How Open Finance Fuels the Money Experience and Drives Growth

If one idea encapsulates a significant trend in the current business environment, it’s “openness.”

Society is placing a greater value on transparency and “open” approaches. Even Microsoft Corp., the long-time defender of closed software, under the leadership of CEO Satya Nadella, has proclaimed they are “all in open source.” One industry where being open is of particular importance is banking and finance.

Open banking is the structured sharing of data through an application programming interface, or APIs. These APIs allow data to move freely from financial institutions to third-party consumer finance applications. Customers initiate and consent to data sharing, establishing a secure way to grant access and extract financial information from the financial institution.

Open finance, on the other hand, is a broader term. It extends open banking to include customer data access for a range of services beyond the banking industry — to retail stores, hotels, airlines, car apps and much more.

Open finance is popular in Europe and is now gaining momentum in the United States. The goal, similar to open banking, is to enhance the way consumers in all industries interact with money. There are numerous far-reaching benefits of the open finance movement, both for consumers and organizations.

Consumers receive fast access to apps and services. Opening up data access allows someone to sign on and share their data with popular third-party apps (such as Netflix or Amazon.com) so they don’t have to re-enter their information every time. Taking it a step further, a stream of innovative applications such as fraud monitoring, automated savings, accelerated mortgage reduction and more are possible once access to financial information is opened up.

Greater security and control. With currently available technology, financial institutions, can leverage API connections to allow account access or facilitate money movement for their customers. This control provides a sense of autonomy and security for consumers and bankers alike, creating an improved and secure money experience. Banking APIs also impact business models, and most significantly, allow banks to adapt to changes in the marketplace.

But security is critical when “opening up data” to the world. When we launched our open finance platform, MX Open, we ensured that financial institutions would be able to help protect their user’s financial data. Security needs to be at the heart of any successful open finance strategy, so that  financial institutions, third-party financial apps and other companies can create more personalized money experiences that give customers greater access and control.

Easier connection of services, apps, cores and systems. Establishing a secure, end-to-end mechanism for sharing data not dependent on credential sharing allows banks and fintech companies can connect to many, many more services — resulting in even more services and offerings for users. Data connectivity APIs exist for that purpose: to empower organizations beyond the constraints of legacy systems, connecting financial institutions with new services, apps, cores and systems.

As a company focused on the financial services space, we recognize that data should be open to everyone. This movement of opening up — from open-source, to open banking to open finance — can only help bankers and boards maintain the advocacy-focused approach they desire in serving their customers, while increasing control over their roadmap to innovate faster and deliver the right tools and products to the right customers.

Banks Can’t Keep Playing Defense on Postal Banking

As momentum builds for offering expanded financial services via the U.S. Postal Service, the banking industry to date has responded with flat opposition.

Banks argue that the post office isn’t set up to take deposits, workers don’t have much experience offering financial services products and the agency has enough issues it needs to address already — all solid points. Yet while playing defense may work in the short term — even if Democrats win the White House and Senate in November, it would be a tough fight on the Hill to enact a postal banking bill — it doesn’t feel like the smart play.

There is an opportunity in postal banking, one that the industry would do well to seize before banks competitors do. Credit unions are already circulating a plan that would allow them to bid to open branches at nearby post office locations. JPMorgan Chase & Co., meanwhile, has been quietly negotiating with the U.S. government about putting ATMs at post office locations.

If both smaller institutions like credit unions and JPMorgan, the nation’s largest bank, see the possibilities in post offices, banks should too.

The push for postal banking is only going to increase
Banks may not agree, but on some level, offering banking services at post offices makes sense. Many foreign countries already do it successfully and the U.S. itself offered them from 1911 to 1966 (It largely ended because banks could offer higher interest rates). A growing number of progressives see postal banking as a potential solution to the roughly 55 million un- and underbanked Americans. The Postal Service is both popular and trusted, making it an attractive alternative to check cashers, payday lenders and yes, even banks.

Many Democrats have embraced the idea, including Sens. Elizabeth Warren, D-Mass., and Kirsten Gillibrand, D-N.Y. Sen. Sherrod Brown, the top Democrat on the Senate Banking Committee has his own version of postal banking that involves the Federal Reserve and the creation of digital currency. Even the campaign for Democratic presidential candidate Joe Biden has endorsed postal banking.

Those ranks are only likely to increase as economic disparities in the country sharpen. And while Democrats may not have the votes right now, that could change if they eliminate the filibuster or as Americans look for more help during the economic fallout of Covid-19.

