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CFIs have connections with lots of service providers likes lawyers and accountants. By leveraging that base of expertise, CFIs can connect SMB and commercial customers to the services they need.
Embedded banking allows CFIs to provide financial products and services through non-bank, third-party partners such as retailers and service providers. In this second part of our embedded banking series, we explore ideas of how CFIs might partner with non-bank organizations to offer embedded banking services. We also address some of the legal, compliance and technology challenges associated with launching embedded banking.
AI-backed CRM systems offer major benefits, but they also involve risks. We outline the challenges of using AI for customer service and share training and security tips to minimize risks.
A recent survey of financial institution executives revealed due diligence and oversight for third-party vendor cybersecurity is inadequate. We highlight key findings and provide strategies to strengthen vendor cybersecurity.
Text message one-time passcodes are increasingly vulnerable to interception. We discuss the concerns and the alternatives CFIs should consider to boost security.
Autorenewals and hidden language within contracts aren’t just a headache for consumers — they exist within the third-party relationships that CFIs have as well. Taking the time to review outdated contracts and redundancies within all aspects of your organization can lead to significant savings and a better overall service experience for your customers.
Chase Bank found that 80% of surveyed respondents between 18 and 65 years of age prefer digital banking to banking in-person. As the digital age continues and community financial institutions look for digital solutions, effective vendor management will be critical for bank profitability. We bring you five vendor management strategies to help.
In the current economic climate, CFIs are prioritizing efficiency. One area to consider is the vendor management program, specifically looking at standardizing processes, integrating systems, and automating workflows.
As open banking becomes more popular, the CFPB is working to establish standards for data sharing, assisted by FDX. CFIs should actively watch how things play out.
As regulatory oversight of BaaS increases, CFIs need to be aware of the risks in their third-party relationships. We provide examples of BaaS flubs and how to avoid them.
Embedded finance is gaining traction among retailers and merchants, providing potential new revenue sources for CFIs. We discuss the opportunities and risks of getting into the embedded finance market.
A spate of regulatory actions against banks for compliance deficiencies in their fintech partnerships has bankers concerned. We discuss recent consent orders and provide tips on managing third-party vendor risk.
Embedded finance offers new revenue opportunities for CFIs, but understanding its risks and benefits is crucial before adoption. We detail the pros and cons here.
The CFPB is finalizing a rule that allows consumers and their representatives to access and share consumer data through secure interfaces. We explain the benefits and challenges of its implementation.
CFIs and other banking operations could profit immensely from creating embedded finance partnerships, where CFIs offer their digital banking services to be integrated into experiences for a third party’s customers. We review the growth potential for embedded finance partnerships and how to get started.
Partnering with fintechs is a good way for CFIs to quickly enhance their online services and offerings. But such partnerships can also create unintended risks for CFIs, a reality that has spurred regulators to step up oversight in this area.
Over the past three years, nearly half of all banks formed a partnership with a fintech, and 91% of banks have said that fintech partnerships are important in driving business strategy. What factors should CFIs consider to help those partnerships run smoothly and productively?
The wealth transfer of $68.4T is coming. Do you have the wealth management services to support this? Community financial institutions with these services gain a new revenue stream, strengthen existing client relationships, and attract new customers. Here are the opportunities and obstacles when planning for wealth management services.
Community financial institutions are facing increasing legal risks, including increased regulatory compliance, cyberattacks, and M&A complexities. In order to effectively manage this extra legal exposure, many bankers are increasing their legal support. We give you some options and steps to consider.
Digital banking and the PPP were two key drivers in bringing CFIs and fintechs together during the pandemic. This shift in the fintech-financial institution dynamic will likely continue post-pandemic as CFIs look for ways to continue engaging their customers. We explore what fintechs are looking for and the steps CFIs should take for a successful partnership with a fintech.
Successful core conversions are critical for financial institutions. During the pandemic, these conversions were mainly done remotely out of necessity. This worked quite well, so it will likely continue post-pandemic. The benefits of remote core conversions include speed, efficiencies, and more effective staff training. There are some potential downsides too though. If you want the best of both worlds, hybrids may be the way to convert your core.
Fintechs — once viewed as an existential threat to community financial institutions — are now increasingly seen as offering institutions an opportunity to innovate and thrive. However, fintech partnerships carry risks and the regulators are watching closely. We summarize six key areas from the latest due diligence guidance to ensure a successful and responsible partnership.
Embedded banking could help CFIs expand into new markets, acquire new customers, and increase deposits. While there is huge potential for embedded banking, some CFIs are hesitant to give it a try due to perceived complexity and high cost. In the first of a two-part series, we discuss benefits and trends related to embedded banking.
