Fintechs can present higher design capabilities, improved buyer expertise, report states
SCOTTSDALE, Ariz., Feb. 13, 2020 /PRNewswire/ — Monetary establishments are making fintech partnerships a key precedence in 2020, in accordance with new analysis from Cornerstone Advisors. In What’s Going On In Banking 2020: Outlook for a New Decade, 65 p.c of banks and 76 p.c of credit score unions say these partnerships might be an necessary a part of their enterprise methods this yr.
Amongst eight areas during which surveyed establishments plan to companion with fintechs, each banks and credit score unions ranked new merchandise and funds first and second.
“Banks and credit score unions are acknowledging that fintechs usually have higher design capabilities than what exists at banks or their main business distributors,” Cornerstone Advisors President and co-founder Steve Williams says within the report. “They see partnering as very a lot an opportunity to ‘bolt in’ a greater buyer expertise to their legacy again finish in a time-frame that may permit them to remain aggressive.”
The annual What’s Going On In Banking examine explores how senior executives from tons of of U.S.-based mid-size banks and credit score unions are prioritizing their expertise initiatives and spending.
Different key findings embrace:
- Cloud computing and utility programming interfaces high of the checklist of rising applied sciences banks plan to deploy in 2020.
- The share of credit score unions which have deployed machine studying and robotic course of automation instruments jumped from 3% and 1%, respectively, in 2019 to 9% heading into 2020.
- Digital account opening stays a high focus for brand spanking new and alternative techniques in 2020.
- Enhancing industrial on-line and cell banking capabilities are deliberate by an growing share of establishments in 2020.
- CRM continues its run as a high 5 expertise for addition/alternative.
- The share of establishments planning to switch or enhance lending techniques is up throughout the board, and the industrial mortgage origination system is among the many high 5 applied sciences slated for addition/alternative.
- Underscoring the significance of analytics to banks and credit score unions, among the many 5 applied sciences within the analytics class, three are up for modifications or enhancements in 2020.
- Managing fraud continues to be a high precedence for FIs, and half plan to boost their fraud administration techniques in 2020.
“2020 is prone to be an excellent yr for the banking business,” mentioned Ron Shevlin, Cornerstone director of analysis and the report’s writer. “The state of the financial system is the very best it has been in a very long time. Customers are extra assured in borrowing, and their improved credit score scores imply they’re extra credit-worthy. This state of affairs has earnings progress written throughout it.”
Shevlin and Williams will current a deep dive into the report’s findings in a free webinar on Feb. 21.
Cornerstone Advisors, a administration consulting agency targeted completely on serving to banks and credit score unions enhance their efficiency, delivers companies within the areas of Technique, Efficiency Enchancment, Contract Negotiations, Expertise, Mergers and Acquisitions, Funds and Supply Channels.
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SOURCE Cornerstone Advisors