Independent Banker - November 2019 - 22

PORTFOLIO
Innovation Station
By Kevin Tweddle, ICBA
The many paths
to innovation
often tell people there isn't one right path
to innovation. A number of factors, including a
community bank's business objectives, available
resources and customer base, all factor into its
decision to pursue or forgo a technology solution.
ICBA's ThinkTech Accelerator program, which
connects early stage fi ntechs with community
banks, is yet another pathway to innovation, but
here, too, the value placed on individual off erings
by bankers varies based on their individual
operating strategies. My experience with the FI
FinTech Roundup, an ICBA-sponsored event for
community bankers, is similar. These collaborative
opportunities allow community bankers and
fi ntechs to come together to share ideas and learn
from each other, allowing innovation and these
institutions to thrive. Here are just a few examples
of the many paths community banks have
taken to innovation:
Q Nbkc Bank in Kansas City, Mo., formed its own
fi ntech accelerator, Fountain City Fintech, which,
22 Q ICBA Independent Banker Q November 2019
I
Kevin Tweddle
(kevin.tweddle@
icba.org) is
chief operating
off icer of the
ICBA Services
Network
to my knowledge, was a fi rst for any bank. In some
ways, it's similar to ICBA's own accelerator, but the
business case is diff erent. The $801 million-asset
community bank not only helps fi ntechs execute
new solutions, but also invites them into a longterm
banking relationship that allows them to
provide additional support.
Q Somerset Trust Company in Somerset,
Pa., created an " innovation petting zoo " that
it deemed National Fintech Day. The event
provided a forum for a host of technology demonstrations
from the $1.3 billion-asset community
bank's featured fi ntech vendors, including soda
vending machines that only accepted Apple Pay.
Q Live Oak Bank in Wilmington, N.C., spawned
one of the most successful fi ntechs of the past fi ve
years, nCino, which is an end-to-end, cloud-based
lending solution. The tech-savvy $4.3 billion-asset
bank developed its own solution, spun it off as
a separate company and now sells its solution to
hundreds of banks nationwide. nCino is just one
of many products being developed or in development
at Live Oak Bank.
Q North American Banking Company off ers
yet another example of a bank developing its own
fi ntech solution. Located in the Minneapolis-St.
Paul area, the community bank's ACH solution,
ExcheQ, allows customers to pay their friends
directly from their phones. The bank has grown
to $500 million in assets with its high-tech, hightouch,
innovative approach.
Q Cross River Bank in Fort Lee, N.J., raised
$100 million to build and invest in fi ntech
solutions for its customers. According to the
$1.9 billion-asset community bank, it powers
some of the most well-known fi nancial technology
startups in the U.S. and aspires to become a
one-stop shop for the fi ntech industry.
Five diff erent community banks, all with
very diff erent paths to innovation. Let me say it
again: There isn't one right path to innovation.
The concept of fast failure is really important as
well. Innovation is an area in which perfection
is almost impossible. It is an iterative process in
which we learn from our mistakes, make changes
and move on.
What path will your bank take? Although the
opportunities are infi nite, you need to fi nd the
path that's right for you, keeping your organization's
strategy, culture and customers in mind.
Independent Banker - November 2019

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