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Index

k Page references followed by f indicate an illustrated figure; followed by t k indicate a table. A Aging community banking ABA, 146 institutions, problems, 116 Accountholders, 125, 129 Airbnb, 212 happiness, 100 Airbnb, usage, 133 problems, 261–262 AirPlay, usage, 132 Account onboarding, 121 Alexa, 260 Account satisfaction (UK), 54f Alternative lending companies, ACI Worldwide, 226 partnering, 187–188 Alternative payment providers, 216 Action, call, 119 Amazon Business, 133 Adams, Robert, 41 Amazon era, 216 Adult InternetCOPYRIGHTED users, share (US), Amazon MATERIAL Web Services, 121 142f AML, 158 Affectiva API, 254 increase, 210 Affiliation, sense, 250 regulations, 233 Agile methodology, application, Analytics, 203, 224 209 Ant Financial, 63, 263, 136 Agile thinking, usage, 96–97 Ant Financial Cloud, 64 Agility, 224 Anti-innovation reflexes, 198

273

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274 INDEX

AOL Instant Messenger, 179 creation, 23f Apathy, impact, 84 issuance, 14f Apple, 20, 66, 187, 192, 212, 255 issuance (US), 35f Watch app, 61 Bankers Apple App Store, 187 customer business, 195 ApplePay, 66, 70 underwriting, 196–197 Application programming interface Banking (API), 263 app satisfaction (UK), 55f banking, reality, 125 charters, creation frequency discussion, 232 (reduction), 22 initiatives, 119–120 customer satisfaction Applications (apps) overestimation, 222f app-banking, approval ratings, digital engagement, 218f 56 evolution, 229–230 discussions, 150–151 executives, enlightenment, Artificial intelligence, 160 80–81 Assets focus groups, usage, 138 liability management, 121 human inertia, startup size, basis, 8f overestimation, 130 Association of Financial ideas, 85 Technology (AFT), 65 impact, 106 k Atom , 60 importance, 221 k Audience feedback, 113 industry Automated compliance services, perceived threats, 216f 133 problems, 221 Automated teller machines information, 146 (ATMs), 189 organizations, leveraging, 227 depository, 153 perspective, 260–261 fees, 139, 252 priorities, 215f screens, 135 products, shopping, 143 surcharge fees, 252f regulation, 20–21 technology, impact, 82–83 revolution, 230–231 usage, 36, 83 strengths, 225f Average overdraft fee (US), 139f tweens/teens, 162–164 AWS cloud storage, 132–133 unbundling, 248 updating, 197–200 B weaknesses self-assessment, Bank branches 226f gross closings, 33f world, normal world (contrast), gross openings, 34f 5, 98–99 number, 28f, 87f Banking Optimization System Bank charters (BOS), 263 consolidation, FDIC reasons, interpretation, 265 16–23 transformation, 264

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Index 275

Bank Innovation blog, 238 Belief, falsehood, 3 Bank Innovation INV, 238 Benefits outsourcing, 133 Bank of Ann Arbor, 179 Best-of-breed offerings, obtaining, Bank of England, competition 120–121 stance, 52 Best practices, 78 Bank of Scotland, 52 benefits, 228 “Bank of the Future,” 214 impact, 85 Bankruption “open the book,” 88 Fintech adoption, relationship, Best talent, hiring, 132–133 128f Beyond the Arc, Inc., 234 future, 93 Big Data, 103 overview, 1 Bitcoin, 192 Blachford, Dale, 109 algorithms, 211 Blankfein, Lloyd, 134 acquisitions, Blockbuster, 134 17–18 Blogging, usage, 251 employees BoA, 202 numbers, 89f Board reporting, 127 salaries/benefits, 89f Boomers, perspective, 151–154 engagement, barriers, 219f BOS. See Banking Optimization failures, 16, 19–21 System k rates, 20f k Botha, Roelof, 93 future, delivery, 218–221 Bottom-up approach, 206–207 insolvencies. See United States. locations, increase, 136 Bouvier, Pascal, 161 problem list, 69f Brain drain, 24, 102, 104 repositioning, option, 221 Brain gain, 104 role, 221 Braintree, 210 weakness, 225 Branch banking, realities, Bank Systems & Technology, 186 27–37 Bank Technology News, 186 Branch density Barclays, 52 impact, 30–37 Basel III capital standards, 22 strength, 32 Basel requirements, 53 Branches Basic banking services, 211 branch-based competition, BBVA, 82 prohibition, 77 BBVA API Market, 246 convenience importance (UK), BECU 58f youth savings, 174–176 conversion, 183 Youth Savings Landing Page, customers, digital channel 175f usage, 57–58 Behavioral data, impact, 190 death, attack/prognostication, Belco Community Credit Union, 87 113 distribution strategy, 57

