[ad_1]
Silicon Valley Bank’s collapse is just the latest example of how a historic slowdown in IPOs is producing a minefield of unexpected consequences. The shuttered market for US initial public offerings — and the resultant lack of proceeds for cash-strapped firms — has created myriad complications for Corporate America. From contributing to the collapse of a bank […]
[ad_2]
Bloomberg News
Source link
[ad_1]
As core legacy systems become inefficient, slow, and unable to keep up with present day customer expectations, more and more financial institutions are facing the same question: how do we modernize these systems without the high costs and long turnover time?
The answer is fintech enablement. Fintech enablement aims to bridge the gap between old processes and new by integrating new technologies and tools into traditional financial systems to improve their overall efficiency, speed, and accuracy. This gives financial institutions the ability to offer the meaningful products and services their customers are looking for without completely uprooting their existing systems.
What are the Benefits of Fintech Enablement?
There are three benefits that come with embracing fintech enablement as your solution to outdated legacy systems:
By automating processes, improving agility through integration, and capturing real-time data, it’s clear fintech enablement plays a significant role in modernizing today’s legacy systems.
Why Today is the Best Time to Modernize
Modernizing your legacy system is essential if you want to keep up with customers’ shifting expectations and stay ahead of the innovation currently taking the financial services industry by storm. Here are four factors to be aware of as you make your decision.
1. The Effect of Shifting Expectations
With the availability of new technology and tools comes higher expectations from customers. They now expect a seamless, convenient, transparent, and personalized banking experience. The value they are receiving for being a customer should be clear and any questions or concerns they may have should be answered quickly and efficiently. Because of this, many financial institutions are creating a more customer-centric approach, providing customers with a broader range of services.
2. Replacements Can Be Risky
If your current legacy system is significantly impacting your financial institutions’ business in a negative way, you may be tempted to replace the system completely. This route comes with some serious risks. These systems are often deeply integrated into an organization’s operations and replacing them completely can be a complex and expensive process. Not to mention the disruptions it may cause to your day-to-day business operations during the transition. Many of the benefits that come with a complete system replacement can be achieved through fintech enablement.
3. Fintech Enablement’s Accelerated Innovation
A fintech enablement platform is a technology infrastructure that can be customized to the specific needs of a financial organization, without being dependent on a third-party provider. They are uniquely designed to reduce complexity and accelerate innovation as they launch, serve, and expand financial solutions and products to meet customer expectations.
4. Another Necessity: Embedded Finance
The growth of embedded finance is driven by the rise of digital platforms and increased demand for seamless customer experiences. As more financial institutions are being impacted by the integration of financial services into non-financial products and services, they will need to stay competitive by developing new customer journeys, workflows, and product designs. Partnering with a company who can provide the necessary infrastructure can drive growth for your organization.
Future-proof Your Investments With Fintech Enablement
By leveraging a fintech enablement platform, you gain additional flexibility, automation, and insights that can keep you ahead of your competitors when it comes to matching customer demands and keeping up with expectations set by the industry.
When it comes to choosing a fintech enablement platform provider to partner with, here are a few things to keep in mind:
Whether you’re a large financial institution or new to the market, a fintech enablement platform may be the solution to your current and future business goals. Learn more here.
