Independent Banker - June 2024 - 22

PORTFOLIO INNOVATION STATION
Setting the stage
for banking the
next generation
By Charles Potts, ICBA
n recent years, community
bankers have embraced constant
change to drive the future of
banking. As you follow your
innovation journeys, you also are
leaning into a cycle of continuous
improvement: hiring, recruiting,
building products and off ering
solutions on an ongoing basis. The
start-and-stop approach of the
past has given way to an approach
that's more fl uid and responsive to
today's needs.
Part of that decisioning stems
from the pace of technology in
today's landscape, but it also grows
out of the fact that the needs and
attributes of customers and staff
themselves are ever-changing.
Remember when preparing for
millennials was our primary focus?
The oldest members of that cohort
are now in their 40s, with elder Gen
Z already in their mid to late 20s.
If that isn't indicative of how much
change is happening at all times,
nothing is.
Generational evolution
We're really getting at the important
business concept of generational
I
evolution, where preparing for
the next generation develops into
a continuous, cyclical fl ow. For
instance, if you're going to invest in
a banking product for teenagers, you
have to consider what happens when
those customers aren't teenagers
anymore. Or, if you put an emphasis
on a banking product for seniors,
what happens when you have fewer
senior citizen accounts? You must
factor in the generational evolution
of your customers, not just build
point-in-time solutions.
To that point, next-generation
customers may never step foot
in a branch. While people of my
generation are digital migrants
having moved into a digital space,
Gen Z comprises digital natives who
have never known anything but
digital-fi rst solutions. This leads to a
profound generational and cultural
diff erence in how Gen Z views
acquiring services of all kinds: Their
expectations start with digital and
self-service. While they will still seek
the high-touch support of community
banks, that digital banking
experience becomes the entry point
to banking for this generation.
Designing next-generation banking
As community banks continue to
advance on this intergenerational
path, start with your current and
target customers. Talking to them and
getting their perspectives on how they
acquire and consume banking services
can provide the insights necessary
for what's next. The more you talk to
them, the better you can anticipate
their continuous evolution so you can
eff ectively position your bank to refl ect
the customers you are trying to grow
and nurture.
With that in mind, I hope you'll peruse
this month's leadership issue and the
40 Under 40 feature with an eye toward
building for the future. Because while
change is constant, it also provides an
opportunity to strengthen your standing
in your community with customers of all
generations. And ultimately, isn't that
focus on the customer what it means to
be a true community banking leader?
Charles Potts (charles.potts@icba.org)
is ICBA executive vice president and
chief innovation off icer.
22 // ICBA Independent Banker // June 2024
Illustration by SMUX/Adobe
Independent Banker - June 2024

Table of Contents for the Digital Edition of Independent Banker - June 2024
