This week in fintech news, there have been some interesting developments surrounding digital technology. From over 50 banks supporting the Financial Desktop Connectivity and Collaboration Consortium standard to the Government of Bermuda amending their Banking Act to allow for more innovative technology, it’s clear the world is embracing digital fintech. Financial Technology Today has compiled the top stories surrounding emerging fintech to bring you a quick read on innovative digital technology across the globe.
Financial Desktop Connectivity and Collaboration Consortium, FDC3, a standard that is being backed by over 50 banks including heavy hitters like Morgan Stanley, JPMorgan Chase, and Royal Bank of Canada, is calling for bank applications to follow suit of other apps, to share data across platforms and browsers. This standard would allow for shared data between multiple apps, stimulating a response when a user completed a task, allowing for the use of multiple smaller apps for specific tools rather than one large platform.
“I’m going to give you this one big, monolithic application that’s going to give you everything you need to delight the end users,” said Mazy Dar, the CEO of OpenFin. “That approach has worked in zero percent of the places. It’s a hard thing to do and it’s fraught with all kinds of risk.”
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Digital technology, while extremely valuable for customers, can be invaluable for employees, offering easier ways to complete tedious tasks. First Horizon National Corp. is taking it a step further and using artificial intelligence to evaluate employee sentiment and identify their highest-performing employees.
UltiPro Perception, the AI system, uses natural-language processing to “read between the lines” of employee surveys to identify over 100 emotions including confusion and frustration.
“It’s been critical in how we are revising our performance management philosophy,” said Mario Brown, vice president and manager of leader assessment and development at First Horizon. “We can easily go through and pick out what managers say about high performers — and also those who don’t meet expectations — and identify trends.”
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Customer Experience and Digital Fintech
With digital technology not only being an expectation but a requirement for banks to stay relevant, they must understand their customers who are driving this change. A Single Customer View offers financial institutions a glimpse into the habits and relationships of their customers, helping them to make informed decisions on products and marketing.
“It’s clear traditional banks need to embrace digital advances, such as those under the FinTech umbrella, to drive opportunity. Not only will this improve efficiency and help to manage risk; it’s critical to sustainable success,” said James Turner, managing director of Turnerlittle.com. “In fact, it is understood embracing digital innovation will provide banks with the key to reach their goals in 2018 and to appease fed up consumers. It’s time to move with new advances, rather than wasting energy, money, and custom fighting the tide.”
Read more here.
The Government of Bermuda is amending its Banking Act to create a new class of bank that will cater to local blockchain and fintech companies. The recently passed ICO Bill and Digital Asset Business Act, aim to put Bermuda on the map as a fintech destination for innovation, aiming to attract companies in the virtual currency realm. The amendment to the Banking Act allows local banks to partake in blockchain business who have cited regulatory barriers in the past.
“The fintech industry’s success globally depends on the ability of the businesses operating in this space to enjoy the necessary banking services,” said David Burt, Bermuda’s premier and minister of finance. “In other jurisdictions, banking has been the greatest challenge and for us in Bermuda, it is equally so and therefore it must be resolved.”
Read more here.
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