TechDogs-"SRM Predicts FIs to Focus on Deposits and Investing in Fintech and ITMs in 2023"

Business Consulting And Services

SRM Predicts FIs to Focus on Deposits and Investing in Fintech and ITMs in 2023

By Business Wire

Business Wire
Overall Rating


MEMPHIS, Tenn.--(BUSINESS WIRE)--SRM (Strategic Resource Management), an independent advisory firm serving financial institutions and other industries across North America and Europe, today shared commentary on the trends it predicts will make the most-significant impacts in 2023.

Staffing challenges will persist. Financial institutions must have comprehensive plans for retaining and attracting revenue producers when there is upward pressure on wages. They must emphasize company culture and employee engagement programs for effective employee retention. Investments in professional development are critical for institutions to have a happy, fulfilled staff.

Institutions must have a deeper awareness and understanding of the fintech market. Even if they’re not making investments right away, banks and credit unions must allocate funds to research what strategies are available, meet with providers, and assess whether it makes sense to collaborate with tech or pursue investments.

A battle for deposits has begun. Competition for deposits will be a significant focus for banks and credit unions in 2023, forcing many to use tried-and-true methods and new approaches to ensure depositors stay in the fold. Deposits provide critical, low-cost, and, hopefully, stable funding for loans. They also offer an entry point for promoting loans and fee-based products and services. Pricing strategies, segmentation, employee training, and marketing will be critical to success.

Digital assets will become more prevalent. More regulation is coming for digital assets, which will create clearer rules of the road. The recent implosion of big-name crypto firms could present an opportunity for trusted financial institutions such as banks and credit unions – but they must do their homework before diving in. Remember that adequate technology and infrastructure are more relevant than fluctuating coin values. Now is the time for banks and credit unions to budget for due diligence, even if they don’t have any immediate plans to offer digital assets services. Digital mapping should be considered to set up the capabilities necessary for adding the technology when the institution is ready.

ITMs are rising in popularity. While many institutions are closing and consolidating branches, they still need to meet the needs of specific customer segments while managing complex, high-value transactions. Interactive Teller Machines (ITMs) are a great way to fill this gap.

According to the American Bankers Association, the typical ITM can cost $55,000 to $80,000, excluding one-time infrastructure costs ranging from $250,000 to $500,000. Still, financial institutions can potentially cover their cost outlay many times over – if they properly educate and market to customers.

Banks and credit unions will pay closer attention to the enormous opportunity the metaverse provides. JPMorgan Chase and HSBC have dipped their toes into the metaverse, and more institutions will likely follow in 2023. The metaverse runs on the exchange of goods and services, and we expect more developments around the financial infrastructure in the coming months. Users need safe, accessible forms of payment and asset storing in the metaverse – that’s where banks and credit unions can demonstrate their value and utility.

“Budgeting has become significantly more complex for banks and credit unions, as there are an increasing number of new technologies, products, and services for them to consider,” said Paul Davis, Director of Market Intelligence at SRM.

“This year, the most successful institutions will focus on what will most effectively help them attract and retain customers. Fintech, ITMs, and AI are three areas that hold a lot of promise, so institutions that consider these expenditures must understand the long-term ROI they provide to ensure tech will support their organization’s visions and goals well,” Davis added.

About SRM

SRM (Strategic Resource Management) has helped 1,000+ financial institutions add more than $5 billion of value to their bottom line in areas such as payments, digital transformation, core processing, digital assets, and overall operating efficiency. SRM has lowered costs, created revenue opportunities, increased productivity, and provided a competitive edge for clients in an environment of constant and accelerating change. Visit www.srmcorp.com for more information, and follow us on LinkedIn and Twitter for timely and relevant insights.

Contacts

Cristi Murray
650.339.2132 (m)
cristi@williammills.com

Maggie Wise
678.781.7229 (o)
404.408.8608 (m)
maggie@williammills.com

Liked what you read? Head to the TechDogs homepage to find the latest tech content infused with drama and entertainment. We've got ArticlesWhite PapersCase Studies, ReportsVideosTechNews and Events - the complete lot to help you Know Your World of Technology.

First published on Wed, Jan 11, 2023

Enjoyed what you read? Great news – there’s a lot more to explore!

Dive into our content repository of the latest tech news, a diverse range of articles spanning introductory guides, product reviews, trends and more, along with engaging interviews, up-to-date AI blogs and hilarious tech memes!

Also explore our collection of branded insights via informative white papers, enlightening case studies, in-depth reports, educational videos and exciting events and webinars from leading global brands.

Head to the TechDogs homepage to Know Your World of technology today!

Disclaimer - Reference to any specific product, software or entity does not constitute an endorsement or recommendation by TechDogs nor should any data or content published be relied upon. The views expressed by TechDogs' members and guests are their own and their appearance on our site does not imply an endorsement of them or any entity they represent. Views and opinions expressed by TechDogs' Authors are those of the Authors and do not necessarily reflect the view of TechDogs or any of its officials. All information / content found on TechDogs' site may not necessarily be reviewed by individuals with the expertise to validate its completeness, accuracy and reliability.

Join The Discussion

- Promoted By TechDogs -

IDC MarketScape: Worldwide Modern Endpoint Security for Midsize Businesses 2024 Vendor Assessment

Join Our Newsletter

Get weekly news, engaging articles, and career tips-all free!

By subscribing to our newsletter, you're cool with our terms and conditions and agree to our Privacy Policy.

  • Dark
  • Light