American Banker Editor on digital transformation, fintech, and taking mobile payments mainstream

We last caught up with Arizent – publisher of American Banker – ahead of Congress back in June. At a time when subscriptions and specialist interest media offerings are very much back in vogue, the company’s robust B2B portfolio is ahead of the curve. In this exclusive interview for FIPP, Daniel Wolfe, Content Director for Community Banking, Credit Unions, & Payments at the flagship publication, gives us some key insights into digital transformation across both the media and financial sectors. 

“American Banker is, simply, an awesome place to work,” he tells us enthusiastically from the get-go. “I love talking to the companies and executives who have cracked the code on emerging trends and found some innovative way to respond to changes. I’ve been covering these topics for nearly two decades and my favorite thing is to learn something I didn’t know before, and then to share it with our own audience.”

“Right now the big question is how much of the change that we saw over the past few years is here to stay, now that people are resuming something that resembles ‘normal’ life? Did the banks and retailers that transformed their operations during the pandemic make the right call? Will the consumers who started using mobile wallets keep up the habit now that they’re less afraid of catching germs from handling cash and cards?”

Of course, the answer to many of these questions is likely to be yes. Just as we have seen in the media industry, transformation in banking and the wider financial sectors was already well underway prior to the pandemic – these trends were simply accelerated.    

Both as an editor at a flagship US publication, and one who covers the areas of payments, community banking, and credit unions, Wolfe is uniquely placed to analyse digital transformation both from a media and a financial sector pov. 

So just how big a part of his mission today, is keeping such a longstanding, legacy industry abreast of the latest developments?  

“The big question for all of our audiences is: How do they stay relevant? If you’re big into branch banking, how do you keep serving a customer base that’s increasingly digital? If you’re a payment company, how do you make sure you’re still the go-to choice when consumers and businesses have more options than ever to move money?”

“Equally, if your next big competitor is a startup somewhere in Europe, that’s something you need to know as an American banking or payments executive, even if they haven’t landed on US soil yet. If there’s an area of your community that is not properly served by traditional banks, who’s serving them? And are they the next big threat or partner for your company?”

HSBC: The World’s local bank (Ref)

This global perspective is an interesting one, particularly for a publication titled ‘American Banker’, because it reflects a wider change in the global mindset back towards globalisation. 

Whereas in the previous decade, the march toward frictionless digital borders was somewhat slowed by the rise of populism, the pandemic and subsequent period of lockdowns appears to have reminded people of the need for greater connectivity. And of course, in finance as in media, this is being fuelled by the latest wave of tech innovation.   

“Technology steps in where the banking infrastructure is lacking. That’s been the case for years. With Africa for example, we have seen the emergence of companies like M-Pesa – a mobile wallet built on a regional telco infrastructure that was stronger than the area’s banking infrastructure.” 

“Any business has one fundamental mission at its core: deliver something that people are willing to pay for, and make it easy for them to pay. You also need a clean, fast and easy way to pay your employees, your contractors and your suppliers. Especially today, with cash flow and supply chains pressured by unprecedented forces worldwide, one thing needs to remain certain: Money can move.”

“Netflix is an interesting example because it’s arguably one of the easiest services to buy. It’s a subscription… And yet they still look at how technology can improve the process of bringing people on board.” 

In the media sector, making digital payments as pain-free as possible has longsince been a core focus, and in this area Wolfe cites the example of Netflix. 

“Netflix is an interesting example because it’s arguably one of the easiest services to buy. It’s a subscription. Once you’re enrolled, that’s it. You don’t need to pull out your wallet every month. And yet they still look at how technology can improve the process of bringing people on board.” 

“Some years back, they took the stage at one of our conferences alongside Mastercard to talk about a technology called Secure Remote Commerce – essentially a ‘guest login’ for new customers that you’d think would make more sense for a non-subscription merchant. But they cared about it. Because if they’re to grow, they need to make sure the people who balked at even the slightest friction in their signup process could find a way to get through and make a payment.” 

Digital transformation

As one of the custodians of the 175yrs+ old American Banker brand, Wolfe is himself conscientiously aware that media is ever evolving, and that publishers need to keep up with ongoing change. 

“When I started as a technology reporter, it was almost purely a print product. Now we’re fully digital and multimedia, and today you can get your news directly from us or delivered by us through your preferred social media channel (e.g. LinkedIn). There’s no ‘right answer,’ and these preferences will continue to change rapidly.” 

“Will media firms need to put in a lot of investment? I’d say they already have, otherwise they – and we – wouldn’t be here today. That shift has already taken place. Some are better at it than others, and there’s always room to improve and adapt. If you’re not on the web or on social media today, you’re not delivering the news.”

“But it should also be said that that’s simply how we deliver the news, not how we find it or write it. The journalists I work with all have strong backgrounds in media and finance. The expertise is still there even if you search for it by hashtag instead picking it up each morning from your doorstep.”

To NFT or not to NFT?

Additionally, I was keen to get Wolfe’s take on the wonderful world of fintech, and to what extent the emergence of new trends like cryptocurrency, NFTs, and even mobile payment platforms like the aforementioned M-Pesa, are now penetrating mainstream banking practices… 

“I’m not a mind reader but I’m good at giving unsolicited advice,” jokes Wolfe. “And I’d say that 100% of our audience SHOULD be paying attention to new fintech, even if they don’t see a way into the market – because those are still your competitors.” 

“One clear example is buy now/pay later, which splits payments into typically four installments at the point of purchase. This is a space that was already served by credit cards and the like, but the BNPL providers found that there was still friction to be removed, and that’s where they found their opportunity. Even if banks don’t plan to offer the service themselves, they must still have an answer to it.”

Source: usa.visa.com

“When it comes to NFTs, these to my mind are like the certificate of authenticity you get when you buy some collectible. It’s not the actual collectible, but it’s proof of its value. Some payment companies are more invested in this space than others – Visa actually purchased an NFT of some digital avatar at some point. That doesn’t mean that NFTs in their current form are a core focus for Visa or anyone else. But these companies are paying attention.”

“The best comparison is probably a digital identity. In finance, what’s the thing we most need to prove is authentic? The account holder. Just as blockchain tech quickly split off from its initial function supporting bitcoin, NFTs can evolve from digital avatars into something more practical.” 

Finally, in a wide-ranging interview that exploded with enthusiasm right out of the blocks, I leave you with Wolfe’s overarching view of American Banker, and how he sees his role within the media mainstay: 

“When I was a bright, young, eager journalism student, this is the kind of newsroom I imagined working in. Everyone cares about the journalistic integrity and ethics of what they do. When you read us, you’re not getting some industry spin. We don’t pull punches. And my mission as an editor is to make sure we are not overlooking the audiences and the topics that the banking industry as a whole may have overlooked.” 

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