If you’re in the process of evaluating and selecting a digital banking platform, we understand that this is a major commitment that will have lasting impacts on not only your financial institution and your employees, but also the account holders that rely on your financial institution to conduct retail and commercial banking on an everyday basis. You face immense pressure to select a digital banking platform that will help your financial institution attract new users, grow deposits, promote adoption and gain greater primary financial institution (PFI) status with your account holders. This means that the digital banking provider you ultimately choose must have not only an intentional and persistent technology strategy, but also a strong culture of innovation to support it.

Is Your Digital Banking Platform Supporting Your Desired Trajectory?

As you’re developing your growth strategy for the next 3, 5 or even 10 years, are you confident that your current digital banking provider is equipped to support your financial institution’s growth?

As stated in the 2024 Banking Outlook report by BAI, “Somewhat unfairly, customers measure their bank’s digital delivery of services against the practices of world-class online retailers.” As consumers use highly tech-forward and tech-funded apps, they are increasingly conditioned to expect modern and performant experiences across the other apps they use – including, and especially digital banking platforms – where they need frictionless and “always on” control of their money at all times.

As the bar continues to rise higher and higher, how can you keep up with these technology standards? You must partner with a technology provider with a strong culture of innovation that you feel confident in pursuing a long-term digital banking partnership with.

3 Indicators of a Strong Culture of Innovation

Here are 3 qualities that indicate that a digital banking provider has a strong culture of innovation.

1. 1. Proactively Investing in Innovation: In order for your digital banking provider to keep your banking experience comparable and competitive with the best of the best megabanks, neobanks and regional banks, they must proactively invest in innovative technology. Software infrastructure and architecture are the foundational elements that play a major role in the quality, reliability and performance of your digital banking platform. Inefficient, or poorly managed software infrastructure will create delays, outages, and unnecessary points of friction that will lead to a rise in support calls, poor app ratings and ultimately account holder attrition.New and improved technologies, tools and ways of working (such as software development frameworks and methodologies)  will continue to arise, with some more disruptive than others. Providers that are able to anticipate these changes, learn from them, and use them to improve their technology strategy will be poised to provide you with a digital banking experience that your users will enjoy using now – and into the future.
   2. Constantly Seeking and Incorporating Feedback: Your digital banking provider must be collaborative and seeking areas to improve, based on real client feedback. In any relationship between clients and vendors, clients want their concerns, opinions and ideas to be heard and taken into consideration. A digital banking vendor and financial institution client relationship is no different.
   3. Partnering with Trusted Advisors: The digital banking provider that you enter a long-term partnership with must similarly be actively partnering with, and getting consultative advice from trusted and reputable advisors in the financial and technology industries. To achieve innovation and long-term growth, companies cannot work in a vacuum, nor follow the status quo, or they risk getting surpassed by competitors.