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ABA Banking Journal: ABA Releases TV Ad Urging Policymakers to Reject Reg II ‘Corporate Megastore Bailout’September 10, 2024 | Khalil Garriott
Tech continues to disrupt the role of banks in the financial ecosystem. With all banks aspiring to keep up, reliance on partners is a savvy strategy to mitigate disruptions and allow banks to do what they do best: serve their customers and communities. This article is part of ABA Banking Journal’s bank tech trends for 2025 special report. Previous articles in the series include: “Why AP governance is a necessary strategy” and “Precision banking: the ‘digital twin’ advantage.”
Bankers who do their due diligence during vendor selection, thoroughly vetting potential tech partners, will be best suited for long-term success. “Over the next 20-30 years, you’re not necessarily buying the product,” says David Roller, SVP and chief information officer of Kansas City, Missouri-based Commerce Bank. “You’re buying the partner.” The significance of the prospective provider’s human approach also extends to the customer. The future of banking is digitalization. It’s also the present; 71 percent of Americans prefer to bank through web or mobile. Just as banks must adapt, so, too, must third-party vendors. For example, delivering a leaner and greener capability — reducing the environmental footprint of its digital platforms — is a priority on the Temenos product roadmap. Any technology enhancements coming down the pike should be oriented toward driving financial institutions’ digital evolutions. Commerce Bank has been on a transformation journey, Roller says. Even with major tech upgrades now in place, he says, being able to interact with a real-life bank employee “still matters to us, especially when you’re dealing with wealth clients.” For Commerce Bank, one partner in helping the human element differentiate through a modern-day customer experience has been Temenos. One focus at both Temenos and Commerce Bank has been how outdated internal architectures can hurt the customer experience. The Europe-based global technology provider announced multiple product releases and new features earlier this year. (Because of the company’s cloudbased architecture, clients worldwide access these new services. “These investments that we make are on a single code base — so they are for everyone,” says Tony Coleman, chief technology and innovation officer at Temenos.) Roller says that Commerce Bank and Temenos have a shared future vision of how bank technology supports the people in the bank. “When the problems come, how does the team pull in a common direction?” he asks. “We invest in culture to drive results, and we believe that differentiates us.” That’s a theme echoed by Azfar Karimuddin, Temenos’ new chief cloud officer. He’s seen both sides of the equation, having been a banker in Canada for more than 20 years. Now on the supplier side specializing in tech infrastructure, he mentions a tactic employed by Temenos to combat the regulatory tsunami: adding employees who have previously run banking operations — people who “understand banking regulations well enough to get ahead of them.” “Banking has never been more challenging,” Karimuddin says. “We’re seeing the regulators becoming more and more concerned with how FIs are serving their end clients. And a year from now, we’re going to see much more stringent requirements for banks. “Gone are the days when banks need to be worried about servers, fiber cables and networks. In the next three to five years, there’s going to be a total shift in taking out the commodity from technology, and the big giants are going to make that at scale and available to everybody.” He cites resiliency and stability as two of his group’s core tenets, adding that Temenos is shifting its mindset from a product company to a service provider. “The one common denominator between everybody is technology,” says Karimuddin, who has been a part of the core selection process twice on the bank side. “What Temenos brings to the table is … we get the voice of the client into the development process.” By operationalizing technology across the enterprise, Karimuddin says financial institutions can increase efficiencies. “A traditional credit union or traditional regional bank would be, maybe, an 8 a.m. to 5 p.m. operation — at best,” he says. “There’s no way they’re about to become a 24/7 operation. And that’s what SaaS allows you to become — at a much more effective cost. At scale, no FI can do it alone.” Nationally, U.S. banks spend more than $181 billion on products and services each year. Banks need these products and services to carry out their mission. A current trend among North American banks is moving toward SaaS solutions. “You think about the resources required to run a bank, and you can now deploy