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276 INDEX

Branches (continued) C family friendly branches, Capital 251–252 holding, 53 new branches, building, 37 requirements, 53 numbers, legislation (impact), Capital One, 203 28–30 Card rewards, leverage, 255 strategy, reevaluation, 101 CASS. See Current Account streamlining, 255 Switching Service value, 112 Castilla, Jill, 26, 104–106, Branching 176–181 examination, 94–106 Causation, correlation (contrast), inefficiency, 37 81–83 Brand advocacy, creation, 236 CBW Bank, 158, 188, 232 Brand awareness, , impact, 233 144f CC Catalyst, 238 Branding, 193 CEB, 194, 195 Brand name, 140 Centennials, 114 Brand power, 137–138 CenterState Banks, 30 Brand scale, 141 Centralization, importance, Brand value, 138f 181–182 ranking, 145f CEO age (action call), 119 k Bratspies, Steve, 98 CFPB. See Consumer Financial k Breaking Banks, 95, 209 Protection Bureau podcast, 81 Challenger banks Breeding, impact, 191–192 capital, holding, 53 Brexit, 60 creation, 52–53 Bricks and mortar access points, customers (UK), 55f focus, 25 examination, 59–61 Bricks and mortar museums, growth, 50–61 323 return on equity, 59f Bruene, Jim, 58, 161–176 universal banks, contrast, 53–59 Buffer, impact, 126 Change agents, organizational role, Bugs, elimination, 183 208 Businesses Change, purpose (impact), actions, cessation, 133 104–106 credit sources, 10f Channel usage (UK), frequency, intelligence, 127 57f tools, 203 Channel usage (US), frequency, 32f owners, time (limitation), 111 Charters, 16 retiree initiation, 154f consolidation, 23–27 strategies (enabling), data intracompany consolidation, 16 (usage), 236 Chasm crossing, 130 Byrider, J.D., 144 Cheap labor, 88

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Index 277

Check-cashing services, 210 Community banks, 189 CheckFree, 67 assets, 19f level, 208 banks, appearance, 61–64 attention, 176–181 community bankers, 62–63 closure, 22 opportunities, 62 acquisition, 17 transactions, 63f definitions, 21–22 P2P lenders, 62 failures, facts, 22 state-controlled banks, impact, Federal Reserve System 61 definition, 9 China Banking Regulatory number (depopulating towns), Commission, 62–63 25f Citi FinTech, 86 operation, 197 Citizens Bank of Edmond, 104, running, 140 176 rural branches, 26 mind-set, 177 self-acquisition, 18f Uniform Bank Performance strategy, change, 240–241 Report, 106 see also Financial institutions Citizen’s Bank of Weir, 232 (FIs) Clicks-and-mortar retailers, 96–97 Community-based banking investment, requirement, 97–98 institutions, catering, 7 k Closed community banks, Community financial institutions k acquisitions, 17 digital capabilities, requirement, Code, human trust, 264 158 Commercial Banking and Retail omnichannel adaptation, 100 Banking Leadership Council, opportunity, 75 194 problems, 93 Commercial , 234 younger audience attraction, Commodity business, 246 102 Communities see also Financial institutions community-focused financial (FIs) institutions, 240 Community institutions defining, 9, 112 consumer relationships, financial institutions, relinquishment, 264 phenomena, 201–202 employee numbers, 90 Community bankers, risk aversion, growth, process, 229 179 innovation, absence, 203 Community banking interaction/resource sharing, defining, 7–13 264 future, absence, 1–6 network, 263 model, threat, 136 thriving, 2 physical proximity, reliance, 2–3 see also Financial institutions problems, 7 (FIs)

