Independent Banker - December 2023 - 8

EXPERTS
Game-changing industry insights
for community bankers
Why a slower loan market is an ideal
time for bankers to invest in innovation
Rising interest rates have caused a general slowdown in loan demand nationwide,
creating new challenges and pressures for community banks. However, this
slowdown also provides a valuable opportunity to assess and refine operational
processes and make strategic investments in innovation.
Think of this period like a pit stop in a NASCAR race-you can't change tires while
speeding down the track, right? This period of slowed loan growth offers bankers
the chance to take a pit stop and make necessary adjustments.
Colin Savells
SVP of Revenue
Teslar Software
teslarsoftware.com
Begin by going back to basics. Now is the time to evaluate your foundation and
determine the solidity of your structural processes. Are these processes operating
seamlessly? Is every teammate on the same page? Only once these foundational
elements are in place should technology be added where needed, addressing
specific gaps and challenges in your existing systems.
A common pitfall lies in acquiring new technology to address an issue without solving
its root cause. The most successful technology solutions address challenges at their
core, making it crucial to analyze your current systems and operations, identify any
gaps or obstacles, and then determine the major pain points where technology can
have the most significant impact. This approach not only aids in creating an effective
tech stack but also helps prioritize budget allocations wisely.
Additionally, it is essential to evaluate new tools holistically, considering their
long-term impact on both front-end and back-end operations. Ask yourself if this
tech will solve a single problem, or can it grow with your bank? Imagine introducing
a new system to enhance customer experience without having the necessary
processes in place to handle the increased volume it might bring-this could create
multiple new challenges while attempting to solve an existing one.
Utilizing this slower period to invest in innovation allows for a more careful and
comprehensive testing phase as well as ample opportunity to ensure the technology's
complete implementation. Many banks invest in a comprehensive system but will
only implement it partially, leaving critical features underutilized. Bankers can also
dedicate more time to training their staff on how to proficiently use and optimize
the new system, ensuring the seamless integration of these solutions into daily
operations before loan volume returns to normal levels.
In today's digital-first world, innovation is imperative. Those failing to streamline
and automate processes risk being left behind. Embracing this opportune period to
reevaluate foundational processes, fix what needs fixing, and thoughtfully implement
technology and systems will position community institutions for enduring success,
regardless of market fluctuations.
Go to teslarsoftware.com to learn more.
http://www.teslarsoftware.com http://www.teslarsoftware.com
Independent Banker - December 2023

Table of Contents for the Digital Edition of Independent Banker - December 2023
