BankThink

Up until now, no fintech company has succeeded on a mass scale to offer solutions beyond its core product. But disruptors are trying to go in that direction, and banks should watch their efforts closely.

Receiving Wide Coverage ...Backwater no longer: Payment systems have long been a backwater of finance, but all that is changing, the Financial Times says in a special report on "The Payments Revolution." While the expansion of online shopping and mobile payment devices has spurred massive growth, "the industry is entering a period of extreme disruption. The dominant players — the banks and credit card companies — face an uncertain future. A fast-growing group of upstart financial technology, or 'fintech,' companies are lining up to challenge the incumbent payment providers by offering to meet customer demand for faster, cheaper and easier-to-use services — many of them using the blockchain." At the same time, regulators are increasing pressure on banks to reduce their fees, while traditional payment services "are facing an onslaught of cyber attacks from an army of increasingly sophisticated hackers and digital criminals."

In 2010, lawmakers passed bipartisan reforms to bring transparency and competition to a debit card swipe fee market that had previously been void of both. Now, members of Congress want to undo that progress.

This year, KeyCorp executed the second-largest bank acquisition by deal value since the financial crisis and announced a groundbreaking commitment to do $16.5 billion of lending to low- and moderate-income communities across several states. Chairman and CEO Beth Mooney also purposely raised the visibility of other executives at her company, to bring more diversity of thought into the company’s decision-making process. But Mooney doesn't see an end to her days of trailblazing yet.

The staff at the Securities and Exchange Commission is working on a proposal to amend the current diversity disclosure rule to require more specificity, including information on the race, gender and ethnicity of board members and nominees. Here's why.

Financial services IT teams must think like cybercriminals and develop an offensive approach to security at a time when threats are growing in frequency and sophistication.

A compliance-at-all-costs mentality, which is the overarching attitude in many banks, results in overspending and overallocating valuable resources to meet both real and perceived compliance standards.

Receiving Wide Coverage ...Another day, another woe: The pressure on Wells Fargo continues to increase. Eight Democrat senators Thursday asked the Labor Department to open an investigation into the bank's workplace practices. Specifically, the senators, led by Elizabeth Warren, D-Mass., asked the department's Wage and Hour Division to examine whether Wells "aggressively skirted" overtime laws and failed to properly compensate its lower-level employees. Labor said it was taking "very seriously" complaints about how the bank may have treated its employees.

In e-commerce, merchants strive to achieve a 100% checkout conversion rate but find it elusive because shoppers encounter many obstacles during the payment process.

We haven't heard from Carrie Tolstedt yet, but she has been in the spotlight all week, as seemingly everyone wants an explanation from Wells Fargo. JPMorgan Chase puts even more focus on digital channels, and Politico has a piece on the opportunities fintech offers women, especially female bankers, with a caveat. Also, the B of A bros' club suit has been settled.