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278 INDEX

Companies, single-point solution Correlation, causation (contrast), sale, 118 81–83 Compensation, importance, 183 Coupon-matching, 97 Competition Cox, Heather, 86 action call, 119 Coxon, Hal, 101, 181–186 usefulness, 177 CRE, 27 Compliance, 83 companies, 66, 216 finalization, 114 Credit sources, 10f management system, 199–200 Credit Union National Association Computer-aided automation, (CUNA), 146, 147, 192 impact, 65 Credit unions, 66, 189 Computer-system banks, 65 assets (US), 12f Concierge, impact, 185 associations, information, 146 Consolidation, 193 competitive advantage, 244 Consumer Bankers Association, financial assets, growth, 12 205 locations, increase, 136 Consumer Financial Protection noncommunity bank, contrast, Bureau (CFPB), 22, 110–111, 21, 44 131, 192, 241 operation, 197 role, 221 consumer interaction oversight, running, 140 81 k strategy, change, 240–241 k Consumers see also Financial institutions change agent role, 71–72 (FIs) consumer-facing technologies, Credit Union Service usage, 85 Organizations (CUSO), 67, 71 consumer-friendly payment Crosman, Penny, 186–188 mechanisms, 203 Cross-generational work, ease experience perception gap, (startup overestimation), 131 221–223 Crowdfunding, 68 needs, pace (keeping), 192 C-suite, 182 product experience, 141–143 Culture danger, caution, relationships, relinquishments, 116–117 264 Current accounts, switchers (UK), switching costs, 130 56f trust, increase, 142 Current Account Switching Conversion Service (CASS), 56 action call, 119 CUSO. See Credit Union Service timeline, creation, 183 Organizations Core banking, extensibility, 119 Customer/member relationship Core influence, increase, 126 management, 121 Core mission, adherence, 187 Customer relationship Core processor, 127, 185 management (CRM), 208

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Index 279

Customers, 196 Data proximity alienation, risk, 234 impact, 3–4 base, affluence, 239 usage, 4–6 end-to-end experience, focus, Data, release, 118–120 235 Davis, Matt, 188–192 expectations, 258–259 Deming, W. Edwards, 13 experience, enhancement Demotion, appearance, 184 (opportunity), 223–224 De novo, problems, 38–50, 158 financial services, 231 Depopulated towns, intimacy, 245 characteristics, 107 journey, in-depth knowledge, Depopulating rural market, 236 median community bank, 25 knowledge, 235 Depopulating towns, community priority, 247 bank numbers, 25f satisfaction, banking Depopulation, 23–27 overestimation, 222f branch density, strength, 32 vertical specific solutions, Depository institutions, nonbank creation, 233 competitive pressures, 29 Customer service, 99 Deposits consumer opinion, 138–141 percentage, asset size term,usage,231 basis, 8f k CU Water Cooler Symposium, placement, 263 k 188 Desjardins Group model, 191 Digital banking D consumer switching costs, 130 Data enhancements, 203 access, 121–122 platform, building/supporting, creation, 3f 232–233 data-fueled marketing, usage, Digital Banking Report 236 rebranding, 161–162 misinterpretation, 242 subscription, 81, 112–113 needs, 199 Digital banking users, generational size, 237 basis, 13f usage, 236 Digital branches visualization software, 121 challenges, overcoming, Database consultant, impact, 103 110–112 Data-driven adjudication management, 121 constructs, digital applications, Digital campaigns, actions, 237 111 Digital capabilities, requirement, Data-driven insight, foundation, 158 96–97 Digital Channel Committee Data-driven marketing activities, (Consumer Bankers 202 Association), 205

