Banks around the country, large or small, are focusing their attention on how they can better serve their customers by offering more competitive products and seamless user experiences. Recently, JPMorgan Chase established an all-mobile banking app called Finn, allowing them to reach markets they are not yet in, and provide a more seamless customer automation platform.
Community banks are offering extremely competitive loan products and pride themselves on serving the businesses in their community with customer intimacy and tailored services personal to each customer. No matter the size, banks are making a collective effort to adapt with recent growth in financial innovation.
For all of the largest banks, the push toward improving their customer experience is driven by technology, and the exponential advancements that tech has had in recent years. Fortunately, for them they are big enough to afford their own proprietary technology for online account management, onboarding new accounts, and even now with all-mobile banking apps.
For smaller community banks, partnering with technology companies is an equivalent solution, and just as beneficial. They don’t have the same resources larger financial institutions do, so partnering with fintech companies is a way for them to access similarly comparable value. We recently collected some feedback from two of the banks partnered with Vetter (thinkvetter.com).
Cattaraugus County Bank (CCB) partnered with Vetter for an easier loan origination process, loan volume, and customer experience. “Vetter enabled a lender-borrower relationship to work for me and an applicant in California despite being at opposite sides of the country. My client liked the idea of being able to use a local lending institution for their loan with Vetter’s digital application.”
Vetter gave CCB the ability to view and fund a loan that would’ve been impossible to do without their online application. The borrower, who runs and operates his business in Upstate New York, lives in California, so through the use of their online application, the long distance customer didn’t have to worry about complications with financial reports, excel spreadsheets, or submitting application.
So CCB had the opportunity to make innovative advancements for their bank and its customers, ultimately benefiting their lender-borrower relationship. Vetter makes sure to provide the best value for their clients who not only use the workspace and application (with built-in regulatory compliant document requirements), but also receive free onboarding and 24 hour customer service. And of course, we have compliance experts on our board who provide new regulation and policy updates to the digital application on a quarterly basis.
Many community banks rightfully view fintechs as a threat to their business. But many fintechs are there to enhance and complement the core competencies of community banks. When customers demand a better experience, fintechs are there to offer what smaller banks have yet to do on their own. Partnerships between community banks and fintech companies have been growing through recent years, and both banks and its customers have more to gain from it.
John Witkowski, the CEO of the Independent Bankers Association of New York State, commented about about how loan file management software gives his bank’s employees mutual access to process a loan. “Vetter’s digital lending platform is necessary for Community Banks to process and manage any type of loan application; Commercial to Consumer. Its approach is user-friendly and solves for real problems with the current lending processes.”
Vetter aligns itself with the needs of community banks to seamlessly originate and access more high quality loans. Bankers and brokers can freely upload and fund loans on the cloud based network. And a referral fee is granted to any bank who distributes a loan being serviced in the network. In the next few years, banking will be entirely different from what it is now with much more technological integration, regardless the size of the institution.
Artificial intelligence, blockchain, and deep learning neural networks will be the new normal in banking, but for banks who fear getting left behind today, it is critical for them to decide how they want to enter the future. Will it be through partnership opportunities that require minimal resources and money, or will it be through the continuation of precedents while customers demand something else?