[ad_2]
FintechOS
Source link
[ad_1]
Signature Bank followed in Silicon Valley Bank’s footsteps Sunday when regulators overtook the spiraling financial institution. Today, First Republic Bank is drawing attention as its shares take a dive. At 2:30 p.m. ET Monday, First Republic Bank’s shares sat at $41.46, down 50% from market open. Before last week, all three banks played integral roles […]
[ad_2]
Whitney McDonald and Brian Stone
Source link
[ad_1]
The collapse of Silicon Valley Bank is having a trickle-down effect on fintechs and banks within the financial services industry, but Cross River Bank is not one— in fact, the bank is swooping in to capture business amid the fall of its competitors. For example, the $9.2 billion Ft. Lee, N.J.-based bank was selected by […]
[ad_2]
Whitney McDonald and Brian Stone
Source link
[ad_1]
Silicon Valley Bank was taken over by regulators today following a week of abnormality that included a sale of securities on Wednesday, capital raising efforts on Thursday and a stock plummet of nearly 70% this morning. “The California Department of Financial Protection and Innovation (DFPI) announced today that, pursuant to California Financial Code section 592, […]
[ad_2]
Whitney McDonald
Source link
[ad_1]
Silicon Valley Bank became the biggest US lender to fail in more than a decade after a tumultuous week that saw an unsuccessful attempt to raise capital and a cash exodus from the tech startups that had fueled the lender’s rise. Regulators stepped in and seized it Friday in a stunning downfall for a lender […]
[ad_2]
Bloomberg News
Source link
[ad_1]
Unease is spreading across the financial world as concerns about the stability of Silicon Valley Bank prompt prominent venture capitalists including Peter Thiel’s Founders Fund to advise startups to withdraw their money. The turmoil followed a surprise announcement from Santa Clara, California-based SVB that it was issuing $2.25 billion of shares to bolster its capital position after […]
[ad_2]
Bloomberg News
Source link
[ad_1]
With all of the buzz surrounding artificial intelligence (AI) technologies such as ChatGPT, the question becomes “how do we best harness the power of these tools to drive business outcomes?”
In today’s uncertain economic environment, belts are tightening across the board, and investment priorities are shifting away from far-fetched, moonshot projects to practical, near-term applications. This approach means finding opportunities where AI can be practically applied to improve the speed and quality of data-driven decision making.
For banks, these opportunities exist in many areas – from extending credit offers and personalizing customer treatments to detecting fraud and identifying at-risk accounts. However, within the highly regulated financial services industry, leveraging AI to automate these types of decisions adds a layer of risk and complexity.
To get AI-powered decisioning into the hands of the business and drive forward real, meaningful results, technology teams must provide the right framework for developing and deploying AI models responsibly.
What is Responsible AI and why is it so important?
Responsible AI is a standard for ensuring that AI is safe, trustworthy, and unbiased. It ensures that AI and machine learning (ML) models are robust, explainable, ethical, and auditable.
Unfortunately, according to the latest State of Responsible AI in Financial Services report, while the demand for AI products and tools is on the rise, the vast majority (71%) have not implemented ethical and Responsible AI in their core strategies. Most alarmingly, only 8% reported that their AI strategies are fully mature with model development standards consistently scaled.
Beyond the regulatory implications, financial institutions have an ethical responsibility to ensure their decisions are fair and free of bias. It’s about doing the right thing and earning customers’ trust with every decision. An important first step is becoming deeply sensitive to how AI and ML algorithms will ultimately impact real people downstream.
How to ensure AI is used responsibly
Financial institutions need to put their customer’s best interests at the front of their technology investments.
This means having robust model governance practices that ensure enterprise-wide transparency and auditability of all assets – from ideation and testing to deployment and post-production performance monitoring, reporting, and alerting.
It means understanding how models and systems arrive at decisions. AI-powered technology needs to do more than execute algorithms – it must provide full transparency into why a decision was made, including what data was used, how models behaved, and what logic was applied.
A unified enterprise platform provides a common place to author, test, deploy, and monitor analytics and decision strategies. Teams can track how and where models are being used, and most importantly, what decisions and outcomes they are driving. This feedback loop provides critical visibility into the end-to-end impacts of AI-powered decisions across the enterprise.
Unlock a secret advantage with simulation
Designing robust decision strategies and AI solutions often requires some level of experimentation. The development process must include adequate testing and validation steps to ensure the solution meets rigorous standards and will perform as expected in the real world.
With both aggregate and drill-down views, decision testing can reveal how input data moves throughout the strategy to produce an output. This provides useful traceability for debugging, auditing, and governance purposes.
