Banking Transformed with Jim Marous

Until recently, fintech firms have usually partnered with traditional banks to provide banking services as opposed to going through the lengthy and costly process of getting their own bank charters. Breaking away from that model, Varo Money became the first challenger bank to receive a national bank charter. The national charter from the Office of the Comptroller of the Currency (OCC) was the first ever granted to a fintech company, allowing Varo to offer credit cards, make loans and generate insured deposits nationally. We caught up with Colin Walsh, founder and CEO of Varo Money, Inc., Varo, which began offering mobile-only banking services in 2015. Walsh discusses why Varo pursued a national charter, the benefits of being a mobile-only bank, and how to gain scale in an industry that already has too many players.

The battle to become the primary financial relationship for consumers continues to intensify, with the lines blurring between traditional banks, digital banks, robo-advisors and tech firms offering financial services. With the COVID-19 crisis driving consumers to digital banking options, the desire for new ways to bank became a necessity. Consumers are finding alternatives to the bank that has dozens or hundreds of branches. From low cost options designed to replace check cashing facilities to more sophisticated alternatives that are focused on investment accumulation, the marketplace is crowded. We are fortunate to have Andy Rachleff, co-founder and executive chairman of Wealthfront on the show today. Along with Dan Carroll, Andy has built Wealthfront into one of the premier financial services organizations, expanding from a foundation of digital wealth management to providing high interest digital savings and a new checking option.

The Digital Banking Report has just completed research on the impact of the pandemic on financial marketing. We found that changes in almost every area of financial marketing were more dramatic than in any of the previous 7 years. This is primarily because consumer adoption of digital alternatives advanced a decade in a matter of weeks. We found major changes in marketing spend, solution prioritization, use of data and technology, and even marketing talent deployment that will unlikely revert to pre-pandemic norms. Some of these changes represent accelerations of previous trends, while some are new trends altogether. It is yet to be seen the duration of these changes, but each deserves a careful review. To discuss the findings of our State of Financial Marketing report, we are joined by Barry McCarthy, president and CEO of Deluxe Corporation, the sponsor of the report. In this episode, we discuss this year’s findings and the ramifications for financial institutions in the future.

While COVID-19 forced people into a digital-only lifestyle, there was still a desire for humanized experiences. Some banks and credit unions were prepared to deliver these personalized digital engagements, while others fell short of expectations at the worst possible time. More than ever, consumers are looking for assurance and comfort regarding their finances and want their financial institution to know them, understand them and reward them. They are also highly sensitive to efforts that feel self-serving or inauthentic. To understand how consumer expectations have been transformed during the pandemic, we are joined by Beth Johnson, chief experience officer at Citizens Bank. In the episode, we discuss the findings of the bank’s inaugural Banking Experience Survey, which looks at the ways consumer expectations have changed and what financial institutions must do in the short and long term to succeed.

In a world impacted by COVID-19, brand recognition and authenticity have never been more important, while the reach of traditional marketing channels continue to erode. This is where influencer marketing can help. With social media becoming more entrenched in people's daily lives, the use of influencer marketing continues to skyrocket. Beyond celebrities, a new breed of niche influencer can provide financial institutions access to a huge following of potential prospects not available with other promotional methods. To understand the potential of influencer marketing on building brand recognition and value, we are joined by Elma Beganovich, one of the co-founding sisters of New York-based A&E, a digital agency with a powerful portfolio of Fortune 500 companies including Netflix, Wells Fargo, Procter & Gamble, and Johnson & Johnson. In the episode, we discuss how financial institutions of all sizes can benefit from influencer marketing and how to implement a stronger social strategy.

The COVID-19 crisis has put a spotlight on the outdated tech infrastructures of many traditional financial services companies. As cloud computing has matured, banks and credit unions have hesitated to embrace the technology, worried about security, unsure of the benefits and unwilling to hand over control of their data. The pandemic is expected to accelerate a shift to the cloud, not only because many of the concerns have been addressed, but also because fintech and bigtech organizations are built around modern technologies that provide them a competitive advantage. To understand the potential of cloud technology and the options available to financial services firms of all sizes, we are joined by Tom Eck, global chief technology officer at IBM and Spiros Margaris, Venture Capitalist and Founder of margaris ventures. In this episode, they discuss how cloud computing fits into the entire digital transformation journey and why cloud computing is more than just a new technology. For more information, please

With an immediate shift to a work-at-home reality and increased use of digital channels, organizations need to think beyond immediate operational challenges, anticipating consumer’s need for increased emotional engagements, improved personalization and a new focus on experiences beyond daily transactions. Not to be forgotten is the need to invest in best-in-class digital capabilities and functionality, as consumers are becoming increasingly intolerant of poor digital performance. To understand the COVID impact on customer experience, we are joined by Harley Manning, vice president and research director for Forrester’s customer experience practice. Pam Piligian, SVP of marketing and communications from Navy Federal Credit Union also joins us. In the episode, we discuss how the pandemic has changed CX in banking and how Navy Federal Credit Union continues to deliver industry leading customer experiences.

