Podcasts

‘Chatbots are getting way over hyped’: Ron Shevlin on the future of people in banking

  • A lot of fintech discussion seems to be rehashing the same old buzzwords.
  • Ron Shevlin, community bank and credit union analyst, pipes in with his thoughts.
close

Email a Friend

‘Chatbots are getting way over hyped’: Ron Shevlin on the future of people in banking

Last week, we hosted our first conference, the Tradestreaming Money Conference. We had hundreds of top speakers and attendees from the largest financial institutions like Vanguard, US Bank, Goldman Sachs, JP Morgan, NY Life, and Fidelity a join us to talk about reigniting growth in our industry.

Those discussions took different forms. Some of our sessions talked about the state-of-the-art in marketing. What are current best practices to acquire and retain new customers? Other sessions focused on how to drive more innovation within large financial institutions and attract new top talent. All in, it was a great event to learn, network, and collaborate.

Ron Shevlin, Director of Research at Cornerstone Advisors was one of those speakers. An analyst’s analyst, Shevlin has been covering the financial services space for 25 years. One of the things I appreciate most about Ron is his no-nonsense delivery style. He frequently questions consensus thinking, going deeper and more honest into many of the hot-button issues our industry faces. He shares those views on his blog, Snarketing 2.0

Shevlin participated in a unique format session at our conference called Pardon the Interruption. Unscripted and unprepared, I threw various words and concepts at him, letting him riff off of them for a minute in front of our audience. The following recording joins that conversation part way through.

Subscribe: iTunes I SoundCloud

Below are highlights, edited for clarity, from the episode.

Chatbots

Chatbots are getting really overhyped in terms of what their current capabilities are and what they can deliver. That’s just a maturity issue. If I had a dollar for every credit union CEO who told me that his firm’s competitive advantage is its people, I could retire. It’s not really true. The promise of chatbots is a more consistent user experience with customers and prospects delivered via technology.

Community banks and credit unions

Many community banks are looking at the consumer market and are giving up on it. They think consumer banking is just about gathering deposits. These banks are going to face big trouble. In a low interest environment, consumer behavior around deposits has changed significantly. There is more than $1 billion deposited on to Starbucks Cards and I’ve heard numbers that it’s double that. That’s more money than most community banks have and that’s money that community banks can’t lend out.

Fintech partnerships

Fintech partnerships are way overhyped. To develop and execute on partnerships requires a lot of time, effort and resources. The reality is that no matter how big a bank you are, you’re resource constrained when it comes to managing partnerships. My firm does a lot of strategic planning work with midsize banks and credit unions and they’re all thinking about these types of partnerships with fintech firms. There’s no way Jim over there in IT who’s also doing security and device management is going to handle a partnership. Or, they look to their core vendors, like FIS, Fiserv, and Jack Henry. They’re doing to do the partnership? The reality is that this is too resource dependent for most financial institutions.

 

0 comments on “‘Chatbots are getting way over hyped’: Ron Shevlin on the future of people in banking”

Acquire Podcast, Modern Marketing, Podcasts

The Acquire Podcast Ep. 12: How Earnin uses organic community building to grow earned wage access

  • Earnin’s CMO Brittanie Williams joins us on the Acquire Podcast.
  • With a thriving online community and word-of-mouth strategy at their back, Earnin knows a thing or two about building customer-centric products.
Rebecca Cohen | June 28, 2022
Podcasts, The Green Finance Podcast

The Green Finance Podcast Ep. 3: Banks’ role and responsibility in the climate crisis with Chris Skinner

  • In this episode, we explore the role of banks in the climate crisis – big banks historically supported the global fossil fuel industry, but now they’re being pressured to change.
  • My guest today is Chris Skinner, a financial technology expert, global commentator, bestselling author of multiple books, and owner of the website The Finanser.
Iulia Ciutina | June 24, 2022
Where Credit's Due Podcast

Where Credit’s Due Ep.3: Looking at the future of lending as a service with Amount and Stilt

  • As banks and fintechs increasingly focus on the end customer, lending software companies are coming in to help them improve their underwriting services, giving rise to lending-as-a-service as a new market segment.
  • In this episode, we chat with Adam Hughes, who’s the CEO of Amount and Rohit Mittal, the chief executive of Stilt.
Iulia Ciutina | June 22, 2022
Podcasts

Tearsheet Podcast: Takeaways from this year’s Money 20/20 Europe

  • Taking place on June 9, Money 20/20 Europe is the largest European fintech conference of the year.
  • Tearsheet sent two reporters and this was what they had to say about the show.
Zachary Miller | June 21, 2022
Payments, Podcasts, What's Happening in Payments Podcast

What’s Happening in Payments Ep. 8: Klarna and the future of BNPL, PayZen’s ‘Care Now, Pay Later’, and Mastercard’s ‘Smile to Pay’ system

  • This week, we discuss whether BNPL offers a sustainable business model for providers, and whether it’s even viable as a standalone business.
  • We also talk about PayZen’s ‘Care Now, Pay Later’ offering, as well as Mastercard’s ‘Smile to Pay’ system, and what it tells us about the future of privacy and security in payments.
Ismail Umar | June 17, 2022
More Articles