Post offices are just about everywhere — including places banks aren’t
Despite budget cuts, there are more than 31,000 post offices in the U.S. To put that in perspective, Wells Fargo & Co. currently has the largest branch network in the country, with nearly 5,500 branches. As of 2019, there were about 77,500 bank branches in the U.S. overall.

But consumers can ignore bank branches, especially when they don’t have an account. Branches are also absent in so-called “banking deserts” that lack a significant financial institution presence. By their nature, post offices are geographically diverse, close to most communities and likely to have a lot of foot traffic.

If the government offered expanded banking services in all 31,000 USPS locations, it’s easy to see why banks view that as a huge threat. But if community bankers could compete for the right to open a branch or put an ATM inside their local post office — similar to how many already do in Walmart stores — it becomes a chance to expand their customer base.

To be sure, any bidding or proposal process would have to be open and balanced, designed to ensure big institutions like JPMorgan couldn’t muscle out community banks. But if bankers develop their own plan, they could make sure such a process is part of any final deal.

Banks can solve some postal banking problems
Bankers are right to note the many practical difficulties if the Postal Service gets involved in the financial services space. Personnel aren’t trained and already face a crush of duties. It’s not even clear postal banking would bring in the profits that its supporters hope for, precisely because they would be limited in what services could be offered and fees charged.

But adding a bank to the equation could help address at least some of these issues. There’s no need to train additional personnel since bank staff would be on hand. Banks also have experience in offering low-cost services and could be explicitly encouraged to do so by federal regulators. In short, it could become a win-win, where banks and post offices work hand in hand to help serve low- and moderate- income consumers.

Whether bankers embrace this idea or come up with their own, they would do well to join the debate. Either they help steer the outcome to a solution they can support — or run the risk of watching a big bank, credit union or the federal government gets there first.

Addressing the Income Inequality Imperative Before It’s Too Late

There’s an unofficial adage in journalism that three similar events make a story. One car wreck at a particular intersection is an accident. Two accidents are an unfortunate coincidence. Three times is a trend — and an issue to discuss and address.

So it was hard not to start worrying when three different guests — an entrepreneur, a former regulator and a longtime financial services consultant — mentioned the same potential fear on Promontory Network’s podcast “Banking with Interest.” They all worried that rising economic inequality, which has been exacerbated by the Covid-19 crisis, could spur widespread social unrest beyond anything we’ve seen to date.  

“Things can go really bad,” entrepreneur and Shark Tank costar Mark Cuban told me in April, well before the brutal police killing of George Floyd in late May sparked nationwide protests in response to racial injustice and inequality. “We’ve seen riots. We’ve seen small businesses burn down.”

One recent warning came from Karen Shaw Petrou, managing partner of Federal Financial Analytics. Petrou is one of the most thoughtful voices in the financial services industry; since 2018, she has been adamant that income inequality is an increasing — and underappreciated — risk to the financial system.

You have empirical and theoretical evidence that the more economically unequal a nation is, the more fragile its financial system,” Petrou told me in June. “I worry… that prolonged economic inequality, combined with the kinds of crises it keeps precipitating, will also lead to rage. History is not inspiring on the topic of what happens to societies with profound inequality.”

John Hope Bryant, the founder, chairman and CEO of Operation Hope, a not-for-profit dedicated to financial literacy and economic inclusion, agreed.

“Societies don’t crater from the top down,” he told me. “They crater from the bottom in. You cannot have 1% doing great, 15% doing pretty good and 80% plus doing pretty crappy and expect that to be sustainable.”

They are hardly alone. Both Citigroup CEO Michael Corbat and JPMorgan Chase & Co. Chairman and CEO Jamie Dimon flagged economic inequality as a growing threat to financial and political stability. And Brian Brooks, Acting Comptroller at the Office of the Comptroller of the Currency, acknowledged to me that systemic inequities need to be addressed.

“People are not actually crying out because the system is a terrible system, right? They’re crying out because the system that has worked for a bunch of people has totally excluded other people for a fairly long period of time,” he told me. “And the banking system can fix that.”

Among other things, Brooks wants to reexamine how credit scores are calculated and how current models shut minority Americans out of the finance system.

Economic inequality predates the spread of the coronavirus. The wealth gap between the richest and poorest families more than doubled from 1989 to 2016, according to the Pew Research Center. The data is particularly grim for African Americans. The average wealth of white households was seven times the average of black households in 2016, according to a recent post by Petrou. White Americans owned 85% of U.S. household wealth at the end of 2019, she wrote, while Black Americans held just 4.2%.