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280 INDEX

Digital community Economies of scale, 193 banking, 112–114 EFMA study, 64 shift, 116 Emigrant , 238 shift, 106–116 Emotion-as-a-service, integration, formula, 114 254 Digital delivery gap, 216–217 Employees, impact, 90–92 Digital disruption, 95 End-consumer experience, 118 Digital engagement, banking Endorsed vendor review, national approach, 218f association standards (adoption), Digitalization, 224 147–148 challenge, 217 Endorsement Digital platforms, extensibility, 119 model, 147–148 Digital success, achievement, 110 problem, 146–147 Direct banks, 203 tier, introduction, 148 primary bank role, 35f Endorsement Roadmap Direct inclusion standards set, creation, delivery, 66, 67–69 148 providers, impact, 68 marketing, 149 Discipline of Market Leaders, The, products, qualitative feedback 245 (provision), 148 Disruption, impact, 231 End-user satisfaction, 120 k Disruptors, impact, 177 End users, best-of-breed offerings k Dissonance, 258 (obtaining), 120 Distribution denial of service End-users, characteristics, 85 (DDoS) attacks, Engagement, barriers, 219f severity/volume, 121 Entrepreneurial generation Dodd-Frank Wall Street Reform perspective, 153 and the Consumer Protection small business guidance, usage, Act 150–151 impact, 82 Entrepreneurship education, 151 proponents/result, 44 Entrepreneurs, interactions, Drucker, Peter, 241 150–154 Due diligence E-signature, 121 performance, 147 Esser, Julie, 192–194 processes, 146–147 Established trust, importance Dummy Twitter account, creation, (startup underestimation), 129 247 European Union (EU), Payment Dwolla, 70 Services Directive adoption, 82 Evaluating ladder, metrics E (importance), 149 Early adopters, value (startup Evaluation fee, charging, 148 overestimation), 128–129 Evoke, 179–180 Early Saver account, 174–175 Excel, usage, 132

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Index 281

Expenses card, 233 brevity/levity, absence, 123 Expert partners, alignment, 266 competition, 31 cross-pollination, 67 F customer priority, 247 Facebook, 95, 136, 212 digital advertising spending, appearance, 179 113f era, 216 FI-led fintech accelerated monthly active users, 83f company, 125 users, examination, 82 front line consideration, 88 Face-to-face human interaction, future, uncertainty, 210 229 growth, 26, 189 Fair Isaac Corporation (FICO) human-centered data, 10 problem-solving business, Family banking services, 164 189 Family-friendly branches, innovation, 198 251–252 labeling, 81 Federal banking charter, local branch network, 3 creation, 29 members/customers, 182 Federal Deposit Insurance primary financial institution, Corporation (FDIC) future, 214 banks study, 24 problem, 189 k community bank study, 18 relevance, 190–192 k FDIC-insured bank relevancy problem, 190 branches, 102 retail environment, 181 density, 31f sponsored incubators, 124 FDIC-insured bank failures, 14f technology, usage, 117 problem list, 69 total FIs, forecast, 8f relationship lending, 11 trawlers, 93 Federal Deposit Insurance trust, influencers, 130f Corporation (FDIC), algorithm user-centric products, 70 creation, 9 Financial Management Solutions, Federal Reserve System, study, 36 community bank definition, 9 Financial resources, redundancy, Feedback, response, 85 193 Ferrell, Will, 190 Financial services, 231 Filene Research, 193 brand awareness, 144f Financial Brand, 127 brand value, 138f Financial Brand Forum, 80 marketing solution providers, Financial Conduct Authority 203 (FCA), 52–53 startups, presence, 159 Financial goals, determination, 244 Financial Services Authority Financial institutions (FIs) (FSA), FSA-granted bank assessment, presentation, 195 licenses, 54f

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282 INDEX

Financial services companies, Forward-thinking transition plan, fintech (contrast), 65–66 184 Financial technology, impact, Foundation, problem, 118 65–66 Free Banking era, 238 Finovate, 80, 127 “Free money,” offering, 174 demoing, 124 Front-end website/apps, 127 Fintech, 64–66 Full-service FIs, efficiency, 36 accelerator, 238 Future, strategy (determination), adoption, bankruption 243 (relationship), 128f challenge, 215–216 G companies, partnering, 133, Gas card, 233 187–188 Gen Z, 114 competitors, 213 Geographical focus, 11–15 constructive feedback, 71 GitHub, 61 Direct delivery, 66, 67–69 Global Fintech financing, 159f feedback, 71–72 Gold Label financial services companies, delivery, 66, 70–72 contrast, 65–66 fintech providers, 114 force multiplier, 201–202 term (usage), 70 global Fintech financing, 159f Millennials, 151–154 k Gold Label delivery, 66, 70–72 k Good service, definition, 203 landscape, overview, 64–72 Google, 136, 192, 212 limited purpose federal banking Google Fiber, 104 charter, OCC creation, 29 Google Play, 187 market, dynamics, 200 Gramlich, Jacob, 41 options, 226–227 Great Depression, 28 PwC survey, 66–67 Great Recession, 19, 64, 110, 115 startups, 66, 82, 148 branch footprint, 34 interactions, 126–131 strengths, 226f events, 65 weakness self-assessment, 225f impact, 152 White Label delivery, 66–67 Greenawalt, Andy, 99–100, FIRSTBranch, 108–109 197–200 digital success, achievement, Griffith Savings Bank, acquisition, 110 17 First State Bank, 103 Growth, absence, 24–25, 26 Fishback, John, 194–197 “Fit in the box” lending, 11 H Force multiplier, 201–202 Harris, Matt, 201–202 Ford, Henry, 231 Heard on Hurd, 180 For-profit company, due diligence Heasley, Phil, 226 (performing), 147 HELOC, 261

