Name: OMB Bank at FinovateSpring 2024 – Open banking trends and how to retain a bank’s customers
Uploaded: 2024-06-17T10:10:37.351Z
Duration: 572.37

FF.INT.02_Stephen Bishop_1.mp4

FF.INT.02_Stephen Bishop.vtt

ENGLISH

{{00:00:05}}
Hi, I'm Cameron Emanuel Burns,
reporting for FinTech Futures here

{{00:00:08}}
at Finovate Spring in San Francisco,
and I'm delighted to say that I'm

{{00:00:11}}
joined by Stephen Bishop, EVP and
Chief Operating Officer at OMB Bank.

{{00:00:16}}
How are you and how are you
enjoying Finovate so far?

{{00:00:18}}
Oh I'm doing well and Finovate's,
it's been great so far.

{{00:00:22}}
It's just starting to get rolling.

{{00:00:24}}
Yeah.

{{00:00:24}}
It's going to get a little busier
and then then it's the first day.

{{00:00:28}}
Yeah.

{{00:00:28}}
But it's good.

{{00:00:29}}
Yeah.

{{00:00:30}}
I'm speaking on Thursday, so
I'll be here to the very end.

{{00:00:33}}
That was a lovely segue because My
first question is, you're here speaking

{{00:00:37}}
on a panel about open banking, so
first up, what would you say are some

{{00:00:41}}
of the key open banking trends across
the financial services at the moment?

{{00:00:45}}
You know what?

{{00:00:46}}
When I talk about open banking,
it's my bigger soapbox, my

{{00:00:50}}
bigger, where I see banking going.

{{00:00:54}}
So I go more towards banks have to be
working to become more of a tech company.

{{00:01:00}}
And it's, very different than
what they've done in the past.

{{00:01:03}}
And I think AI is this big
buzzword people talk about.

{{00:01:08}}
So I don't want to overuse that,
but we don't know where that AI

{{00:01:12}}
is going to take embedded finance.

{{00:01:14}}
We don't know what, how that's
going to change consumer behaviors.

{{00:01:16}}
And you have to be able to navigate
those waters of the changes of

{{00:01:20}}
the future, like where it goes.

{{00:01:22}}
And so to do that, you need to have skills
with technology, and as you build those,

{{00:01:28}}
like open banking and allowing Europe's
done a much better job in the U S and.

{{00:01:34}}
A lot of that is outdated technology
that we just, I came to the bank a little

{{00:01:39}}
over three and a half years ago, and
we were on a 20 year old tech stack.

{{00:01:44}}
And so that was job number
one, updating that tech stack.

{{00:01:47}}
And now we have something we can
integrate with and we can navigate

{{00:01:50}}
that, build that skill set up.

{{00:01:52}}
So that's much broader than just
open banking specifically, but I

{{00:01:56}}
think it's having the framework
to allow that data access.

{{00:02:01}}
Where it's more open banking,
that's, is going to be pivotal there.

{{00:02:04}}
Super.

{{00:02:04}}
And I know it's a bit hard to talk
about because it's not happening at

{{00:02:07}}
your panel, but I read that part of
the discussion you're going to have

{{00:02:12}}
is about compelling use cases for U.

{{00:02:14}}
S.

{{00:02:14}}
banks.

{{00:02:15}}
So could you give us any of those
kind of examples that you may

{{00:02:18}}
be speaking about in your panel?

{{00:02:20}}
I can't ruin the panel.

{{00:02:22}}
It'll come out afterwards.

{{00:02:26}}
Yeah, I think it's, just,
there's different, Perspectives

{{00:02:31}}
of what open banking is.

{{00:02:33}}
And, for me as a community bank, I that,
that initial, there's friction about my

{{00:02:42}}
customers can change their accounts easy.

{{00:02:44}}
They can go bank wherever.

{{00:02:48}}
And so like initially that's
I don't want to do that.

{{00:02:50}}
But then if I realized, what do I do
well is provide service to my customers.

{{00:02:54}}
So it's okay if they have the
ability to leave because I'm

{{00:02:58}}
going to keep them by what I do
best, which is take care of them.

{{00:03:02}}
From a even broader if you can pull
in other get a whole financial picture

{{00:03:08}}
for a customer, then you can help
them what are their financial needs?

{{00:03:13}}
Are there certain life
milestones that are coming up?

{{00:03:16}}
Different ways to use that so you
can provide better service because

{{00:03:19}}
you have a more holistic picture
because you're pulling all that

{{00:03:22}}
data together to better help them.

{{00:03:23}}
Yeah, and looking at OMB Bank
specifically, is there a way that

{{00:03:28}}
you're approaching open banking which is
different to any others going out there?

{{00:03:31}}
I don't know that we have something
unique in, in that regard.

{{00:03:37}}
What is your approach then, would you say?

{{00:03:40}}
So it's, I'm for, I don't
know, like changing who OMB is.

{{00:03:47}}
We, chatted a little bit when I
started, we were old Missouri Bank.

{{00:03:50}}
Yeah.

{{00:03:50}}
A traditional lending bank ag, commercial,
and I'm not touching that part at all.

