My team and I have been called contrarian, which we will take as a compliment; we believe that the best community banks will beat the best FinTech players. Best on best so to speak.
Why do we feel this way?
Because, FinTech cannot win against modern community banks that combine their in-market, relationship-based banking with progressive technology.
To start, we define things a bit differently than most…
Community Bank(ing): ‘It is a way of doing business, not a size. It is about in-market, relationship-based banking.’
Progressive Technology: ‘Mobile-first products built to be banker-first (not bank) to enhance customer relationships, plus, marketplace technology that expands loan opportunities.’
BankLabs‘ ‘why’ is to ensure the survival and growth of community banks. Traditional financial institutions and the companies that have historically served them face disruption like never before. There are approximately 2,400 FinTech companies hunting for success and community banking customers are in their crosshairs.
In ancient Roman religion and mythology, Janus was the god of beginnings and transitions, doorways and endings. Considered to be one of the most important Roman gods, Janus was often depicted with two faces looking in opposite directions, the past and the future.
This is a great metaphor for what FinTech is not just doing to, but also for regional and community banks… Much like Janus has two faces that represent beginnings and endings; FinTech has unknowingly created a Face of Opportunity for progressive banks looking towards the future, not just the Face of Doom that most have latched onto.
FinTech has technology, easy processes and speed. But now some progressive community banks are deploying mobility technology to get their bankers out of the office, to work with borrowers in person and for those same borrowers to use the mobile technology to get money faster and easier. Community banks are winning this battle now because they can combine the new Mobile Technology + In-market relationship-based banking whereas FinTech just has the tech.