Correspondent Blog

Bankers often overlook how much money is stored in digital wallets away from their bank. While the amounts are relatively small on an individual basis, they are massive in aggregate. While some of these are stored at the banking-as-a-service banks such as Goldman Sachs, or The Bancorp, many digital wallets, like Starbucks, reside at the…

Not all customers are created equal. Some customers are more profitable than others, and if you are out to build a more profitable bank, it pays to have a tactical plan to go after more profitable customers. The treasury or cash management customer is usually a bank’s most profitable customer on a risk-adjusted basis (HERE). …

Next week, FedNow goes live, ushering in the next era of faster payments. Some 57 financial institutions will start with FedNow, including about 42 banks (plus a handful of core systems providers and fintechs). FedNow joins The Clearing House, which has offered real-time payments (RTP®) for the last five years. Banks are about to win…

Today, the President’s Working Group released its long-awaited report on cryptocurrency (HERE) and the use of stablecoin in the payment system. The report gives a prominent role for banks causing many bankers to celebrate while others are left wondering what it all means for the future of banking. If you seek a working knowledge of…

Bank payments are a mess. Every payment method is a different channel. Worse yet, we confuse our customers with different forms, procedures, and jargon. It has been 50 years and we still expect our customers to know the difference between a wire and an ACH. If we can’t talk to customers about it right, we…

As a banker, you undoubtedly keep an eye on the trends of Bitcoin, Ethereum, and other cryptocurrencies. Their huge popularity must have you thinking about the future of money. Like JP Morgan Chase CEO Jamie Dimon, you were probably against these currencies to start and now have come around to being more open to them,…