them to do what we call growth and innovation,” says Grace Chen, Temenos’ VP for U.S. new business and sales strategy. “What we’re seeing is banks saying to us, ‘You all run the software as a service for us because that’s what you do.’” Collaborating with a tech partner can not only modernize a bank’s tech stack, it also can be a differentiator in a competitive market. “With modern banking platforms that leverage advanced technologies like cloud, AI and APIs, banks can accelerate innovation and adapt swiftly to market changes and customer demands,” Chen says. A recent example of a bank aiming for that differentiation happened when Reading Cooperative Bank in Reading, Massachusetts, led by ABA Chair Julie Thurlow, selected KlariVis for its enterprise data and analytics solutions in July. It was an educated bet that that KlariVis would help transform Reading Cooperative’s data into actionable insights. “Through my work across the industry, I am familiar with a lot of solutions,” Thurlow says. “KlariVis stood at the forefront of providing robust analytics and timely data, and we are thrilled to have them as our data partner.” It’s a vastly different era of banking technology right now — one that Karimuddin calls “a very exciting journey.” “Technology infrastructure is becoming a commodity, and applications are becoming the specialization and unique experience that clients are looking for,” he says. “Technology providers like Temenos are going to have to play a very active role in showing we can provide similar service on top of that commodity service for banking.” CISA News: FBI and CISA Release Joint PSA, Just So You Know: False Claims of Hacked Voter Information Likely Intended to Sow Distrust of U.S. Elections
WASHINGTON – Today, as part of their public service announcement (PSA) series to put potential election day cyber related disruptions during the 2024 election cycle into context for the American people, the Federal Bureau of Investigation (FBI) and the Cybersecurity and Infrastructure Security Agency (CISA) jointly issued the Just So You Know: False Claims of Hacked Voter Information Likely Intended to Sow Distrust of U.S. Elections PSA to raise awareness of attempts to undermine public confidence in the security of U.S. election infrastructure through the spread of disinformation falsely claiming that cyberattacks compromised U.S. voter registration databases. As observed through multiple election cycles, foreign actors and cybercriminals continue to spread false information through various platforms to manipulate public opinion, discredit the electoral process, and undermine confidence in U.S. democratic institutions. The FBI and CISA continue to work closely with federal, state, local, and territorial election partners and provide services and information to safeguard U.S. voting processes and maintain the resilience of the U.S. elections. “This PSA is to educate people that false claims of election infrastructure compromise, like a voter registration database hack, may be spread by foreign actors and to not accept claims of intrusion at face value, as these claims may be meant to influence public opinion and negatively impact the American people’s confidence in our democratic process,” said CISA Senior Advisor Cait Conley.” "The FBI continues to investigate any claims of malicious cyber actors' attempts to target U.S. elections,” said FBI Cyber Division, Deputy Assistant Director Cynthia Kaiser. “Through our investigations, the FBI has identified that malicious actors commonly attempt to undermine public confidence in US elections by grossly exaggerating about obtaining U.S. voter information. Today’s announcement urges the American public to critically evaluate claims of hacked or leaked voter information and remember that most voter registration information is available to the public. We at the FBI remain committed to continuing to share information to counter false claims and help election officials further secure election processes." ABA Banking Journal: FinCEN Releases Commercial on Beneficial Ownership Information Reporting |
Plan to attend the 2024 SDBA NEXT STEP: Emerging Leaders Summit in downtown Sioux Falls, South Dakota, on Tuesday, October 29, 2024. This year's agenda is another good one, with guest speaker and emcee kicking things off, Jack Stahlmann, the Don't Flinch Guy. Jack’s presentation, The Intangible It, examines the "it" quality movie stars possess that you can't quite put your finger on… or can you? Also on the agenda: former South Dakota Governor and Lt. Governor, Dennis Daugaard and Matt Michels; Marissa Brinkman; Sioux Falls Mayor, Paul Ten Haken; Janet Kittams with The Helpline Center; and South Dakota native, Andrew Kightlinger, film director and writer. Register for last year's registration rate through September 1st!
Banking Matters Podcast