Western Banker - November/December 2016 - 12

The WIB App Store continued Imagine the flexibility and agile advantage if a bank could go online, choose from a storefront the new app to try and submit. Linqto's "Otter," a unique apps delivery platform, powers the WIB APP Store. From design to integration to app store submission, the process is easy and fully automated. released BBVA Hoops, a game targeted at attracting new millennial customers to the bank. Major FIs are launching games, personal fitness and lifestyle apps in addition to new Fintech apps. Unbundling Apps - Opportunity for Banking Software So far, new Fintech companies have been targeting consumers directly. "Disintermediation is a serious threat in financial services, with best-in-class start-ups and giant technology companies looking to siphon off profits from traditional banking services. Goldman Sachs sees $11B at risk of leaving the traditional banking sector in the immediate future." (Source: Trending Credit Unions.) Banks and credit unions control $15 trillion in assets. Forty-five percent of that wealth is controlled by the top five banks, which are reacting to market trends and unbundling their digital banking software. The other 55 percent are slower to follow, as they are tied to long-term contracts with vendors who have no financial incentive to unbundle their software and become a target of individual apps in the Fintech space. * Lack of engineering resources and expensive startup costs for white-labeling a single Fintech app have previously kept smaller banks from this market. The WIB APP Store, by utilizing the latest in app automation technology, now enables community banks to quickly and inexpensively brand, integrate and deploy the latest Fintech apps. For member banks, the WIB APP Store provides a way to attract and connect with millennials with branded versions of desired apps. FIs can adapt quickly and experiment easily with no long-term contracts and no engineering necessary. Community Banks Can Now Lead An interesting change in the digital banking paradigm results from this new trend. Community banks can respond more quickly to market demands than larger banks that are subject to legacy platforms and are involved in the time and expense of their own R&D. Once they start the unbundling process, thousands of new Fintech solutions are already waiting for them to use. They only need to brand and integrate those solutions with their own infrastructure. In 1990, the top five banks controlled 9.7 percent of the wealth. Partly due to their ability to create their own digital banking software, the first-to-market competitive advantage over other financial institutions has enabled the top five to now control 45 percent of total assets. A reversal of this trend has started in 2016, as this new capacity to move quickly in the market brings Fintech companies and smaller financial institutions into an alliance that will ultimately reverse the trend of the largest banks controlling the market. ● About the authors: Bill Sarris is CEO and co-founder of Linqto, Inc.,and Vicki Lawrence is COO and co-founder of Linqto, Inc. This new capacity to move quickly in the market brings Fintech companies and smaller financial institutions into an alliance that will ultimately reverse the trend of the largest banks controlling the market. 12 www.wib.org Western Banker http://www.wib.org

Table of Contents for the Digital Edition of Western Banker - November/December 2016

A Message from the President & CEO
Back to the Future to Manage Portfolio Performance
The WIB App Store
Managing Your Bank’s Reputation by Taking an “Inside-Out” Approach to Communicating News
Interest Rate Risk and ALM: Most Institutions Are Doing it Wrong
Everything Old is New Again — Updating FCRA Compliance in a CFPB World
Professional Development
Secrets to Employee Engagement for Bank Managers
March of the Millennials: Cultivating Relationships Within the Digital Generation
Welcome New Members
Index of Advertisers
Western Banker - November/December 2016 - cover1
Western Banker - November/December 2016 - cover2
Western Banker - November/December 2016 - 3
Western Banker - November/December 2016 - 4
Western Banker - November/December 2016 - A Message from the President & CEO
Western Banker - November/December 2016 - Back to the Future to Manage Portfolio Performance
Western Banker - November/December 2016 - 7
Western Banker - November/December 2016 - 8
Western Banker - November/December 2016 - 9
Western Banker - November/December 2016 - The WIB App Store
Western Banker - November/December 2016 - 11
Western Banker - November/December 2016 - 12
Western Banker - November/December 2016 - Managing Your Bank’s Reputation by Taking an “Inside-Out” Approach to Communicating News
Western Banker - November/December 2016 - 14
Western Banker - November/December 2016 - Interest Rate Risk and ALM: Most Institutions Are Doing it Wrong
Western Banker - November/December 2016 - 16
Western Banker - November/December 2016 - 17
Western Banker - November/December 2016 - Everything Old is New Again — Updating FCRA Compliance in a CFPB World
Western Banker - November/December 2016 - 19
Western Banker - November/December 2016 - 20
Western Banker - November/December 2016 - Professional Development
Western Banker - November/December 2016 - Secrets to Employee Engagement for Bank Managers
Western Banker - November/December 2016 - 23
Western Banker - November/December 2016 - March of the Millennials: Cultivating Relationships Within the Digital Generation
Western Banker - November/December 2016 - 25
Western Banker - November/December 2016 - Index of Advertisers
Western Banker - November/December 2016 - cover3
Western Banker - November/December 2016 - cover4
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