Taking this a step further, the ability to simulate end-to-end scenarios gives users the crystal ball they need to creatively explore ideas and respond to emerging trends. Scenario testing, using a combination of models, rulesets, and datasets, provides a “what-if” analysis for comparing outcomes to expected performance results. This allows teams to quickly understand downstream impacts and fine-tune strategies with the best information possible.
Combining testing and simulation capabilities within a unified platform for AI decisioning helps teams deploy models and strategies quickly and with confidence.
Bring it all together with applied intelligence
With the right foundation, technology teams can create a connected decisioning ecosystem with end-to-end visibility across the entire analytic lifecycle. This foundation accelerates practical AI development and facilitates getting more models into production, ushering in a new age of tackling real-world problems with applied intelligence.
Learn more about how FICO Platform is giving leading banks the confidence they need to move quickly, deploy AI responsibly, and deliver outcomes at scale.
– Jaron Murphy, Decisioning Technologies Partner, FICO
[ad_2]
FICO
Source link
[ad_1]
The banking industry is on the brink of a transformation driven by technological advances that have created the potential for new products, services and delivery channels that promise to reshape the very definition of what banking means.
But for established financial institutions, this seismic shake-up is destabilizing long-standing business models and giving rise to competition from a new crop of providers, unencumbered by legacy tech systems, whose offerings are purpose-built for financial services’ digital future.
To continue to compete and maintain relevance in the industry’s new era, banks must adapt, delivering products and service models that meet customers’ changing expectations, while strategically re-evaluating their business strategy to determine what role they’re best suited to play in the financial services ecosystem of tomorrow.
In a recent interview with PYMNTS, Technisys head of digital core Michael Haney highlighted three of the biggest priorities that should be top-of-mind for banks amid the industry’s tech transformation:
While previous waves of banking innovation saw the rise of customer self-service and the digital channel, the current phase is in many ways a more fundamental re-imagining of what types of services banks can offer and how customers can access them, Haney said. Those services increasingly are operable across multiple channels and being embedded into non-financial platforms, including social media, messaging apps and the internet of things, he noted.
“Now I can bank on my smart watch or I can bank through my smart speaker,” Haney said. “But more importantly, I can bank in channels that [banks] don’t own directly, even in non-financial brands, bringing banking to the point of need and not just limiting it to [a bank’s] own branded channels.”
For banks, building products suited for this omnichannel, embedded paradigm requires a new, modular approach to development–and the flexible core banking tech stack to support that process.
“Buy now, pay later, early wage access, roundup savings; all these things require a bank to have building blocks from the payments world, the lending world and the deposits world and reassemble them in completely different ways. You can’t do that with a Common Business Oriented Language (COBOL) and mainframe system,” Haney said.
The shift toward omnichannel and embedded financial services will force banks to make a key decision, Haney said: whether to continue to “own” their customer relationships across the expanding multitude of channels–and make the necessary investment to do so–or whether to take a more background role by providing the banking services that undergird other brands’ offerings.
“There are going to be a set of banks that are going to want to maintain all of those channels and be front and center and have their brand front and center,” Haney observed. “Other banks are… going to be more interested in the Banking as a Service or embedded finance [model].”
Through the use of application programming interfaces (APIs), the latter group of banks essentially will function as a utility, providing the back-end services and licensing that consumer-facing platforms rely upon to offer financial services functionalities within the context of their platforms and consumer journeys.
“Then of course there’ll be banks that will do both. But you really have to say, ‘What kind of bank do I want to be in the future?’” Haney advised.
Whatever the role a financial institution decides to play in the emerging banking ecosystem, success will require an openness to new ideas and experimentation. As those are characteristics most banks traditionally aren’t known for embodying, a shift in mindset will be critical to evolution and continued relevance, Haney advised.
“It’s not even about having the perfect model or having things succeed or fail. It’s about that willingness to embrace change and to be willing to experiment just as the parameters around you change,” said Haney.
He cited the tech sector’s prevailing support of experimentation as a good model for banks to follow.
Collaboration also will be key, Haney noted–both with trusted partner providers as well as customers themselves.
