Bank Flashcards
neobank
A neobank is a type of direct bank that operates exclusively using online banking without traditional physical branch networks that challenge traditional
Tim Spence
-number 2 in Midwest
-goal to get to number 5
-great banks perform well in times of uncertainty –> 53 did well
-is 2023 the worst? –> 2024 bank system is really great US
-Regulatory proposals effecting banks
○ Large –> 19% increase
53 size –> 2.6% increase –> immediate term, it will cost to get there fast but long term.
Pressures effecting bank
1) tightening monetary cycle
2) rising capital and liquidity costs
3) nonbank competition
4) regulatory scrutiny post bank failures
Regulatory Headwinds
1) Financial Stability Oversight Council (FSOC) new Nov 2023 guidelines
2) Consumer Financial Protection Bureau (CFPB)
3) Basel 3
NBFC
NBFC - Non bank financial company;
NBFCs offer a range of financial services such as loans, leasing, hire-purchase, investments, and money transfer services
TPRM
Bank third party risk management systems
Cat IV (BASEL III endgame group)
100B to 250B
have new rules
What customers want to open a new bank account (per Microsoft)
1) Ease of use/reduce deposit friction
2) flexibility across channels (blend branches with high tech)
3) responsive service
4) smart targeting, don’t send a college student a mortgage offer
5) value/interest
How to attract new SaaS customers
1) clearly define ideal customer
2) set SMART goals
3) determine best channel
What percent of banks features are similar across banks?
80%; leaving 20% can differentiate
The individual in this role sets the overall strategic direction for a digital channel or products and follows-through with the execution of that strategy.
Set the strategic direction for EW as the CIO, RDF as Data Product Manager, technical direction of Azure –> EXECUTION IS MY STRONG SUIT —> filling the gaps and getting it across the
deep digital experience and significant product management experience.
My last 15 years has been all about digital and numerous avenues of a global company.
On the product side, I’ve had my hand directly or indirectly my last 3 or 4 roles. Even more if you count Product Ownership as Product Manager.
Channel management includes mobile apps, browser, and future channels such as wearable’s and Internet of Things (IoT).
Started off at Mobile Apps in the iPhone 3G day…but just another day.
Have a patent from getting data off the edge/IOT.
Product management encompasses digital sales/account opening, authentication, account information, money movement, self-service and related.
Spent quite a bit of time on authentication of B2B; apps have done all these things except move money, actually we tried to approve Workscope changes in 2013 via an iPhone app and we didn’t do enough due diligence on what they would actually approve
The Senior Digital Product or Channel Manager must champion key initiatives, appropriately gaining buy-in from key constituents including IT, Line of Business, key control functions and the like. Individual is fully responsible and accountable for the performance of his product or channel including customer adoption and feedback.
Responsible and accountable for risk by openly exchanging ideas and opinions, elevating concerns, and personally following policies and procedures as defined. Accountable for always doing the right thing for customers and colleagues, and ensures that actions and behaviors drive a positive customer experience. While operating within the Bank’s risk appetite, achieves results by consistently identifying, assessing, managing, monitoring, and reporting risks of all types.
This is basically the definition of a servant and digital leader. Did all of this as CIO and ADG co selling.
- Develop channel and/or product strategy, related roadmaps and manage execution of initiatives to support the strategy.
Roadmaps for EW DT
- Lead ongoing digital services awareness and adoption efforts.
did this for RDF and had to this across all of EW as CIO
Azure dev days
- Active vendor management including but not limited to vendor selection, relationship development, pricing terms, SLA management and ongoing vendor relationship management. –>
managed many vendors
- Identifies and anticipates emerging technology, customer insights, industry trends and overall customer behavior trends to ensure Fifth Third’s online and mobile offerings are world class to maintain channel and product relevance.
Was on the early days of cloud and big data and look forward to continuing growth!
- Act as business lead on product development initiatives with responsibility for Voice of the Customer, business requirements definition, user flow design, user experience and providing subject matter expertise as needed across all Lines of Business.. Collaborate and work with cross functional business partners (including Marketing, IT, Finance, Legal, Compliance, Risk, and others) to develop products and channel solutions that meet consumer and business needs.
This is my ‘10 x strength’
- Ability to clearly define operational risks associated with Digital Delivery initiatives and articulates the impact to the customer and respective lines of business.
Always think of the world in a ‘risk based approach’. Need to balance biz value with risk. Also ran helpdesk and migration to ServiceNow.
