Regulation to mobile payments – a well done CBALive 2012
From Sean Smith at PNC on business agility to Richard Cordray at CFPB on regulations, with discussions on mobile payments sprinkled in between, Consumer Bankers Association’s CBALive 2012 in Austin was an intimate meeting with an expansive agenda. There were a lot of discussions around the Banks’ future in the mobile wallet and payment industry, whether PayPal is a friend or a foe, and what will happen when Apple gets into the payment space. On the other side, a lot of discussions around the issues facing the Banks right now – how to make up for the revenue shortfall from interchange and overdraft regulations and the revenue shortfall from the current interest rate environment. Here are the top 5.
#3: Kevin Travis from Novantas talked about channel preferences and how to transform the distribution network as the customer behavior changes. He illustrated 3 distinct segments in US banking – branch traditionalists, ultra-connected, and virtually domiciled and how these are behavior oriented segments rather than segments by age or wealth. While some banks are using an acquisition strategy that places premium on growing density in the footprint, Kevin argued for an acquisition strategy that uses a thin network for new geographies as a low cost experimentation.
#2: Hearing directly from Consumer Financial Protection Bureau (CFPB) Director Richard Cordray. The general tone was that CFPB is there to lower the risks that consumers face in the financial marketplace. He encouraged Banks to take initiative on simplifying how they communicate to customers with a focus on clarity. The other highlight was his view on a leveled oversight of competitors regardless of charter to make it a fair playing field for banks & non-bank actors.
#1: The highlight of the conference has to be the key note by Jim Clifton, Gallup’s chairman and CEO on “Banks and America – The State of the Relationship.” He talked about the need for the banks to build trust and why it is important. He put that in the context of how the Banks can help the1.5 Million growth oriented small businesses out of the total 6 million small business in the US – help them sell, provide them strategic advice. The best one liner was “Innovation is over-rated” implying that entrepreneur with even simple ideas can create jobs which is the new American dream. His example for this was Wayne Huizenga, the man behind Waste Management, Blockbuster, and AutoNation.
I was going to give the #1 to two shaved heads, Richard Hunt and James Carville, discussing LSU football strategies in the national championship game. Entertaining. On the other hand, only 7 of the crowd of 1000 cared. So decided to drop that. Kudos to the CFPB board and members for a well organized, informative, fun, and useful conference.
This post was contributed by: Karthik Mani.