ABA Banking Journal
October 28, 2016

This ABA Banking Journal newsletter is a free, twice-monthly supplement to the ABA Banking Journal magazine intended to help you stay on top of industry and policy news. You can also stay abreast of banking news by visiting aba.com/BankingJournal, home to ABA Daily Newsbytes and other email bulletins.

Industry News
If you think fintech and the new hyper-connected environment have transformed banking, just wait. According to Citi, digital disruption affected only 1.1 percent or $9 billion of U.S. consumer banking revenues in 2015. But this is expected to increase to 10 percent, or $105 billion, in 2020, and 17 percent, or $203 billion in 2023. (ABA Banking Journal)
Online lenders are drawing from a familiar playbook in Washington as scrutiny of the business heats up. A central plank of their strategy is to prove that the industry can tame itself without the need for additional government intervention. By distancing themselves from payday lenders and other businesses whose predatory tactics have drawn regulatory fire, online lenders hope to avoid a similar crackdown. (New York Times)
As banks continue to grapple with a rapidly evolving technological environment and the massive growth of fintech startups -- and with billions of dollars in revenues at stake -- ABA and Accenture recently released a members-only Fintech Playbook to help banks understand how and when they can most profitably partner with fintech companies. (ABA Banking Journal)
Prophecies of a cashless society are proving premature, according to survey results released by ATM provider Cardtronics and research firm Edelman this month. According to the survey, 56 percent of U.S. consumers use cash as frequently as a year ago, and 23 percent are using it more frequently — with just two in 10 using it less often. Eighty-four percent said they always try to keep some cash on hand, with $50 in the average wallet. (ABA Banking Journal)
Verint Systems
Offering mobile banking is often described as the "price of admission" or "table stakes" for retail banking today. Surveys bear that out—according to a recent survey by the Federal Reserve and the Conference of State Bank Supervisors, 95 percent of community banks offer mobile banking or will do so in the near future. (ABA Banking Journal)
Banks of all sizes and nonprofit partners are working together in Nashville to build communities, finance small business and create jobs, ABA President and CEO Rob Nichols wrote in a joint op-ed in the Tennessean this week. (The Tennessean)
Pending home sales increased in September as higher contract signings in the South and West outpaced declines in the Northeast and Midwest. The National Association of Realtors latest sales index, which tracks contract signings, rose 1.5 percent to 110 in September from 108.4 in August, the group said this week. With last month's gain, the index is 2.4 percent higher than September 2015 and has risen year-over-year for 22 of the past 25 months. (The Hill)
iGen Is Coming. Prepare Now.
Harland Clarke
The first wave of iGen (aka Generation Z) turns 21 in 2018. Their relationship with technology, combined with the expectations this relationship has fostered, poses big challenges for financial institutions.
Learn More
Policy News
The OCC will create an office dedicated to "responsible innovation" and take steps to provide technical assistance to banks as part of its ongoing effort to support the safe exploration of new technologies and practices in financial services, the agency announced this week. (ABA Banking Journal)
The National Credit Union Administration board voted this week to finalize a controversial rule further expanding the already loose fields of membership from which federal credit unions can draw their customers, and proposed a new rule that would remove some of the few remaining FOM restraints. ABA is closely examining the final rule and considering legal action to block its implementation.
Computer Services Inc
Thomson Reuters
The Federal Reserve, FDIC and OCC have issued an advance notice of proposed rulemaking seeking comments on a set of enforceable cybersecurity standards for banks with more than $50 billion in assets. The new standards would be designed to supplement, not replace, existing interagency requirements and guidance for cyber resilience. (ABA Banking Journal)
New Year, New Growth!
With 2017 here, banks are strategically planning how to reach new audiences, grow market share, and stay competitive. Is your core banking platform helping or hindering your progress? Download the free ebook, Digital Growth: The Paradox of Legacy Platforms, to learn more about the current state of digital banking and why banks are changing cores.
Learn how.
At last week's ABA Annual Convention in Nashville, attendees had the opportunity to hear from industry providers in a rapid-fire networking session in which multiple presenters each had five minutes to make their pitch highlighting the benefits of their solutions. Learn more about the Innovation Showcase participants highlighted at the end of this newsletter.
AlphaPack helps banks work with outside software partners—particularly startups. We reduce the time-to-market, cost, and risk of joint software projects by providing a software deployment platform that solves data security and system integration concerns.

D+H MortgagebotMobile, helps banks win and keep customers that want to complete the entire mortgage process online using a tablet or other mobile device.
InterNex Capital is an asset-based lender providing revolving lines of credit from $250,000 to $5 million. Our vision is to transform the way secured lending is done in the lower mid-market.

Mirador is a white-labeled lending platform that is designed to reduce the obstacles between traditional lenders and small business access to quick credit.

Monotto is a white-label personal finance platform that helps banks attract, keep and de-risk millennial account holders. Our technology integrates within existing banking applications to provide account holders with smart automated transfers into their savings account.

Prevalent is the leader in third-party risk management and cyber threat intelligence, helping global organizations manage and monitor the security threats and risks associated with third and fourth-party vendors.

OpCon, SMA Solutions’ flagship product is a true event-driven, cross-platform workflow automation solution. SMA Ascern, their predictive analytics tool applies "big data" concepts to your bank’s operational data.
Q2 powers your virtual banking experience. Our single platform architecture provides one fully integrated platform that contains your every virtual need—online, mobile and voice banking; native, industry-leading security and analytics; and a consistent user experience that optimizes convenience and functionality for your account holders.
Strunk has implemented profit improvement and compliance programs for hundreds of FIs. In addition to our leading Overdraft Service, we offer programs that help improve profitability, customer loyalty and Enterprise Risk Management.

Startupbootcamp FinTech is the leading accelerator focused on financial innovation. We provide funding, mentorship, office space in the heart of Manhattan and access to a global network of corporate partners, mentors, investors and VCs.

Thinknum indexes unique web data for thousands of companies, capturing unique information for investors to use. Thinknum’s data is used by hundreds of asset managers/banks.

VendorMach’s proprietary Trust Score supports SMB lending, due diligence and third party risk monitoring. The score is powered by VendorMach’s network of buyers and suppliers which also serves to originate accounts receivables and asset financing.

Visualize Wealth provides banks and credit unions with turn-key customer advocacy, lead generation and digital relevance through our unbiased, mobile add-on that focuses on wealth monitoring and automated target benchmark construction.



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