“Don’t be afraid to work with consultancies and system integrators and software vendors,” Haney said. “Put the customer at the center. Embrace… co-creating and co-innovating with customers; get them involved in beta testing, pilot testing; all of that.”
Watch: How Financial Institutions Can Accelerate Their Digital Presence in 2023.
Learn how Banks can compete with Fintechs.
[ad_2]
Galileo
Source link
[ad_1]
To succeed in today’s digital-first world, banks are under pressure to orchestrate differentiated customer journeys to attract, win, and maintain long-term loyalty. Troves of real-time customer data and advancements in artificial intelligence (AI) technologies are paving the way for delivering hyper-personalized experiences that are both relevant and timely.
However, many banks are struggling to realize ROI from their data and AI investments. Shackled by legacy systems, siloed data, and bogged-down IT teams, digital transformation projects are still failing at an alarming rate.
Some are attempting to address the value leak by narrowly focusing on AI-point solutions tailored to specific fixed use cases. While this may result in limited short-term lift, it only adds to the technical debt across an already strained and sprawling infrastructure. Plus, these bespoke solutions often lack the integrations needed to curate a holistic customer experience across functional silos.
Balance short-term wins with long-term gains
An equally challenging approach to transformation assumes wide-scale modernization across the entire technology stack is necessary. IT teams faced with replacing core banking systems, upgrading outdated data infrastructures, or building full-scale platform solutions from scratch are feeling the pressure.
These daunting multi-year, hundred-million-dollar projects are incredibly risky and the payoff cycle is often too long. They drain already deprived IT resources, and the business is often left limping along in the meantime.
A more flexible approach is needed to unlock quick time to value while simultaneously accelerating transformation roadmaps. The key lies in an intermediate intelligence layer where data-driven decision making is operationalized across the entire enterprise. This layer harnesses a dynamic mix of AI, advanced analytics, and human expertise to transform data into insights and take action at scale – a concept we like to call applied intelligence.
Add a flexible layer for intelligence
Think of it this way. Similar to the tendons and ligaments connecting bones and muscles in our body, an applied intelligence platform binds and strengthens components within your existing technology infrastructure.
This modular, API-first layer augments and transmits intelligence between your digital front-end applications and your back-end servicing systems and data stores. It’s the place where decisions are made and strategies come to life. Where data and AI insights are operationalized. Where actions are taken that drive business outcome.
And it does this all at scale and in real-time through expertly choreographed dataflows and orchestrations. It adds flexibility where it was previously lacking, plying your rigid legacy infrastructure into a nimble participant in a digital-first strategy.
Embrace a platform operating model
Leading companies are already embracing a new way of thinking about their data, their systems, their human capital, and their overall enterprise intelligence.
BCG describes a technology operating model where AI unlocks the ability to make better, faster decisions. In this model, “the bionic company puts a modular technology stack fueled by data at the heart of the new organization.”
McKinsey describes an AI-bank of the future where a decisioning layer sits between the bank’s engagement and core technology layers. Working in unison, these layers “provide customers with distinctive omnichannel experiences, support at-scale personalization, and drive the rapid innovation cycles critical to remain competitive in today’s world.”
In both approaches, AI-powered decision-making capabilities are integrated holistically within a platform operating model to deliver value across the technology stack.
Banks that lack a unified AI decisioning layer have a massive opportunity to realize near-term wins while aligning to longer-term modernization efforts and enterprise architecture roadmaps. This platform-based approach is well positioned to scale AI-powered decision intelligence across diverse functional areas and accelerate time to value with each incremental use case.
Create a space for collaboration and innovation
An enterprise platform approach provides a strategic, unified space for applied intelligence. IT teams can leverage the extensible platform to expose functionality across silos while maintaining overall governance. Business leaders, analysts, and data science teams can leverage a low-code/no-code environment to author, edit, access, share, and deploy valuable decision assets, such as data features, predictive models, or business rules.
