Monotto in Copenhagen for Money 20/20

June 26-28, our Co-founder and COO, Jared Kopelman, will be in Copenhagen for Money 20/20. This event helps us to keep a pulse on the industry and ensure that we are always on the front lines of innovating bank technology. Additionally, Jared will be meeting with many European banks to discus how Monotto can help them increase savings.

Money 2020

Contact Us

If you are interested in meeting with Jared while in Copenhagen, please feel free to reach out to him at jared@monotto.com.

Monotto Wins Plug and Play Expo Day

Plug and Play's Summer Summit

The Program

This March, we took part in the 5th cohort of the FinTech vertical at Plug and Play. The entire program was 3-months long which then lead to Expo day. Plug and Play, on of the most well known accelerators in Silicon Valley, introduces hot start-ups to banks looking for innovative products.

Christian Ruppe accepts Plug and Play award

The Victory

Monotto pitched in front of some of the biggest banks in the world as well as many investors. Plug and Play facilitated voting in order to determine the crowd favorite. Once the voting was complete, Monotto came out on top. Although the award was great, it was not the only exciting news that came from the accelerator. Be on the look out for a huge announcement in the next month.

Monotto Mentioned in Bank Director

The June edition of Bank Director takes a deeper look into where our company came from, what it does, and what our vision of the future is. The article, written by Naomi Snyder, looks at the founders of 4 companies changing the landscape of FinTech. Bank Director’s June edition focuses on the FinTech which has been one of the hottest topic in the banking industry. 

Read the Article from Bank Director:

Make sure to check out the article yourself by downloading the Bank Director app and checking out the June magazine. Read the article here.

What your financial institution needs to know to attract millennials

Millennial: one of the greatest buzz words to ever rock the industry. It excites some people, while striking fear in the hearts of others. There are a lot of articles out there explaining millennials, but they are typically very broad. I am a millennial with experience working with financial institutions. So, I decided to put together a list that explains the quirks of millennials that are relevant to banks.

1. ) We want convenience

This may be a no-brainer, but that doesn’t make it any less true. We want the least amount of friction for every part of our lives. It explains the rise in popularity of order-ahead apps and Amazon Alexa. The same sentiment goes for financial institutions. We prefer online statements, easy to use mobile banking and automated technology. When we do have to walk into branches, because we only walk into branches when we absolutely have to, we want the process to be efficient and convenient.

2.) We want advanced technology

Millennials are by far the most interested generation in automated technology. According to a study done by JD Power, 56% of millennials trust self-driving cars while only 41% of Generation X trust them. That number is almost halved for baby boomers and pre-boomers (23% and 18% respectively). So how does this translate to banking? Invest in your technology! Almost 70% of millennials are using mobile banking while only 34% of people between the age of 45 and 59 are according to a report by the Federal Reserve. The number will only increase in the upcoming years, so make it a top priority or your institution will find itself behind the curve.

3.) We are open to engaging with financial institutions

When asked, “Do you trust banks?” millennials, not unexpectedly, will answer no most of the time. However, when you dig into what millennials are actually doing, it is a different story. Millennials are 4 times as likely to use a personal finance tool through their primary financial institution as opposed to any other source (FIS consumer banking pace index). Additionally, 75% of millennials say they don’t receive too many offers from financial institutions, but 2 out of 5 complain that the offers they do receive are not tailored to their needs, showing that we are open to banking products if they are personalized. (The Financial Brand).

4.) We go through life at different paces

What makes millennials so hard to read is that each millennial is so different from the next. If you think about the stereotypes you have heard about millennials, it is likely that there are just as many millennials on the opposite side of that stereotype. This means that personalization is key. However, since only 26% of millennials go to bank branches more than once per month, personalization will need to be automated and facilitated by highly advanced artificial intelligence, like what we are working on over at Monotto.

Ultimately, the industry is moving in the right direction. Most financial institutions are investing in technology and seeing great returns. If your institution is considering new technology but you aren’t sure where to start, check out my post on how to work with FinTech companies. If you want to take one lesson away from this post, let it be this: millennials want advanced technology that is automated, personalized and convenient. When you are able to provide this, we will flock to your institution.

 

Originally posted at CBInsight

Let’s dance – The 3-steps for financial institution and fintech collaboration

So you work at a Financial Institution and you are tired of being called a dinosaur, right? Don’t worry, we understand! Being innovative isn’t easy when there are billions of dollars in fines being thrown around every year from regulators. A huge success gets you a pat on the back, but any failure could lead to huge fines or even the pink slip. The key to innovation for financial institutions (FI) is choosing the right startup companies that fit your FI’s needs. These are the 3 steps to do just that:

1.) Determine your Goals

Innovation for the sake of innovation is never a good idea (shoe umbrellas anybody?). Instead, seek to use innovation as the solution to the many needs that your FI has been struggling with. Look down your list of needs and start your research from there. If you have had issues with engaging millennials or increasing long-term revenue from low-value account holders, look to Monotto. Have a slow and outdated underwriting platform? Check out Akouba. If you find regulatory reporting to be a pain, Hexanika can help. Whatever struggles your FI has had, chances are high that a startup company has seen that struggle and created a solution.

2.) Find the Right Fit

It isn’t a question that working with startups can be on the risky side. However, this doesn’t mean that you should keep from using them. It just means that you need to choose the best companies in order to decrease the risk. In fact, there are many groups that are doing the research for you to determine which companies are FI friendly and capable of supporting your needs. Any company that has the gold seal from ABA or is a part of the FinXTech ecosystem is worth considering. Additionally, making sure that the startup can work with your technology is a must. Depending on the type of technology, it is always a wise decision to check with your core provider or mobile technology provider to make sure the relationship can happen.

3.) Review and Act

Once you have gone through the due diligence process and begin to work with a startup company, it is then imperative that you review how well the new product is doing. You can prepare for this from the start by making the expected outcomes very clear. An example would be “We expect your product to decrease our regulatory fines by 25% this year”. This will help both sides understand what is expected. Assign someone to review the relationship to be sure that the relationship is working as planned. It is also in your interest to be on the lookout for when a product has benefited your FI in ways that weren’t expected. You may find that regulatory fines were only decreased by 20%, but you were also able to cut labor expenses in half. Ultimately, you need to act based on what you see in your review. If the product doesn’t perform even close to what you expected, attempt to find why that is. If you are unable to remedy the situation, cut the product. However, if your partnership has performed way above and beyond what you expected, ACT! Increase your usage of the product or have your parent company invest in the startup. Great innovation should always be celebrated and supported.

When you are open to innovation, not only will it help you solve the products you are currently facing, you will also get to have a say in the next line of banking technology. Consider the high focus being put on APIs, Artificial Intelligence (AI), and scaling technology. The financial institutions that are on the front lines of this innovation will have a huge advantage. In the long run, FIs that innovate correctly will win, and FIs that refuse to innovate or do it incorrectly will fail. Those that actively seek it and become a part of the startup ecosystem will be able to find the best companies that will fulfill their needs and increase their profits. So, the question is, what startups will you be working with this year?

Originally posted at CUInsight