VANTAGE POINT
Embracing FinTechA Must for Georgia’s Community Bankers When my friend Kevin Tweddle from ICBA called me and suggested I visit with Charles Potts, now also with ICBA but formerly the FinTech Catalyst of Georgia Tech’s Advanced Technology Development Center (ATDC- www.atdc.org), I jumped at the chance. Having a technology incubator program essentially in CBA’s backyard provided the opportunity to help Georgia’s community banks level the playing field with other larger bank and non-bank financial services providers. Learning that ATDC has been in existence for 40 years, I could not believe a relationship with the Georgia’s banking industry did not already exist- I certainly was not going pass up the opportunity! The CBA/ATDC partnership is a win/win for both organizations. CBA members can learn more about burgeoning FinTech solutions and the entrepreneurs developing new solutions have the unique opportunity to directly speak with community bankers that are willing to provide guidance and constructive counsel. The end goal is to develop go to market solutions for community bankers across the country with Georgia’s community bankers being exposed to new and innovative solutions first. Why is this so important for CBA and Georgia’s community bankers? Look back over the past few months for the answers.
2 | ww w. cbao fga.com | Sept ember/ O c t o b er 2020
John McNair President & CEO Community Bankers Association of Georgia
Clearly, the way we all live, work, and learn has been changedperhaps forever. As a result, customers are demanding more technological based solutions for their banking needs. Community banks have strong relationship edge over other financial services providers; however, they must also offer all the on-line banking tools as well. Additionally, due to low rates and overall margin compression, FinTech solutions offer the opportunity increase rate spreads, drive other sources of non-interest income, and improve the overall efficiency ratio. The attached chart from CBA Preferred Service Provider Qwickrate helps emphasize this point. The Paycheck Protection Program (PPP) as part of the CARES Act drove home for all Georgian’s and Americans just how important the community banking industry is to economy. Georgia’s community banks made over 60% of all PPP loans in the state, funded $9 billion in loans (64%) and saved over 1 million jobs (70%). Embracing FinTech solutions will help keep Georgia’s community banks healthy and strong for many years to come. CBA is committed to working with our partner ATDC and other organizations to make sure the association is at the forefront of FinTech innovation for our member banks.
