Guest blog by Joanne Howes, Sales Director of FintechOS
Community banks and credit unions are embracing technology to expand their reach. What are the first things they’re acting on?
Community banks, widely known for serving local markets, and for being less geographically diversified, have historically not felt the same pressure to digitize.
That was until last year’s crisis, when many had to quickly adopt the necessary technology for the business continuity. As a result, these organisations were able to provide a financial lifeline to businesses and communities precisely when it was needed.
And the number of community bank customers using digital channels is on the rise - according to one recent survey, it has increased by more than 50% since the beginning of the pandemic.
This trend is felt everywhere in banking, so the integration of technology in daily processes, activities and launch of products can’t be avoided.
Recent research from JP Morgan Chase and KPMG on the impact of Covid 19 on financial services found that:
- 54% of consumers use digital banking more due to the pandemic
- 80% prefer to manage their money digitally
- 46% of insurance CEOs say progress has been accelerated by “years”
Sources: JP Morgan – “Chase Study Finds Consumers Feel More Confident Using Digital Banking Tools”; KPMG – “The Covid-19 Catalyst Insurers Race to Digitize”
Priorities to act on
Given the rapid change in the financial services landscape, how firms can take advantage of these new opportunities is a key focus at FintechOS Leap this week (2-4 November), a virtual event FintechOS is hosting which brings together a global community of leaders, practitioners and consultants in digital banking and insurance.
In his keynote speech, FintechOS CEO Teodor Blidarus will make the point that although incumbents acknowledge the need to innovate, most financial services providers still do not have the right resources, technology, talent or mindset to change. Teo will show a way to tap into new business streams, boost existing systems, build new differentiated financial services in record-time and ultimately, radically transform customer experience.
According to McKinsey, over 30% of global economic activity could be mediated by digital platforms by 2025.
Therefore, switching to a digital mindset is a top priority for each player in the industry. Partnerships with third-parties will also deliver technology more efficiently and completely, community banks will be able to unlock even more value for customers.
During his speech at FintechOS Leap, Mike Fullalove, SVP, Strategy and Business Development at FintechOS, will be providing a range of examples on practical innovation in an era of rapid change.
Last but not least, community banks should embrace a hybrid model for a powerful response to large banks with deep pockets, who can invest significantly in technology, but can’t provide regional–focused relationship management and customer service.
For more information, you can register to the event : https://leap.fintechos.com/agenda/#signup
The views, opinions and positions expressed within guest blogs are those of the authors and do not necessarily represent those of the BSA.