The Transformation of American Banking

On the first evening of the BAI Retail Delivery Conference, bank industry influencers converged at Blackbird Restaurant in Chicago to discuss “The Transformation of American Banking.” At a dinner hosted by Deluxe Financial Services, Associated Press banking reporter Pallavi Gogoimoderated a lively discussion focused on the changes facing American banking today – the regulations, debit card fee issues and consumer challenges facing banks of all sizes.

Dinner attendees included a mix of national, regional and community bank leaders along with a handful of Deluxe representatives. Ms. Gogoi began the evening by discussing the industry’s new financial regulations, and how the banking world has permanently changed since the financial collapse in 2008. She posed individual questions to dinner guests, sparking personalized discussions to each financial leader and their specific banking region. Senior Vice President of Sovereign Bank, Margery Rosen, fielded questions on her institution’s challenges in the greater-Boston area. Meanwhile, Sean Dowdall, executive director of marketing from Rabobank in San Francisco, discussed the industry at large, particularly consumers’ habits and expectations regarding banking fees. Vice President of Commerce Bank in St. Louis, Patty Kellerhals, touched upon the recent increase in banking regulations and how institutions of all sizes are coping on both local and national levels. Deluxe Vice President and Chief Experience Officer,  Martie Woods, shared her point of view on consumers looking to switch banks, prompted by debit card fee charges.  

Earlier in the day, Deluxe announced the release ofSwitchAgent^SM, Deluxe's newest solution for U.S. banks and credit unions that will empower consumers to easily switch from one financial institution to another. SwitchAgent, which uses both patent-pending technology and live concierge services, is the first solution of its kind available to U.S. financial institutions of all sizes. The banks and credit unions using Deluxe’s SwitchAgent service in the beta experienced a 70% switch completion rate. (For more information, see theSwitchAgent press release, or if you are planning on attending the 2011 Deluxe Knowledge Expo, November 1-3 in Orlando, visit the SwitchAgent Hub to talk with our experts.)

The banking industry in America is experiencing a monumental transformation. Banks and credit unions are struggling to manage a huge number of new industry regulations - over 200 from Dodd-Frank alone. Major banks charging debit card fees will continue to fuel switches from one financial institution to another. Government regulations such as President Obama’s recent “Freedom and Mobility in Consumer Banking Act,” focused on making it easier for consumers to switch banks, will continue to change the industry, and it is bound to be a wild ride that we’re familiar with here at Deluxe. W.R. Hotchkiss founded Deluxe in 1915 with a $300 loan and an idea for the first personalized flat-pocket checkbook and holder. Today, Deluxe is a $1.4 billion dollar publicly traded company (NYSE: DLX) that provides growth solutions to 6,000 financial institutions.

 

If you have a point of view on how American banking is transforming, we want to hear from you. Comment below, or send your thoughts to Martie.Woods@deluxe.com or Susan.Eick1@deluxe.com.