Within this space, teams are empowered to collaborate at new levels, experiment and compose new digital experiences, personalize decisions, and drive unique customer moments that differentiate the bank.
Most importantly, this approach can meet you wherever you are in your digital transformation journey. By changing the conversation from rip and replace to augment and mature, a layered approach to transformation tackles and solves problems that cut across lines of business, helping you extract immediate value out of your existing systems, all while driving better customer experiences and bottom-line results.
Learn more about how FICO Platform is helping leading banks connect, develop, and deploy data-driven intelligence.
-Jaron Murphy, Decisioning Technologies Partner, FICO
[ad_2]
FICO
Source link
[ad_1]
I was recently talking with a client, who said “for us, speed of thought is just as important as speed of technology.” This interesting perspective, while not surprising, poses a challenging predicament for technology leaders. Now more than ever, already stretched IT teams must deliver on heightened expectations for performance and functionality while figuring out how to leverage technology to help change the way the business works – and thinks.
This is no small task. Especially considering many technology teams are already overburdened with an ever increasing list of priorities, from scaling infrastructure across hybrid, multi-cloud environments to integrating real-time data and AI capabilities to staying ahead of constantly evolving security threats. As the backlog of requests continues to grow, IT can increasingly become a bottleneck to digital transformation.
To get ahead, technology leaders should embrace a new way of thinking about creating value and accelerating business innovation. The key lies in using a flexible technology architecture that empowers stakeholders across functional teams to re-engineer business applications and solutions without IT involvement.
Why designing for agility is so important
In today’s uncertain and often volatile business environment, the ability to rapidly iterate, test, and deploy new strategies is separating the leaders from the laggards. Those who can quickly respond to new competitive threats, shifting market conditions, new regulations, and changing consumer behaviors will come out on top.
Business users – those closest to customers and their digital experiences – are the best positioned to solve these challenges and identify new opportunities for value creation. For instance, maybe the bank’s unsecured lending team is noticing an uptick in credit utilization, and they want to identify customers who have been affected by the recent tech layoffs in order to adjust pre-delinquent strategies accordingly.
In the old way of working, this team would have to go back and forth with analysts to translate requirements and then wait for IT operations and applications teams to configure and deploy the changes. Then, when the solution finally came back, it may have missed the mark or been too late to help those customers.
With the right capabilities at their disposal, business teams are empowered to experiment and deploy new strategies on their own. By putting more control in the hands of non-technical users, banks become more nimble and can proactively mitigate risks, seize opportunities, and win long-term customer loyalty.
What agile technology looks like
Unlocking this type of speed and agility requires a set of modular technology capabilities that can be reused and reassembled in different ways to solve new and emerging business problems.
Gartner refers to this as the Intelligent Composable Business, or “one that drives superior business outcomes that are timely, relevant and contextual. It does so by having the plasticity to fundamentally reengineer business decisions and orchestrate capabilities that adapt at the pace of business change.”
These modular building blocks must interoperate without manual intervention from IT teams. By building a composable enterprise on the foundation of an extensible, unified platform, shared data and other assets flow seamlessly across departmental silos and varied business applications. An API-first, microservices architecture ensures all components work together with the flexibility to orchestrate unique configurations for different use cases.
How to get the most out of composable capabilities
While a composable architecture makes data and AI technologies more accessible across the digital enterprise, the real value is hidden in the ‘digital artifacts’ of these systems.
At FICO, we refer to these as decision assets – things like data features, analytic models, decision rules, communication strategies, etc. Think of these as the intelligent pieces and parts that go into composing end-to-end, hyper-personalized digital experiences.
Digital artifacts also include the outcomes of those experiences – Did the customer accept the offer? How did the loan perform? Why was the application rejected? This critical piece of the puzzle feeds a continuous learning loop to help improve strategies over time.
When these assets are stored and exposed inside a common platform, teams across functional silos can leverage them to solve new problems. This sharing and reuse shortcuts development time while creating synergies within the customer experience. A robust platform repository of decision assets can be used to manage the operational dependencies that come with reuse so that teams can confidently make changes with visibility into any downstream impacts.
