The keys to fighting fraud?

September 8, 2016
/   Insights

We're constantly being warned that fraud is one of the biggest threats facing the banking industry, but the true scale of this was revealed by a recent survey that suggests it could make up...

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...

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...

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...

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.

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...

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: 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...

To no one’s surprise, President Obama’s State of the Union speech this week had plenty of red meat on the financial services industry. We heard about the “deficit of trust between Main Street and Wall Street.” There was a clarion call prohibiting big banks and other financial institutions from making “risky bets with your customers’ deposits. Mortgage lenders, credit card companies and others in the business shouldn’t be “signing people up for products they can’t afford with confusing forms and deceptive practices.”

Perhaps most interestingly, there’s word of a Financial Crimes Unit that will crack down on large-scale fraud, with harsher penalties for repeat offenders. This is to benefit not just consumers but also “the vast majority of bankers and financial service professionals who do the right thing.”

No one seems quite sure what effect this will have, tangential or otherwise, in the other legal aspect of this equation. As we all know, state and federal in investigators are continue to negotiate a settlement with some of the nation’s largest banks that could reach as much as $25 billion and significantly revamp foreclosure and mortgage servicing practices nationwide. While specifics of the deal are being held closely to the vest, there’s been outspoken opposition from, among others, California Attorney General Kamala D. Harris and her New York counterpart, Eric Schneiderman. Coincidentally, Mr. Schneiderman is also set to lead the Financial Crimes unit at the state level.

The reaction to the speech has played out along predictable lines. While specific banking segments have been a political piñata for a while now, some observers saw the speech as expanding the bull’s-eye already painted on the industry’s back. Others, meanwhile, saw it as a welcome move toward accountability in a market segment that’s run amok.

The truth is, of course, that most institutions and individuals in the financial services industry played no role, pro or con, in any of the activities that drew all this attention.  But the spotlight isn’t going away anytime soon.

The way out of this will be what it has been for every industry caught in the glare of negative publicity: new products, great customer service, relationship building and innovative delivery mechanisms. The tools and technologies now available to every company and every consumer offer a unique opportunity to make a break from the past and do things very differently.

Customers don’t come in like they used to—they’re online, they’re mobile, they’re virtual.  They expect instant access with high quality, and if they don’t get it, they know they can go somewhere else easily. They demand a high level of transparency, along with a high level of security.

There’s more competition, more accountability, more options and more potential than ever before. These are all good things, and the best institutions will benefit from them—and next year’s State of the Union speech should reflect that.


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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.

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.

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.

Brad Strothkamp