Page 5 - Summer 2024 - 2.pub

Top Ten Trends Impacting Bank Technology for 2024

“Look at all those chickens!” ‐ Popular Vine Meme

(Second of a Two‐Part Series)

BY JIMMY SAWYERS

exper se in cybersecurity, vendor
The Spring issue of Arkansas Community Banker featured the
management, strategic tech
first part of Jimmy Sawyers’ “Top Ten Trends Impac ng Bank
planning, network administra on,
Technology for 2024,” provided as a special two-part series. If you
risk management, and tech provider
missed the first installment, here is a quick “rewind” list of Predic ons
evalua on, expect bankers to
#1 through #5:
assemble more external teams of
PredicƟon #1 trusted advisors to complement in-
house players who are wearing the
The Robots Arrive as ArƟficial Intelligence (AI) Gains Unstoppable
bank’s jersey.
Momentum
No one person can be expected to
PredicƟon #2
know it all or do it all when it comes Jimmy Sawyers is the co-founder
MicrosoŌ’s Significance in Banking Expands with New M365 Features to leading a bank’s technology of Sawyers & Jacobs LLC, a
PredicƟon #3 efforts. CIOs who try are commi ng consulting firm focused on serving
career suicide. CEOs who allow it are financial institutions. Sawyers &
Zombie Fintechs Lose Their Brains (Funding) and Finally Die
not properly leading their banks. Jacobs is an ACB Associate
PredicƟon #4 Member. Jimmy may be reached
Challenge QuesƟon at 901-487-2575 or email
Service Trumps Technology as Core EvaluaƟons and MigraƟons jsawyers@sawyersjacobs.com .
Increase Who are the most valuable players
on your bank’s external tech team,
PredicƟon #5 and what roles do they play to help your people and your bank
succeed?
Ransomware AƩacks Increase as Bankers Learn That “Cybersecurity
Theater” Is Not True Risk MiƟgaƟon PredicƟon #7
InnovaƟon Comes to Lending
PredicƟon #6
It seems to make perfect sense to devote tech budget dollars to the
Bankers Co-Source with Trusted Experts to Complement Internal business func on that generates most of the bank’s revenue; however,
Teams banks con nue to throw money at technology solu ons to problems
that don’t exist (read: PFM applica ons) while neglec ng the lending
Community-based financial ins tu ons are finding it harder each year
to a ract and retain IT talent. Some of these challenges can be area.
a ributed to years of outsourcing key systems and cri cal business Expect lending to take center stage in 2024 as bankers work to coalesce
func ons that in the past provided training grounds for their operators all the current, fragmented lending solu ons into a con guous,
and administrators. Like a major league baseball team that has a poor integrated process that yields impressive returns.
farm system, many bankers are not preparing rookie employees for
playing in the big leagues someday, hence the talent vacuum. Lending tech islands of decisioning, spread analysis, documenta on,
workflow, rela onship management and money movement will be
Large banks can give people the opportunity to specialize in certain connected to bring long-awaited harmony to this cri cal func on.
tech jobs, but the majority of banks (those below $1 billion in total Expect some of the new successful fintechs to be acquired by major
assets) tend to develop people who are required to “wear more hats” tradi onal players to provide the bridge to this innova on. Banker
and take on several du es. Yet, some tech employees, void of scru ny and proper ve ng of lending solu ons and their providers will
leadership and coaching, gravitate to what they want to do and not balance the market and expose those who have over-hyped their
necessarily what the bank needs them to do. In recent years, this lack offerings.
of clear direc on has led to many “overnight” cybersecurity experts in
bank IT departments who are watching screens instead of helping their Leveraging AI in lending could really blast banks into a whole new
fellow bank employees. world.

Let’s face facts. If your CIO or IT manager truly were a cybersecurity Is your lending func on a cobbled-together mess of disparate systems
expert, he or she probably wouldn’t be working at your bank. that confuse and frustrate, or is it a streamlined process that customers
love and lenders leverage? Few if any banks have a completely
The ideal CIO in a community-based financial ins tu on is a generalist, integrated lending process. Most banks must s ll depend on many
someone who can coordinate all the areas required to support the systems to make a loan. However, innovators are working to fuse the
bank’s business goals with effec ve applica on of technology and lending func on with new systems and be er business processes.
innova on. Wise CIOs develop a team of external resources, those
experts who can be called upon for specific needs and special projects. Challenge QuesƟon
It’s o en best to “rent” rather than “buy” such exper se. From applicaƟon to servicing, is your lending process operaƟng as
As demands for diverse experience increase in banks due to needed desired?

A COMMUNITY BANKER | 5 | Summer 2024
RKANSAS