How is digital transformation impacting community banking? What can community banks do to maximize the opportunities that digitalization can provide? And what role should enabling technologies like AI play in helping community banks develop new products, new services, and new sources of revenue?
These are some of the questions posed to our fintech experts in our latest Streamly Subject Snapshot video on the digital transformation of community banking. Today’s conversation features insights and observations from:
Barb Maclean, SVP, Head of Technology Operations, and Implementation at Coastal Community Bank (Linkedin)
“Your customers today are expecting to interact with their money at the time and place and mechanism of their choosing and they’re going to drive it off their phone, for the most part. So if you haven’t yet put in the kind of technology that enables them to do that in the way that they choose to do it when they choose to do it, you’re definitely already behind the eight balls.”
John Waupsh, Chief Revenue Officer at Manifest Financial (LinkedIn)
“Certainly a lot of time the core is the scapegoat, whether it’s a real issue or not. ‘We as a bank have a challenge with X or building Y or doing some tactical thing because our data is being held by the core’ … The end of the story here is while it’s very challenging to switch core providers, every core, just like every vendor, wants to keep their customers around, wants to keep their clients around. So having progressive discussions with these providers, at an executive level, sharing strategy and moving forward together can usually be very productive.”
Brian Solis, Author of Mindshift: Ignite Change, Inspire Action, and Innovate for a Better Tomorrow (LinkedIn)
“Right now we have an ability to run our company as an intelligent company, an AI-first company, one that’s more intelligent, more integrated, and one that’s more focused on not just using AI to automate what we do, but looking to unlock the future. It’s prioritizing the use of AI in shaping new business models and operational models, products, services, with AI influencing every decision, from the problems the company chooses to solve, to explore new horizons, to the way it interacts with customers and employees.”
Jason Henrichs, CEO at Alloy Labs (LinkedIn)
“Building the relationship is not about being personable, about saying, ‘Oh, we’ve got dog treats in our branch.’ That’s not going to grow your deposits. You need to bundle in additional services that grow your deposits without growing the cost of those. These include things like, say, account protection against scams and frauds. Things like an AI assistant that helps you answer tough questions about retirement and health care choices attached to it.”
Greg Palmer, Vice President at Finovate (LinkedIn)
“Community banks are in desperate need of new technologies, but they lack the resources that some of their larger competitors have, which means there’s a real opportunity for fintechs to come in and help them, give them new access to technologies that they need to stay competitive with their larger counterparts.”
Digital Transformation of Community Banks
Photo by Sam McGhee on Unsplash
Views: 22
Related
As we delve deeper into the digital transformation of community banks, it becomes evident that the landscape of banking is evolving rapidly. Customer expectations have shifted, with a growing demand for personalized, convenient, and technologically advanced banking services. Community banks must adapt to these changing dynamics to remain competitive and relevant in the digital age.
Barb Maclean highlights the importance of providing customers with the flexibility to interact with their finances in a manner that suits them best. This necessitates the integration of user-friendly technology that empowers customers to manage their money seamlessly, anytime and anywhere. By embracing digital tools and platforms, community banks can enhance the overall customer experience and differentiate themselves in a crowded market.
John Waupsh emphasizes the role of core banking systems in shaping a bank’s operational capabilities. While core systems are often seen as impediments to innovation, strategic engagement with core providers can unlock opportunities for collaboration and progress. By fostering constructive relationships with technology vendors, community banks can leverage their existing infrastructure to drive innovation and improve service delivery.
Brian Solis advocates for an AI-first approach to business, where artificial intelligence is utilized not just for automation but for strategic decision-making and product development. By harnessing the power of AI, community banks can gain valuable insights into customer behaviors, preferences, and needs. This data-driven approach enables banks to create tailored solutions that resonate with their target audience and drive business growth.
Jason Henrichs underscores the importance of adding value beyond traditional banking services. Community banks can enhance customer loyalty and engagement by offering innovative solutions such as fraud protection, AI-powered assistants, and personalized financial advice. By expanding their service offerings to meet evolving customer needs, banks can deepen their relationships with clients and attract new business opportunities.
Greg Palmer highlights the unique position of fintech companies in supporting community banks with cutting-edge technologies. Fintechs can bridge the technological gap for smaller banks, enabling them to access innovative solutions that enhance their competitiveness in the market. By collaborating with fintech partners, community banks can leverage external expertise and resources to drive digital transformation and achieve sustainable growth.
In conclusion, the digital transformation of community banks presents both challenges and opportunities for the industry. By embracing digitalization, leveraging AI technologies, and cultivating strategic partnerships, community banks can position themselves for long-term success in a rapidly evolving financial landscape. As customer expectations continue to evolve, community banks must adapt and innovate to stay ahead of the curve and deliver exceptional value to their clients.
For more trending news articles like this, visit DeFi Daily News.
Source link
