“One of the great strengths in the U.S. is our true, in-market, relationship-based banking approach,” says @MattJohnner. Read this article from @FinancialBrand to see how #FIs can use that strength to help them compete: https://bit.ly/2MmW76b
Check out the latest issue of Canadian Equipment Finance to see what @MattJohnner has to say about benefitting from the Construction Act: https://bit.ly/2PxiYvT
“Mobile banking must be bank-agnostic in order to be effective,” says @MattJohnner. To see more thoughts on #mobile #banking, check out this @BAI_Info Banking Strategies article: https://bit.ly/2Ea4SOS
Does your #digital deposit strategy need an upgrade? Read this article in @CUBizMagazine to see what #creditunions can be doing to stand out from the crowd: Credit Union Business Magazine
On Oct. 10 the state of Pennsylvania enacted significant changes to its Contractor and Subcontractor Payment Act (CASPA). In short, the amendments provide increased protections for payment on private construction projects, while at the same time impose new and additional notice requirements of which owners, lenders, contractors and subcontractors must all be aware. For the full article visit PaymentsSource
CUs and fintechs represent unique spaces, but they can pair together perfectly to provide the best services.
While fintechs are synonymous with innovation and modernism, credit unions are, and have always been, symbols of stability and tradition. In order for these two powerful payments players to work together, each needs to understand the other and use its strengths to form a valuable partnership.
Click here to go to Credit Union Times to login and read the full article.
MBA Insights recently held a roundtable discussion with several industry executives for their perspectives on the housing market, mortgage technology and the future of real estate finance.
Participants included:
Matt Johner, President and Co-Founder of BankLabs, Little Rock, Ark. He is responsible for corporate strategy, branding and growth plans including the execution of all sales, marketing, business development and customer success activities, with the goal of reimagining banking products of the future through community-oriented technologies that create new fee income, attract deposits, expand loan opportunities and differentiate the financial institution from competitors.
View the full article here.
By Matt Johnner
As Featured in Progress In Lending.
Construction lending is a growing sector of the mortgage industry and one that has traditionally been dominated by big banks. Recently however, these big banks are taking a more conservative approach on construction loans, creating opportunities for smaller, community-focused banks to seize the steady flow of capital.
While big banks are choosing to limit exposure by focusing more on existing customers, other financial institutions can jump in to fill the void. Of course, this means that the competition between small and mid-level banks focused on construction lending is reaching an all-time high.
So, how can a financial institution differentiate itself in such a competitive market? The answer is by offering solutions that automate the entire construction loan process, making life easier for all parties involved.
Establishing a Successful Partnership Between a Financial Institution and a Fintech
By Matt Johnner, president and co-founder of BankLabs
As featured in William Mills Agency’s 2018 Bankers as Buyers Report.
Our society associates financial institutions with stability and trust, while fintechs typically epitomize change and innovation. These two opposing forces may seem to have very little in common, but that does not mean they can’t successfully work together to achieve a common goal.
According to PricewaterhouseCooper’s (PwC) 2017 Global Fintech Report, over 80 percent of financial institutions believe business is at risk to innovators. That may be true if the innovator is attempting to stand alone or replace financial institutions altogether. However, by partnering with a financial institution, innovators can work with a bank or credit union to solve an issue or meet a need.
Additionally, PwC reports that 82 percent of financial institutions expect to increase partnerships with fintechs in the next three to five years. This shows that financial institutions are willing to explore the innovative world of financial technology in order to provide better service to their customers, or scale a product outside of their traditional market.
Benefits of Partnerships between Financial Institutions and Fintechs
By partnering with a fintech provider, financial institutions improve upon the things they are already doing well. Technology can be used to solve an issue, update an existing process or enhance customer interactions. Fintechs have a lot to offer financial institutions, such as advanced, forward-looking technology and a fresh, outside perspective.
Of course, the partnership is just as beneficial to the fintech provider. Fintechs may hope to disrupt the industry by creating an unparalleled user experience, but solely focusing on this is not enough to be successful. A fintech provider without a financial institution to serve often ends up biting off more than they can chew.
With the implementation of a fintech service, financial institutions can differentiate themselves from other lenders in the space. By automating services and providing consumers with an innovative and efficient tool to make their lives easier, the financial institution becomes more competitive while also broadening their market. And, customers receiving a positive user experience from their bank or credit union will likely choose to stay with that bank or credit union.
A successful fintech partnership can also provide an additional revenue stream for the financial institution. Some fintechs can offer financial institutions modern, user-centric services that fulfill consumers’ needs while simultaneously charging a small fee on transactions that goes straight back to the financial institution. Think about how many paper checks still exist in unique industries or processes.
Tips to Create a Successful Partnership
Let’s start with an unsuccessful partnership; this is one that is created with the purpose of looking for a problem rather than solving one. A successful partnership begins when a fintech and a financial institution see a solution to an existing problem and need each other’s help in bringing that solution to life.
A smart fintech understands that a financial institution’s brand is extremely important to its success and cannot be jeopardized. Fintechs must approach potential partnerships with a thoughtful, conservative mindset. A failed fintech reflects poorly on the financial institution and its brand.
An equally important factor in a successful partnership is the financial institution ensuring its fintech provider has a strong background in banking. While fintechs offer unique, outside perspectives, they should also understand the fundamentals and the complexities of banking. The best fintechs have established bankers as part of their team or board of directors who understand the banking industry and the sanctity of its brand, needs and technology.
In addition, fintechs should leverage the financial institution’s existing products if speed to market and velocity is important. The solution must seamlessly integrate into the existing landscape and utilize the financial institution’s pre-existing product or distribution to solve a problem.
Lastly, open communication between the financial institution and fintech provider is key. The two should take part in an open discussion at the beginning of the partnership to determine goals and expectations. As previously mentioned, each party has a very different way of thinking, so it is imperative to discuss the definition of success early in the relationship.
It is important to remember that fintechs and financial institutions should not be competing with each other; they should be supporting each other. The best partnership is one in which both the parties achieve a goal that helps improve processes, reduce costs and enhance the user experience.
Matt Johnner is president and co-founder of BankLabs, a national provider of innovative, mobile technology products that help community banks improve efficiency, increase time for relationships with customers and create marketplace options that expand business opportunities. BankLabs believes that community banking is a way of doing business, not a size. For more information, visit www.banklabs.com.
As featured in American Banker.
As construction lending starts to make a comeback, many community banks relying on lending to developers and builders are looking to use cutting-edge digital interfaces to help them attract more clients.
“It’s important for us to create convenience not only for our clients but for their clients as well [such as subcontractors] and give them quicker and more convenient access to funds,” said David Veurink, chief credit officer and head of commercial banking at Chicago-based Countryside Bank.