ABA Banking Journal - September/October 2017 - 23

ABA Endorsed
Solutions for
Digital Lending

Akouba:
small business
loan origination

Finastra:
mobile mortgage
applications

Unsecured consumer lending is the first market where
digital lending has made an impact and is by far the most
mature. Today, the two leading consumer lending platforms
(Lending Club and Prosper) originate roughly $2.5 billion
in loans quarterly. Small business lending has quickly
followed and is rapidly digitizing. ABA has endorsed the
digital commercial lending solutions offered by Akouba,
providing banks of all sizes the use of these platforms
to enhance customer service and significantly reduce
underwriting costs.
Despite the difficulties of collateralized lending, digitization
has a role to play here as well. One area experiencing
significant innovation is mortgage lending. While the
mortgage process still has a long way to go before
digital end-to-end origination is possible, technology
can significantly simplify the process by digitizing forms,
prepopulating known information and ensuring that all of the
documents are in order before a customer sits down with a
mortgage officer. ABA endorses MortgageBot from Finastra
(formerly D+H) to provide many of these services.

2

2.BIOMETRICS
(1-2 YEARS)

As trusted custodians of their customers' most sensitive
data, banks are the gold standard in data security. A key
component of this security is ensuring that someone
logging in is actually the bank's customer. Today, bank
authentication is typically dual-factor based on "something
you know," such as a password and your mother's maiden
name. Biometrics present the opportunity to increase this
level of security by authenticating based on "something you
are," such as a thumbprint, selfie or iris scan.

America's banks are innovating and
partnering with startups to deliver
the services that customers want.
They are also looking forward to the
next wave of technologies that could
shape the future of the industry.
Passwords are only secure to the extent that they are kept
private and cannot be guessed by a keen observer. The
problem is that these passwords often rely on observable
pieces of our life like our birth date, our children's names,
or our pets (my personal favorite), which are all readily
available to criminals using social media and public
databases. A 2015 study by TeleSign indicated that one
in five people use passwords that are over 10 years old,
with 73 percent of accounts being secured by the same
password. Compounding this problem is the fact that we
now have so many accounts that require a password, that it
is impossible to keep them straight.
Biometric technology can help address all of these
concerns. While thumbprint authentication was once strictly
the territory of secure government facilities and James Bond
villains, smartphone thumbprint scanners have made this
technology accessible for daily consumer use.
The challenge this presents is that biometric authentication
is probabilistic. Rather than determining a right or wrong
input, a biometric system calculates the probability that
a thumbprint or iris scan match the original. The output
from smartphone hardware is typically a yes/no answer that
gives little information about the level of confidence. A bank
may be willing to let a customer view their balances with a
95 percent level of confidence, but might require a stricter
test to move money out of the account.
aba.com/BankingJournal | ABA BANKING JOURNAL

23


http://www.aba.com/BankingJournal

Table of Contents for the Digital Edition of ABA Banking Journal - September/October 2017

