Welcome back to our postgame wrap-up of the 'Acquire or Be Acquired' conference!
This conference primarily focuses on providing senior bank and credit union leadership with unique opportunities to network with peers and partners alike - all in the spirit of financial growth, strategic initiatives, as well as partnerships. Bank Director does a fantastic job creating an environment of community that inspires creativity and stems innovation.
There is something truly unique about a conference that is rooted in M&A activity including the honest content and humbling remarks by industry leaders like KBW’s Thomas Michaud and Bank of America’s Brian Moynihan.
Key Takeaways and Session Insights:
1. Forward-Looking Focus
Banks and credit unions are increasingly realizing the significance of deposit growth. While this remains a central focus, there's a distinct opportunity for financial institutions to embrace forward-thinking strategies. By anticipating future needs and streamlining lending processes, institutions not only stimulate growth but also cultivate deposits from these same consumers.
2. Tech-Driven Growth
With just 18% of bank leaders believing their organization has the tools necessary to effectively serve Gen Z customers, there's a renewed emphasis on leveraging technology to drive funding growth. In today's challenging funding environment, banks need to streamline their processes and enhance efficiency to stay competitive. With tech-spend increasingly focused on driving core deposit growth, it's essential to retain, gather, and grow deposits effectively. Research analyst David Feaster highlighted the importance of technology in driving funding growth and reducing the cost of funds. Investments in technology that facilitate funding growth and enhance profitability are crucial for banks seeking to strengthen their position in the market.
3. Efficiency and Customer Experience
Lending programs must be tied to efficiency gains and enhancing the customer experience. Touchless consumer lending and the utilization of AI can significantly improve profitability while reducing customer acquisition costs. It's imperative for banks to refine their lending processes to adapt to evolving consumer preferences and market dynamics.
4. Diversification Strategies
With a slowdown in appetite for loan growth and uncertainties in commercial lending, there's a growing emphasis on diversification. Property values are expected to decline by 25-30% with further declines anticipated in 2024. Personal loans for consumers and small businesses can serve as valuable tools for diversifying away from commercial lending, especially in light of predictions regarding the commercial real estate market.
Overall, the 'Acquire or Be Acquired' conference provided valuable insights into the evolving landscape of banking, with a particular focus on leveraging technology, diversification, and navigating challenges in commercial lending. As CEOs and board members strive to make their institutions stronger and more resilient, the key lies in embracing innovation, refining lending strategies, as well as capitalizing on emerging opportunities.
Stay tuned for more postgame insights from the forefront of banking innovation.
At Amount, we've always been excited about the growing opportunities in small business lending. That's why we recently launched a new origination and decisioning platform, aiming to assist banks in swiftly and seamlessly achieving their SMB goals. We're thrilled to see that the rest of the industry shares in this sense of invigoration too.
PS. We'll be at Fintech Meetup in Las Vegas March 3-6, 2024, will you?
If so, join us at our panel 'Banking & Payments: How Top Banks are Using Fintech to Win in Consumer Banking' where Amount's CEO, Adam Hughes, will be giving insights on how banking executives can meet the heightened expectations around consumer lending and win without compromising safety, soundness or profitability.