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Podcast: Banking and the Internet of Things

On this episode of the BAI Banking Strategies podcast, we're joined by Chris Skinner, international fintech expert and author. Chris talks about the latest revolutions from the Internet of Things (IoT), with particular focus on how these technologies are shaking up the banking world.   From the podcast: Chris Skinner blogs at The Finanser. Howard Altman's piece, Read More

By |2020-05-27T17:59:45-05:00May 5th, 2017|Comments Off on Podcast: Banking and the Internet of Things

Start your analytic engines: Unsupervised analysis catches true credit risks, tightens cybersecurity

Individuals and organizations tend to act cautious—extremely cautious—during and immediately after a crisis. Yet too much caution can create a mini-crisis of its own: making firms so defensive that they reduce risk well beyond a safe margin of error.  After the 2007-2009 meltdown, financial firms were so concerned about taking on too much risk that they rejected Read More

By |2020-05-27T17:59:46-05:00April 27th, 2017|Comments Off on Start your analytic engines: Unsupervised analysis catches true credit risks, tightens cybersecurity

Examine profit risk, ignore at your own risk

All financial institutions share one key objective: to generate revenue in a way that supports and sustains profit. Yet all too often, banks focus on driving new deposits, loans and other volume-oriented measures of growth. The problem is this: Activities that create a positive effect on the balance sheet may not translate into sustainable profitability. And what Read More

By |2020-05-27T17:59:46-05:00April 18th, 2017|Comments Off on Examine profit risk, ignore at your own risk

ALLL’s well that ends well: CECL, strategic planning and forecasting ALLL

In articles one and two of this three-part BAI Banking Strategies series, we outlined CECL, the Current Expected Credit Loss standard issued by the Financial Accounting Standards Board. Those pieces discussed a savvy approach to gather the required data, consisting of two crucial elements: First, assemble the right internal team to pull accurate data, with representatives from Read More

By |2020-05-27T17:59:46-05:00April 17th, 2017|Comments Off on ALLL’s well that ends well: CECL, strategic planning and forecasting ALLL

Catching fraud off guard: How artificial intelligence will power next-generation fraud mitigation

Controlling fraud and money laundering amounts to a perpetual game that requires a dynamic and evolving process as fraudsters continuously adjust and adapt their techniques.  But relying on business rules or models that use historical data with technologies such as neural networks, deep learning and data mining have only short-term value. This is because they lack the Read More

By |2020-05-27T17:59:47-05:00April 3rd, 2017|Comments Off on Catching fraud off guard: How artificial intelligence will power next-generation fraud mitigation

Podcast: Spotting and fighting synthetic fraud

On the last episode of Season One of the BAI Banking Strategies podcast, we talk with Colin Carvey of TransUnion about synthetic fraud, where criminals create fake identities to land and steal from credit lines, at a great cost to banks. Carvey explains how financial institutions can fight this fraud in conjunction with credit bureaus. Guest, Colin Read More

By |2020-05-27T17:59:47-05:00March 24th, 2017|Comments Off on Podcast: Spotting and fighting synthetic fraud

Success with bite: Setting the menu for risk appetite

So, how hungry are you? In the financial context, this question extends far beyond the usual banking bill of fare. In fact, the recipe relies on the most important aspects of your bank’s lending strategy. Your “risk appetite” refers to the amount of risk your institution will accept in pursuit of loan growth. Defining the metes and Read More

By |2020-05-27T17:59:49-05:00February 17th, 2017|Comments Off on Success with bite: Setting the menu for risk appetite

The loan less traveled: To partner or not to partner with alternative lenders?

“Is it worth it weighed against the potential penalties?” a senior banker recently asked. The “it” involves teaming with third-party lenders, commonly termed alternative finance companies (AFCs). AFCs provide digitally enabled lending to borrowers that usually operate outside a bank’s credit comfort zone. More banks are now evaluating whether and how they should partner with AFCs —particularly Read More

By |2020-05-27T17:59:50-05:00January 27th, 2017|Comments Off on The loan less traveled: To partner or not to partner with alternative lenders?

In the new recipe for helpful banking robots, Pepper provides the spice

Enlisting the real-life equivalent of C-3PO, with his true-to-human behavior and unfailingly polite banter, may still be some years away for the world's banks. But in the meantime, the Japanese retail and corporate banking company Mizuho Financial Group has enlisted an innovation as incredible as it is lovable: Pepper the robot. First introduced at Mizuho's flagship branch Read More

By |2020-05-27T17:59:50-05:00January 26th, 2017|Comments Off on In the new recipe for helpful banking robots, Pepper provides the spice

From silos to platforms: The benefits of comprehensive risk management

With the rise of automated operating systems and smart phones, consumers now expect to interface with efficient, electronic programs in all aspects of their life—in turn, changing lives in the process. Applications increasingly “talk” with one another and share information. People easily save login information to apply from one app to the next. Rather than utilize individual Read More

