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The 2021 Outlook | Will Banking Return to Normal, Without Returning to the Past?

Posted by Ben Mrva on Jan 25, 2021 9:00:00 AM

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Now that we’ve closed the book on 2020, we can count on a swift change to the financial services landscape, right? The answer is yes…and no.

With the ongoing vaccine distributions and a new administration in Washington, there’s even more reason to expect the new year to bring new behavior. On the other hand, conditions don’t turn on a dime simply because the calendar flipped to January.

With that in mind, SRM’s payments experts have identified several trends we expect to drive financial services dynamics in 2021. Although their full effect is unlikely to be visible early in the year, banks and credit unions must consider these trends in setting priorities for 2021 and beyond.

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Topics: Vendor Contract Negotiation, Bank Vendor Management, Credit Union Vendor Management

PayPal’s Bitcoin Embrace - Should Banks Be Jealous?

Posted by Jesse McGannon on Jan 10, 2021 9:00:00 AM

BitcoinBlog_1-01

PayPal Holdings, Inc., recently announced enhancements that will
enable its users to buy, hold, and sell cryptocurrencies within its app, and to pay for purchases with these crypto assets, as well. Most of the attention has naturally focused on Bitcoin - the household name of cryptocurrencies – and, by far, the largest. Not surprisingly, the price of Bitcoin quickly surged past $16,000, thanks to the associated visibility and implied credibility.

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Topics: Vendor Contract Negotiation, Bank Vendor Management, Credit Union Vendor Management

Show Me the Budget | Five COVID-19 Savings and Revenue Strategies

Posted by Patrick Goodwin, President on Dec 20, 2020 9:00:00 AM

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The annual budget process is usually an exercise in planning for uncertainty. Add to that, it’s challenging, time consuming, and complicated. Then, when finalized, all you know for sure, is that it is at best a pro forma. That’s because financial institutions (along with everyone else) operate in an environment with multiple variables they do not control…and that has become even more evident in 2020.

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Topics: Vendor Contract Negotiation, Bank Vendor Management, Credit Union Vendor Management

The “Who What When” of Banking Vendor M&A | SRM Academy Timeline Infographic

Posted by Sisa Wang on Dec 11, 2020 9:00:00 AM

The “Who What When” of Banking Vendor M&A| SRM Academy Timeline Infographic

It’s December 2020 - do you know where your vendors are? 

Consolidation happens. Much of the time, like taking a chess piece, it can happen quietly, but with game-changing implications. Recently however, the size of the pieces taken among financial services vendors has raised some eyebrows - especially for their bank and credit union customers. The impacts of these moves can be positive...or not...which is why SRM keeps an eye on the board for these types of events.  

2019 was a record year for fintech deals, mergers, and acquisitions - then along came 2020. The complications brought on by the pandemic did not create a lull in M&A. In Q1 of ‘20, Visa announced the acquisition of Plaid. Visa positioned the acquisition as “both an entry into new businesses and complementary enhancements to Visa’s existing business, putting them at the epicenter of the fintech world.”

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Automated Invoice Auditing | New Roads with Rochdale

Posted by Michael Carter on Nov 23, 2020 9:00:00 AM

SRM Rochdale

SRM recently announced a partnership with the Rochdale Paragon Group, incorporating SRM’s automated invoice auditing solution into Rochdale’s vendor management software and services portfolio. This alliance is an opportunity to deliver our 28 years of experience in high-dollar, complex invoice auditing to a broader segment of the credit union market as part of the best practice offering from Rochdale.  

The complexity of many critical vendor invoices makes it practically impossible for a financial institution to do a complete audit of them each month. Any auditing of these invoices is typically months after payment. Yet, over decades of auditing high-value critical invoices, our firm has discovered that 10 percent of them contain errors.  

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Connecting with Consumers | Contactless Payments Are Becoming Critical

Posted by Michael Carter on Nov 17, 2020 9:00:00 AM

Connecting with Consumers | Contactless Payments Are Becoming Critical

At the beginning of 2020, "contactless" was an obscure term typically associated with the new generation of debit and credit cards. Using near-field communication (NFC) payment technology, these cards are capable of being tapped instead of swiped or dipped - shedding several seconds from time in the subway turnstile or checkout line. However, despite Visa and Mastercard's heavy promotion, US adoption has been gradual, shaded toward frustratingly slow…until the pandemic hit.

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Topics: Contactless Payments, COVID-19

The Social-Distanced Playing Field for Modern Banking

Posted by Larry Pruss on Nov 9, 2020 8:00:00 AM

The Social-Distanced Playing Field for Modern Banking

I recently had the privilege of speaking on a Minnesota Credit Union Network’s panel with some of the region’s local leaders about what they’re facing as a consequence of the pandemic. Although the venue was tailored to credit unions, I believe the perspectives apply to all financial institutions.

Four key points that stood out are noted below - some completely novel; some we can’t say often enough.

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Topics: COVID-19

Are the Battleships Sailing Toward New Targets?

Posted by Michael Carter on Oct 25, 2020 9:00:00 AM

Are the Battleships Sailing Toward New Targets?

The banking industry’s biggest service providers, sometimes referred to as “battleships,”  have grown largely  through acquisitions. When market demand moves toward a new channel for delivering financial services (e.g., smartphones) or potential for a replacement solution opens up a new market tier (e.g., digital banking among regionals), these “battleships” acquire other entities to keep pace and/or unlock a new opportunity for revenue growth. Often, they wait for an upstart to gain some market traction then give its investors an exit strategy worth multiples of their initial stake.

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Topics: Digital Banking

How the 2020 Election Will Impact 2021 Payments Strategies

Posted by Myron Schwarcz on Oct 13, 2020 9:00:00 AM

How the 2020 Election Will Impact 2021 Payments Strategies

Let’s begin by stating the obvious: this will not be a normal election season. As it has for so many aspects of everyday life, COVID has radically altered the basics of voting- from a huge uptick in advance and absentee ballots to the near-elimination of traditional campaign rallies.

We know that markets hate uncertainty – and that’s one thing in ample supply these days. Uncertainty creates hesitancy to invest in initiatives that could be upended based on the election outcome. This is especially problematic in our current environment, with so many critical issues clamoring to be addressed.

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Topics: Payments, Payment Strategies

SRM Coronavirus Second Survey Summary | More of the Same

Posted by Michael Carter on Oct 6, 2020 9:00:00 AM

Second Survey – More of the Same

In the early stages of the US coronavirus pandemic, SRM reached out to banks and credit unions to gather insights on initial FI reactions and changes in customer behavior. A previous blog detailed the findings of that March survey.

In late June-mid July, SRM again collected responses on how perspectives had evolved once leaders had more time - and a bit more information - to assess their options. We received an even greater response, with impressive diversity in geographic footprint, asset size, and credit union/bank participation.

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Topics: COVID-19

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