Name: Community banking: The challenges of the current landscape
Uploaded: 2023-06-20T08:50:20.167Z
Duration: 323.86
Description: Charles Potts, SVP, Chief Innovation Officer, ICBA, joins us to give an overview of the competitive environment community banks are operating in and how they can keep up the pace. Stay up to date with the community on https://finovate.com/ Find out more about FinovateSpring on http://www.finovatespring.com/

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Charles Potts.vtt

English

{{00:00:05}}
David Penn: Hi, I'm David Penn,
research analyst with Finovate.

{{00:00:07}}
We're here at FinovateSpring 2023
in San Francisco, California.

{{00:00:10}}
Joining me is Charles Potts.

{{00:00:12}}
He's the S V P and Chief Innovation
Officer with I C B A, the Independent

{{00:00:16}}
Community Bankers of America.

{{00:00:17}}
Thanks for joining us today.

{{00:00:18}}
Thank you.

{{00:00:19}}
I appreciate.

{{00:00:19}}
Hey, so I thought maybe we could start
off with you just telling us a little

{{00:00:21}}
bit about some of the key challenges that
community bankers are facing these days.

{{00:00:25}}
Charles Potts: We happen to be in a very
interesting economic upheaval right now.

{{00:00:31}}
One of the things from an innovation
perspective that we look very keenly

{{00:00:35}}
at is what are the technologies and
tools that can help our financial

{{00:00:40}}
institutions meet some of these
challenges that are happening?

{{00:00:43}}
And right now, deposits are top
of mind for all community banks.

{{00:00:47}}
So finding a way to help them meet that
deposit, retention and acquisition.

{{00:00:53}}
Necessity as as we look at capital and
capital adequacy, that that is really

{{00:00:59}}
top of mind as a current challenge.

{{00:01:01}}
But at the same time, we also
have the whole faster payments

{{00:01:05}}
initiative coming at them.

{{00:01:07}}
So this is one of the current.

{{00:01:10}}
Real near time opportunities for banks
to look at more innovative capabilities

{{00:01:15}}
to meet these ongoing opportunities.

{{00:01:17}}
David Penn: I'm curious if you
could talk about both the, this new

{{00:01:19}}
landscape, relatively new landscape
we're talking about, as well as these

{{00:01:22}}
new technological opportunities with
payments in terms of how customer

{{00:01:25}}
expectations may be shifting or evolving.

{{00:01:27}}
Charles Potts: Yeah.

{{00:01:27}}
So one of the things that is very
profoundly keen on the minds of community

{{00:01:33}}
bankers that was really demonstrated by
the heroic efforts of them during the

{{00:01:38}}
PPP crisis is that customers of all types
have, really come to expect more digital

{{00:01:46}}
capabilities, more frictionless service.

{{00:01:48}}
At the same time, our
community banks have to.

{{00:01:51}}
Continue to maintain that unique
high touch and high tech relationship

{{00:01:57}}
model that's keenly important.

{{00:01:58}}
So those those opportunities to
be very, digitally savvy, very

{{00:02:04}}
frictionless and give their customers
that really high touch relationship.

{{00:02:10}}
Orientation that is
unique to community banks.

{{00:02:13}}
It's still one of the the opportunities
to make sure that the kinds of

{{00:02:17}}
technology solutions and partners that
community banks embrace can continue

{{00:02:22}}
to reinforce that relationship.

{{00:02:25}}
David Penn: Now you talked about a number
of different opportunities that are out

{{00:02:27}}
there for community for community banks.

{{00:02:28}}
In terms of technology, but
often as we know, opportunities

{{00:02:31}}
come sometimes with obstacles.

{{00:02:32}}
And I'm wondering what are some of
the obstacles that community banks

{{00:02:34}}
are facing when it comes to adopting
some of these new technologies?

{{00:02:37}}
Charles Potts: One of the, one of
the things we've heard loud and clear

{{00:02:40}}
from, bankers around the country
is there's a talent war, there's a

{{00:02:44}}
finding the right kind of talent to
help evolve the strategies and the

{{00:02:50}}
future directions of our community
banks, is a key part of them.

{{00:02:55}}
Being certain that the types of innovation
they're pursuing is gonna be properly

{{00:03:01}}
properly built and properly delivered.

{{00:03:03}}
So talent is, at the top of mind
of our bankers also having the

{{00:03:08}}
right kinds of partnerships.

{{00:03:10}}
Making sure that that they're de-risking
the, this new evolving landscape of

{{00:03:16}}
FinTech entrepreneurs and solutions.

{{00:03:19}}
And delivering it again in the right way
that meets the needs of the community

{{00:03:22}}
bank and the communities they serve.

{{00:03:24}}
David Penn: You mentioned partnerships a
second ago, and there's a couple of ways

{{00:03:27}}
I wanted to maybe talk about that as a,
as our, maybe our final conversation.

{{00:03:31}}
One, are partnerships a way of helping
square that talent circle for one and two?

{{00:03:36}}
What are some of the.

{{00:03:39}}
Key issues when it comes to trying to find
the right partners that are really gonna

{{00:03:42}}
work with a community bank as opposed to
some other sort of financial institutions.

{{00:03:44}}
Charles Potts: Yeah there's, no doubt
that the, technology is moving faster than

{{00:03:48}}
ever before and, availing themselves of
this technology is a critical need for.

{{00:03:55}}
For banks.

{{00:03:56}}
So partnerships become one of the
quick, easier ways to, move and meet the

{{00:04:01}}
challenges in the marketplace and with
that augment or supplement or compliment

{{00:04:06}}
the talent needs that they have.