But the coronavirus crisis is set to make the problem far worse.

“Low-income households have experienced, by far, the sharpest drop in employment, while job losses of African-Americans, Hispanics, and women have been greater than that of other groups,” Federal Reserve Chairman Jerome Powell told lawmakers recently. “If not contained and reversed, the downturn could further widen gaps in economic well-being that the long expansion had made some progress in closing.”

There are proposed solutions. Petrou has called for the creation of an “Equality Bank,” controlled by a consortia of banking companies to “rewrite the profit equation to serve low- and moderate-income households.” This bank could offer short-term, low-dollar loans to consumers through the banking system, without the often-onerous rates and terms of existing products like payday loans.

Bryant has called for a new Marshall Plan to combat the problem, including calling for a universal income for workers making less than $60,000 per year,  a national financial literacy mandate, and a redesigned education system that includes a free college education for most students.

“You need a mass of people to be highly educated,” Bryant said. “This is not rocket science. It’s the radical movement of common sense. As you educate more people, and raise credit scores along with it, you get more economic energy. You get more small business startups, you get more job creation. You get higher educational engagement. You get better skilled workers. You get less societal friction. This is an investment, not a giveaway.”

Brooks, meanwhile, has said the OCC is set to launch a pilot project designed to bring together banks, civil rights organizations and academics to tackle wealth creation. Cuban has talked about creating jobs to track and trace the spread of the virus in the short-term and pushed for government investments in low-income housing and companies offering stock to employees so that they have a stake in a firm’s success.

Tackling economic inequality hasn’t been a high priority for many in banking and government. That needs to change — and soon. While people may reasonably disagree on the right solution to this issue, most are of the same mind when it comes to what happens if we don’t try to address it.

We need to lift people “from the bottom-up,” Cuban told me. “We have never thought like that in the past, and we need to. Because if we don’t, oh my goodness … If we screw up, it could get ugly.”

The Covid-19 Shift

For many companies, the Covid-19 pandemic necessitated rapid change. Microsoft Corp. CEO Satya Nadella noted in late April, “We’ve seen two years’ worth of digital transformation in two months,” due to the speedy adoption and implementation of new technology by the U.S. business sector to better serve customers and keep employees working safely during the crisis. 

Navigating the short-term impacts of these shifts has bankers working round-the-clock to keep pace, but the long-term effects could differentiate the companies that take advantage of this extraordinary moment to pivot their operations. This transformation makes up the core of the discussions taking place at Microsoft’s Envision Virtual Forum for Financial Services. As part of that event, Bank Director CEO Al Dominick virtually sat down with Luke Thomas, Microsoft’s managing director, U.S. banking and financial providers, to discuss how financial institutions can use this opportunity to modernize their operations.

They address:

  • Accelerated Adoption of Technology
  • Legacy vs. New Core Providers
  • Ensuring Continued Improvement

How One Bank Puts Agile Management Techniques Into Action

When David Mansfield took the reins as CEO of Provident Bancorp six years ago, he could see that a change was needed, and that required new thinking.

“We were a typical community bank trying to be everything to everybody,” says Mansfield. He transformed the $1.1 billion bank based in Amesbury, Massachusetts, into a “true commercial bank” to the small and mid-sized companies that form the “backbone” of the community.

We’re trying to offer products and services that are not commodities, where we can differentiate ourselves, add value and get paid for it,” says Mansfield. “The customer’s appreciative, because they’re getting a product or service that really isn’t available to [small and mid-sized companies]” — like specialty services usually offered by large regional and money-center banks to their corporate clients.

To accomplish that, he needed employees who weren’t afraid to shake things up. He also needed to develop a culture and tools that facilitated collaboration within the organization. To do this, he borrowed managerial techniques from the technology sector by adopting Lean and Agile techniques.

Teams within the bank using these methods identify how to improve processes and workflows. “We have had some really amazing success stories,” says Mansfield.

Lean management aims for continual, incremental improvement. Quick “daily huddles” in the bank help staff focus on the day. In these 15-minute standup meetings, employees provide a quick update about progress on key projects and share any obstacles they’re facing so these issues can be addressed.

Mansfield credits Lean methods for improving interdepartmental dynamics. “One of the major premises of Lean [is that] it’s all about the customer experience, and we truly believe within this organization that everybody has a customer,” he says. Loan officers and branch staff directly interact with the customer, but support staff have a customer, too: their colleagues serving the customer. “What I love about our IT group is, they believe that wouldn’t happen unless they serve their customer, which is that group of people.”

