Leaders of financial institutions tions are in the fight of their lives . Giant banks are investing hundreds of millions of dollars to perfect digital banking experiences and stealing market share . In short , the com- petitive pressures for customers and deposits are creating a “ now or never ” moment in digital banking .

These moments have often produced some of the greatest vations in American business . If played right , 2019 could be the year

that smaller banks and credit unions reclaim their rightful leadership

inno-

role as the default choice for financial transactions and services .

In particular , there are three key advantages that these financial institutions can – and should – leverage in order to attract and retain customers through digital banking : personalized digital service , the power of partnerships , and organizational agility .

Be Number 1 in Personalized Digital Service

30 years ago , local banks and credit unions dominated the market because of convenience , ease of access s , and personal relationships . The local branch was the most convenient nt option at the time . But as technology ushered in new and faster alternatives , consumers gravitated to efficiency and convenience . Digital access gave mega banks and fintechs the upper hand in terms of convenience and ease .

For this and many other reasons , banks and credit unions must focus on digital transformation . The authentic human touch remains a fond memory for many consumers , and most Americans prefer to bank locally ; they just want an efficient digital experience .

Regional and mid-sized banks and credit unions should focus on amplifying their unique customer brand across all channels . A great example of deploying digital to create closer connections ons is the “ go-to ” solution by Umpqua Bank . Their mobile app p allows customers to select a personal digital banker and have secure , one-to-one conversations with their banker at any time through a familiar chat-like interface . Your personal digital banker knows who you are , understands you as a consumer and stands ready to assist you through your financial journey in life .

Don ’ t Out-Spend Fintech or Banking Giants , Out-Partner Them

Consumer demand has put massive pressure on banks and credit unions to innovate . As financial institutions first began to evolve , the vast majority of them took the safe road into digital banking by choosing the pre-packaged solutions offered by core providers . Their apps looked identical to the competing banks , but it was the low-risk and cost-efficient cient choice at the time .

The legacy core processing providers simply weren ’ t orientated to create differentiated iated solutions for each financial institutions ; they were focused on the opposite model of creating a simple app they could easily copy and paste for every bank and credit union . As smaller financial institutions experimented with the product sold

by their legacy core providers , giant banks and fintechs gained further ground by innovating and siphoning off customers .

In summary , in 2019 , make an honest appraisal of your offering . Determine if you have the expertise or bandwidth in-house for true digital transformation . Typically , it ’ s only the mega-banks that t have their own fleet of engineers , but you can compete effectively by teaming up with proven outside experts with a track record of success in digital banking .

Choosing the right strategic partner is immediately accretive to your bottom line . You instantly ingest their capabilities and deploy their expertise as your own . The right choice can put you ahead of your competition , increase efficiency , and pay for itself with greater assets under management .

Leverage Agility and Your Unique Brand

It ’ s not easy to transform a financial institution into a technology company , but although multi-national banks have unlimited re- sources and access to talent , smaller organizations have a distinct advantage : They can more nimbly make decisions , test ideas , and execute changes .

There is another advantage to being a smaller bank or credit union : As the pace of innovation increases , there is a growing consumer hunger for brands that don ’ t innovate themselves into a brand drift . Successful financial institutions maintain their warmth , accessibility , and customer service throughout all channels . Digital banking should amplify your organization ’ s identity while delivering convenience and efficiency .

True digital transformation is a corporate culture shift . Leadership must be firmly on board with both feet . Project engineers must remain focused on the end-user ’ s digital experience . Look at everything through this prism and audit your process to ensure it results in your organization becoming easier to transact with – without drifting away from the core brand that attracted your customers in the first place .

As 2019 unfolds , follow the “ digital banking hockey puck ” to where it ’ s going , not where it is . Anticipate your customers ’ needs and deliver solutions . Your customers ’ digital banking experience erience will be directly tied to your organization ’ s overall performance e .

By Jeffery Kendall ; Executive Vice President & General Manager , Kony DBX