Sheltered Harbor began earlier this year and covers around 400 million accounts across banks and credit unions; members of the project are required to back up data so other banks can serve customers in the event that another bank becomes disabled; the project goes beyond concerns over customer data being stolen to address concerns that a cyberattack could destroy or lock data. Source
Brett King developed his company Moven as a better solution to banking; after gaining only 60,000 customers since the digital bank's launch, he is now selling the software to banks for use in mobile apps; Moven and many other digital bank competitors are losing some of their appeal in the startup space as the Trump administration seeks to ease banking regulations that resulted in less risk taking from banks and greater opportunities for startups; as the landscape changes under the new presidential administration, it's likely that the latitude and interest from banks in partnering with startups will increase. Source
Banks are integrating automation to help improve cost pressures yet competition from fintech companies continues to increase; professionals believe the market's fintech revolution will transform the industry and lead to greater automation, consolidation and fintech partnerships; banking automation appears to be one leading factor banks are focusing on as they analyze the market's competitive challenges; automation, blockchain and new technologies are all important topics being discussed at this year's World Economic Forum in Davos. Source
Technology developer Misys has created P2P lending software for banks allowing them to add another layer to their lending capabilities; the firm is marketing the software to banks as an alternative for traditional lending; the software can integrate with traditional banking technology and allows borrowers to be matched with individual or institutional lenders willing to fund their loans; could affect new structuring of banking partnerships; large partnerships to date have included Spanish banking group Banco Santander with US marketplace lender Kabbage and JPMorgan with OnDeck. Source
A new UK bank referral scheme began this week with a focus on nine of the region's largest banks; Lend Academy provides more details in their article; the referral scheme will require banks to refer small businesses to alternative lenders if they are denied credit; creates more opportunities for banks to partner with alternative lenders and also significantly expands credit access for businesses. Source
It is seemingly a daily ritual where we hear of the transformational potential of cryptocurrencies or the systemic risk they...
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As more and more countries begin implementing biometric technology at their borders, banks are also beginning to use fingerprint analysis and retina scans to verify identities; Canada has used their NEXUS program to track travelers and India has used the Aadhaar program to identify their population; banks have begun testing out these technologies to see what fits their customer best: fingerprints, retina or facial recognition; with the new technology still comes age old issues of theft; stealing a fingerprint then changing it can happen just like the changing of a password; banks are still trying to figure out how to address the new technology and learning lessons from border patrol is one way for them to ensure the best solution. Source
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Georg Ludviksson, the head of Meniga, a digital bank that was started in Finland back in 2009, says that banks are at risk of losing the top spot among their customer base; tech giants like Google, Facebook and Alibaba are placing themselves between banks, and their customers are no longer seeing their traditional bank as the go to place for financial services; Georg Ludviksson also points out that the coming PSD2 regulation will shift the balance of power from banks to the customer and that the regulation has the potential to transform banking in Europe. Source