Jim Van Dyke

Having transparency and clear rules to define and adopt an open banking standard in the US is beneficial. Open banking relies on an open, common, and shared standard to ensure interoperability within the financial ecosystem. This is crucial for adoption and reducing integration costs. Therefore, such a standard is necessary. Today, the Financial Data Exchange (FDX), a non-profit organization in the US, has worked tirelessly with the financial community to establish these standards and publish their FDX APIs. There are already over 76 million FDX-ready accounts in North America, making it the de facto standard. Hopefully, the Consumer Financial Protection Bureau's published rules today will make it easier to recognize FDX as such. #openbanking #openfinance OpenFinity

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So proud of the work our Fraud Intelligence team is doing! This article is great insight into Q2's approach combatting ATO! #q2 #ato #digitalbanking

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Dear bank owner and/or executive, Reducing dependency begins with being willing to make temporarily uncomfortable changes. We see four possible scenarios for your bank: Scenario 1️⃣ The hostage feeling is horrible but it's not enough to make meaningful change. You send emails, open tickets, file complaints, and nothing really happens. It becomes something to talk about during company events, conferences, and posts like this. Scenario 2️⃣ The hostage feeling is horrible but not as scary as your regulator. You send emails, open tickets, file complaints, and nothing really happens. It becomes something to talk about during company events, conferences, and posts like this. Scenario 3️⃣ The hostage feeling is so horrible that anything sounds better and so you sign another agreement with a provider that promises an easier life. It's more modern, faster, and more secure. It'll bring in more deposits and all the fee income you could ever dream of. You eventually do something (or forget to do something) that results in your regulator knocking at your door. Scenario 4️⃣ You've had it with that hostage feeling created by everything around you. You, or someone you assign, commits to learning the basics of what makes up processing infrastructure regardless of vendor or technology - 30 minutes a day for the next 90 days. You make a decision to act and methodically start to assemble the pieces over time. We recently asked one of our bank customers to share what he thought was required to make meaningful and lasting change. Here's what he shared: - A Supportive Board of Directors - Staff Willing to Step Up & Learn - Guts - Patience Not a single thing on this list is about technology. Make the decision and you'll find the right technology and partners to help you get there. Sincerely, Randy #communitybank #creditunion #fintech

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Are bank regulators focusing enforcement activity in the right place to create a healthy banking system?  The fact that a third of the Q1 public enforcement actions related to partner banking gives me pause.  A little historical context.  I recently found an article showing that in Q1 2008, with the global financial crisis just over the horizon, just over a third of bank regulators’ public enforcement actions were related to BSA/AML. With the benefit of hindsight, regulators would certainly have focused priorities very differently at that time.  And it’s hard to argue now that partner banking is anything like the most important issue facing the banking system. Matt Harris recently made a cogent argument that the immediate challenges banks currently face with underwater securities and commercial real estate are only the tip of the iceberg.  If you haven’t seen it, follow the link to his analysis of the impact that AI will have in compressing net interest margin and the consequent need for banks to build scale and/or non-interest income. I don’t endorse everything Matt says about regulators, but I strongly agree that many banks need to get creative to have a long-term future.  And that requires regulators who don’t overreact to mistakes of strategy and execution with limited impact on safety and soundness, consumer protection, or financial crime. As an example, I was recently helping a bank whose regulators had found gaps in beneficial ownership records of its fintech clients.  I was puzzled that the bank had gotten this wrong on fintech clients but not on its core business.  The Bank told me they were also now fixing similar issues in their core business, but the regulators hadn’t even examined those files. I’ve said before that a lot of enforcement actions we have seen in BaaS have been fully justified and I stand by that.  But recently I’m seeing an increasing number of cases where regulators are, in effect, examining and enforcing more stringently for BaaS business than traditional business. Regulators genuinely want community banks to overcome the challenges of the current environment.  They can help by ensuring that banks conducting BaaS and other novel activities don’t face regulatory equivalent of police speed guns looking for cars driving a mile over the speed limit. 

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Of any generation, Gen Z is the most digitally available yet the hardest to reach. Why? The average Gen Z attention span is ~8 seconds, similar to that of a goldfish. Millennials? It's about 12 seconds. Baby Boomers? About 20 seconds. So how can financial institutions cut through the noise? Let's go back to the basics. Agnostic of age, people form relationships with financial institutions to solve financial problems. Gen Z's most important financial problem is undeniably how to pay for college. Most credit unions decide not to provide an in-house solution to this problem (totally fine). What Jaren and I discuss with Mike is how credit unions can solve the most pernicious financial problem Gen Z faces (student loans) without underwriting, funding, or servicing the loan. Hint...it's Sparrow. No financial risk with the asset. All of the upside of becoming the trusted financial steward for a highly impressionable young adult. Thank you Jaren and Mike for a great discussion!

