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search. Another illustration that I like is the OCT/AFT [Original Credit Transaction/Account Funding Transaction] by Visa and Money- Send by Mastercard. I think that these push/pull payments have
the potential to transform how payments are made and they will continue to scale in a meaningful way—hence, another seismic shift. Internally, I already am asking if we can “OCT” it when looking at certain initiatives.
$490 billion in payment transac- tions across our issuing, acquiring and ACH services. We work side by side every day with rms that are looking to deliver innovative products and applications for both the current state and the future state of nancial services. We have invested in our Cube8 lab and
we partner with others who are looking to transform the payments landscape. The team here is “all-in” every day.
volume 10 • spring 2017
the payments space, the team can bring di erent perspectives to our prepaid business.
Paybefore: One of your in- vestor presentations discusses building cross-organizational capabilities to enable strategy implementation and e ciency. How might that look for the pay- ments business?
JK: Based on the objective refer- enced in the 2016 investor presen- tation, we combined our payments activities of issuing, acquiring and ACH services. Through this process we identi ed certain operational e ciencies and opportunities to o er services to existing partners and implemented a new o ering we refer to as Rapid Payments. We’re also building out our capabil- ities to enter the credit space.
Paybefore: Fintech has gen- erated signi cant investment and buzz, but we haven’t seen a lot
of seismic shifts yet. It’s been more incremental. Where are you expecting to see the big changes?
JK: I believe that real seismic shifts take place over time versus those that are generated by events registered at a 6 or higher on the Richter scale. Fintech innovation occurs in an incremental way
as people adopt new ways of doing things. Applications such
as Android Pay, Apple Pay and Samsung Pay are moving in that incremental fashion. There are others that have had greater seismic impact. Take Venmo as
an example. When you achieve the status of being both a noun and
a verb, you know the consumer adoption and related seismic shift have occurred such as when you hear “Venmo me.” It’s the P2P equivalent of saying “Google it” when talking about an Internet
Paybefore: As the payments landscape continues to change, how is The Bancorp positioning itself?
JK: The Bancorp is an organiza- tion fully committed to supporting payments and our partners. In 2016, we facilitated more than
“Cube8 is not a singular path for innovation at The Bancorp. We are concurrently working with our third-party partners on new products; innovative teams at Visa, Mastercard and Discover on form factors and utilization opportunities; and also economic models with new ntech rms to help bring them to market.”
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