{{00:03:55}}
So we've had tremendous growth
over the last few years.

{{00:03:59}}
But it's really updating the tech.

{{00:04:01}}
It's, we, launched our BaaS division
this year so partnering with FinTechs,

{{00:04:07}}
and I think having those partnerships
and those key ways that we're doing it,

{{00:04:13}}
that's going to be absolutely pivotal to
how we can help facilitate open banking.

{{00:04:19}}
And then like when you think about
the financial picture and it's not

{{00:04:24}}
it's, relative because I presented
at Finovate Fall last year our

{{00:04:28}}
partnership where you can earn.

{{00:04:29}}
Stock Rewards.

{{00:04:30}}
Fractional, instead of earning
just that cash that you get in your

{{00:04:33}}
checking account, it goes away.

{{00:04:35}}
It can actually help accumulate wealth
and that helps the financial picture.

{{00:04:38}}
Another data point that you have.

{{00:04:39}}
So that's, we're one of the
few banks that actually offer

{{00:04:41}}
that sort of checking reward.

{{00:04:42}}
So that would be a
unique component to L& B.

{{00:04:45}}
Well, super.

{{00:04:46}}
So a bit more broader.

{{00:04:47}}
What technological advancements do
you think are needed to fully unlock

{{00:04:51}}
the potential of open banking?

{{00:04:53}}
For U.

{{00:04:54}}
S.

{{00:04:54}}
banks, specifically, I think it's
really, you have the big three

{{00:05:00}}
cores and core banking is hard.

{{00:05:03}}
That's why there's only three of them.

{{00:05:05}}
It's, the, it's getting your
tech, like having the ability

{{00:05:13}}
to add to your tech stack.

{{00:05:14}}
So if you need to update
that, do that first.

{{00:05:20}}
But then it's really I could say I'm open
banking, but if I can't access my data

{{00:05:26}}
myself, how will my customer get to it?

{{00:05:28}}
So I think it's really looking
at how you're leveraging tech.

{{00:05:32}}
That, how you can integrate to it, I
think, there's, I won't dig into my, like,

{{00:05:41}}
where I see it going but, if there's a
way, if you can build a middleware and

{{00:05:47}}
extract that from the core, where you have
a system of records not actually at the

{{00:05:50}}
core, and then that would have a more,
much more accessibility it would enhance

{{00:05:55}}
your fraud's only made worse with AI, and,
like, all those components, that's what

{{00:06:02}}
I'm I'm intrigued by something that helps
do that but if I could just jump in on

{{00:06:08}}
that, because my next question was about
how can, in your opinion, some of the main

{{00:06:13}}
security and privacy concerns, such as a
data breach or data misuse, be addressed?

{{00:06:18}}
What, in your, I know it's But you were
hinting with the AI, Risks and so on.

{{00:06:27}}
AI, like the fraud that is capable
today, it scares the hell out of me.

{{00:06:31}}
Yeah, that's, it is remarkable
what you can do or what can

{{00:06:35}}
be done that's not real.

{{00:06:37}}
And you have to have, like fraudsters
are just gonna keep innovating.

{{00:06:43}}
And so it's, imperative that the people
that are responsible for that data

{{00:06:49}}
are doing the same, and protecting
that, and having more real time, and

{{00:06:54}}
it's, I don't know exactly what the
answer is, like, how do we protect it?

{{00:07:03}}
I think you just continue to
invest, continue to look for the

{{00:07:07}}
trends, and there's gonna be losses.

{{00:07:13}}
Our biggest losses this year
have been washing checks, which

{{00:07:17}}
is checks are still a thing.

{{00:07:19}}
So you have an old school fraud, and
then you have these new tools if it's an

{{00:07:23}}
open platform, how do you protect that?

{{00:07:26}}
There's a lot of different ways,
like, how you protect your tools.

{{00:07:30}}
your own information, your own identity,
where the, human error is the greatest

{{00:07:37}}
cause of fraud, so training your
customer base on how to protect their own

{{00:07:41}}
information, their own data, that's the
weak point, and so how do you do that,

{{00:07:45}}
and that's going to be not only staying
with trends, but also keeping in touch

{{00:07:48}}
with that relationship with your customer.

{{00:07:50}}
That's really interesting, thank you,
and to finish off, doesn't have to be

{{00:07:54}}
about Open Banking, we open up again are
there any new developments at OMB Bank

{{00:07:58}}
that you would like to tell us about?

{{00:08:00}}
I mentioned our BaaS platform.

{{00:08:02}}
We we're having a lot of fun with that.

{{00:08:06}}
So we launched it.

{{00:08:08}}
Our, first one went live in April.

{{00:08:11}}
We have our second one is underway and
it's just exciting to see something

{{00:08:17}}
that wasn't on our radar at all.

{{00:08:19}}
And now it's doing very well.

{{00:08:22}}
And you hear I, joke that BaaS is
now a dirty word in the industry

{{00:08:26}}
because it's FIS announced their
platform and didn't say BaaS sometime.

{{00:08:31}}
It's all embedded finance.

{{00:08:33}}
Our Embedded Finance
division is doing great.