{{00:04:09}}
And, with that, what we find, and this
is very important to us in the Think

{{00:04:12}}
tech accelerator that we run at I C B A
is making sure that those tech companies

{{00:04:17}}
and the tech founders understand the
ways in which they must evolve their

{{00:04:23}}
businesses to work with community banks.

{{00:04:27}}
It's not just about a
product relationship.

{{00:04:30}}
It sometimes is more about a
collaborative relationship.

{{00:04:33}}
Okay.

{{00:04:34}}
And at the same time, these companies
have to also be very keenly aware

{{00:04:38}}
of their needs to meet the evolving
regulatory and compliance landscape

{{00:04:42}}
that bankers have to address very
very rigidly as they're looking at new

{{00:04:47}}
solutions and, new ways of serving their
com their markets and their community.

{{00:04:52}}
David Penn: Really something,
it's interesting things for

{{00:04:53}}
fintechs to have to think about.

{{00:04:54}}
They've got their technologies,
they're very happy about it, but now

{{00:04:57}}
you've gotta take that next step.

{{00:04:58}}
You've gotta work with people, real people
with real problems and real challenges,

{{00:05:01}}
including regulatory challenges as well.

{{00:05:03}}
Fantastic.

{{00:05:03}}
Very interesting talking with you.

{{00:05:04}}
It's always wonderful to have community
bank representation at Finovate.

{{00:05:08}}
Community banks are the lifeblood
of the financial systems.

{{00:05:10}}
So very, important to hear
what you guys have to say.

{{00:05:12}}
Charles Potts: Thank you and I
appreciate the opportunity to

{{00:05:14}}
share what we're doing at I C B A.

{{00:05:16}}
David Penn: Fantastic.

{{00:05:16}}
Thank you.

{{00:05:17}}
And thank you for joining us as well.

David Penn: Hi, I'm David Penn,
research analyst with Finovate.

We're here at FinovateSpring 2023
in San Francisco, California.

He's the S V P and Chief Innovation
Officer with I C B A, the Independent

Hey, so I thought maybe we could start
off with you just telling us a little

bit about some of the key challenges that
community bankers are facing these days.

Charles Potts: We happen to be in a very
interesting economic upheaval right now.

One of the things from an innovation
perspective that we look very keenly

at is what are the technologies and
tools that can help our financial

institutions meet some of these
challenges that are happening?

And right now, deposits are top
of mind for all community banks.

So finding a way to help them meet that
deposit, retention and acquisition.

Necessity as as we look at capital and
capital adequacy, that that is really

But at the same time, we also
have the whole faster payments

Real near time opportunities for banks
to look at more innovative capabilities

David Penn: I'm curious if you
could talk about both the, this new

landscape, relatively new landscape
we're talking about, as well as these

new technological opportunities with
payments in terms of how customer

expectations may be shifting or evolving.

So one of the things that is very
profoundly keen on the minds of community

bankers that was really demonstrated by
the heroic efforts of them during the

PPP crisis is that customers of all types
have, really come to expect more digital

At the same time, our
community banks have to.

Continue to maintain that unique
high touch and high tech relationship

So those those opportunities to
be very, digitally savvy, very

frictionless and give their customers
that really high touch relationship.

Orientation that is
unique to community banks.

It's still one of the the opportunities
to make sure that the kinds of

technology solutions and partners that
community banks embrace can continue

David Penn: Now you talked about a number
of different opportunities that are out

In terms of technology, but
often as we know, opportunities

And I'm wondering what are some of
the obstacles that community banks

are facing when it comes to adopting
some of these new technologies?

Charles Potts: One of the, one of
the things we've heard loud and clear

from, bankers around the country
is there's a talent war, there's a

finding the right kind of talent to
help evolve the strategies and the

future directions of our community
banks, is a key part of them.

Being certain that the types of innovation
they're pursuing is gonna be properly

So talent is, at the top of mind
of our bankers also having the

Making sure that that they're de-risking
the, this new evolving landscape of

And delivering it again in the right way
that meets the needs of the community

David Penn: You mentioned partnerships a
second ago, and there's a couple of ways

I wanted to maybe talk about that as a,
as our, maybe our final conversation.

One, are partnerships a way of helping
square that talent circle for one and two?

Key issues when it comes to trying to find
the right partners that are really gonna

work with a community bank as opposed to
some other sort of financial institutions.

Charles Potts: Yeah there's, no doubt
that the, technology is moving faster than

ever before and, availing themselves of
this technology is a critical need for.

So partnerships become one of the
quick, easier ways to, move and meet the

challenges in the marketplace and with
that augment or supplement or compliment

And, with that, what we find, and this
is very important to us in the Think

tech accelerator that we run at I C B A
is making sure that those tech companies

and the tech founders understand the
ways in which they must evolve their

It's not just about a
product relationship.

It sometimes is more about a
collaborative relationship.

And at the same time, these companies
have to also be very keenly aware

of their needs to meet the evolving
regulatory and compliance landscape

that bankers have to address very
very rigidly as they're looking at new

solutions and, new ways of serving their
com their markets and their community.

David Penn: Really something,
it's interesting things for

They've got their technologies,
they're very happy about it, but now

You've gotta work with people, real people
with real problems and real challenges,

It's always wonderful to have community
bank representation at Finovate.

Community banks are the lifeblood
of the financial systems.

So very, important to hear
what you guys have to say.

Charles Potts: Thank you and I
appreciate the opportunity to

FinovateSpring

Trend

Charles Potts, SVP, Chief Innovation Officer, ICBA, joins us to give an overview of the competitive environment community banks are operating in and how they can keep up the pace. 

Stay up to date with the community on https://finovate.com/ 

Find out more about FinovateSpring on http://www.finovatespring.com/ 