This week on the Common Cents podcast, we’ve got a rapid-fire roundup of new trends emerging in the banking world: high tech meets high touch in omnichannel banking, Gen Z’s financial revolution, and banking’s new era embracing automation. Check it out!
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Read the full episode transcript below:
Welcome in to the Common Cents Podcast by Kinective, where we connect you to the future of banking. Join us as we dive into the latest news and trends in banking and fintech, learn from leaders in the space, and make the complex simple. It’s common sense!
Today we’ve got a rapid-fire roundup of new trends emerging in the banking world, so buckle up. I’m your host, Ben Halbrooks. Let’s do this!
With $84.4 trillion in assets set to move from baby boomers to younger generations like millennials and Gen Z, this massive shift is set to reshape the banking world, especially as boomer-owned businesses are passed to digital-savvy younger business owners. For community banks and credit unions, it’s a wake-up call: they’ll need to adapt to meet the digital expectations of this next wave of business leaders.
With more than 70% of boomer-owned small businesses expected to change hands in the next 10 to 15 years, and $10 trillion in assets up for grabs, the competition is fierce. Younger generations are leaning towards big banks, because they’re drawn by their innovation and strong digital services. To stay in the game, community banks will need to step up their digital banking capabilities.
What are younger business owners looking for? It boils down to a few key things:
As the banking landscape shifts, community institutions will need to embrace a culture of digital transformation to remain competitive and attract the next generation of business owners.
Fraud is getting more sophisticated, and banks are feeling the heat to up their digital security game. One crucial moment they need to nail down is the very first login from a new device. With fraud increasing by a staggering 185.7% from 2020 to 2023, making sure accounts are secure from this point is key.
When a customer logs in for the first time from a new device, it’s a prime target for fraudsters. Banks can protect themselves by using strategies like device fingerprinting and device-pairing to keep spoofers and hackers at bay.
Here’s a look at how different banks are handling this crucial step:
While the traditional methods are familiar and still in use, they’re not foolproof, especially with new tech like generative AI and deepfakes making fraud easier. Banks need to get creative and robust with their security measures to stay ahead.
In a nutshell, securing that first login is crucial. Banks that innovate and strengthen their device-pairing process will have the edge in keeping fraudsters at bay and maintaining consumer trust.
Interactive Teller Machines (ITMs) are shaking things up for smaller financial institutions, merging automation with that all-important personal touch. Unlike ATMs, which once had people predicting the end of bank branches, ITMs are helping banks save money, expand their reach, and deliver better customer service.
Take Star Choice Credit Union, for example. They swapped out old drive-thru ATMs for ITMs, giving customers the choice between self-service or chatting with a teller via video. It’s been a win-win, boosting efficiency and keeping that personal connection.
Wings Credit Union took a similar path, growing its branch network by 50% while cutting down on traditional ATMs. ITMs are letting them streamline costs, offer extended service hours, and keep their members engaged. The shift helped Wings save money, extend service hours, and let staff focus on higher-value tasks like cross-selling loans—all while keeping competitive fees and rates.
ITMs offer the flexibility of handling simple transactions while providing live teller support for more complex needs. They’re redefining how financial institutions think about their branch footprint. In other words, ITMs are no longer just part of the multichannel strategy—they are the strategy, combining efficiency with a personal touch in an increasingly digital world.
The fourth annual awards took in a record number of nominations for categories like membership growth, revenue growth, and increased efficiency. We want to give a special shoutout to our Kinective clients who were honored:
• American Heritage Credit Union
• Freedom First Credit Union
• Jovia Financial Credit Union
• Nutmeg State Financial Credit Union
• SELCO Community Credit Union
Kudos to all those FIs that are going above and beyond to set the stage for modernized banking.
And that’s a wrap for today. Thanks for listening!
Common Cents is brought to you by Kinective, the leading provider of connectivity, workflow, and analytics software for the banking sector. Check us out at kinective.io and connect to the future of banking.
Until then, we’ll catch you on the next episode. It’s Common Cents!