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Index 283

High-value customers, emphasis, Innovation, 224 235–236 absence, 203 Hilton digital key, downloading, anti-innovation reflexes, 198 80 encouragement, regulatory Holvi, BBVA acquisition, 82 environment (impact), 191 Homelink, launch, 52 Innovators Homogeneity, degree, 250 dilemma, 258 Household, primary bank user, value, startup overestimation, 139–140 128–129 Housing wealth, 152 Insights, battle (winning), 190 HSA card, 233 Instagram, 143 HSBC, 52 Institutions, future, 13–15 Hulu, usage, 249 In-store experience, 97 Humanity, connection, 150 In-store routing, 97 Human-powered , Intangible assets, 137 impact, 132 Intellectual property, 137 Human resources Intelligent Enterprise, 186 considerations, 184–185 Interactive teller machines, 33 Human resources, redundancy, 193 Intercompany mergers, 16 Human resources, usage, 133 Interfaces, development, 263 Hybrid banks, 203 Internal bonus/incentive k Hyper-local action, 190–191 structures, 127 k Internal learning, 127 I Internal team, requirement, IBM report, 223 228–229 ICBA, 146 Internet of Things, devices Idea Bank, 153 (forecast), 4f IDV software, usage, 211 Internet-only banks, 203 iGen, 114 Internet Plus policy, 61 Inaction, problem, 84 Internet, usage, 50 Inactivity, problems, 79–86 Interstate Banking and Branching In-branch account opening Efficiency Act (1994) personnel, impact, 81 (Riegle-Neal), 16–17, 29–30, Incentive-based marketing 77–78, 83 campaigns, 130 Interstate branching, 77 Incubation, avoidance, 122–133 Intimacy, 3 Indecision, impact, 84 yield, data proximity (impact), Informationally opaque borrowers, 3–4 lending, 10–11 Intracompany consolidation, 16 Information technology (IT) Intrastate branching, 77 strategy, 242 Investment entities, 66 Infrastructure costs, impact, 223 iPad Pro, usage, 132 ING Direct, 174 iPhone, 142, 230

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284 INDEX

iPhone, (continued) Limited purpose federal banking release, 76 charter (OCC creation), 29 Iterative incentive-based marketing Limited-purpose national charter, campaigns, 130 69 Ittycheria, Pradeep, 202–205 Lincoln Savings Bank, 188 Lines of credit, 234 J Lintel Bank, 60 Jack Henry & Associates, 254 Little Giant Ladder System, 146 Javelin study, 139 Living expenses, 162 Jiménez, Alex, 84, 205–209 Lloyd’s of London, 52, 209 Job creation, 61 Loan applications, digital receipt, Joint venture, 126 110 Jumio, 211 Loan size, insignificance, 62 Junk mail, impact, 261 Local advertisements, impact, 102 Local credibility, merger, 203 Local digital marketing approach, K 112 Kabbage, 204 Locality, idea (importance), 9 Kaizen, 206 Local talent, hiring, 132–133 Kasasa, 70, 158, 181 Location, impact, 230 Kayak, usage, 133 Long-term goals, 121 k Keqiang, Li, 61–62 Loyalty, reward, 260 k Kimerling, Dan, 124 King, Brett, 36, 158, 209–212 M (KYC), 61, Machine learning, 160 210, 232, 235 Management, testing, 195 Market feedback, 114 L Marketing, 101–104, 236 Latimore, Dan, 212–213 automation, 121 Lean Principles, 84 incentive-based marketing adoption, 85 campaign, 130 application, 206 local digital marketing Lean Startup, The (Ries), 84, 235 approach, 112 Legacy systems, challenge, 217 online targeting, 249 Legacy thinking, 1–2 shift, 248–249 LegalZoom, 153 Marous, Jim, 95, 112, 161, Lender dissatisfaction (small 214–227 business), 205f Mashable, 251 Lender satisfaction score, 204f Mass disbursements, 233 Lending Club, 192 Megabanks Lending criteria, usage, 10 accountholders, 140 LevelUp, 187 impact, 140 Liberty Bank, 109 offerings, 261

