how to leverage fintech to grow your bank · 2018. 10. 8. · doing” - suresh ramamurthi...

WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING

Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. | ©2017 CliftonLarsonAllen LLP

How to Leverage Fintech to Grow Your Bank

Joshua Juergensen, Principal, CliftonLarsonAllen LLP

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AGENDA

1) What is Fintech?

2) State of Fintech today

3) Are Fintech’s really stealing my customers?

4) How to leverage Fintech to grow externally

5) How to leverage Fintech to grow internally

6) Where to go now?

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WHAT IS FINTECH?

Companies that use new technology and innovation with available resources in order to

compete in the marketplace of traditional financial institutions in the delivery of financial

services. Financial technology companies consist of both startups and established financial and

technology companies trying to replace or enhance the usage of financial services of existing

financial institutions.

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STATE OF FINTECH TODAY

o Rapid Growth

o Fintech and related startups now outnumbers Bankso Significant increase in funding, although slight

decline from 2015 to 2016o 87% that have partnered with Fintech cut costso 54% have actually increased revenue

o Significant shift in strategies from both Banks and Fintech

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Copyright CBInsight.com


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WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING 7

o Easy Answer: Yes

IS FINTECH REALLY STEALING MY CUSTOMERS?

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o Easy Answer: Yes

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Complicated Answer: Some are, some aren’t – take advantage of opportunities with those looking to partner!

o Fintech needs Bank customers, Banks need their technology

o Fintech needs to utilize the low-cost funding of Banks

o Banks have regulatory access Fintech needs – is this changing?

o “Legacy systems are broken from the point of being able to do new things, but they're perfectly OK for what they're already doing” - Suresh Ramamurthi – American Banker article

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HOW TO LEVERAGE FINTECH TO GROW EXTERNALLY

Does a digital lending platform make sense for your bank?

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o Improved customer relationships

o Leverage personal relationships and networking opportunities with millennials

o Investment opportunities

o Invest in technology!

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o Cross River Bank – Teaneck, NJo $561M as of 12/31/16, $771M as of 6/30/17o Received $28M in venture capital funding

28% ROE

$12.3M NI as of 6/30/17

14.1% Leverage

0% Non-Accrual

36% Efficiency

$2.4B Originations

3.1% ROA

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HOW TO LEVERAGE FINTECH TO GROW INTERNALLY

o Strategic alignment between governance, senior management, and operational staff

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WHERE TO GO NOW?

o Consider startup accelerator programs to connect with Fintech

o Don’t be afraid to have preliminary discussions

o Poll your customers to see what services they are looking for

o Utilize millennials within your organization to lead the charge

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QUESTIONS?

Joshua Juergensen, CPAPrincipalCliftonLarsonAllen [email protected]

mailto:[email protected]

how to leverage fintech to grow your bank · 2018. 10. 8. · doing” - suresh ramamurthi...

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