Low-code/no-code authoring tools give business users the freedom to experiment, adjust strategies, and deploy new use cases quickly. However, it’s the visibility into outcomes and traceability and lineage of assets – paired with the overall governance, security, and access controls provided by a unified platform – that empowers business users to become active contributors to the digital ecosystem.
Learn more about how FICO Platform is helping leading banks become more productive and agile in the face of relentless digital disruption.
–Jaron Murphy, Decisioning Technologies Partner, FICO
[ad_2]
FICO
Source link
[ad_1]
A February wave of layoffs in the tech industry has left many without work amid a looming recession. Within the past year, more than 150,000 employees were affected by 2022 tech layoffs, which continued in January with 68,500 job cuts, according to “Who Was Affected by the 2022-2023 Tech Layoffs?,” a report from research firm […]
[ad_2]
Brian Stone
Source link
[ad_1]
Citi Treasury and Trade Solutions, a division of Citi’s Institutional Clients Group, increased technology spend about 40% over the past two and a half years, and will continue to invest in its platform during the next three to four years, said Shahmir Khaliq, global head of Citi Treasury and Trade Solutions, during Credit Suisse’s Financial […]
[ad_2]
Whitney McDonald
Source link
[ad_1]
Technology provider Finastra is launching an asset liability management solution aimed at helping small- and medium-sized banks with their balance sheet and compliance needs. The cloud-based software-as-a-service (SaaS) solution, named ALM IQ, is a platform-agnostic microservice designed to help banks with data consolidation, operational efficiency and regulatory compliance, according to Finastra. “[Small banks] see that the […]
[ad_2]
Brian Stone
Source link
[ad_1]
We’ve seen a rise of innovation in financial services over the past few decades, which has brought us to the current boom of the embedded fintech market. Embedded fintech is the integration of financial services with non-financial business infrastructures, without the need to redirect customers to traditional financial institutions. The technology can be applied to everything from payment cards to insurance to create greater efficiencies for businesses.
The market for embedded finance is growing rapidly to the tune of $22 billion in total revenue. The vast majority of B2B software companies are now offering some form of embedded finance solution, signaling this next wave of fintech is here to stay and adoption will happen faster.
Embedded fintech has quickly become a core business strategy. According to Bain and Company, the total revenue of the embedded fintech market will double by 2026. Embedded finance is predicted to account for 10% of all payment transactions within the next three years, taking a significant market share away from traditional payment methods. This begs the question: What’s next for a space that’s already shown such significant growth?
Embedded lending, such as popular buy now, pay later (BNPL) services used by businesses, is showing significant growth in the embedded fintech space and gaining rapid adoption. Embedded lending enables businesses to offer customers loans directly, forgoing the need for touchpoints with high-cost financial institutions.
This is not just a moment in time; it’s the way forward because of its simplicity and efficiency. Merchants simply access embedded lending products directly from the software systems they use to run their businesses, which creates a sticky business model that scales quickly. With flexible APIs enabling seamless integrations, embedded lending can now send the future of fintech into spaces that have historically not had great access to modern financial products.
BNPL has reached near ubiquity in e-commerce, setting the groundwork for the embedded lending model to thrive in other spaces.
We will see the adoption of embedded lending by in-person service providers — think home service companies, veterinary offices and auto repair shops. In-person services have been overlooked by leading embedded lending fintechs for years, creating a whitespace.
E-commerce is no longer the mainstay of embedded lending, in large part because in-person service providers are increasingly adopting software to drive their sales experience. The tides are turning as the in-person service businesses are seeing an opportunity to grow their customer base and boost revenues quicker by offering their customers flexible loan payments embedded during the sales process.
It is impossible to predict when you will need an emergency root canal or when your car will need a costly repair, which can leave consumers in a tough spot financially. However, now, in-person service companies can embed technology directly into their operating systems that offer flexible loan options with just a few clicks, giving consumers better customer service and much needed support.
