Information Is Power: The Key to Strategically Sourcing FinTech Software Installment 1

Information is power for financial institutions. You don’t have to obtain a lot of it to gain power. However, there are those who actively attempt to limit the information that you have in ways that you don’t even realize. For example, every time you bundle products and services together, you limit the amount of information you need. If you don’t need it, why do you want it you may ask?

The answer is because you DO need it, but not for the reasons you think. As bankers we constantly think in terms of risk when it comes to information. How much risk is there? What regulatory agency will want this? How do I store this information?

What’s the first question you ask a technologist when you evaluate a new partner/vendor/technologist? Do you have a SAS70? And you don’t mean from a core provider, because you already know they have that.

Banking has changed and you need to be in front of the trends, not trying to catch up to them. Leading edge/bleeding edge should be the norm. This is the mindset change. Once you change your mindset, you are no longer in banking. You become something different and begin to expand your horizons for what you can do (think Amazon purchasing Whole Foods). Guess what, PayPal is just a bank…or are they?

Stay tuned for more in BankerAdvice’s Information Is Power: The Key to Strategically Sourcing FinTech Software series.

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