Independent Banker - August 2021 - 33

making adjustments of their own.
" The challenge for bankers this
year, as they move into budgeting
for the next calendar year, is do
they have any leftover challenges
from COVID-19 and PPP [Paycheck
Protection Program] that still need
to be addressed? " says Charles Potts,
ICBA senior vice president and chief
innovation officer.
For example, a community bank
evaluating its PPP performance
might identify opportunities within a
customer segment. Taking advantage
requires a careful analysis of the
budget, deciding whether the best
solution requires people, capital,
technology or a combination of all
those things, Potts says.
Others are looking at pandemic-era
purchases, seeing success and finding
ways to extract even more value from
the spend. " Go through every line of
business you have and create a matrix
view of where you have holes to fill
and assess it from that perspective, "
Potts says.
Investing in communication
Community State Bank in Union
Grove, Wis., quickly introduced
Microsoft Teams when it needed video
conferencing during the pandemic.
The $550 million-asset community
" If you're focusing on your customer and your
people inside your bank, and that is what is
driving your innovation budgeting process,
then that is the right focus. That will in turn
serve your business well. "
-AMBER SHARP, FNBC BANK
bank had been considering adopting
Microsoft Teams after existing
contracts expired as part of its
roadmap, but the pandemic forced
the bank to dramatically speed up its
timeline. Now the bank is investing
time in learning to fully utilize
the integrated components of the
platform, including instant messaging
and calendar.
" If we wanted something that came
out of the box, there were simpler
solutions out there, but long term
we're going to have lots of additional
benefits, " says Gregory Wall, the
bank's chief innovation officer.
While the technology tweaks at
$610 million-asset FNBC Bank in Ash
Flat, Ark., didn't create a significant hit
to the budget, they did cause FNBC to
adjust its strategic plan.
For example, the community
bank learned that its online account
opening process was " clunky, " says
Amber Sharp, senior vice president,
chief information and innovation
officer. When its budgeting cycle
began in January, the bank decided to
up its game in that area.
Strategic plans are your North Star
Every budgeting discussion at
FNBC Bank, including those about
technology and innovation, is built
around the bank's three- to five-year
strategic plan. It drives initiatives,
priorities and the budget to stand up
that strategy, Sharp says.
" Our biggest challenge is narrowing
Budgeting tip 1: Find a vendor partner
Choosing a technology partner that continues to show the
community bank how to get the most value from its products is
key to maximizing your innovation budget, says Gregory Wall, chief
innovation officer at Community State Bank in Union Grove, Wis.
" We've signed contracts, got onboarded and had the vendor
walk away, " Wall says. " It needs to be a continual partnership
where you can ask questions and they continue to help us best use
the technology they've provided us. You have to be with us past
implementation, and we're going to grow this thing together. "
down our list of priorities, " she says.
" There are lots of things we want
to do, and with all the fintechs out
there, they can greatly outnumber
you quickly. You really have to have
that process in place to go through
and prioritize. "
The good news for community
banks that align innovation budgeting
with the strategic plan is that it
reduces budget battles. The board and
leadership team know why the spend
is important and how the project is
likely to affect the bottom line.
Budgeting also requires significant
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