03/12/2015

Gerrard Schmid, CEO of D+H Corporation addresses AFT Summit Attendees

For many fintech companies the financial crisis of 2008 left them in a cloud of uncertainty and hesitation. However, Gerrard Schmid, CEO of D+H Corp., and the CEO Keynote at the AFT Fall Summit, viewed things differently. He revealed D+H “saw 2008 as the greatest opportunity of our lifetime. We knew the financial industry was going to need a broad spectrum of uniquely innovative technologies and quickly, so we resolved to be there for our clients.”

D+H, once known as a check-program company, completed a number of strategic acquisitions since 2008 including Resolve Business Outsourcing Income Fund, Asset, Mortgagebot, Avista Solutions, Compushare and Harland Financial Solutions. The organization integrated all those brands under the D+H banner. They now have just over 7,000 clients across North America.

In his discourse, Schmid focused on the relationship between regulation and innovation. More regulations are on the way, he suggested, as “regulators are only now beginning to appreciate the extent banks are outsourcing their technology platforms.” That is not necessarily a bad thing. Although many point to regulation as the quicksand of innovation, Schmid offered a contrarian view, “Regulation is the mother of invention.” As proof, Schmid pointed to “how all of us chose to respond to those events [of 2008] and the surge in fintech innovation that took place as a result of that crisis.”

Schmid also explained how 79 percent of financial institutions believe innovation is critically important and point to consumer expectations as the key driver. However, what might be frightening to a roomful of fintech executives, the same group of respondents believes the financial services industry is worse than all other sectors in innovation.

Schmid also discussed:

• Consumer Expectations — Today’s customers expect more from their financial institutions. “Next to regulation itself, I believe consumerism is the single greatest catalyst for innovation in our industry,” said the D+H CEO, explaining in the next few years it will completely transform fintech as we know it, “forcing all of us out of our comfort zone.”
• Big Data — “In the years ahead banks and credit unions will invest heavily in data analytics,” he suggested. The mainstreaming of Big Data reveals that small and medium enterprises take it very seriously.
• Cloud Computing — “In the financial services sector, the increased use of cloud services has empowered community banks and credit unions like never before. Not only has it reduced costs but it has changed the very nature of the branch and how customers choose to interact with their bankers.”

Schmid expressed his opinion that the door is open for all players in the Fintech industry to raise the bar and create a higher level of security and confidence for all of customers, “The shifting landscape in banking and technology requires banks, credit unions, regulators and fintech companies to all collaborate on a level never seen before.”