Although the Paycheck Protection Program (PPP) money has run out, it has opened doors for fintechs and offered banks the opportunity to explore fintech partnerships beyond PPP.
Bank Automation News highlights Boss Insights’ Keren Moynihan as saying that banks found success during PPP in two ways: First, as an opportunity to better serve business customers, and second, as a means for testing new technology for use beyond PPP.
Keren also referred to the process as “Fintech Tinder” for banks because every technology vendor claimed to be the best. How will banks know which technology provider to choose? Keren’s advice to small banks is to avoid saying, “I want to digitize,” and instead ask which vendor could help the bank achieve its loan origination and loan-processing goals.
PPP has also provided banks like Keybank the opportunity to build bots that the bank will continue to use for loan origination beyond PPP – building bots was not a sustainably justified option before PPP due to high software licensing costs for a small SBA loan volume.
Lendio‘s Brian Hosie said that PPP has increased the fintech’s customer base, creating relationships with regional banks the fintech traditionally had not had. He also said that before PPP, banks took months to decide on partnering with fintechs but now, banks have learned and see the value in leveraging fintech solutions quickly.
Read the full article here.
“Avoid saying “I want to digitize,” and instead ask which technology vendor could help the bank achieve its loan-processing goals.”