Here’s a terrific podcast interview via BAI Banking Strategies that you should listen to during your commute. In it, Andres Wolberg-Stok, Citi FinTech’s global head of policy, talks about best practices and approaches to incorporating financial tech – FinTech – in financial organizations.
An important point Wolberg-Stok makes early in the conversation is the fact that, in the FinTech ecosystem, very few things run on their own. They only make sense in relationship to a consumer’s broader financial life. Therefor, unless data flows safely and securely – and the consumer is comfortable with that – you have nothing.
Financial institutions can certainly address consumer concerns by building too many protections around themselves and their data, but Wolberg-Stok states confidently that “extinction” will result for that walled-in organization.
A good example of this approach is the API methodology behind OrboAnywhere check processing technology. The nature of this web services API is to be available across the entire customer banking experience — i.e. teller, ATM, RDC, Mobile, lockbox — creating opportunities for any workflow within the financial institution. “One call, that’s all” gets you access to virtually 100% amount recognition=automation, image analysis=fraud prevention, validation=payment negotiability, data extraction=compliance and payee=risk reduction. Assuming the infrastructure consists of secure technologies, the net result is efficiency with security.
Fintech and new technology will only work in banking with the right implementation of security and controls, with an attractive value proposition. We are on the way to a world of new opportunities!