{{00:08:37}}
But it's to see that change
and it's a new product.

{{00:08:42}}
I like to talk about how, our new
community, our Fintechs, and we're

{{00:08:47}}
taking the same service that we
had in our brick and mortar there.

{{00:08:51}}
And I think you'll see a shift where
we'll still be able to be in those

{{00:08:55}}
local communities, but it's going
to be fed much more by the Embedded

{{00:08:59}}
Finance and that broader technology,
community that we're going to be in.

{{00:09:05}}
That's where I'm focusing a lot of my
time and energy and just seeing that

{{00:09:10}}
be a success has been really rewarding.

{{00:09:13}}
We're pretty excited about it.

{{00:09:14}}
No, that's awesome.

{{00:09:15}}
Thank you so much for taking
the time to speak to me today.

{{00:09:17}}
That was really interesting
and good luck for your, the

{{00:09:20}}
future panel that's coming up.

{{00:09:22}}
I look forward to that.

{{00:09:23}}
I'll go and watch it.

{{00:09:23}}
Oh, thank you.

{{00:09:24}}
It was a pleasure, talking with you.

{{00:09:26}}
Awesome.

{{00:09:26}}
Thank you.

Hi, I'm Cameron Emanuel Burns,
reporting for FinTech Futures here

at Finovate Spring in San Francisco,
and I'm delighted to say that I'm

joined by Stephen Bishop, EVP and
Chief Operating Officer at OMB Bank.

How are you and how are you
enjoying Finovate so far?

Oh I'm doing well and Finovate's,
it's been great so far.

It's going to get a little busier
and then then it's the first day.

I'm speaking on Thursday, so
I'll be here to the very end.

That was a lovely segue because My
first question is, you're here speaking

on a panel about open banking, so
first up, what would you say are some

of the key open banking trends across
the financial services at the moment?

When I talk about open banking,
it's my bigger soapbox, my

So I go more towards banks have to be
working to become more of a tech company.

And it's, very different than
what they've done in the past.

And I think AI is this big
buzzword people talk about.

So I don't want to overuse that,
but we don't know where that AI

We don't know what, how that's
going to change consumer behaviors.

And you have to be able to navigate
those waters of the changes of

And so to do that, you need to have skills
with technology, and as you build those,

like open banking and allowing Europe's
done a much better job in the U S and.

A lot of that is outdated technology
that we just, I came to the bank a little

over three and a half years ago, and
we were on a 20 year old tech stack.

And so that was job number
one, updating that tech stack.

And now we have something we can
integrate with and we can navigate

So that's much broader than just
open banking specifically, but I

think it's having the framework
to allow that data access.

Where it's more open banking,
that's, is going to be pivotal there.

And I know it's a bit hard to talk
about because it's not happening at

your panel, but I read that part of
the discussion you're going to have

So could you give us any of those
kind of examples that you may

Yeah, I think it's, just,
there's different, Perspectives

And, for me as a community bank, I that,
that initial, there's friction about my

customers can change their accounts easy.

And so like initially that's
I don't want to do that.

But then if I realized, what do I do
well is provide service to my customers.

So it's okay if they have the
ability to leave because I'm

going to keep them by what I do
best, which is take care of them.

From a even broader if you can pull
in other get a whole financial picture

for a customer, then you can help
them what are their financial needs?

Are there certain life
milestones that are coming up?

Different ways to use that so you
can provide better service because

you have a more holistic picture
because you're pulling all that

Yeah, and looking at OMB Bank
specifically, is there a way that

you're approaching open banking which is
different to any others going out there?

I don't know that we have something
unique in, in that regard.

What is your approach then, would you say?

So it's, I'm for, I don't
know, like changing who OMB is.

We, chatted a little bit when I
started, we were old Missouri Bank.

A traditional lending bank ag, commercial,
and I'm not touching that part at all.

So we've had tremendous growth
over the last few years.

It's, we, launched our BaaS division
this year so partnering with FinTechs,

and I think having those partnerships
and those key ways that we're doing it,

that's going to be absolutely pivotal to
how we can help facilitate open banking.

And then like when you think about
the financial picture and it's not

it's, relative because I presented
at Finovate Fall last year our

Fractional, instead of earning
just that cash that you get in your

It can actually help accumulate wealth
and that helps the financial picture.

So that's, we're one of the
few banks that actually offer

So that would be a
unique component to L& B.

What technological advancements do
you think are needed to fully unlock

banks, specifically, I think it's
really, you have the big three

It's, the, it's getting your
tech, like having the ability

So if you need to update
that, do that first.

But then it's really I could say I'm open
banking, but if I can't access my data

So I think it's really looking
at how you're leveraging tech.

FinTech Futures

Expert Insight

At the FinovateSpring 2024 conference in San Francisco, FinTech Futures sat down with Stephen Bishop, EVP & Chief Operating Officer at OMB Bank, to explore the key factors in facilitating open banking and potential measures for preventing fraud.
Watch the video to discover:
• Open banking use cases for US banks.
• OMB Bank’s open banking strategy.
• The new developments at OMB Bank.
• The technological advancements needed to fully unlock the potential of open banking.