By |2020-05-27T18:00:05-05:00October 20th, 2016|Comments Off on From silos to platforms: The benefits of comprehensive risk management

Lessons from SWIFT’s warning: Three steps to head off cyberfraud

Controversy. Doomsday scenarios. Industries in crisis. The media is often accused of thriving on these dire topics, and many more. But in one recent case, the alarm bells did a tremendous service to the global financial community:  It gave a platform of urgency to SWIFT, a global member-owned cooperative leading the way in secure financial messaging services Read More

By |2020-05-27T18:00:07-05:00August 31st, 2016|Comments Off on Lessons from SWIFT’s warning: Three steps to head off cyberfraud

Empowering customers to fight card fraud

Card fraud is one of the fastest growing crimes impacting financial institutions. A 2016 LexisNexis report found that issuers directly lose $10.9 billion per year in card fraud, with an average loss of $5.90 per compromised card.With the threat mounting, a bank’s first impulse is often to build additional barriers to mitigate the risks of card fraud. Read More

By |2020-05-27T18:00:07-05:00August 2nd, 2016|Comments Off on Empowering customers to fight card fraud

Making printers part of your security strategy

Given the proliferation of printers in banking – a large institution may have tens of thousands in facilities spread across the country – printer management needs to play a critical role in the ongoing war against hackers.This issue recently came to the forefront in a hack at Bangladesh Bank that resulted in the loss of $81 million. Read More

By |2020-05-27T18:00:08-05:00July 12th, 2016|Comments Off on Making printers part of your security strategy

New risk from new rules on banker pay

In April, a joint committee of federal regulators issued their long-awaited proposed rule limiting incentive-based compensation for bankers. The rule, part of the larger Dodd-Frank Act, largely reflects the industry trends in executive compensation over the last few years, but the key difference is the breadth of impact. This regulation, as it stands, will impact more employees Read More

By |2020-05-27T18:00:09-05:00July 6th, 2016|Comments Off on New risk from new rules on banker pay

Enforcing technology strategy by the CEO

It used to be that bank CEOs wore their lack of technology expertise as a badge of honor: “Hey, I came up through the lofty halls of Credit; I don’t need to know anything about technology.” However, times change. Now that product delivery, service, underwriting, sales execution and marketing are all inextricably attached to technology, today’s CEOs Read More

By |2020-05-27T18:00:09-05:00June 17th, 2016|Comments Off on Enforcing technology strategy by the CEO

Minimizing problems in legacy software

The financial services industry is evolving at an exponential rate in this age of digital transformation. Shifting customer expectations, disruptive technology and demanding regulatory requirements are constantly reshaping the sector. Many banks are finding that their current infrastructure and platforms are simply not capable of supporting the proliferation of user-centric, omnichannel and omnipresent capabilities that customers have Read More

By |2020-05-27T18:00:10-05:00June 7th, 2016|Comments Off on Minimizing problems in legacy software

A closer look at alternative lenders

Over the past year, the alternative lending industry has taken several steps forward and, then, a big leap backward. The most notable step forward centers on the relationship between OnDeck Capital and JPMorgan Chase & Co. Chase now leverages OnDeck’s technology for its small business loans. This relationship, among others, has helped to focus senior bank managers Read More

By |2020-05-27T18:00:10-05:00June 3rd, 2016|Comments Off on A closer look at alternative lenders

Three strategies for protecting payment systems

Current payments systems are more sophisticated than their predecessors, with more functionality, higher transaction volumes and continuously operating, open environments. As banks and their partners have rapidly expanded these payments infrastructures, many have failed to incrementally grow their testing practices to keep up with the pace of change. Many are only testing a small portion of their Read More

By |2020-05-27T18:00:10-05:00May 25th, 2016|Comments Off on Three strategies for protecting payment systems

Preparing for CECL data requirements

The Financial Accounting Standards Board (FASB) is expected to release the final standard of the current expected credit loss (CECL) model in the first half of 2016. This model changes the guidance for the way banks account for their allowance for loan and lease losses (ALLL) and will include, among other provisions, forward-looking requirements, a longer loss Read More

By |2020-05-27T18:00:10-05:00May 17th, 2016|Comments Off on Preparing for CECL data requirements

The case for non-qualified mortgages

Beginning in January of 2014, the Ability to Repay (ATR)/Qualified Mortgage (QM) Rule took effect, which establishes a standard to differentiate “qualifying” and “non-qualifying” residential mortgage loans. Since that time, many lending institutions have defaulted to making only qualifying loans.However, several prudential regulators have made it clear that avoiding nonqualified mortgages was not the intention of the Read More

By |2020-05-27T18:00:10-05:00May 16th, 2016|Comments Off on The case for non-qualified mortgages