Independent Banker - August 2019 - 54

fees. Fiserv offers Communicator Advantage for banks
that want the ability to connect third parties to their core
system; and Jack Henry offers jXchange, which connects
banks and third-party vendors.
Some banks prefer to tap into third-party vendors
because it allows them to pick and choose the most
appealing technology, rather than relying solely on the
technological solutions the core provider has to offer.
Indeed, for those banks whose systems are robust enough
to support this type of relationship, it can be a win-win.
Wilson Bank & Trust, a $2.5 billion-asset bank in
Lebanon, Tenn., is one example of a bank that likes to
pick and choose which technology it adopts. It uses the
" If you're using
everything just from
the core, how are
you differentiating
yourselves? "
-John Gill,
Somerset Trust Company
middleware of Jack Henry, its core provider, to make
this happen. If Jack Henry doesn't offer a solution that
matches the bank's needs, there's the option to integrate
with a third-party vendor using jXchange, says Stephen
Jaquish, the community bank's senior vice president and
director of technology.
Somerset Trust Company, a $1.3 billion-asset bank in
Somerset, Pa., is another bank that prefers to make its own
selection of third-party vendors. Years back, management
opted not to use the standard customer-facing apps from
its core vendor, Fiserv, and instead hand-pick its own,
says John Gill, the bank's chief operating and risk officer.
Because its core is able to connect to third-party fintechs,
the bank has multiple options for vendors.
" We want to be able to differentiate our products from
other banks on Fiserv's core, " Gill says, hitting on an
issue with which many community banks struggle. " If
you're using everything just from the core, how are you
differentiating yourselves? "
However, integrating with a third-party vendor is not
54 Q ICBA Independent Banker Q August 2019
always so simple. Stacey Zengel, president of Jack Henry
Banking and vice president of Jack Henry & Associates,
says the back-and-forth process between the core, the
bank and the third-party vendor can take days, weeks or
months, depending on how complex the integration is.
Indeed, banks that want the ability to work with thirdparty
vendors generally need to be aggressive about
brokering the necessary connections with their core
provider, bankers say.
Making your needs clear
To get the most out of their fintech partnerships, bankers
say it's critical to communicate their desires clearly to the
partner as well as the core provider to ensure everyone
is on the same page. Broadway Bank, a $3.6 billionasset
bank in San Antonio, Texas, did just that when it
was looking for ways to make banking more convenient
and accessible to customers, says president and CEO
David Bohne.
The community bank worked closely with iLendx (then
an independent fintech that has since been acquired
by Fiserv) to bring the vision to life. There was a lot of
interaction between Fiserv, the bank's core provider,
and iLendx to make it happen. Now, however, bank
customers can open up checking and savings accounts
online 24/7 in as fast as two minutes. Customers can also
be preapproved for auto loans and home equity lines of
credit on their mobile devices.
Bohne's advice to other banks is to have ongoing, open
communication with their core providers about what the
system they're on can actually do, as opposed to what
they think it can do. Banks need to understand what the
system is designed to do and what the limitations may be
and share their vision with the core provider.
" A small idea can end up becoming a huge step forward "
with vision, communication and partnership, Bohne says.
Be mindful of limitations
For banks that have been more aggressive in working
with core providers on innovation, some of it depends on
having the proper mindset-and budget. Without ongoing
investment in technology, it's very hard to compete
effectively, they say.
" It has to be a priority, " says Kathy Strasser,
executive vice president and chief operating officer of
$1.4 billion-asset River Valley Bank, soon to be known as
IncredibleBank, in Wausau, Wis. (See page 40 for more
on IncredibleBank.)
Independent Banker - August 2019

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