In case you missed it: Insights from MoneyLIVE

During the last week of June, MoneyLIVE visited North America for the first time. This global banking conference had previously made a lasting impression in London before making its way to Chicago. As gold sponsors of MoneyLIVE, GFT sent representatives to the event and hosted private meetings to strengthen our existing relationships within the banking sector. Carlos Kazuo Missao, Head of Innovation Solutions Americas, joined the list of impressive speakers at MoneyLIVE North America to share his expertise on instant payments and describe how GFT  implemented PIX and the accompanying regulations set by the Central Bank of Brazil. 

It’s always a privilege to attend conferences such as MoneyLIVE to network with our peers in the banking industry and share GFT’s mission with prospective clients. While we came to the event expecting conversations to revolve around instant payments and FedNow—both of which are intriguing and topical in our current market, we left feeling inspired to consider alternate viewpoints and perspectives of our various banking systems. 

One panel in which we were particularly interested was a discussion about the optimization of the omni-channel approach. One panelist raised some excellent points about the need to offer a better customer experience across all channels—including the bank, website, app and ATMs. Many of these mediums have fallen behind in the digital revolution. Since we can do most of our banking on our phones through banking apps, making payments, transfers and balance checks, other necessary channels, such as ATMs and even bank branches, haven’t received much-needed improvements and upgrades. 

These systems need digital improvements to serve a larger market of consumers. ATMs, for example, should have more functions than cash withdrawals and balance checks. Upgrading these channels to match the innovation of apps and websites can help drive consistency and improve customer experience. 

The need for omni-channel renovation resonated with us because it complemented a topic that Michael Cyr presented. Cyr is the Consumer Segment Strategist for Regions Bank, and in his presentation, “Achieving positive financial outcomes for all”, he illustrated the need that everyday consumers have for more accessible banking options. During his presentation, we learned that many consumers prefer check-cashing services, credit unions or regional banks over larger organizations due to the fees associated with some bank accounts. 

Cyr shared a story about a woman who had started a new job at a company who issued their checks from a bank that didn’t have a physical branch in her home state. Since she didn’t have a bank account, she needed to cash the paychecks herself after receiving them in the mail. Without another option, she went to her regional bank to cash her paycheck. The process involved a special interaction between multiple tellers, a bank manager and the woman’s supervisor before she could access her pay. 

After subsequent paydays, the process repeated itself and proved to be more difficult and inconvenient. Ultimately, she decided to quit her job because of the challenging payment process. 

While this example may not sound familiar to many, it is a privilege to have access to a bank account. Some, like the woman in this story, have limited banking options because of where they live. Many prefer to cash their payday checks and keep the money themselves because they can’t afford banking fees or have developed a distrust of financial institutions over time. Individuals who don’t use traditional banking services are considered ‘underbanked’. The terms, unbanked and underbanked, define the gap in services that exists within the sector. 

What’s the solution for this gap in service? How can we serve those who don’t have access to bank accounts, or don’t benefit from traditional banking? According to the 2021 Federal Deposit Insurance Corporation (FDIC) National Survey of Unbanked and Underbanked Households1, 4.5% of American households are unbanked, and reported that no household members owned a checking or savings account at a bank or credit union. While this figure shows a decrease of unbanked households compared to the survey’s recent history, it still represents about 5.9 million households—with 21.7% of unbanked households citing the main reason they didn’t have a bank account was because they don’t have enough money to meet minimum banking requirements.  

Many banks offer checking accounts that charge patrons when their account balance falls below a certain amount, which can leave little room for error. While working for underbanked individuals, Cyr found that charging a flat monthly account fee without any overdraft fees is  key. This ensures that the underbanked, who don’t make regular deposits, such as gig workers or the unemployed, aren’t penalized with unexpected fees. 

This calls to mind the earlier discussion from the MoneyLIVE event about omni-channel optimization. Improving customer experience across all banking platforms gives consumers who aren’t well-represented a chance to enjoy advanced platform features and financial security, regardless of where they bank. Creating equality for everyone within the banking sector is a priority for which we should all strive. 

One way we can foster equality for banking consumers is to invest the same care and technological innovation in credit unions and regional banks as we do for large-scale commercial banks. These institutions can offer services similar to commercial banks, but are often more popular for those who don’t trust large banks or can’t afford to use them. 

These organizations may offer an outdated customer experience. This challenge may occur due to the organization’s lack of available funds for digital upgrades, which can cause some consulting and digital innovation companies to overlook credit unions and small banks. This gap in service is not only a missed opportunity to promote diversity and equal services, but also a chance to apply customizable, creative, problem-solving solutions—GFT’s specialty. 

We can improve the apps, websites and infrastructure of credit unions and small regional banks to transform the customer experience. These organizations may not have as large a budget as others, but still need technical advancements. GFT can use our digital innovation expertise to create budget-friendly and transformative solutions to close this gap within the banking sector. If you’re interested in the digital transformation of small banking and credit systems—give us a call. 

MoneyLIVE North America felt intimate and was perfect for networking. The venue itself was a prime setting for making authentic connections—an invaluable asset in business. The diverse attendance list felt refreshing; it’s too common to attend an event that seem to cater to a specific demographic. However, at MoneyLIVE, we had the opportunity to converse with people from different backgrounds and listen to panelists from traditionally marginalized groups. This inclusive environment at MoneyLIVE allowed us to make genuine connections and encounter new viewpoints. 

We were also able to speak with panelists from the event, offering an opportunity to continue discussions from these speakers’ sessions. MoneyLIVE’s moderators, Juliette Foster, Kristy Duncan, Ambika Sharma and Helene Panzarino were all phenomenal speakers. They helped foster productive and intriguing conversations during the panels that led to deeper insights and exploration of Open Banking topics. 

MoneyLIVE North America was the perfect reminder to recognize the tunnel vision some may get while working towards advancement. With the development of new instant payment systems, advancements in AI and other updates in the Open Banking revolution, remember to consider consumers who don’t subscribe to traditional banking rules. During this new age of technological ingenuity, let’s work together with financial intuitions big and small to build banks of the future.