Lesson one: Stop making excuses for lack of transparency.

Whereas bank transactions used to lag for days and fees were almost always a surprise, today’s apps prompt you to approve fees and show real time transactions and account balances.

Lesson two: Automate real-time decisioning.

Today, banks must pay charges instantly. Obviously, no human can keep up at that speed, so banks rely on decision logic and workflows to automate the process end to end. They deploy sophisticated platforms to mitigate risk and make real time decisions about whether a charge is valid. For example, if I charge a meal in Thailand, they may review other related transactions such as air travel purchases that help them confirm my location or they may send me a text to confirm with me directly. Either way, it’s instant.

Lesson three: Embrace the free market push for innovation.

Today, banks compete with customized products as long as they meet standards. For example, in the electronic payments space, consumers can choose between a variety of players such as Venmo, PayPal, Apple Pay, or a traditional bank owned product like Zelle. If a product provides tokenization, it can compete.

Lesson four: Use data to drive value.

Today, banks mine their data to customize credit products that actually create value. Whether it’s better rates on a small business loan or expanding a personal home equity line of credit — they know what risk their customers can afford so they design appropriate products to help them reach their goals.

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Nomi Health

Nomi Health

Healthcare is expensive and complex, but it doesn’t have to be. We are working to streamline healthcare processes and increase access.