Provident Bancorp still incorporates Lean thinking, but started shifting to Agile techniques late last year, upon hiring Joy Curth as senior information officer. Curth’s experience includes a stint in application development at Intuit, and she understands Agile methods. The principles of Lean and Agile are similar; both seek to create workflow efficiencies and promote iterative development.

Curth doesn’t have a banking background, which appealed to Mansfield. “We’re trying to do some different things, really leverage technology, and the traditional bank chief information officer just is not what I was looking for,” he says. As the bank weighs partnerships with technology companies, “she’s not only able to speak their language, but she’s able to recruit people to join her team [and] really professionalized our project management team” due to her Agile background.

Adoption of Agile has been project based, and the bank’s first project under the methodology was integrating ResX Warehouse Lending, a warehousing lending division that it acquired in January from $58.6 billion People’s United Financial, based in Bridgeport, Connecticut.

“Dave came to us and announced we were going to do an acquisition, and we were able to complete that project in [roughly] 8 weeks,” says Curth. “A whole acquisition of staff, technology, contracts — that was pretty expedited and showed that we were able to do that without a hitch.” The project’s success encouraged bank leaders to roll out the approach for most key projects.

“Even the bank we were doing the acquisition from [was] really impressed with our team,” says Mansfield. “We really drove it; it was an everyday meeting, what’s the status, how to keep things going.”

Agile is an ongoing journey that Mansfield believes represents the “next evolution” for project management at Provident. He’s a big reader, and one of his favorites is “Good to Great: Why Some Companies Make the Leap…And Others Don’t,” by Jim Collins.

“There’s a concept he uses: Shoot bullets first,” says Mansfield. Shooting bullets means pursuing attempts that represent a low risk and require minimal resources. If it works, you recalibrate and then “shoot the cannonball when you’re ready,” he says — using your company’s resources to make a big move based on those earlier, iterative attempts.

Another one that he calls a “gut check” on Lean techniques is “Jumpstart Your Service Revolution: Transform Your Company’s DNA and Thrive in an Age of Disruption,” by Thomas Schlick.

By adopting Lean and Agile techniques, Mansfield is creating a bank that differentiates itself in the market. Curth adds that employees enjoy working there. It’s what drew her to the bank. “When you implement this type of culture, your morale is high, and there really is an energy that is compelling and exciting,” says Curth.

Recommended Reading from David Mansfield, Provident Bancorp

How Umpqua Bank Is Navigating the Digital Transformation

Writers look for interesting paradoxes to explore. That’s what creates tension in a story, which engages readers.

These qualities can be hard to find in banking, a homogenous industry where individuality is often viewed skeptically by regulators.

But there are exceptions. One of them is Umpqua Holdings Co., the biggest bank based in the Pacific Northwest.

What’s unique about Umpqua is the ubiquity of its reputation. Ask just about anyone who has been around banking for a while and they’re likely to have heard of the $29 billion bank based in Portland, Oregon.

This isn’t because of Umpqua’s size or historic performance. It’s a product, instead, of its branch and marketing strategies under former CEO Ray Davis, who grew it over 23 years from a small community bank into a leading regional institution.

Umpqua’s branches were particularly unique. The company viewed them not exclusively as places to conduct banking business, but instead as places for people to congregate more generally.

That strategy may seem naïve nowadays, given the popularity of digital banking. But it’s worth observing that other banks continue to follow its lead.

Here’s how Capital One Financial Corp. describes its cafes: “Our Cafés are inviting places where you can bank, plan your financial journey, engage with your community, and enjoy Peet’s Coffee. You don’t have to be a customer.”

Nevertheless, as digital banking replaces branch visits, Umpqua has had to shift its strategy — you could even say its identity — under Davis’ successor, Cort O’Haver.

The biggest asset at O’Haver’s disposal is Umpqua’s culture, which it has long prioritized. And the key to its culture is the way it balances stakeholders.

For decades, corporations adhered to the doctrine of shareholder primacy — the idea that corporations exist principally to serve shareholders. The doctrine was even formally endorsed in 1997 as a principle of corporate governance by the Business Roundtable, an organization made up of CEOs of major U.S. companies.

Umpqua, on the other hand, has focused over the years on optimizing rewards to all its stakeholders — employees, customers, community and shareholders — as opposed to maximizing the rewards to just one group of them.

