In today’s rapidly evolving digital landscape, the importance of technological advancements cannot be overstated. While larger banks often have the financial muscle and IT resources to invest in cutting-edge solutions, smaller banks face unique challenges in keeping up with the pace of technological innovation.
Looking into the main issues of digital transformation for smaller banks, including why adapting to new technology is crucial for smaller banks to stay competitive and meet the expectations of modern customers, is Brian Pillmore, Founder of Visbanking.
Digital Journal: Smaller banks have fewer IT resources. How can they make technological gains?
Brian Pillmore: Smaller banks typically have fewer IT resources compared to their larger counterparts. They often lack the budget and personnel to develop and maintain complex in-house software systems. This limitation makes it challenging for them to keep up with the rapid advancements in technology.
Due to their smaller footprint, small banks cannot always justify the investment in massive custom software builds. These projects require substantial resources and may not provide a proportional return on investment. Instead, smaller banks need to find alternative approaches to leverage the benefits of technology.
DJ: How else can resource constraints be overcome?
Pillmore: To overcome their resource constraints, smaller banks must rely on best-in-class technology service providers. These providers offer pre-built solutions that can be easily integrated into existing systems. By partnering with these providers, small banks gain access to advanced functionalities and features without the need for extensive development efforts. Moreover, technology service providers often offer white-labelling options, allowing smaller banks to customize the user interface and branding to match their unique identity. This way, they can offer a seamless and cohesive customer experience while still benefiting from established technology solutions.
DJ: How can customer experience be maintained?
Pillmore: Seamless integration across various systems is crucial for small banks to deliver an exceptional customer experience. Customers expect a unified experience across multiple channels, such as online banking, mobile applications, and customer support. Integration allows for real-time data synchronization, streamlined processes, and a holistic view of customer interactions. By embracing technology integration, smaller banks can provide their customers with efficient services, personalized experiences, and quick access to financial information. This, in turn, enhances customer satisfaction and loyalty.
DJ: What are customers seeking?
Pillmore: Today’s customers have become accustomed to modern technology experiences in various aspects of their lives. They expect the same level of convenience, speed, and accessibility from their banking services. Smaller banks must recognize and address this demand to remain competitive. Customers are increasingly turning to digital channels for their banking needs, including online account management, mobile payments, and personalized financial insights. To meet these expectations, smaller banks must adopt user-friendly interfaces, robust security measures, and seamless digital capabilities.
DJ: Do you have any further recommendations?
Pillmore: Small banks face unique challenges when it comes to keeping up with the ever evolving landscape of technology. However, by leveraging best-in-class technology service providers, focusing on integration across systems, and prioritizing the delivery of modern customer experiences, smaller banks can bridge the gap and stay relevant in the digital age. Adapting to new technologies is not just an option; it is crucial for their survival and success in an increasingly competitive banking industry.
