Independent Banker - April 2024 - 18

PORTFOLIO INNOVATION STATION
How core providers are
becoming core to innovation
By Charles Potts, ICBA
O
n February 5, the ICBA
Innovation team conducted
our fi rst core day with our AP5
Accelerator cohort. CSI, DCI, FIS,
Fiserv, Jack Henry and Q2 all came to
Atlanta to join us for what we dubbed
a " reverse pitch " to explain how
to best partner with them to serve
the needs of community banks and
their customers.
These respected and
well-established companies
generously shared their innovation
strategies and objectives in pursuit
of enhanced collaboration between
community banks and their preferred
fi ntechs and third-party providers.
That day will go down as a major
infl ection point for community banks
and your relationships with both
fi ntechs and core providers.
I have to commend every one of the
cores for their candor and ongoing
eff orts to create an environment
conducive to advancing community
bank innovation. They are seeking to
provide the solutions you need to be
successful and have demonstrated a
willingness to engage in new ways.
The work ICBA and its member banks
have done over the past several years
has helped foster this environment,
and every core openly gave their
time to provide a level of insight not
typically available in support of our
mutual goal.
Yet, the onus is not simply on the
core providers and fi ntechs to make
these relationships work: Community
banks have a responsibility to
drive the dynamics. We're entering
uncharted territory. It's not easy
for any large company to shift
historical processes and look to
become more cutting-edge. As the
evolution occurs, you must stay
diligent in communicating your needs
and expectations.
Take charge of this conversation
and confi rm they know how you as the
banker-the client-want this to work.
Be the inquisitive child who keeps
asking why until you've gotten the
answers you need. Lean into resources
like ICBA, our preferred service
providers, corporate associate members,
ThinkTECH alumni and other partners
in this space to identify best practices.
And never forget, you're stronger
together. Just like any business
relationship, unifi ed voices speak
louder and that's important to embrace
to advance your innovation agendas.
Leverage peers who share the same core
provider or fi ntech and work together to
push for important technology off erings.
Let your collective voice drive your
partners' priorities.
Outside of labor costs, the biggest
expense a bank has comes in their
technology stack, so these are critically
important relationships, and they have
to be top of mind when evaluating
your strategy. With so much potential
for new forms of innovation emerging
through this new fi ntech/core
paradigm, it may be simpler than ever
before. So, let's take them at their word
and go execute.
Charles Potts (charles.potts@icba.org)
is ICBA executive vice president and
chief innovation off icer.
Illustration by BillionPhotos.com/Adobe
http://www.BillionPhotos.com/Adobe
Independent Banker - April 2024

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