In this installment of Geezeo One-To-One, Amy Hibbard spoke with Robb Gaynor, co-founder and Chief Product Officer of Malauzai, a technology company that provides innovative mobile solutions for community financial organizations. They discussed what the bank of the future looks like and how financial institutions can leverage technology.
Geezeo: What does the bank of the future look like?
Robb: The bank of the future, combines great underlying products (checking and loans) surrounded by advanced digital, where customers have lots of choice on how to access their banking solution. It will be about choice and personalization. In fact, a customer may have “bought” the checking account from the Amazon Financial Marketplace BUT they will be serviced by the bank; the bank will be their provider. And they might not use Digital Banking, opting to use widely available API’s that other Fintech providers have leveraged to provide really cool solutions. So the bank of the future will be a solid partner, aggregating solutions in both banking and fintech.
Geezeo: What do you view as the greatest hindrance in the evolution of the 'digital bank’?
Robb: The banker's attitude. Only 20% of the bank and credit union executives really get digital. This is not about channels, it is about transformation. 80% of financial institutions are OK with just OK. They will go away within the next 10-15 years. Those financial institutions that embrace digital as a transformational capability will thrive.
Geezeo: If a bank wants to be positioned for the future, where do you think they should they start?
Robb: Digital and Distribution. They must have a transformational digital strategy and they must focus on the shift in how financial products are sold. With the end of restrictions on brokered deposits, things will change. Companies like Amazon that are great at selling will dominate but they won't be a bank so the banks need to figure out how to stay important with a strong digital strategy and hooks to distribution partners.
Geezeo: Where do you see FI’s leveraging AI?
Robb: Today it is all basically hype. AI just has not matured enough to really work well. If people claim they are AI based, chances are they are not, they are still deterministic, having to program the learning, self-learning is very raw. That said, we can apply it to voice. AI allows voice to work about 65% of the time. Not great but good enough to start and it will get better. Keep in mind that 65% is well short of the benchmark of 95% efficacy, which is when consumer products take off i.e. they actually need to work 19 it of 20 times and right now we are batting much much lower than that. AI can drive conversational and voice apps, even when it might not work great, it will allow this area to start innovating.
Geezeo: Malauzai is headquartered in Austin, so what is your favorite spot to unwind?
Robb: The Liberty. Dive bar with the best food trailer (Asian Fusion) in their backyard. Great for emails, writing blogs and taking community bankers who do not normally socialize with tattoo-ladened hipsters on the east side of Austin.
Robb Gaynor, Co-Founder and Chief Product Officer of Malauzai, heads up the product development and marketing of the organization, focused on ensuring the company has solutions at the cutting-edge of mobile innovation. Robb has over 25 years of experience in the financial services industry, having previously served in leadership roles at Union Bank of California, Digital Insight/Intuit, and other large global financial organizations including Swiss Bank Corp, Charles Schwab, and Wells Fargo Bank.