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Index 285

Meltdown (2008), 138–139 Monetary commitment, Member associations, de-risking, 109 improvement, 143–146 Money Mergers and acquisitions (M&As), amount, determination, 244 83, 237 making process, 245 Method application bias, curbing, transmission, 211 110–111 Money 2020, 80, 127 Metrics, 148 Money Advice Service, importance, 149 The (study), 250–251 success metrics, 185–186 Monzo, 60–61, 86, 120 Metro Bank, branch-distribution Moore, Geoffrey A., 128 strategy, 56–57 Morris, Charles, 41 Microbranching, 101 Mortgage technology, upgrading, Millennials, 151–154 187 aging, 257 Mothers, marketing, 250–253 characteristics, 151–153, 178 MovenBank, 157–158, 188, 209 education levels, 152 Moven, implementation, 67 financial product research, 152f Move Your Money movement, 11 income generation, 153 M-Pesa, 210 Mills, Scott, 227–229 MVP. See Minimally Viable Product k Minimally Viable Product (MVP), k 84–85 Mint.com, 68 N Intuit acquisition, 64 National associations, standards PFM service, 70 adoption, 147–150 Mobile app, 80 Neo-bank, 61 usefulness, 187 Netflix, 134 Mobile app-based banking, 20–21 Net Promoter Score, flaws, 95 Mobile banking, impact, 162 Network Magazine, 186 Mobile banking transactions New job creation, 61 (China), 63f Next Bank, 127 Mobile deposit capture, rollout, Next Money, 80 58–59 events, attendance, 81 Mobile money services, growth, US events, 229 211 Nichols, Chris, 30 Mobile POS payments, 255 Nicols, J.P., 229–231 Mobile technology, availability, 239 Nobu, 94–95 Mobile telephones/providers Nonbank competitive pressures, 29 listing, 142 Non-cash payments, 36 Modern life, complexity, 190 Noncommunity bank, credit MomLogic (Warner Bros. Studio), union (contrast), 21, 44 253 Noncompetitive spirit, 78

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286 INDEX

Normal world, banking world Organizational dynamics, 199 (contrast), 5, 98–99 Organizations Not-for-profit organization, 146 change agent role, 208 Not invented here (NIH), operating model, 200 204–205 personnel, training/firing, Nottingham Building Society, 88–90 52 time-saving services, usage, 133 Nubank, 61 Number26, 61 P Nussle, Jim, 143, 148 P2P lending, 68 Paid-on-success model, pricing, O 109 Ocean Tomo study, 137 Paper check payments, decline, 36 Office of the Comptroller of the Parent-child card, 233 Currency (OCC) Partnering, 224 banking charter creation, 82 usage, 122–133 federal banking charter creation, Partnership 29 arrangement, 126 limited-purpose national cessation, 131 charter, 69 making, 247–248 Office of Thrift Supervision Partners, obtaining (increase), k (OTS), Dodd-Frank (impact), 132–133 k 82 Payday lending, 210 Omnichannel, 97 Payment Services Directive, adaptation, 100 EU adoption, 82 banking models, 220f PayPal, 68, 212 customer engagement, 217 Payphones, usage (US), 265f investments, 99 Perimeter eSecurity, Inc., 197 OnDeck, 204 Periscope, 180 ProfitStars, partnering, 70 Personnel On-demand consumer retail impact, 90–92 purchase loans, 234 training/firing, 88–90 PFM absence, 232 app, usage, 244 impact, 162 company, BOS transformation, Online Banking Report, 58, 161, 264 248 importance, 252 On-location service, 26 products, 70 Operating efficiency, 185–186 Physical distribution, focus, 25 Operational excellence, 245 Physical money, impact, 229 Oracle Financial Services Global Physical proximity, reliance, 2–3 Business Unit, 220 Picasso, Pablo, 203 Oracle study, 220 Pivot, mastery, 234–235