The dollar value for such transactions averages $4,000 each — exponentially more than the BNPL transactions on the e-commerce side averaging $104 each.
With larger transaction sizes, embedded lending is a win for B2B companies, SMBs and consumers. It’s rapidly becoming the golden goose of fintech and is revolutionizing the way businesses can drive revenues and customer growth.
Bobby Tzekin is co-founder and CEO of Wisetack, the leading pay over time platform for in-person services.
[ad_2]
Bobby Tzekin
Source link
[ad_1]
Successful innovation in business requires much more than just a good idea. Strategic planning and having the proper teams and technology are also key, but what might be the most important element is listening to what the client wants. Banks need to listen to specific client feedback to determine where to invest time and capital […]
[ad_2]
Whitney McDonald
Source link
[ad_1]
JPMorgan Chase & Co. and International Finance Corp. are leading a $27 million round of investment in KLYM, a data-driven fintech that focuses on providing working capital to small and midsize companies in Latin America. KLYM will use the capital to expand, with Brazil as the main priority in 2023, Diego Caicedo, co-founder and chief […]
[ad_2]
Bloomberg News
Source link
[ad_1]
As the banking space continues to evolve, financial institutions are finding that companies they previously considered rivals may be potential partners. In a survey of 792 bank decision-makers in 50 countries conducted by France-based Sopra Banking Software, 77% of senior banking executives said they “feel pressured” to partner with fintechs to stay relevant in the […]
[ad_2]
Brian Stone
Source link
[ad_1]
HSBC announced today that it is partnering with digital card fintech Extend to offer virtual card solutions and embedded payments to its business clients. Commercial card customers of HSBC USA, owned by $2.9 trillion, London-based HSBC Holdings, are now able to create, send and manage virtual cards throughout their organizations via the latest Extend partnership, […]
[ad_2]
Whitney McDonald
Source link
[ad_1]
Small business (SMB) customers are rethinking their banking relationships and looking for a personalized and emotional connection. If you need proof, look no further than these compelling stats:
As small business customers begin to reconsider how and with whom they’re banking, FIs must also rethink their strategies. How can they provide greater value to their small business customers and take advantage of the $370B banking opportunity small businesses represent?
A $370B Dollar Question
At a recent conference focused on Small Business Banking, held early October in Nashville, TN, small business banking leaders shared their thoughts, experiences and research on current state of small business banking in the US.
Irv Henderson, EVP and Chief Digital Officer of Small Business at US Bank, asked, “How can we use technology and integrated experiences to get small business owners home to their families earlier?”
Today’s customers, he explained, are looking for convenience, integrated experiences, and opportunities to simplify every aspect of their lives- including their financial lives. “Whatever we can do to make their lives easier will be key to our success,” Henderson added.
For many institutions, this means looking beyond transactional relationships and working toward a future where bankers can serve as trusted advisors. Amy Doll, Chief Lending Officer at PeoplesBank, said it best: “When it comes to small business banking, financial institutions should make their clients feel like they’re big enough to help, but small enough to care.”
To bridge this gap and effectively serve the unique needs of small businesses no matter their size, FIs must invest in ways to augment and automate processes and experiences. Automation enables fast and seamless workflows and low-touch interactions, replacing time consuming, manual processes and allowing bankers more time to better serve their customers.
Augmentation, which goes hand-in-hand with automation, provides FIs with true differentiation and value creation through enhanced, personalized interactions in an increasingly digital world. The result: bankers have access to the powerful tools and insights necessary to meet all their clients’ needs, while offering them an augmented and supercharged customer experience.
While bankers will certainly benefit from these technologies, the real value comes from what the customer experiences. Amy Doll drove this point home at American Banker’s Small Biz Banking conference when she shared how automation and augmentation gives her team more opportunities to focus on meaningful work and build positive, profitable relationships: “Great Small Business Banking is about personalization and making it tangible to your clients that your organization is capable and cares.”
[ad_2]
nCino
Source link