Accelerating the Path to Digitization for Community Banks
The bank ecosystem continues to become fragmented and banks are faced with the realities to maintain relevancy. For example, community banks often face unique operational and customer retention challenges, especially as the financial services market becomes crowded with all kinds of apps and providers. Despite much hype around digital banking, however, some consumers still prefer the personal touch of a community bank. Many of the biggest pain points in community banking can be solved with the help of a FinTech partner, but it can be difficult for community banks to identify the right companies for their needs.
Executives in community banking are growing increasingly vocal about some of the unique challenges faced by smaller institutions. Many claim regional and local banks are often the last to receive infrastructure upgrades that would enable new banking and payment features, trumped by larger financial institutions that tie up core providers’ time and attention. This makes it difficult to keep up with increasing competition, as customers continue to demand the kinds of digital experiences offered by other brands and services.
What community banks need are technology partners that can provide the kind of guidance and support required to wire them for the 21st century, coupled with the same attention and urgency awarded to large banks. More often than not, partnerships with fintech providers fall apart because of a lack of understanding around the operational and strategic needs of the bank. As banks demand more and more time and resources from core providers, the needs of small banks can easily get clouded by the priorities of larger institutions.
It’s important for community banks to seek technology partners dedicated to delivering timely IT development in payments, automation, risk management, and user experience in order to keep pace with larger institutions. Without partnerships that that put them on a fast track to infrastructure development, community banks risk falling behind as large banks and other competitors seize markets by offering the digital innovations consumers seek.
The challenge community banks face is not knowing all the requirements needed for new technology or the vendors that in the market. Although there may be an overload of information for FinTech apps, digital banking solutions or strategic partnerships community banks are moving slow and in some cases are paralyzed. Although they can consult with the core bank processor some community banks do not want to work with these service providers.
But the tide has changed as more banks are partnering with providers to provide assistance.
Contact The Walker Group today to learn how participation in our Community Bank Consortium can help community banks expedite digital transformation and remain competitive in a rapidly evolving consumer banking landscape.
The Walker Group provides business development and advisory services to FinTech companies and banks. Our varied market segments enables us to identify synergies and opportunities to stimulate growth as they partner with clients to build their business. For more information go to www.walkergroupnyc.com.