Defending Against Financial Fraud with ACH Alert with Guest Jaime Shapiro Berg

Wrestling Payments Podcast: Season 2 - Episode 09

Episode Summary

In this episode of Wrestling Payments, host Joe Casali sits down with Jaime Shapiro Berg from Alkami - ACH Alert to discuss the rapidly changing payments landscape and the critical role of fraud prevention. Jaime shares her extensive career journey, from starting in treasury management at KeyBank to her current role at Alkami, emphasizing the importance of adapting to new technologies and staying ahead of fraudsters.

The conversation highlights the innovative Positive Pay & ACH Reporting solutions provided by Alkami to address the need for automated fraud prevention tools in the financial sector. Jaime explains how Alkami's Positive Pay solutions have evolved to help banks and credit unions combat check and ACH fraud, reducing losses and enhancing customer trust.

Joe and Jaime also dive into the broader challenges facing the banking industry, including the need for better education and training in banking operations and treasury management. They stress the importance of financial institutions investing in comprehensive fraud prevention strategies to protect themselves and their customers in an increasingly digital world.

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Guest-at-a-Glance

💡 Guest: Jaime Shapiro Berg
💡 What she does: Director - ACH Alert Sales
💡Company: Alkami - ACH Alert
💡Noteworthy: With over 25 years of experience in the banking and FinTech industries, Jaime Shapiro Berg has a deep understanding of treasury management and fraud prevention. Jaime's background includes transitioning from traditional banking roles to leading innovative solutions in digital banking.
💡Where to find Jaime: LinkedIn

Key Insights

Payments Are Rapidly Evolving

The landscape of payments is continuously changing, particularly driven by consumer demands for the latest and most efficient technologies. Consumers always seek the newest and shiniest innovations, pushing businesses to adapt quickly to stay competitive. While businesses also desire cutting-edge solutions, their primary goal remains to generate profit effectively. This dynamic environment necessitates that companies stay updated with technological advancements to meet consumer expectations and achieve their financial objectives.

Fraud Prevention Requires Continuous Innovation

Fraud prevention in the financial sector demands innovative and seamless solutions to combat increasingly sophisticated fraudulent activities. Traditional methods, often manual and error-prone, are no longer sufficient. ACH Alert's Positive Pay solutions automate fraud detection, minimizing human error and resource expenditure. By integrating these automated solutions, financial institutions can significantly enhance their ability to prevent fraud, thus safeguarding their operations and maintaining customer trust.

Education in Banking Operations Is Essential

There is a growing need for comprehensive education and training in banking operations and treasury management. Many financial institutions struggle to hire individuals with relevant experience due to a lack of specialized training programs. Enhancing educational opportunities in these areas can help bridge the skills gap, ensuring that banks have the necessary expertise to manage operations efficiently. Institutions should consider revamping management training programs to focus not just on lending but also on critical areas like treasury and operations management to maintain a robust talent pipeline.

Episode Highlights

The Evolution of ACH Alert

Timestamp: [00:12:41]

ACH Alert was founded by Debbie Peace and her husband, identifying a critical need for automated fraud prevention tools in the financial sector. Initially focused on consumer needs, the product quickly shifted to business applications due to market demand. The company developed ACH Positive Pay, a solution designed to seamlessly integrate backend and front-end processes, eliminating manual errors and improving efficiency. This solution has grown to include check positive pay, addressing the increasing problem of check fraud.

"Debbie was an innovator and saw a hole in the market. She was an AAP, very active, and noticed there was something called blocks and filters, but no automated product to help financial institutions eliminate fraudulent transactions with ease of use from a customer experience standpoint."

Importance of Management Training in Banking

Timestamp: [00:07:11]

There's a significant challenge in hiring individuals with a background in banking operations and treasury management due to the lack of specialized educational programs. Many financial institutions rely on in-house training programs, but these often focus on lending rather than the operational aspects. There is a pressing need to develop management training programs that include a comprehensive curriculum on banking operations to ensure a steady pipeline of skilled professionals.

"Management training programs at financial institutions are important, not just to turn out lenders. You only have so many people doing treasury management in our environment, and what you see a lot of is people moving from bank to bank because it's hard to hire experienced people."

Digital Banking Expansion through Acquisitions

Timestamp: [00:03:54]

Alchemy has expanded its digital banking services significantly through strategic acquisitions over the past few years. Starting in the credit union space, they now offer digital banking to banks nationwide. Their acquisitions include companies specializing in online account opening and data and marketing analytics, allowing them to provide a comprehensive suite of products from a single vendor. This expansion has positioned them as a key player in the digital banking sector.

"Alchemy started offering digital banking in the credit union space. They have expanded over the years and now offer digital banking to banks all across the country. They have made several acquisitions over the last four or five years."

Educating Businesses on Fraud Protections

Timestamp: [00:25:54]

Many businesses operate under the misconception that they are protected in the same way as consumers when it comes to fraudulent transactions. It's crucial for financial institutions to educate their business clients on the differences in protections and the importance of preventative measures like check and ACH Positive Pay. Understanding these protections helps businesses avoid significant losses and manage their financial operations more effectively.

"Businesses think they're consumers. So when, when they hear that,  a check, a fraudulent check was cashed, they go, okay, that was just a mistake. Can you give me my money back?"

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