Most traditional banks were unprepared for the flight to digital that occurred due to COVID-19. Mobile-only challenger bank Current has seen customer growth skyrocket during the pandemic, appealing to lower-wage earners who don’t want to worry about minimum balances or overdraft fees. Serving over 1 million active users and projected to double in size by the end of the year, Current serves a sweet spot of workers who live paycheck to paycheck and previously frequented very expensive check cashing facilities or risked paying penalty fees at traditional banks. We caught up with Stuart Sopp, founder and CEO of Current, and previous Wall Street trader, to discuss the strategy of lowering the barriers for financial inclusion to a growing demographic of younger, lower paid consumers who want hassle-free basic banking services. In the episode, Stuart discusses how the pandemic served as a launch pad for the challenger bank and how to differentiate a challenger bank in a crowded marketplace.

At no time has the importance of innovation and the deployment of advanced technologies in banking been more evident than today. With more consumers embracing digital banking, banks are being challenged to replicate the level of engagement of bigtech and new tech organizations such as Amazon, Google, Netflix, Zoom and Alibaba. One of the perennial global leaders in technological innovation for banking is CaixaBank, Spain's leading digital financial services provider. As a pioneer in digital transformation, the application of artificial intelligence, innovative product design, and hybrid cloud utilization, CaixaBank continues to be at the forefront of what banking can become. We are joined today by Benjami Puigdevall, long time veteran at CaixaBank and current CEO of imagin, a digital lifestyle platform created and supported by CaixaBank. On today’s episode, Benjami discusses digital transformation at CaixaBank, the importance of an innovation culture and the development of imagin.

COVID-19 has had an immediate impact on loyalty and reward programs due to the unprecedented period of low travel and entertainment. As people stopped flying, staying in hotels, and eating out, loyalty programs had to respond quickly. Organizations that can identify, communicate, and act upon a brand purpose that overlaps with the values of the consumer will be better positioned to thrive as we enter a new normal. In other words, loyalty that focuses much more closely on consumer preferences rather than merely shelling out points will win in the long run. We are joined today by Mary Hines, chief marketing officer for the US Consumer Bank at Citi. On today's episode, Mary discusses the importance of turning loyalty program interactions from something that is occasional to something habitual.

Many fintech firms struggle to gain scale, funding and brand recognition in an increasingly crowded banking ecosystem. Leveraging the power of digital technology and over a century’s worth of brand expertise, Goldman Sachs introduced its consumer banking platform, Marcus in 2016.   Through acquisitions, partnerships with firms like Apple and Amazon, and significant organic growth, Marcus has grown into a multiproduct platform, with $80 billion in deposits across the US and UK, $7 billion in consumer loan and card balances and millions of customers — all without the traditional brick-and-mortar branch model.   We are joined today by Dustin Cohn, Head of Brand and Marketing over Consumer and Investment Management for Goldman Sachs and the Marcus brand. On today’s episode, Dustin discusses the building of a new digital banking brand within a legacy financial firm and the mission of creating a unique customer experience.

The banking industry had been warned for decades to become more innovative, transform to digital, embrace new technologies and become more aware of consumer and societal needs. Rather than moving forward, many organizations hesitated due to cost, the desire to stay the course, or even ‘intentional blindness’.   Unexpectedly, however, the world was disrupted by COVID-19 pandemic that required digital engagement, and more recently a social pandemic centered on racial equality, diversity and inclusion. These events created four seismic shifts in awareness and behavior that are reshaping our understanding of business, society, technology and ourselves.   We are joined today by Nancy Giordano, strategic futurist, founder of PlayBig, Inc. and co-founder of the Femme Futurists Society. In the episode, Nancy discusses how the recent confluence of pandemics have impacted the future of work, our perspective on social inequities, changes in consumption and our understanding of ourselves.

The world is faced with uncertain times caused by the global pandemic combined with demands for increased equality, diversity and inclusion. Beyond empty posturing, the banking industry must make a meaningful difference locally and globally on important social issues.   This includes stronger leadership that looks beyond ethics to also include a moral compass for decisions. It also includes increased sustainable investing, greater employee involvement in social causes, and a change in hiring and advancement practices.   To better understand the challenges and opportunities faced by banks and credit unions, we are joined today by legendary basketball coach, author and inspirational speaker, Mike Jarvis. Using his 25 years as an NCAA coach as a guide, Mike shares his insights into what leaders and organizations must do today to meet the needs of the community.

