Independent Banker - January 2019 - 23

Next: What regulatory changes to expect this year
Innovation Station
By Kevin Tweddle, ICBA
High tech, high
touch is the future
or those who think the pace of change is going to slow
down in 2019, think again. This is the new normal, and
while it may seem daunting, the more you embrace the change
and speed, the better off you'll be in the long run-especially
when it comes to growing your bank and serving the needs of
your customers and community. To that end, here's what I see
as the big innovation themes, which will frame out 2019.
Q Avoidance is no longer a strategy. Community banks
must innovate to continue to thrive. If you've been sitting on
your hands, now is the time to change your strategy. It's evident
that innovation and the growing fi ntech marketplace
are not fads-they are here to stay. It does not matter the
size or makeup of your market. In the long run, it will be
better to innovate over time versus doing it all at once. But if
you haven't done it yet, 2019 is the time to start, and ICBA
is here to help you. We have a wealth of resources to get
you started, including a Fintech Strategy Roadmap and the
ThinkTECH Network (more on page 72), which is available
to all ICBA members.
Q The golden era of the banking-fintech partnership is
just beginning. I've mentioned that community bank-fi ntech
partnerships are the way of the future, and we will see
that prognostication continue to gain momentum in 2019.
Given the sheer amount of resources and talent pools necessary
to innovate at such a rapid rate, community banks are
F
Kevin Tweddle
(kevin.tweddle@
icba.org) is
chief operating
off icer of the
ICBA Services
Network
in an excellent position to partner with
fi ntech companies. And, while fi ntechs
can innovate at a faster pace, they
need a more intimate understanding
of banking and the regulatory system.
Q Core processors will pick up the
pace on innovation. Despite the
challenges faced by most larger companies
to innovate, core processors
are expending more resources to help
community banks with the speed of
change and are starting to diff erentiate
their services. I think several of these
companies are stepping up to meet
the challenges of their customers and
the improvements will be noticeable.
Game on.
Q Fintech accelerator programs
will grow exponentially. We are
proud to have launched our version in
2018, the ICBA ThinkTECH Accelerator,
in partnership with The Venture
Center (read more at icba.org/fi ntech).
We expect other states, and perhaps
community banks with the resources
and strategic fi t to pull off their own
versions, to do something similar. This
type of program is a win-win for all
parties-for community banks, fi ntech
providers, cities and states, and most
importantly, for customers.
Q High tech, high touch is the
future of community banking.
Community banking has been about
strong personal relationships with
customers and businesses in their
communities for generations. While
some view innovation as a threat to
that model, I see it as an opportunity
to create stronger, more meaningful
relationships. The question is: Can you
fully digitize trust? I don't think so, at
least not 100 percent. Relationships
will always matter.
The future may seem daunting given
the rapid advance in technology in the
last few years, but if you confront those
fears and add a little high tech to your
already-strong relationship models,
good things will happen.
independentbanker.org Q 23
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Independent Banker - January 2019

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