Throughout this blog series, we’ve provided financial institutions (FIs) questions to ask digital banking vendors when conducting an RFP. We’ve covered these important areas:
1. Omnichannel Platform
2. Onboarding
3. Personalization
4. Security
Innovative approaches and solutions will play a role in these areas of focus, so it’s only natural that the last blog in this series concentrates on innovation as a whole. We’ll provide five important questions to ask when it comes to evaluating a vendor’s innovation strategy and how they’ll meet the changing banking expectations of both consumers and businesses.
Look for a deep dedication to innovation
Experiential banking is the future of digital banking, and a prospective vendor should recognize this. As account holder expectations change and speed-to-market becomes more essential for an FI to compete, a deep dedication to useful innovation should be reflected in a vendor’s RFP responses.
As your FI moves forward with its RFP planning, keep these points in mind:
• Make sure your FI asks questions oriented toward the future and not the past or today.
• A vendor commitment to innovation should be genuine—one backed by dedicated time, staff, and R&D funds.
• Don’t turn away from an FI partnering with fintech innovators—such joint efforts can open many opportunities.
A few points on fintech innovation
Accenture has found that consumers now maintain 2.5 relationships with fintechs and other financial firms—a clear indicator that embracing fintech partnerships is a good move for a bank or credit union.
While businesses have long preferred their FIs for banking, they are far less hesitant to consider fintech commercial options these days. Barlow Research in 2021 found that the majority of SMBs believe that fintechs are out-delivering FIs. Those vendors that fail to partner with fintechs may set your FI back among competitors and lessen new revenue options.
Five questions to ask
Your digital banking partnership decision will probably be at least for the next five to seven years—or longer. As the needs and wants of customers on their financial journey change, a digital banking partner with a platform that integrates easily with innovation is a must.
Here are five important questions to ask when it comes to innovation.
1. What percentage of your company’s budget is dedicated to R&D and new product development?
2. Who primarily leads product innovation at your company?
3. Does your company seek input and insights from your financial institution clients as part of your innovation efforts?
4. Can you describe your developer programs?
5. Is a partner marketplace available to share innovative solutions by third-party fintechs?
See the other important innovation-related questions to ask in our Your Digital Banking RFP Evaluation Guide and Checklist. Q2 hopes the guide and checklist are helpful as your FI enters into its next RFP.
In addition, our Resource Library offers other informative eBooks, white papers, and guides to assess digital banking trends and technology changes.