If I were the CEO of a bank, I would....
1. Hire a personal auditor, but not a partner of the bank's audit firm, and not one of the Big Four.
2. Hire a personal attorney, not from Philadelphia, but nearby from the Bronx.
3. Outsource all personal expense report submissions to an independent accounting firm that has no ties to the bank, and no ambitions to be there.
4. Hire a personal devil's advocate as an independent contractor with a guarantee tenure to make sure I uphold moral, business, ethical and fairness rules as the contractor
The Greening of Banking
On the first Earth Day-April 22, 1970-I enthusiastically did my bit for the environmental cause by volunteering with some of my fellow high school students to run a car wash that was supposed to raise money and awareness. Of course it didn't occur to any of us that there was something inherently contradictory about trying to save the environment by washing cars. We felt optimistic and productive and kind of noble. We knew we had done something good, although none of us would have been very succe
Transfer Limits: Reducing Risk at the Expense of Convenience
To fund a study we're conducting in our brokerage research, we recently attempted an online transfer of $5,000 from a Citibank account to a linked Charles Schwab account. We had done this before without any problem, and were surprised to note that Citibank recently reduced the daily limit for outgoing inter-institution transfers (IITs) from $5,000 to $2,000.
Can Anyone Stop DataTreasury In its Patents Crusade?
It looks like Data Treasury has claimed yet another victim in its patents game. It was announced recently that PNC Financial was the latest FI to settle with the notorious patent litigant over technology around electronic check imaging.
The Price of a Stock has Never Influenced My Recommendation of a Bank Tech Vendor
With all due respect, I realize that my bank clients and private equity clients care a lot about the performance of their investments in the stock market. I'm simply saying that as an advisor to banks that are searching for a new core applications software or service company, I deal with 814 criteria in making my final recommendation. The price performance of a vendor's stock is not one of the 814.
Enterprise Payments Architectures Are Gaining Ground at Banks
Building an enterprise payments architecture is a huge undertaking, but one that may be necessary to remain competitive in the payments business. Banks are starting to turn their dreams of a holistic payments system into a reality -- improving efficiency, oversight and service in the process.
Financial institutions are making progress toward aligning IT risk management with overall organizational risk strategy.
AML Efforts Intensify
As banks look to step up efforts to monitor their customers' financial activities and comply with increasingly stringent anti-money laundering regulations, what kinds of technologies, processes and information are essential to building an effective and accurate AML program? And what new AML challenges are banks likely to face in coming months?
Will FICO Scores Suffice In Credit Crunch World?
By Clark Abrahams, Marketing Director, SAS
Is a new credit assessment the intervention needed for the subprime crisis? As I follow the unfolding mortgage crisis, one thing is abundantly clear-there is significant room for improvement in current credit assessment approaches. Credit scoring has not done an adequate job of assessing risk in the subprime mortgage market. That fact is beyond dispute. Simple re-calibration of the existing models will not fix the problem of the blind spot in today's u
Fewer Bank Tech Vendors, but More Solutions to be Had
Today, there are fewer bank tech companies, but more solutions in the marketplace.
In 2001, there were 165 companies selling 223 solutions to banks, thrifts and credit unions.
Today there are 71 companies selling 306 solutions. That's 57 percent fewer companies; 37 percent more solutions.
Industry Collaboration Vital to Banks' Viability
I recently attended the SWIFT Operations Forum Americas in New York. While there, I had the pleasure of hearing some very influential people from the financial services industry speak. Foremost among the FS heavy-hitters (to me, anyway) were the executives who spoke during the second keynote address. It wasn't a keynote in the traditional sense, but more like a panel. Attendees were invited to hear what Bank of Ameri
These May be the Best of Times for Some Bank Tech Vendors
A few years ago, the stats were telling me that the #1 business (new core sales) for bank tech vendors was leveling off. Not dying, mind you, just leveling off from about 8 percent of the population to about 3 percent. The sale of core apps solutions is the sweetest sale any vendor can make for these reasons: It's the biggest thing every financial institution (16,881 in the U.S.) does. All FIs do it every day. It's so critical that FIs would be subjected to huge risk if just one night's processi