I recently read an article from The Financial Brand titled “Refined Innovation Execution Can Help Banks Regain Ground Lost to Fintechs.” It struck a chord for me as it closely aligns with many of the points I have been making over the past several years. But as is often the case, the value is in asking the much harder question: Why are we still talking about these issues as if they are new? Because they are not. What struck me most about the article is not what it revealed, but what it confirmed. Community banks already know what needs to be done. The challenge has never been awareness. The challenge is execution. And if we are being honest, execution is where many institutions may fall short. Let’s unpack this. One of the most telling data points in the article is that 92% of corporate clients report limited integration between bank services and their treasury systems. Let that sink in. Ninety-two percent. If you are a commercial banker reading that and think, “that sounds about right,” then you already understand the problem. If you are surprised by that number, then you may not be spending enough time talking to your business customers. This is not a new issue. I have been writing about the importance of integrating banking services directly into a customer’s workflow for years. In my article on business banking expectations, I emphasized that digital services must align with how businesses actually operate, not how banks prefer to deliver services. Key point: businesses do not want to log into a system, download a file, and then upload the manipulated file to a different system. They want banking to be embedded into their ERP, their accounting platform, their treasury workstation. They want banking to be seamless, out of sight and mind, until it is needed and then instantaneous and contextually available. Most fintechs figured this out early. Many banks are still “thinking about it.” The author of the Financial Brand article highlights that customers are increasingly interacting through digital channels and expect seamless integration. Again, not new. In “Trouble Ahead for Neobanks?”, I made the point very clearly: “The Neobank’s online banking and mobile apps are way better than what most community banks offer… and better marketing combined with robust customer experiences matter.” This is the part where I usually get some pushback. Someone will say, “But we offer online banking.”. However, offering online banking is not the same as offering a compelling digital experience. There is a massive difference between basic functionality and an experience that is intuitive, integrated, and tailored to the customer. Fintechs are winning because they have designed experiences around the customer journey. Banks, on the other hand, often design around internal systems. Another key point the author made in the article is that fragmented data and legacy systems are holding banks back. No argument from me there, but I will push back on this. We have been talking about fragmented data for decades. If this is still the primary excuse, then we need to ask whether it is truly a technology problem or a prioritization problem. Because the reality is this: 1) Banks find money to renovate branches, 2) Banks find money to upgrade core systems when forced, and 3) Banks find money for compliance initiatives. Yet, when it comes to data integration and customer experience enhancements, suddenly the budget gets tight. This is not a technology issue but a strategic choice. Now let’s get to what I believe is the most critical takeaway and one that needs to be emphasized. Integration alone is not enough. It must be paired with advanced payment capabilities. If you are not actively working toward seamless treasury integration, real-time data visibility, and embedded payment execution, then you are not competing effectively. This brings us to faster payments, such as FedNow and RTP. I have written extensively about faster payments and will continue to do so because faster payment dominance for banks is not optional. In my earlier articles on payments strategy, I emphasized that payments are the one true franchise advantage banks can still control. Yet, what are many institutions doing? Waiting. Waiting for demand. Waiting for competitors. Waiting for “the right time.” Meanwhile, fintechs are building experiences around instant movement of money. Let me be clear, if your business customers cannot: 1) Send real-time payments, 2) Receive real-time payments, or 3) Integrate those payments into their systems, then you are creating friction. And where there is friction, fintechs will insert themselves. In “How to Compete with Fintechs? Rob a Page from Their Playbook…”, I made a point that directly aligns with this. Banks must provide digital platforms tailored to SMBs, not force them into either consumer tools or overly complex treasury systems. This statement ties directly to what the author of the Financial Brand article is highlighting. Businesses want flexibility, customization and integration. Not one-size-fits-all solutions or systems that require workarounds. When you combine customizable treasury tools + integrated APIs + real-time payments, you begin to create something that fintechs cannot easily replicate. A full-service banking relationship with embedded functionality. The author of the article correctly points out that culture and lack of urgency are major barriers. Now, this is where things get difficult. Because technology can be purchased. Talent can be hired. Vendors can be replaced. But culture? Culture is harder. And in many community banks, the culture is still rooted in: Risk avoidance over opportunity pursuit Incremental improvement over bold change “We’ve always done it this way” thinking I addressed this in “Too Much Routine Suffocates Your Brain” where I described the numbing effect of routine and how it stifles innovation. This concept is alive and well in many institutions today. I believe that incremental thinking is the real problem. Brainstorming to create ideas for how your institution can be more relevant to your business customers is good, but banks have a tendency to study and plan for years and never take steps to incrementally change their behavior to align with customer expectations. If you want to effectively compete with fintechs, you need to focus on three things: 1) Offer advanced payment solutions, 2) Embed banking into customer workflows and 3) Connect directly to treasury and ERP systems. These need to be designed around the customer journey, not your internal processes. This demands that you adopt a willingness to change. We do not need another report telling us what customers want. We already know. The question is whether we are willing to act because the fintechs are not waiting. And … neither are your customers. If you are still treating integration, digital experience, and faster payments as future initiatives instead of current priorities, then you are not competing. You are observing. And in this environment, mere observation is not a strategy. The time to act is now! Resources https://thefinancialbrand.com/news/banking-technology/how-better-innovation-execution-can-help-corporate-banks-regain-ground-lost-to-non-banks-196330?_hsenc=p2ANqtz-_vCqarEiZu4e8Viyiipa4oBM1bCyRebKhCi_JQJ1eySu-zY3Kl8IuTqJfdYbhSssdb5susP0uBFm8S89_FNj88iygnWQ&_hsmi=416827706 ChatGPT was used in researching this article.