FinXTech Intel 2023 report final 2 - Flipbook - Page 7
What are your greatest concerns about your bank’s internal
technology expertise?
Respondents were asked to select all that apply.
48%
48%
45%
35%
Not effectively using/
aggregating our bank’s
data
Inadequate
understanding of how
emerging technologies
could impact our bank
Reliance on outdated
technology
Inability to identify
specific technologies to
help our bank achieve
its strategic goals
28%
25%
11%
Product constraints and
shortages
Inability to identify
specific companies/
resources to help our
bank achieve its goals
Ineffective vendor due
diligence
Source: Bank Director’s
2022 Technology Survey
One big hurdle for smaller banks is the cost of using third-party solutions. “Nothing about
technology is ever cheap,” Sabo says. “Even things as simple as, ‘We need to refresh all of
our hardware,’ becomes a massive investment for a [community] bank. And if you’re held
to your earnings per share each quarter, or you’re held to your return to your investors each
quarter … you may keep putting it off. Many banks are in a situation where they’re anxious about their technology because they haven’t invested along the way.”
54%
Talent is another large obstacle banks face. Small banks, especially those in rural areas, may
of bank executives
and directors believe
their bank allocates
sufficient resources
to technology and
innovation.
struggle to find the staff to make the technology a success. Information technology departments often aren’t equipped with strategic decision-making skills to ensure a fintech partner
will meet the bank’s big-picture goals.
And banks that want to leverage data analytics to improve their business will have to hire
data scientists and data engineers, says Corey Coscioni, director of strategic alliance and
business development at West Monroe. “You’re going to need to build some level of internal
capabilities,” he says.
Source: Bank Director’s 2022
Technology Survey
To find out more about the talent needed to partner with fintechs,
go to page 6.
Naomi Snyder is editor-in-chief of Bank Director.
FINDING FINTECHS: HOW DO YOU DECIDE? | 5