Beyond PPP: How Savvy Financial Institutions Can Propel Growth & Profitability with Technology

Introduction

The term “digital transformation” has been floating around the banking industry for years. Community financial institutions across the country have gradually adopted digital offerings to provide speed and convenience to their branches and to their customers. Technology that was once reserved only for big banks with big budgets is now readily available for financial institutions of all sizes. However, not all financial institutions have embraced banking innovations with the same enthusiasm. While this may have just been a slight weakness earlier this year, the coronavirus pandemic has significantly widened the competitive advantage between the institutions that have leveraged digitalization versus those that have not, particularly in the face of the Paycheck Protection Program (PPP). Financial institutions that were quick to embrace digital solutions to automate PPP loans represent a turning point in banking digitalization.

Between adapting to stay-at-home orders and social distancing, to furiously working through PPP loans, and now navigating unexpected recessionary times, financial institutions have faced unprecedented challenges this year. Those that have been nimble, leveraging technology and digital solutions to increase efficiencies and manage risk, have shown that digital transformation is not just a trend – it’s the only way forward. The coronavirus pandemic and the PPP may have been the catalyst for change and innovation that the industry needed. How can financial institutions use the momentum from the innovations that have been adopted amid the coronavirus crisis and the PPP and translate it into growth and profitability moving forward?

 

DIGITAL OPTIONS TO MEET VIRTUAL DEMANDS

Nearly every industry has had to confront stay-at-home orders and social distancing measures, resulting in reconsidering traditional operations. The banking industry is no exception. Banking technology and digital offerings have long been associated with the preferences of Millennials and Gen Z, but the coronavirus has quickly reshaped banking behaviors. Since the coronavirus outbreak, almost half of banking customers have reported changing how they interact with their financial institutions, leveraging new channels like online and mobile banking, according to an FIS survey. These findings are true among all generations surveyed. “We’ve always wanted customers, over time, to transition to more of our digital or electronic connections because it’s just such an affordable delivery channel,” said Tom Hershberger, President and CEO at Cross Financial, during a podcast with Abrigo. Despite the fact that it’s been a very compressed timeline and extremely stressful, [the pandemic] has really helped push customers to more non-traditional channels.”

One of the reasons the coronavirus may be the ultimate catalyst for digital transformation is because of…

 

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About This Whitepaper

The term “digital transformation” has been floating around the banking industry for years. However, not all financial institutions have embraced banking innovations with the same enthusiasm. Those that have been nimble, leveraging technology and digital solutions to increase efficiencies and manage risk, have shown that digital transformation is not just a trend – it’s the only way forward.

How can financial institutions use the momentum from the innovations that have been adopted amid the coronavirus crisis and the PPP and translate it into growth and profitability moving forward?

Download to learn how banking technology can:

  • Reduce administrative and compliance burdens
  • Improve pricing strategies
  • Help recruit and retain talented staff
  • Cultivate growth and profitability

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