MONETT, Mo.– A new survey of credit union and community banks has found growing deposits and operational efficiency are their top priorities.
The findings were included as part of Jack Henry's sixth-annual survey of bank and credit union CEOs.
"With rising deposit costs putting pressure on net interest margins, banks and credit unions have greater urgency to enhance operational efficiency, especially through back-office automation," Lee Wetherington, senior director of Jack Henry Corporate Strategy, said in a statement. "Whether your top priority is growing deposits, improving efficiency, or preventing real-time fraud, data strategy is now front and center."
The findings were included in Jack Henry's 2024 Strategy Benchmark survey, which found 80% of financial institutions plan to increase technology spending over the next two years.
Key Findings
Among the key findings:
- 78% plan to expand services for small businesses with payments, business credit/lending, and merchant services topping the list of planned offerings.
- 97% plan to enhance lending solutions in the next two years, but top priorities diverge sharply between banks and credit unions. “Banks are focused on automated workflow and custom/automated financial spreading while credit unions are focused on underwriting using artificial intelligence (AI) and automated prequalification campaigns,” the company said.
- 96% plan to add payment services, with FedNow Service being the top priority for both banks and credit unions.
- 92% plan to embed fintech into their digital banking experiences with the majority planning to embed payments fintechs.
- “Credit unions are also looking to embed consumer financial health and digital marketing fintechs while banks are looking to fintechs for help with small-business services and treasury management,” Jack Henry reported.
About the Survey
The study's results are based on an online survey conducted in January and February 2024 representing a diverse sample of Jack Henry core clients with assets ranging from less than $500 million to more than $10 billion.
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