'I'd like to see that charter application': Comments of the week
November 9, 2017 9:56 PM
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Readers chime in on the idea of a state-backed bank to serve the cannabis industry, data-sharing between banks and fintechs, whether community banks can just focus on tech laggards, and more.
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On an argument urging community banks to focus their strategy on non-tech savvy segments:
“I agree there are parts of banking where customers are not adopting technology. As I point out regularly, there are people who don't trust it, with 1 in 4 customers avoiding using online banking for this reason. Who are they? They are the people you identify: the old, unbanked, migrants and misfits. However, I'm not sure I would build my strategy for these people. The unbanked and migrants are getting better served by technology than anyone else, whilst the elderly will die. No future.”
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On recent data-sharing deals between banks and tech companies potentially pointing to how the battle over customer data has ended (via Twitter):
“It’s far from over. The real battle is the coming shift of ownership and control to the customer: @TheHATDex”
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On California’s treasurer recommending the state to explore the feasibility of a state-backed bank to serve the cannabis industry:
“Oh, all they have to do is get FDIC deposit insurance. I'd like to see that bank charter application for insurance. The whole idea will go ‘up in smoke’ once they're unable to get deposit insurance.”
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On whether big banks’ new mobile banking accounts will take off with banking newbies:
“I suspect those FIs that reduce the friction for new customers will have a leg up on acquisition. Mobile account opening platforms have to reduce the risk with the high levels of fraud that come with it (heard as high as 25-30% of applications). You've also touched on why small and mid-tier need to invest and hustle on improving the mobile experience. Within a few years, ‘Digital Banking’ will be replaced by just ‘Banking.’”
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BrunoWeltmann - stock.adobe.com
On Equifax’s interim CEO telling the Senate Commerce Committee he doesn’t know if the company is encrypting consumer data:
“So give consumers (by law) a choice as to whether or not they wish to share their data, and with whom. I doubt that very many would choose to ‘opt-in’ to sharing with Equifax, and that would send a strong 'market' signal - protect our data or your business model fails.”
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On bank CEOs saying their cybersecurity fears are intensifying in the wake of the massive data breach at Equifax:
“I hate to take away your idea of CEOs losing sleep over data breaches, but when was the last time a CEO went to jail for having one? The only thing a CEO loses sleep over is his bonus or other supplemental income that CEOs get, or if you want to get real about his cheating on his wife and the alimony he would have to pay.”
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