CHAIRMAN’S VIEW
UPFRONT
PICTURE THIS
LEGAL BRIEFS
POWER UP PROFILE
THE TOP FINTECH TRENDS DRIVING THE NEXT DECADE
PLUG AND PLAY: FOUR WAYS TO LEVEL UP YOUR MOBILE BANKING APP
MAKING FRIENDS WITH FINTECH
LOOKING AT FINTECH THROUGH THE LEGISLATIVE LENS
LET’S TALK PAYMENTS
IS OUTSOURCING IT SECURITY RIGHT FOR YOUR BANK?
THE CECL RIPPLE EFFECT
FROM YOUNG AMERICANS TO ENTREPRENEURIAL CITIZENS
FINDING THE PERFECT NICHE
THREE ELEMENTS OF BANK LEADERSHIP
REAL ESTATE LENDING
ABA COMPLIANCE CENTER INBOX
WEALTH MANAGEMENT
FROM THE STATES
CORPORATE SOCIAL RESPONSIBILITY
INDEX OF ADVERTISERS
FROM THE VAULT
ABA Banking Journal - September/October 2017 - Intro
ABA Banking Journal - September/October 2017 - bellyband1
ABA Banking Journal - September/October 2017 - bellyband2
ABA Banking Journal - September/October 2017 - cover1
ABA Banking Journal - September/October 2017 - cover2
ABA Banking Journal - September/October 2017 - 3
ABA Banking Journal - September/October 2017 - 4
ABA Banking Journal - September/October 2017 - 5
ABA Banking Journal - September/October 2017 - 6
ABA Banking Journal - September/October 2017 - 7
ABA Banking Journal - September/October 2017 - CHAIRMAN’S VIEW
ABA Banking Journal - September/October 2017 - 9
ABA Banking Journal - September/October 2017 - 10
ABA Banking Journal - September/October 2017 - UPFRONT
ABA Banking Journal - September/October 2017 - 12
ABA Banking Journal - September/October 2017 - 13
ABA Banking Journal - September/October 2017 - 14
ABA Banking Journal - September/October 2017 - 15
ABA Banking Journal - September/October 2017 - PICTURE THIS
ABA Banking Journal - September/October 2017 - 17
ABA Banking Journal - September/October 2017 - LEGAL BRIEFS
ABA Banking Journal - September/October 2017 - 19
ABA Banking Journal - September/October 2017 - POWER UP PROFILE
ABA Banking Journal - September/October 2017 - 21
ABA Banking Journal - September/October 2017 - THE TOP FINTECH TRENDS DRIVING THE NEXT DECADE
ABA Banking Journal - September/October 2017 - 23
ABA Banking Journal - September/October 2017 - 24
ABA Banking Journal - September/October 2017 - 25
ABA Banking Journal - September/October 2017 - 26
ABA Banking Journal - September/October 2017 - 27
ABA Banking Journal - September/October 2017 - PLUG AND PLAY: FOUR WAYS TO LEVEL UP YOUR MOBILE BANKING APP
ABA Banking Journal - September/October 2017 - 29
ABA Banking Journal - September/October 2017 - 30
ABA Banking Journal - September/October 2017 - 31
ABA Banking Journal - September/October 2017 - MAKING FRIENDS WITH FINTECH
ABA Banking Journal - September/October 2017 - 33
ABA Banking Journal - September/October 2017 - LOOKING AT FINTECH THROUGH THE LEGISLATIVE LENS
ABA Banking Journal - September/October 2017 - 35
ABA Banking Journal - September/October 2017 - LET’S TALK PAYMENTS
ABA Banking Journal - September/October 2017 - 37
ABA Banking Journal - September/October 2017 - 38
ABA Banking Journal - September/October 2017 - IS OUTSOURCING IT SECURITY RIGHT FOR YOUR BANK?
ABA Banking Journal - September/October 2017 - THE CECL RIPPLE EFFECT
ABA Banking Journal - September/October 2017 - 41
ABA Banking Journal - September/October 2017 - 42
ABA Banking Journal - September/October 2017 - FROM YOUNG AMERICANS TO ENTREPRENEURIAL CITIZENS
ABA Banking Journal - September/October 2017 - 44
ABA Banking Journal - September/October 2017 - 45
ABA Banking Journal - September/October 2017 - 46
ABA Banking Journal - September/October 2017 - FINDING THE PERFECT NICHE
ABA Banking Journal - September/October 2017 - 48
ABA Banking Journal - September/October 2017 - 49
ABA Banking Journal - September/October 2017 - 50
ABA Banking Journal - September/October 2017 - THREE ELEMENTS OF BANK LEADERSHIP
ABA Banking Journal - September/October 2017 - 52
ABA Banking Journal - September/October 2017 - 53
ABA Banking Journal - September/October 2017 - REAL ESTATE LENDING
ABA Banking Journal - September/October 2017 - 55
ABA Banking Journal - September/October 2017 - 56
ABA Banking Journal - September/October 2017 - 57
ABA Banking Journal - September/October 2017 - 58
ABA Banking Journal - September/October 2017 - 59
ABA Banking Journal - September/October 2017 - ABA COMPLIANCE CENTER INBOX
ABA Banking Journal - September/October 2017 - 61
ABA Banking Journal - September/October 2017 - WEALTH MANAGEMENT
ABA Banking Journal - September/October 2017 - FROM THE STATES
ABA Banking Journal - September/October 2017 - CORPORATE SOCIAL RESPONSIBILITY
ABA Banking Journal - September/October 2017 - INDEX OF ADVERTISERS
ABA Banking Journal - September/October 2017 - FROM THE VAULT
ABA Banking Journal - September/October 2017 - cover3
ABA Banking Journal - September/October 2017 - cover4
ABA Banking Journal - September/October 2017 - outsert1
ABA Banking Journal - September/October 2017 - outsert2
ABA Banking Journal - September/October 2017 - outsert3
ABA Banking Journal - September/October 2017 - outsert4
ABA Banking Journal - September/October 2017 - outsert5
ABA Banking Journal - September/October 2017 - outsert6
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