The Future of Banking is Here, and you can be a part of it.
Good day!
Welcome to the inaugural edition of the “Future of Banking” newsletter! In each daily issue, I’ll bring you the latest global banking news and insights, helping you stay informed and expand your expertise in the industry every day.
This newsletter is designed to be a quick read, offering a few minutes of essential updates to keep you current and continually deepen your understanding of the digital banking landscape.
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Cheers,
INSIGHTS
Revolut ?? Nubank. Who performs better?
Let’s dive in:
DIGITAL BANKING NEWS
???? Kemba Credit Union launches Alkami’s Digital Banking Platform for retail and business members. Alkami’s single platform experience for retail and business banking solutions, will allow Kemba the opportunity to drive growth in new deposit accounts , enhance cross-sell opportunities and strengthen loyalty.
???? Alkami surpasses all digital banking providers to become #1 in credit union market share. The company’s success is reflected in the performance of its credit union clients, who experienced stronger deposit, loan, and revenue growth from January 2020 to June 2024 compared to peers.
???? US central bank boss says Trump can't fire him. Federal Reserve Chairman Jerome Powell commented during a press conference that he would not step down if asked by Trump, noting that the law prevents the White House from forcing his removal.?
???? UniCredit completes acquisition of 90.1% stake in Alpha Bank Romania. UniCredit will begin a “gradual integration” of Alpha Bank Romania into its group, aiming to merge Alpha Bank Romania into UniCredit Bank Romania by absorption in the latter half of 2025.
???? Hong Kong Monetary Authority fines Fubon Bank HK$4m for violation of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). This follows Fubon Bank's self-reported transaction monitoring failures and the monetary authority’s investigation into its compliance systems and controls.
???? Ecobank partners with Nium to unlock real-time cross-border payments across 35 African markets. This partnership is set to revolutionise the region's payments landscape by enabling faster, more efficient international payments for businesses and consumers alike.
???? PNC doubles down on branch expansion plan with additional $500 mln investment. The bank’s total investment on the expansion is now about $1.5 billion and is aiming to open more than 200 new branch locations in 12 cities across the U.S. over the next five years.
???? HSBC’s Michael Roberts says the first round of job losses are due in weeks. Roberts told Bloomberg Television that the job losses will be concentrated at the senior level . He said the restructuring, announced last month by new group CEO Georges Elhedery, will be done in a “thoughtful way.”
???? CFPB orders Navy Federal Credit Union to pay more than $95 Million for illegal surprise overdraft fees. The CFPB is ordering Navy Federal to refund over $80M to consumers, stop charging illegal overdraft fees, and pay a $15M civil penalty to the CFPB’s victims relief fund—the largest amount it has ever obtained from a credit union for illegal activity.
???? Brankas launches integrated APAC Open Banking Compliance Solution with ADVANCE.AI's eKYC solution. Banks that are required to meet open banking regulations such as BI-SNAP in Indonesia can now leverage a single platform for all their compliance needs. Read more
???? Africhange acquires IMTO license, sidestepping costly partnerships.? This license allows the subsidiary to process foreign currency transfers for fundraising efforts but only permits inbound transactions, restricting outbound transfers.
GOLDEN NUGGET
This transformation requires a shift across 4?? interconnected layers:
?????????? ??: ?????????????????????? ???????????????? ???????????????????? - Banks need to provide seamless, personalized omnichannel experiences by moving beyond traditional products and creating integrated solutions.
This entails embedding personalization in customer journeys, integrating non-banking products, and engaging customers within partner ecosystems.
?????????? ??: ???????????????? ????-?????????????? ????????????????-???????????? - Banks must automate decision-making at scale, shifting from ad-hoc use cases to an enterprise-wide roadmap for deploying advanced analytics and machine learning models.
They should also incorporate emerging AI capabilities like natural language processing and computer vision.
?????????? ??: ?????????????????????????? ???????? ???????????????????? ?????? ???????? ???????????????????????????? - Modernizing technology infrastructure, adopting cloud-based solutions, and ensuring data liquidity are essential.
Banks should have a unified technology strategy aligned with their AI-first vision, emphasizing in-house capabilities and partnerships.
?????????? ??: ?????????????????????????? ???? ?????? ???????????????? ?????????????????? ?????????? - Banks need to reconfigure their operating model into a platform-based approach, fostering cross-functional collaboration and breaking down functional silos.
This involves organizing teams into platforms with clear ownership, aligning with business and technology goals.
These layers collectively form the foundation for banks to successfully embrace the AI-first paradigm and thrive in the evolving financial landscape.
Read the complete deep dive article on this topic to learn more.
Source: McKinsey & Company
?Now over to you: How do you think AI is going to change banking?
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