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Banks and credit unions have enough on their plates without trying to build out new card payment flows. But—there’s a huge opportunity for them in offering card-based instant transfers. Pull-from-card and push-to-debit transactions are growing, serve many popular use cases, and can drive engagement, grow deposits, and generate revenue. Regardless of the benefits, most regional and community financial institutions lack the capacity to become principal members of Visa Direct and MasterCard Send. Moov takes on the complexities involved and makes it easy for financial institutions to offer these kinds of transfers—and a lot more—through a single, simple API integration. Read more from Matthew Thomason about how we make it happen.  #fintech #payments #banking https://lnkd.in/gUX6zJQp

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Embedded Lending Puts SMBs at Center of Financial Services Landscape "...In the new, emerging financial services landscape, SMBs are now wielding unprecedented influence over the development and delivery of financial products — making the digital commerce landscape more deterministic rather than reactive. Instead of choosing to accept certain forms of payment due to a fear of missing out (FOMO) on customer business, or playing catch-up to their larger peers and competitors, SMBs are now finding themselves able to design each step of the commerce experience to deliver the outcome they ultimately desire. After all, early innovators like Square, Shopify, Stripe, Affirm, Klarna and many more have been revitalizing merchant aggregation as a business model. Embedded lending, whereby credit tools and borrowing capabilities are integrated directly into a purchasing process or payment platform environment, is not only reshaping end-user behavior, but also elevating SMBs to the forefront of the financial landscape..." #embeddedfinance #embeddedlending #posfinance #purchasingprocess #bnpl PYMNTS Chris Guido Chad Evans Arvind Ronta _________________________________ If you want to immediately see new content that I curate 👉🏻 Ring my bell (🔔) and follow #informationbanker or if you want to get the posts that got noticed in my weekly What’d I miss newsletter, subscribe here: "https://lnkd.in/d5_KvWwu"

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Coforge specialist fraud analysts screen customer and other bank checks across multiple critical parameters and identify hundreds of possible fraudulent cases on a daily basis. This has reduced the bank fraud verification significantly, with ~$45M of potential fraudulent savings last year, and over $100M with nearly 10,000 alerts over last 4 years. Process-reengineering and AI is further enhancing the fraud detection and saving millions in fraud related penalties for the client bank! #financialcrime #fraud #AML #compliance #banking #generativeai

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🚀 Brand new blog post on modernizing #ACH processing for banks and credit unions from Kent Brown (CTO) and Blake Herring (Staff Engineer and ACH Expert). 🌐💸 The Automated Clearing House (ACH) network is the backbone of electronic payments in the U.S., but it's facing significant challenges in today's digital age. 🔍 Explore the Challenges: Learn about the obstacles banks and credit unions face with outdated ACH processing systems and how manual entry woes impact operational efficiency. 💡 The Solution: Discover how Payment Manager bridges the gap between traditional banking systems and modern digital environments, offering advanced features like API-driven initiations and automated processing. 📈 Results and Impact: Dive into the transformative results experienced by our customers, including boosted operational efficiency, increased reliability, and enhanced transparency. 🔑 Why It Matters: Understand why modernizing ACH processing is crucial for community banks and credit unions to stay competitive in today's rapidly evolving financial landscape. Read the blog and start a conversation: https://lnkd.in/gFtPAFvg #ACH #Fintech #Innovation #Payments #DigitalTransformation #banking #creditunions

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Curious about the impact of #ISO20022 on fintech? NYPAY has a great panel this Thursday on the topic- it's free register below. ISO 20022 is poised to be a game-changer for the fintech industry, bringing about several positive impacts: 1. Enhanced Interoperability: Imagine financial institutions speaking a universal language. ISO 20022 acts as that common ground, allowing seamless data exchange between different systems. This translates to faster transactions, fewer errors, and a more streamlined experience for everyone. 2. Richer Data for Innovation: ISO 20022 goes beyond basic transaction details. It allows for including richer, more structured data. This empowers fintech companies to develop innovative financial products and services with a deeper understanding of user needs. 3. Streamlined Operations and Efficiency: With standardized data formats, automation becomes easier. This translates to fewer manual processes, reduced errors, and overall cost savings for fintech companies. Regulatory compliance can also be simplified with ISO 20022's structured approach. 4. Openness to New Technologies: The beauty of ISO 20022 is its adaptability. It can accommodate new technologies and business models as they emerge, ensuring fintech companies stay ahead of the curve. 5. Level Playing Field for Fintechs: Legacy financial institutions often have complex internal systems. ISO 20022 creates a more level playing field by providing a common standard that fintech startups can easily adopt. This fosters a more competitive and innovative financial landscape. Overall, ISO 20022 is expected to be a major driver of growth and progress in the fintech industry. By enabling smoother data exchange, richer information, and streamlined operations, it paves the way for a future filled with exciting financial products and services.

