Why Community Financial Institutions and Fintechs Are a Great Match

It’s long been known that the traditional banking system just doesn’t work for the lifestyle of today’s consumers. Fintechs have noticed these problems and created digital solutions to almost all banking needs but there is still a lot of hesitation for community financial institutions to partner with these companies—but why?

It’s not that community banks aren’t interested in improving customer experience and increasing offerings. In many cases, they’re constrained by the technology they’re already using. However, many bankers notice their current technology has slow turnaround times, few options for customization, and come at a high cost.

Larger banks may have the ability to more easily implement new technology, but community banks are more in tune with their customer’s wants and needs. A smaller size allows for better customer relationships.  This can also benefit your partnership with a fintech, as we can communicate personally and understand exactly what your needs are and how we can work together to accommodate those needs. Fintechs can help your bank retain its roots in excellent customer service while being quick, adaptive, and innovative.

Many institutions think they may just build their own digital solutions when they’re ready. While this is an option, it takes a lot of manpower to build, launch, and maintain digital services as well as lots of time-- years, even. However, community banks often do not have the resources readily available to implement such big changes. In these instances, it might be in a community bank’s best interest to partner with a fintech instead. Fintechs offer the ease of already having created and tested the software and have the manpower to install and maintain it.

Since fintechs are typically comprised of programmers and developers, many times the partnership is needed to help navigate the complexities of banking. Teslar is unique in that the majority of our staff have a background in the banking industry. Our solution is not just any developer’s solution, but a banker’s solution!

Schedule a demo with us today to see how we can help you empower your community bankers! 

Sources:

https://thefinancialbrand.com/88579/community-financial-institutions-fintech-partners-digital-technology-api/

https://www.cnbc.com/2019/02/15/small-banks-youve-never-heard-of-quietly-power-the-booming-fintech-industry--.html