“We’re not the most profitable or highest total shareholder return bank in the country,” O’Haver says. “We have to give some of that up because of the things we do. If we’re going to innovate, if we’re going to have programs that give back to our employees and our communities, it costs money to do that. But we think that’s the right thing to do. It attracts customers and great quality associates who bring passion to what they do.”

The downside to this approach, as O’Haver points out, are lower shareholder returns. But the upside, particularly now, is that this philosophy seeded a collaborative culture that can be leveraged to help navigate the digital transformation.

Offering digital distribution channels isn’t hard. Any bank can pay third-party partners to build a mobile application. What’s hard is seamlessly blending these channels into a legacy ecosystem once dominated by branches and in-person service.

“How are you going to get your people to actually embrace new technology and use it? How are they going to sell it if they don’t feel like it’s valuable for them?” O’Haver says. “Yeah, it’s valuable for your shareholders because it’s cheaper. But if you’re not counterbalancing that, how are you going to get your associates to embrace it and sell it to customers? That’s more important than the product itself, even in financial terms. If they don’t embrace it, you will fail.”

This, again, may seem like a trite way to approach business. Yet, Umpqua’s more balanced philosophy towards stakeholders has proven to be prescient.

Last year, the Business Roundtable redefined the purpose of a corporation. No longer is it merely to maximize shareholder value; its purpose now is to fulfill a fundamental commitment to all its stakeholders.

Leading institutional investors are following suit. The CEOs of BlackRock and State Street Global Capital Advisors, the two biggest institutional investors in the country, are mandating that companies jettison shareholder primacy in favor of so-called stakeholder capitalism.

In short, while Umpqua’s decades-long emphasis on branches may seem like a liability in the modern age of banking, the culture underlying that emphasis may prove to be its greatest asset if leveraged, as opposed to lost, in the process of bridging the digital divide.

Staying Relevant In The Payments Revolution

A tremendous level of disruption is occurring in the payments space today — and few banks have a strategy to combat this threat, according to Michael Carter, executive vice president at Strategic Resource Management. In this video, he explains how smart home technology like Alexa and Google Home is changing how consumers interact with their financial institutions. He also outlines three tactics for banks seeking to achieve top of wallet status.

  • Today’s Payments Landscape
  • Technologies to Watch
  • How to Keep Wallet Share
  • Threats to Community Banks

 

On the Docket of the Biggest Week in Banking

Think back to your days as a student. Who was the teacher that most inspired you? Was it because they challenged your assumptions while also building your confidence?

In a sense, the 1,312 men and women joining me at the Arizona Biltmore in Phoenix for this year’s Acquire or Be Acquired Conference are in for a similar experience, albeit one grounded in practical business strategies as opposed to esoteric academic ideas.

Some of the biggest names in the business, from the most prestigious institutions, will join us over three days to share their thoughts and strategies on a diverse variety of topics — from lending trends to deposit gathering to the competitive environment. They will talk about regulation, technology and building franchise value. And our panelists will explore not just what’s going on now, but what’s likely to come next in the banking industry.

Mergers and acquisitions will take center stage as well. The banking industry has been consolidating for four decades. The number of commercial banks peaked in 1984, at 14,507. It has fallen every year since then, even as the trend toward consolidation continues. To this end, the volume of bank M&A in 2019 increased 5% compared to 2018. 

The merger of equals between BB&T Corp. and SunTrust Banks, to form Truist Financial Corp., was the biggest and most-discussed deal in a decade. But other deals are worth noting too, including marquee combinations within the financial technology space.

In July, Fidelity National Information Services, or FIS, completed its $35 billion acquisition of Worldpay, a massive payment processor. “Scale matters in our rapidly changing industry,” said FIS Chairman and Chief Executive Officer Gary Norcross at the time. Fittingly, Norcross will share the stage with Fifth Third Bancorp Chairman and CEO Greg Carmichael on Day 1 of Acquire or Be Acquired. More recently, Visa announced that it will pay $5 billion to acquire Plaid, which develops application programming interfaces that make it easier for customers and institutions to connect and share data.

Looking back on 2019, the operating environment proved challenging for banks. They’re still basking in the glow of the recent tax breaks, yet they’re fighting against the headwinds of stubbornly low interest rates, elevated compliance costs and stiff competition in the lending markets. Accordingly, I anticipate an increase in M&A activity given these factors, along with stock prices remaining strong and the biggest banks continuing to use their scale to increase efficiency and bolster their product sets.

