Independent Banker - February 2023 - 27

PORTFOLIO INNOVATION STATION
Three points of discussion when
assessing potential fintech partners
By Charles Potts, ICBA
hen it comes to innovation,
understanding how we do it
may be even more important than
why. With technology upgrades and
customer experience consistently
ranking as chief priorities for
community banks, there's no
question that innovation serves as
a strategic imperative. But the best
tactical implementation approach
remains uncertain.
In truth, the answer comes down to
fi nding the right partner. And you'll
want to maximize each step in the
innovation journey, including the
fi ntech evaluation process. Ensuring
you have the answers to the following
three questions will set you on the right
path to a fruitful fi ntech partnership:
1. Does the solution resonate
with a need at your bank?
Many fi ntechs have fl ashy off erings,
but if what they provide doesn't
instantly solve a problem for your
bank, it isn't an immediate fi t.
Prioritize deeper engagement with
those companies that off er solutions
that fi t your business needs, address
the challenges you face and provide
the opportunities you're looking for
as a bank.
2. Who within your bank needs
to be engaged? Once you've
been intrigued by a product demo,
you need a deeper dive into the
solution. Bringing in your internal
subject-matter experts from day
one will make it more effi cient.
Depending on the product, you may
need technology leaders, marketing
experts, risk and compliance teams,
W
back-offi ce operations, customer
support representatives, and other
team members engaged in the
decision-making process, so loop
them in early for the biggest benefi t.
3. Who's using the solution, and
where are the referenceable
use cases? Even when you're
engaging at the earliest stages of
a new product, fi ntechs will have
proof of concept and pilot examples.
Lean on those references and reach
out to peers who are using the
solution. Those conversations will
give you a better understanding
both of cultural fi t and where the
pitfalls may lie.
These questions are a good starting
point as you engage in vendor
discussions, so the sooner you start,
the more you can maximize your
time. And, with ICBA LIVE around
the corner, these questions have the
added benefi t of preparing you for
the all-star ThinkTECH Accelerator
showcase, where select alumni will
demonstrate their solutions.
In addition, information from ICBA's
new digital transformation education
series, which is a part of Community
Banker University and will be unveiled
at LIVE, will provide guidance to support
the next steps in fi ntech engagements.
This is the year of innovation in
action. At ICBA, we're upping our
innovation game, and we know you're
ready to roll up your sleeves and do
the same. We're entering the phase of
implementation, where the question
becomes not why innovate, but how.
And in today's landscape, that's
precisely where we need to be.
Charles Potts (charles.potts@icba.org)
is ICBA executive vice president and
chief innovation off icer
26 // ICBA Independent Banker // February 2023
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Independent Banker - February 2023

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