In the past decade, the marketplace has seen the development of more banking competitors than in the previous hundred years. From solution specific fintech firms like Stripe and Robinhood to digital-first neo banks like Revolut and Monzo, the marketplace has been seen entries of all types and sizes.   But, with COVID-19 impacting the funding availability to fintech firms, is there room for new fintech solutions? More importantly, what will happen to those firms that do not yet have scale?   Today, we are joined by Anthony Thomson, serial entrepreneur and founder of three challenger banks … Metro Bank and Atom Bank in the U.K. and most recently, 86 400 in Australia. Rather than triple down on a single banking concept, each organization from Thomson has been an iteration that mirrors the evolution of consumer banking needs. In the show, Thomson discusses his journey, as well as how fintech firms can survive in a post COVID-19 world.

The COVID-19 crisis has impacted both humanity and business in an instantaneous and dramatic way. But, while each pandemic throughout history has been unique, each has brought about massive changes in the way we live, the priorities we set, how we interact and the businesses that emerge. Survival is a great motivator for change. As a result, pandemics have always led to innovations that have changed our lives.   We have already seen the increased reliance on remote working, contactless commerce, video engagement and new forms of entertainment. We have also seen a disruption across financial services.   Today, we are joined by Richard Turrin, financial technology consultant and best-selling author of the book, ‘Innovation Lab Excellence: Digital Transformation from Within’. With a history as a banker and the head of IBM’s innovation lab in Singapore, Richard explains why COVID-19 will fuel the next wave of innovation in banking.  

Data and advanced analytics are the foundation of every organization. Beyond improving efficiency and understanding business success, the power of data and predictive modeling can improve the understanding of consumer needs and personalize experiences.   Bottom line, the survival of financial organizations in a post COVID-19 world will depend on how insights are collected and how they are used for the consumer’s benefit.   In this episode, we are joined by Ryan Caldwell and Brandon Dewitt, the co-founders of MX Technologies, located right outside Provo Utah. MX works with more than 2,000 organizations to gather, enrich, present, and act on data. Today, we discuss how data and advanced analytics is a matter of survival for financial institutions, consumers and even in their personal lives.

The best and most respected leaders shine the brightest during times of crisis. Not relying on a crisis management plan, the best managers surround themselves with the best people and provide a platform for growth for those within the organization.   As a result, moving to a work from home environment should not disrupt an organization, but simply change the environment from where work is done. In all industries, especially banking, those institutions that have most respected leaders will be the winners.   We are very fortunate to be joined today by Tom Peters, one of the most respected names in business for over 40 years. A management revolutionary, Tom was the coauthor of what many considered to be the best business book ever, ‘In Search of Excellence’. A prolific bestselling author, Peters has written close to 20 books over the years. In today’s episode, Tom shares his insights and what differentiates a great leader during times of massive change.

The financial services industry is known for century-old institutions with rules and policies that are often outdated, yet preserved by regulations. Whether we are talking about banking, insurance or investment services, transformation is often slow and outside competition is met with significant resistance.   This is why it is so exciting to do a profile on a disruptor organization that finds success despite these hurdles. Lemonade is such a company, forming an insurance company that aligns the interests of the carrier with those of the customer, in a way that is economically viable. They have found success using cutting edge technology, a completely different business model and a passion for doing good.   We caught up with Lemonade’s CEO and cofounder Daniel Schreiber for an exclusive interview to find out how artificial intelligence, behavioral economics and a focus on transparency and purpose have been used to disrupt the centuries-old insurance industry.

The COVID-19 pandemic is the most serious challenge to retail banking in almost a century. Retail banks have had to rethink distribution, support government relief programs and manage remote workforces, all while trying to meet consumer expectations during a period of household-level economic uncertainty.   These challenges are only the tip of the iceberg, however, as the economic fallout and the redefined structure of the financial services ecosystem are beginning to emerge. It is clear that the ‘new normal’ in retail banking will be far different than we ever imagined only a few months ago.   We are fortunate to get an exclusive interview with Richard Hunt, president and CEO of the Consumer Bankers Association (CBA). Since his appointment in 2009, Hunt has helped to navigate the banking industry through a period of unprecedented change. In this episode, Hunt provides his perspectives for the future of retail banking during a period of tremendous uncertainty.

According to Malcolm Gladwell, a ‘tipping point’ is the moment of critical mass, when an idea, trend or behavior crosses a threshold and spreads like wildfire. The COVID-19 crisis is an example of such a phenomenon and so has been the instantaneous impact of this crisis on the digital transformation of banking.   Organizations that had not already embraced the entirety of how to become a ‘digital bank’ were caught flat footed as branch doors were closed and customers were required to transact on digital channels. In some cases, accounts couldn't be opened or loan applications taken, In all cases, organizations that had not digitally transformed their operations, products and culture delivered suboptimal customer experiences.   We are fortunate to be joined again by one of the foremost authorities on the future of banking, Chris Skinner. Chris is a prolific blogger and he is joining us today to discuss his newest book, “Doing Digital: Lessons from Leaders”. In this episode, Chris capsulizes interviews he d