Summary List Placement
Small and midsize financial institutions (FIs)—those with under $100 billion in assets—can’t hope to compete directly with the quality of digital user experience (UX) on offer at the largest US banks due to their smaller tech budgets. Per 2020 eMarketer data, the nine largest US banks accounted for 60% of total banking IT/tech expenses as of May 2020.
And with the onset of the coronavirus pandemic ultimately forcing banks of all sizes to reduce in-person services and turn to digital, FIs face intense pressure to keep up with digitization demands. Despite obstacles small FIs may encounter when it comes to a digital transformation, there are many advantages and strategies they can utilize to reach success and remain competitive in the space.
How can smaller FIs use digital to their advantage?
While smaller and midsize FIs may lack the financial resources as their larger counterparts, they tend to have higher consumer trust than some of the largest US banks. This trust could offset some of their delayed innovations. Additionally, their deeper customer relationships can enable them to roll out more granularly personalized products.
Smaller FIs can also offer more competitive rates on financial products than large and giant banks, which they can combine …read more
Source:: Businessinsider – Finance