With harder times looming ahead, plenty of Americans are taking a closer look at their financial wellness. Much like the years following the 2009 global recession, people will turn to their banks and credit unions for support during the coming months, which presents a big opportunity for financial institutions to serve as champions for their communities. This is therefore the perfect moment for banks and credit unions to explore partnerships with fintechs that can offer fast ways to engage with and reassure their customers.
Fintech Companies Can Move Fast
With time and resources, there’s no doubt that banks and credit unions could roll out some of the features that fintechs provide. But is that really a good idea? Think of what it takes to implement a new feature in an application: To do it right requires a lot of talent, time, and money. To create an in-house version of what many fintech companies already produce, you basically have to create a small fintech startup inside of your own institution. Although some national banks and credit unions have the time and budget to do just that, most smaller community institutions don’t.
However, there’s good news: Many fintech companies offer features that can build directly into a banking application. They’re able to keep pace with a changing market, and they offer features that are easy to integrate, easy to use, and in high demand from customers. This feature set is critical, because while the in-person experience at community banks and credit unions is still vital, ignoring digital finance is a really risky move for financial institutions.
Good Mobile Banking is a Big Advantage.
The current crisis is certainly revealing the importance of having a good mobile banking experience. And, even though the crucial role of mobile finance will decline somewhat once the country re-opens, the lesson will persist: Financial institutions that have high-quality mobile experiences have distinct advantages over those that do not. Some financial institutions are offering customers the tools and support they need right now, but many are not. In an era of increased digital engagement, older, cookie-cutter banking applications will fall short of user standards. And as younger people come to rely more and more on digital finance, this translates into an all-around bad banking experience for the customer.
So how do small financial institutions keep up? The fintech ecosystem can solve the problems of development time and cost by providing sleek, integrated features that draw more customers to their mobile experience. In the years to come, any banking application without the functionality provided by fintech applications will be left behind.
Fintech Integration can Lead to Revival
Large financial institutions are going to offer their users new features to help them through uncertain economic times. They have the time and money to create cutting-edge technology that they build directly into their applications. But there’s no reason why everyone can’t follow suit. Customers are going to be looking for financial help in the coming months, and fintechs can help banks and credit unions be the institutions that supply that help.
People are going to search for financial champions, not simply institutions, to help them through this troubling time. Banks and credit unions will need to find new ways to serve their community, and so it is the ideal time to partner with fintech and get people the help they need. Any financial champion that takes these steps will stand out far ahead of the competition.
