Independent Banker - August 2018 - 40

PORTFOLIO
speed has literally spawned and accelerated
fi ntech startups' use of modern
platforms to solve specific problems
within the banking industry.
Lastly, you cannot be innovative without
strong leadership. Consultants and
department leaders can be involved in
the process, but buy-in and participation
from one of the top three executives at
your bank is an absolute requirement.
Innovation Station
By Kevin Tweddle, ICBA
Weave innovation
into your
strategic plan
A
Kevin Tweddle
Another common mistake among community banks is
relying solely on their core account processor for innovation.
While it may be tempting to lean on larger companies with
more resources, these entities also may struggle with creating
a culture of innovation, resulting in project delays and
solutions delivered too little, too late. This lack of innovation
40 Q ICBA Independent Banker Q August 2018
(kevin.tweddle@
icba.org) is
ICBA's group
executive vice
president,
innovation
and financial
technology
Putting the pieces together
So how do we avoid these mistakes, and
what elements should we include in our
strategic planning process?
To truly succeed, management must
believe. I have yet to see a successful
innovative bank that did not have
strong leadership and participation from
the C-suite. Why? Because innovation
involves a higher level of risk than most
activities. You need that support to tolerate
mistakes, embrace change, reward
successes and penalize inaction. The
ability to accept failure, take corrective
action and quickly move forward will
take some serious " intestinal fortitude. "
Organizational structure and talent is
critical. Those responsible for innovation
must have a direct line to the top of the
house. It requires diversity, education,
collaboration and strong communication
skills to ensure that progress is
being made.
s we enter strategic planning and budgeting season,
it has become routine to put items supporting growth,
improved customer service and cost effi ciencies on the agenda.
But does innovation make your list? If not, it should. And not
just as a line item, either. It should be woven throughout all
of your strategic initiatives for the coming years.
Many banks still confi ne their innovation budget to their IT
departments, with interdepartmental battles erupting across
business lines and signifi cant dollars wasted on projects with
little strategic or enterprise impact.
Infrastructure, systems and processes
must be in place. Innovation does not
happen overnight. It requires a more
modern infrastructure that allows the
team to move in short order to develop
and execute relevant use cases that fulfi ll
the bank's strategy. Speed to market is
critical, so the capacity to fi lter information
quickly can allow for a faster
decision-making process and higher
accessibility to relevant information.
The time is now to embrace innovation
in your strategic planning process and
beyond. Your organization will be judged
by how well you innovate and diff erentiate
your bank for the foreseeable future.
Independent Banker - August 2018

Table of Contents for the Digital Edition of Independent Banker - August 2018