SUPERVISORY RESPONSIBILITIES:
Responsible for providing employees timely, candid and constructive performance feedback; developing employees to their fullest potential; developing the appropriate talent pool to ensure adequate bench strength and succession planning; recognizing and rewarding employees for accomplishments. Assist in the development of appropriate talent pool to ensure adequate bench strength and succession planning.
Been a people leader many times in the past. Have created a lot of standard work. Best practice 1, 1on 1 quarter on career. Evals with visual view of where you fit.
- 7+ years digital product/channel management; 5+ years general product management experience.
- EW 3
- ADG 3
- Data Product management 4
- myEngines / PO 3
- Customer-centric attitude with accompanying customer-advocate behaviors.
- Learned from frog design…
- jobs to be done
- Analytic discipline & rigor.
- Led org via MoR and WoR
- Data Lake all about getting value out of analytics
- People management experience and proven ability to lead, develop and grow employees
- Been a people leader for almost a decade now, best way to see success is ‘where have all those reports ended up’… Amazon, Startups, leaders at GE
- Quick adapter and able to pivot when, and as, needed.
- This is life as PM and how I explain what I do to my wife
o Get data, make decisions based on that data, repeat
o EW pivoting cloud strategy when external variables pivoted
- Ability to influence without authority.
- Azure Accelerators
- RDF was a nice to have to start
- Excellent communicator.
- Have high EQ;
- Boston accent –> Continous learning how to speak slower and clearer.
Tim Spence
CEO
Tim Spence
-number 2 in Midwest
-goal to get to number 5
-great banks perform well in times of uncertainty –> 53 did well
-is 2023 the worst? –> 2024 bank system is really great US
-Regulatory proposals effecting banks
○ Large –> 19% increase capital requirement increase
○ 53 size –> 2.6% increase –> immediate term, it will cost to get there fast but long term.
Number 2 in the Midwest
Our Purpose
To improve the lives of customers and well being of our communiteis
Our Vision
Be the One Bank people value and trust
Core Values
Work as One Bank; Take Accountability; Be Respectful; Act with Integrity
Whan banking research have I done?
1) Deloitte banking regulation
2) Mobiquity feature radar
3) PWC Digital Consumer Survey
4) GenAI Dossier
5) Banking Business Models –> Rym Ayadi
Banking Business Models –> Rym Ayadi
Candidly a bit over my head without spending a half day digesting it.
Why banks diversify:
1) more services they provide the more information they have
2) the more diversification, the more risk is spread around
3 types:
1) wholesale
2) retail
3) investing
3 Asset Side features
1) Loans to banks (as % of assets)
2) Customer loans … loans to customers (as % of assets)
3) Non cash trading assets
Liabilities vs Assets
Assets are the items your company owns that can provide future economic benefit. Liabilities are what you owe other parties.
Gen AI Financial Sector Use Cases
Will supplement other ML activities (not replace)
1) Dev Enablement
2) Business Intelligent (ask questions about your data)
3) Summarize Feedback
4) Know your customer
5) Chat Bots
6) Hyper personalized marketing material (auto gen)
- Product Manager
- Product Manager: Market oriented and drives the PI and product. Owns the ART backlog, the Vision and the Roadmap. Defines Features (Name, benefit hypothesis and acceptance criteria) PM 70% long term strat 30% day to day execution
- Product Owner
- Product Owner: Team oriented and drives the Iteration. Owns the team backlog and accepts iteration increments. Helps the team understand stories and helps foster built in quality (by providing clear understanding of stories). Helps Contributes to the vision and roadmap by communicating emerging requirements to Product Management. PO 30% long term strat 70% day to day execution
SonarQube
Code quality
Rapid7
Vulnerabilities
White Source
Open Source Licences
Ben Hoffman
Grew up in Texas
Went to Harvard
Then Oliver Wyman –> Creative and structured problem solving tool kit
1) Orginaly media…more casual culture
2) Started at financial…but moved to other financial
Then 53 in 2016. Was focused on strategy until 2023 when he also got ‘head of consumer products’.
Build verse buy
Resilience Conference
* Soul searching…what kind of company are we —> essential workers
* 150 years…resilient biz model…been though WW1 and Spanish flu
* Our job isn’t to provide checking accounts –> our job is to enable peoples dreams — it’s to be able to live you life and pay your bills –> Jobs to be done
* We focus on the 10% of customer facing side…but 90% of effort is enabling them. Credit is to them
* Value of utility infielder during covid… data scientist doing data entry –> going to the gemba
Incubating 100M in fintech.
Board of Plaid –> easily connect banking accounts. Can we avoid the 2 percent credit card fee. Loan lenders can easily see all the data from a bank