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Index 287

Plan, creation, 266 Q Planning team QR codes, absence, 102 kickoff meeting, 207 Quicken Loans, 187 regular meetings, 207–208 Political intention, variation, 146 R Population loss, 24 Radius Bank, 187 POS Ramamurthi, Suresh, 69, 119, deceleration, 254 158, 232–234 payments, 255 Ramirez, Steven J., 234–237 Postal Savings System, Reddit, front page (attainment), establishment, 135 248 Practical Bank Credit, 195 Regehr, Kristen, 41 Predictive analytics, 160 Regtech, 197–200 Prepaid card, 233 opportunity, 199–200 Prepaid debit cards, 210 solutions, 199 Pretax return on assets (ROA), 26 usage, 133 Price, concern, 107–109 Regulation, startup Pride, vice, 1 underestimations, 130–131 Primary financial institution, Regulators, proactive engagement, 131 future, 214 Regulatory awareness Private-label banks, 216 k issue tracking system, 200 k Problems, root causes (defining), workflow technology, 199 206 Regulatory change management, Process monitoring, 199 199 Products, 164 Regulatory enforcement notice, age range, 171t–174t 177 availability, 98 Regulatory taxonomy, 199 endorsement, tier, 148 Relationship, 3 leadership, 245 data-based lending, 10–11 value, startup overestimation, lending, 11 131 Relationship-type lending, 50 Profitability reporting and tracking Repopulation, occurrence, 106 tool, 127 Reputational risk ProfitStars, OnDeck (partnering), absence, 84 70 mitigation, 85–86 Proximity, impact, 2 Resources, divestment, 254 Prudential Regulatory Authority Retail banking (PRA), 50, 52–53 accounts, selection, 12 capital requirements, 53 future, optimization, 259 deposit-taking FIs, 51f problems, 259–260 Pure-play ecommerce sites, 96–97 Retail banks, customer Purpose, impact, 104–106 competition, 215

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288 INDEX

Retail industry, examination, Self-directed digital model, 214 96–98 Self-liquidation, 16 Return on assets (ROA), 26 SEO problems, 76 defining, 88 Sequoia Capital, 93 Return on average equity (US), Service organization, repetitive 60f workings, 208–209 Return on equity (ROE), Service providers, components, challenger banks, 59f 121 Return on income (ROI), 124 Services, 164 Revenue generation, 254 customer focus, 228 Riegle-Neal. See Interstate Shevlin, Ron, 70, 94, 240–246, Banking and Branching 259 Efficiency Act (1994) Sieber, Scarlett, 246–248 Ries, Eric, 84, 234 Silicon Valley Bank (SVB), Ripple Labs, 188 accelerated Standard Risk, 83, 212 Treasury, 124 action call, 119 Simple, 70, 188 appetite, 153 BBVA acquisition, 204 management, 233 Single-point solution, company models, 160 sale, 118 Royal Bank of Scotland, 52 Slack, usage, 132–133 k Rural communities, young people Small businesses k (loss), 24 guidance, usage, 150–151 Rural depopulation, trend, 31–32 lender dissatisfaction, 205f Ryan, Phil, 237–240 lender satisfaction score, 204f relationship-type lending, 50 S Smarter Bank (Shevlin), 240 Sales culture, reconsideration, SmartyPig, 174 194–195 Snapchat, 249 Sales processor/assistant positions, notification, 151 self-explanations, 185 Snarketing 2.0, 240 Salvetti, Jack, 86, 88 Social cause, support, 106 Sauza Tequila, marketing focus, Social media, impact, 178–179 253 Soft data, value, 10–11 SBA loans, 234 Sonic Lunch (Bank of Ann Arbor), Scale 179 increase, 142 Special Employer Groups, 9 results, 134–150 Specialization, impact, 238 Schaus, Paul, 238 Square, 68 Schedule, creation, 266 Standard and Poor’s 500 (S&P500) Schultz, Howard, 239 market value, Ocean Tomo Sector breakthrough, 200 study, 137 Security-in-the-Cloud, 197 Standard Chartered, 52

