Five ways payments will be different in 2024

November 24, 2015
/   Voices

Predicting the future of cash and card payment volumes is arguably a fool’s errand – but Payments UK, Britain’s new trade organisation for the industry, is in a good place to have a go...

Contactless cards: Opt-in or opt-out?

/   Voices

Australia is toying with the idea of creating an opt-in function for contactless cards, in a move that highlights the problems around coping with new payment technology and how fraud risks are handled.

Five EMV lessons for the US

/   Voices

The EMV liability shift has occurred in the US, so what can we expect to see happen in the coming months and years as a result of this change?

Cause and Effect: If you build it, will they come?

July 23, 2014
/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Fast Facts: Student Loans

January 22, 2013
/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

The Top 10 Trends in the Digital Banking Industry

December 18, 2013
/   Spotlight

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions....

Making Banking Fun: Gamification in Financial Services

August 5, 2013
/   Insights

Recently, the team sat in on American Banker’s webinar, “Gamification in Financial Services: Five Proven Ways to Get an Edge,” which shared how leading brands in financial services have applied gamification to reach...

Technology M&As: The Beats Go On

May 29, 2014
/   Insights

The ongoing fascination with Apple’s $3 billion purchase of Beats Electronics is entirely understandable, because it’s a cool story. However, it also says a lot about what’s going on between finance and tech.

Small Business: Perception vs. Reality

November 21, 2012
/   Insights

In the most recent election cycle, like most others before it, the one sector of the economy that got the most attention was small business.  This is the future, we were told by every...

What We’re Reading

May 5, 2011
/   Spotlight

Below are interesting stories the staff has been reading over the past week. What have you been reading? Let us know in the comments section below. Virtual Banking Worlds Provide Tangible Lessons American...

What We’re Reading: Thanksgiving Edition

November 22, 2012
/   Spotlight

Below are interesting stories the staff has been reading over the past week. What have you been reading? Let us know in the comments section below or Tweet @bankingdotcom. Mobile Thursday? Plans for Thanksgiving...

On this blog we’re always looking at the intersection of financial services and technology, and that’s why this singular figure got our attention: $497 million. That’s how much just one institution has already made this year advising technology companies on financial services issues. And if you guessed the institution in question is Goldman Sachs. . .you’re right.

But could that be good news for other banking institutions as well?

Counting everyone from Microsoft and Apple to Alibaba as customers, Goldman has cornered the biggest slice of this critical pie. It offers wisdom on a host of money-related matters, largely because the company has not only mastered the unique rhythms of this dynamic industry, but also keeps changing to support it.

Of course, acquisition is the biggest attention-getter, and the tech industry seems to be going full throttle right now. In just the past few months Intel acquired chipmaker Altera for a staggering $16.7 billion, while Equinix acquired Telecity Group PLC and Avago Technologies swallowed up Broadcom for $37 billion.

And these are just the well-known names making high-profile deals; many others are happening under the radar. Collectively, this adds up to the most active deal-making period for technology providers globally since 2000.

It’s also fun to consider which, if any, of these deals might enjoy a high-profile afterlife. Back in the fall of 2001, analysts were furiously debating the merits of a potential merger between Hewlett-Packard and Compaq, two industry titans facing hard times. The deal went through a few months later, and the debates are still raging. But no one could have predicted that it would end up as a major issue in a presidential campaign. Yet that’s exactly what has happened since the executive who championed the deal, HP’s then-CEO Carly Fiorina, is now running for the Republican nomination.

That said, it isn’t only the acquisition process that needs strategic counsel.  Today, every successful tech company goes through multiple levels of maturation, a departure from the turbulent times of the dot-com era when it was a frantic race to the IPO.

That is why the Goldman Sachs model is so interesting. The corporation is thriving in this arena by creating and deploying teams to meet clients’ needs at multiple touch points. These include some that come before a potential IPO.

We’ve long maintained that there is a lot the financial services industry can learn from the Silicon Valley mindset—this is a dynamic sector where companies frequently cannibalize their most popular product lines (before someone else does it) and best practices are ruthlessly discarded almost as soon as they’re established (in favor of something better). That’s why the industry’s annual listing of, say, the 20 Biggest Companies features new names on a regular basis. The banking equivalent changes almost exclusively through consolidation.

Sure, it’s apples and oranges—the barriers to entry are very different, as are the metrics for success. Still, there’s no question that the banking industry can make room for changes

At the same time, the learning can go both ways. There’s considerable buzz over this subject already on whether we’re seeing a replay of the dot-com era. However, the fact that so many startups are in the market for financial advice early in their gestation is at last one sign that times have changed.

And therein lies a potential opportunity.

Social media and mobile advances, among other trends, have spawned a new generation of disruptive startups, and for every Instagram or Twitter out there, there’s a thousand that want to be.  Most can’t afford the services of a multinational conglomerate headquartered on Wall Street, but they know they need help.

So what might be the big stories in this space a year or two from now? In the dot-com go-around, venture capital firms got all the glory (and most of the early profits) from investments in hot startups. But many banks make business loans and offer financial counsel to fledgling ventures too—are there any future stars in your firm’s portfolio?


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James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.

Brad Strothkamp