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Insights from the 2024 Bankers as Buyers Report: Preparing your Financial Institution for the Future

Insights from the 2024 Bankers as Buyers Report Preparing your Financial Institution for the Future

In a constantly evolving world and financial landscape, understanding today’s trends will guide future decision making and allow banks and credit unions to prepare their financial institution for the future.

In the 2024 edition of Bankers as Buyers, we reflect on current industry trends and how leaders can future-proof their financial institutions for the longevity and benefit of their account holders.

Lending tech

When interest rates eventually drop, the demand for various types of credit will increase. Financial institutions should reflect on their current state and make changes so that when the time does come, they are ready to take on these requests.

“It’s the best time for an institution to evaluate its workflow, people, processes and technology. Doing so will show where improvements can be made, changes that should be made now before rates drop so that staff isn’t swamped by a sharp increase in business,” said Brit Barker, VP of sales at Origence.

By being proactive and updating technology, financial institutions can avoid being caught “flat-footed” in the case of a market shift. Additionally, tapping into new AI technology can help lenders digitize lending processes without having to take on a larger labor force.

Payment tech

In 2023, the payments industry saw the introduction of the Federal Reserve’s instant payment system, FedNow. This is a platform that supports instant payments in banks and credit unions alike, allowing account holders to transfer money in real time at any time. For smaller, regional institutions, FedNow can revolutionize these banking experiences.

“Real-time payment processing has always been a little bit outside the reach of mid-sized and regional financial institutions, so they’ve always looked to outsource those things,” said Jeff Ostheimer, Director of fintech advisory services at Strategic Resource Management (SRM).

Institutions should invest in resources that allow their customers to access these services as FedNow has the potential to completely change the banking industry. Especially for institutions that reach a smaller demographic, including customers in this technology revolution will aid in longevity and deposit health.

Anti-fraud technology

With the increasing popularity of artificial intelligence and the advanced capabilities of many fraudsters, it is important to prep institutions for fraud and other hazards. This is the single most important thing when future-proofing a financial institution. If customers cannot trust that their money is safe, they will take their business elsewhere.

“The fraudsters continue to refine their technologies and methods, forcing financial institutions to do the same. These improved systems are being deployed at almost the same rate that they are being planned. Banks are treating these systems as urgent,” said Sam Kilmer, Managing Director at Cornerstone Advisors.

As technology continues to become more advanced and anti-fraud detection becomes more efficient, it is crucial to invest in infrastructure for the longevity of the bank or credit union.

Integrating technology into your current strategies is a necessity to be successful in the future. Embracing new solutions offers the opportunity to enhance efficiency and navigate future challenges with greater agility.

Interested in reading the full Bankers as Buyers report? Download your free copy, here.  

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