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Index 289

Standard Treasury, 124 Technical integrations, 127 Starbucks, popularity, 239 Technology Startup companies budgets, 201 cross-generational ease developments, 209 overestimation, 131 impact, 228 discussions, 150–151 importance, 193–194 established trust importance mortgage technology, underestimation, 129 upgrading, 187 growth, 257 offering, 240 human inertia overestimation, reexamination, 132 130 revolution, 151 innovator/early adopter value understanding, 117–122 overestimation, 128–129 Technology Department, support, integration cost, 182 underestimation, 127 Tencent, QQ, 63 product value overestimation, TheFinancialBrand.com, usage, 81 131 Three Six Three (3-6-3), 75–78 progress, 125 Too big to fail banks, 11 regulation underestimation, Top-down activities, bottom-up 130–131 activities (combination), 206 testing period, 129 Transactional data reconciliation, k underestimations, 127 263 k Startup companies, impact, 65–66 Transaction assistance, 199 State-by-state licensing laws, 69 Transformation management, Storm, Shari, 248–253 internal team (usage), 228–229 Strategy Transition, termination fog, 240–243 (comparison), 184 formulation, 244 Trust, 147 testing, 195 increase, 142 Strengths, weaknesses, influencers, 130f opportunities, and threats trust-establishing (SWOT) analysis, 212–213 actions/services, 129 Stripe, 68, 210 Twitter Sub-LIBOR Funding source, 83 dummy Twitter account, Subtraction, impact, 255 creation, 247 Success professional gap, bridging, 179 data-fueled marketing, 236 metrics, 185–186 Success rates, 123 U Uber, 212, 255 T usage, 80, 133 Tandem Bank, 61 Unbanked person, 263 TD Bank, implementation, 67 Underwriting, 194, 196–197

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290 INDEX

Uniform Bank Performance total FIs, forecast, 8f Report (Citizen’s Bank), 106 towns, positive net United Federal Credit Union, 17 in-immigration, 104 United Kingdom (UK) United States banks account satisfaction, 54f charters, issuance, 35 banking app satisfaction, 55f employees, number, 89f banking competition, increase, employees, salaries/benefits, 89f 50–52 insolvencies, 21f branch convenience voluntary attrition rates, 17f importance, 58f Universal banking, death, 144 branch customers, digital Universal banks channel usage, 57–58 challenger banks, contrast, Brexit, 60 53–59 challenger bank customers, unfriending, 145 55f USAA, 58, 86 channel usage, frequency, 57f User adoption, 128 credit union members, User-centric products, 70 connection, 51 User experience (UX), 160, current accounts, switchers, 56f 254–255 deposit-taking FIs, 51f User journeys/objectives, 121 financial institutions, number, U.S. Postal Savings (USPS) k 50–52 offices, 136f k United States revenue, 137f adult Internet users, share, 142f system, 135–136 average overdraft fee, 139f Usury laws, 69 branch networks, average size, 37f V channel usage, frequency, 32f Value credit unions, assets, 12f absence, price (concern), deposits, percentage (asset size 107–109 basis), 8f appreciation, 195 digital banking model, 96 term,usage,231 financial institutions, forecast, Variable-based compensation plan, 262f 186 multichannel embrace, 57 Vendor simplicity, 133 national debt, 115f Venmo, 68, 187, 210 payphones, usage, 265f Venture Partner Santander population, age range, 163t Innoventures, 161 residential housing market, Verity Credit Union, 251 effects, 20–21 Verity Mom, initiative, 253 return on average equity, 60f Via negativa (mastery), 255 returns, women directors Vine, hits, 248 (impact), 94f Virtual receptionists, usage, 133

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Index 291

Virtual session, 182 Wetherington, Lee, 253–255 Voice America, 209 “We Want You” PowerPoints, Voice response system, 127 117 Voluntary attrition rates. White Label See United States delivery, 66–67 Voluntary closures, 16–18 fintech providers, 114 point solutions, 118 W William Mills Agency, 227 Wachovia, impact, 34 Women-owned businesses, 114 Wagle, Likhit, 227 Word-of-mouth, creation, 236 Wall Street & Technology, 186 World Council of Credit Unions, Wal-Mart, 192 51 Wanamaker, John, 249 WV United Federal Credit Union Washington Mutual (WaMu), (Element FCU), 58 impact, 34 Wealthfront, 68 X , 221 Xanga, 179 worry, 239 WeBank, 62–63 Y Website, market area, 9 Yantra Financial Technologies, 232 WeChat, 63 Y Combinator fintech startup, 124 k Wells Fargo, 202 Youth banking products/services, k Westpac, implementation, 67 165t–170t

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