends up with a hodgepodge of different applications, interfaces, workflow, and user experiences. For example, a bank may use two different applications for consumer and commercial account opening each with a different look and different set of business logic such as identity verification. To make matters worse, a bank may have different applications online as it does for mobile or in the branch.

Moving From Agile To DevOps In Banking Culture

Faster New Idea Execution

Since technology permeates everything we do, it is no surprise that engineering and development methodologies used in information technology (IT) diffuse into other areas of the bank. In the 1980’s the “waterfall” methodology went mainstream and management organized new products, processes, marketing campaigns and everything else around the concept. By 2000, “agile development” was all the rage. Now, in 2018, “DevOps” is the latest management development methodology.

Bankers Need To Know These 6 Laws of Innovation

The Human Side of Banking Technology

Some 30 years ago, Melvin Kranzberg, a professor at Georgia Tech, wrote a series of laws around innovation that all bankers should keep in mind as they deal with innovation. These laws are seemingly straightforward but have a profound effect on how bankers view and react to change. The advantage of understanding these laws is that it places technology in the context of strategy and execution. Innovation is only partly about technology, and these laws have been helpful for us to enlighten our thinking.

Here is Our Road Map of Prioritized Bank Technology Projects [eBook]

Technology Road Map - A Prioritized List of Bank Technology Projects

“Squirrel!” was a common refrain at meetings when some staff members saw the next shiny technology object that we just had to have – usually because a large bank was rolling it out. Saying “squirrel” became code for “let’s stay focused.” The real problem was that many suggested projects were actually worthy of attention and investment. Further, we had no framework for evaluating innovation and deciding how many projects to tackle in a given year and in what sequence.

Pages

Subscribe to Tag: Technology