Beyond these topics, here are three additional issues that I intend to discuss on the first day of the conference:

1. How Saturated Are Banking Services?
This past year, Apple, Google and Facebook announced their entry into financial services. Concomitantly, fintechs like Acorns, Betterment and Dave plan to or have already launched checking accounts, while gig-economy stalwarts Uber Technologies and Lyft added banking features to their service offerings. Given this growing saturation in banking services, we will talk about how regional and local banks are working to boost deposits, build brands and better utilize data.

2. Who Are the Gatekeepers of Customer Relationships?
Looking beyond the news of Alphabet’s Google’s checking account or Apple’s now-ubiquitous credit card, we see a reframing of banking by mainstream technology titans. This is a key trend that should concern bank executives —namely, technology companies becoming the gatekeepers for access to basic banking services over time.

3. Why a Clear Digital Strategy Is an Absolute Must
Customer acquisition and retention through digital channels in a world full of mobile apps is the future of financial services. In the U.S., there are over 10,000 banks and credit unions competing against each other, along with hundreds of well-funded start-ups, for customer loyalty. Clearly, having a defined digital strategy is a must.

For those joining us at the Arizona Biltmore, you’re in for an invaluable experience. It’s a chance to network with your peers and hear from the leaders of  innovative and elite institutions.

Can’t make it? We intend to share updates from the conference via BankDirector.com and over social media platforms, including Twitter and LinkedIn, where we’ll be using the hashtag #AOBA20.

Winners Announced for the 2019 Best of FinXTech Awards


Awards-9-10-19.pngBanks face a fundamental paradox: They need to adopt increasingly sophisticated technology to stay competitive, but most have neither the budget nor the risk appetite to develop the technology themselves.

To help banks address this challenge, a legion of fintech companies have sprung up in the past decade. The best of these are solving common problems faced by financial institutions today, from improving the customer experience, growing loans, serving small business customers and protecting against cybersecurity threats.

To this end, we at Bank Director and FinXTech have spent the past few months analyzing the most innovative solutions deployed by banks today. We evaluated the performance results and feedback from banks about their work with fintech companies, as well as the opinions of a panel of industry experts. These fintechs had already been vetted further for inclusion in our FinXTech Connect platform. We sought to identify technology companies that are tried and true — those that have successfully cultivated relationships with banks and delivered value to their clients.

Then, we highlighted those companies at this year’s Experience FinXTech event, co-hosted by Bank Director and FinXTech this week at the JW Marriott in Chicago.

At our awards luncheon on Tuesday, we announced the winning technology solutions in six categories that cover a spectrum of important challenges faced by banks today: customer experience, revenue growth, loan growth, operations, small business solutions and security.

We also announced the Best of FinXTech Connect award, a technology-agnostic category that recognizes technology firms that work closely with bank clients to co-create or customize a solution, or demonstrated consistent collaboration with financial institutions.

The winners in each category are below:

Best Solution for Customer Experience: Apiture

Apiture uses application programming interfaces (APIs) to upgrade a bank’s digital banking experience. Its platform includes digital account opening, personal financial management, cash flow management for businesses and payments services. Each feature can be unbundled from the platform.

Best Solution for Revenue Growth: Mantl

MANTL developed an account-opening tool that works with a bank’s existing core infrastructure. Its Core Wrapper API reads and writes directly to the core, allowing banks to set up, configure and maintain the account-opening product

Best Solution for Loan Growth: ProPair

ProPair helps banks pair the right loan officer with the right lead. It integrates with a bank’s systems to analyze the bank’s data for insights into behaviors, patterns and lender performance to predict which officer should be connected with a particular client.

Best Small Business Solution: P2BInvestor

P2Binvestor provides an asset-based lending solution for banks that helps them monitor risk, track collateral and administer loans. It partners with banks to give them a pipeline of qualified borrowers.

Best Solution for Improving Operations: Sandbox Banking

Sandbox Banking builds custom APIs that communicate between a bank’s legacy core systems like core processors, loan origination, customer relationship management software and data warehouses. It also builds APIs that integrate new products and automate data flow.

Best Solution for Protecting the Bank: Illusive Networks

Illusive Networks uses an approach called “endpoint-focused deception” to detect breaches into a bank’s IT system. It plants false information across a bank’s network endpoints, detects when an attacker acts on the information and captures forensics from the compromised machine. It also detects unnecessary files that could serve as tools for hackers.

Best of FinXTech Connect: Sandbox Banking

The middleware platform, which also won the “Best Solution for Improving Operations” category, was also noted for working hand-in-hand with bank staff to create custom API connections to solve specific bank issues. In addition, banks can access three-hour blocks of developer time each month to work on special projects outside of regular technical support.