Bank technology is a big part of the discussion this year at the Acquire or Be Acquired Conference.

Will 2020 be the year that we see the tipping point in bank technology? Attendees at the Bank Director Magazine Conference in Phoenix think so.

The sentiment is that banks in 2030 will look a lot different than they do today. Bankers who fail to embrace new technology will be left behind in the modern world of banking.

Technology has changed almost every industry, but for some reason, there are still some bank executives and Boardmembers who think their industry will be different.

They will not be.

Banks that embrace technology to increase customer satisfaction and lower costs will be the winners of the new era in banking. Those who stick with the tried-and-true practices will go by the wayside. Ten years from now, banks will be as much tech companies as financial institutions. The changes are happening already. Roughly 40% of all bank customers use the internet for most of their banking needs. More than half of borrowers use the internet for their mortgage application. For millennial customers, the percentage of online borrowers jumped to 69%.

The speed with which technology is changing the industry has one downside, particularly for smaller banks. It is almost impossible for community banks to pay for the tech talent they are going to need to move forward. They will have to find technology partners that can provide services at a reasonable price. They will not be able to compete with in house talent.

Finally, bank technology may drive M&A activity going forward. At least 32% of conference attendees cited the high cost of technology as their biggest concern when thinking about remaining independent.

By: Tim Melvin

Recent: Melvin: Observations From the Bank Director Magazine Acquire or Be Acquired Conference