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Criminals that manipulate victims into authorizing push payments (APP) to fraudulent accounts has grown 22% YoY. These fraudsters act as financial institutions and use techniques like call spoofing & social engineering to trick consumers into making these transactions. A proactive approach to detection should include behavior analytics, device & IP analytics, and other deep insights on consumer identities. #fincrime #financialcrime #frauddetection https://lnkd.in/gJEmEew6

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This is a great share American Banker. This is a common issue among banks and credit unions, which is one reason why BankShift exists. Having experience at top U.S. financial institutions, we empathize with navigating these challenges as we’ve been there before. We’re into solving problems for the toughest challenges that most financial institutions face. Please feel free to reach out. https://lnkd.in/gUvSgFYD Here are some tips to reduce frustration: 1. Implement a rigorous vendor management screening process to avoid hiring individuals without the necessary experience. 2. Ensure vendors possess intellectual property and a team with a proven track record of transforming financial institutions. 3. Move away from lengthy contracts, which benefit providers with recurring revenue but are not advantageous for financial institutions. 4. Conduct thorough technical due diligence before signing contracts to ensure compatibility across the entire institution. 5. Only deal with bundled services outside of the core systems and try not to create spaghetti (API) monsters. Note: If you already have a spaghetti monster, our digital hub (gateway) to monitor all your vendors is the cheapest start with immediate upside to your call center. 👊 #digitalfirst #transformation #creditunions #banks

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The regulatory landscape for open banking is changing. Now is the time to get ahead of the curve.   Join our experts on June 25th for an essential webinar on the Consumer Financial Protection Bureau's 1033 #openbanking regulation. Be prepared for actionable insights to unlock new opportunities and keep pace with the rule.   Register through the link below.

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Why payments need to be borne as 'public goods'? This Federal Reserve Board Governor Waller's speech put it simpler (in 2 complementary ways): 1. Identifying the need and timing for technical standards, incorporating a breadth of industry perspectives, and aligning on implementation approaches requires 'coordination', and central banks play a key role as neutral conveners to harmonise efforts from all relevant stakeholders. 2. Leading by example, central banks' operated payment platforms provide expertise in the adoption of standards and best practices. RTGS systems remain as the backbone of the financial system, they serve as rails for safe and efficient settlement in central bank money #RTGS #payments #ISO20022 #standards #innovation

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In 2022, Wells launched a credit card with Bilt Technologies, a fintech startup. But ...losing as much as $10 million every month..the program has also been hit by fraud. The partnership also poses money-laundering risk. Khwaja's Reflections from Board Oversight Standpoint: Wells Fargo has been making some (good) progress on the corporate governance front. Some of the forward-thinking areas include: ✅ Enhancing disclosures regarding board oversight of human capital management and risks, culture and ethics, and framework for workplace harassment and discrimination.  ✅ Technology and Innovation as one of five strategic pillars. More can be done. Here is My Take: ✅ There is a misalignment or lack of interlock between tech/innovation and risk oversight. ✅ I recommend the lead director establish a standing technology/innovation and cybersecurity committee. ✅ Make the pie bigger for value creation and don't delegate innovation/technology agendas to other committees such as audit or risk. ✅ Per proxy report, 38% of Director nominees only have technology/innovation/cybersecurity expertise while 92% have risk management expertise. Get more innovation/technology/Cybersecurity expertise. ✅ Get the right incentives aligned to take the lead in the innovation game. What do you think? *********Subscribe here to get all my 🔥 takes on the Board and C-suite effectiveness. 👉🏿 https://bit.ly/3VCkqyV ******** #CEO #KSgems #TheVentureMindset #Startup #Technology #Innovation #BoardOversight Manuj Aggarwal Nitin Gaur Christopher Hetner Ilya Strebulaev Alex Dang https://lnkd.in/euXAN-9b

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