Embedded Business Banking Is Here! Business Bankers Must Pay Attention!

Ice hockey star Wayne Gretzky famously said, “I skate to where the puck is going, not where it has been.” As a business banker, you need to determine the technology that is shaping business banking landscape, and, then, use this knowledge to determine what you need to do to future-proof your career! The business bankers that will get displaced by technology are those that, like Gretzky alluded to, skate to where the puck has been. In other words, they continue doing the exact same thing and don’t take any action to future-proof their careers. The business bankers that will thrive in the future of business banking are those that skate to where the puck is going!

There are currently 4 technologies that are already shaping business banking and will have a profound impact on the future of the industry: Embedded Banking, ChatGPT, BaaS, and LinkedIn. Like most other industries, banks will use technology to reduce operating costs and staff. You need to take a hard and honest look at your resume to determine if you’ve got skills that will future-proof your job! The skills that will remain in demand in the future of business banking are those that are technology, advisory and consultative in nature. Everything else is likely to be replaced by technology! You need to start thinking like Gretzky. Where is the business banking puck going? If you want to future-proof your career, you need to skate to where the business banking puck is going and be ready jump all over it when it gets there!

What is Embedded Banking?

Embedded Banking is the integration of financial services into non-financial products or services such as e-commerce, social media, accounting software and others. Embedded Banking will make it possible for banks to “embed” their products and services and offer them to business customers without requiring them to go to a traditional branch or a business banker! For example, Banks can “embed” their business banking services in accounting software that businesses are already using. As a result, businesses will be able to directly pipe into the bank’s portal to access the banking services they need to run their operations. 

Intuit is the corporate giant that is home to QuickBooks, TurboTax, Credit Karma, and Mailchimp! QuickBooks is accounting software that is widely used by a lot of businesses! Intuit just announced that it has embedded QuickBooks Money into QuickBooks! QuickBooks Money gives business owners using QuickBooks access to powerful cash flow management tools typically offered by banks. QuickBooks Money enables businesses to easily invoice their clients and receive payment via credit cards, debit cards, ACH, bank transfer, Apple Pay, Google Pay, PayPal, or Venmo. QuickBooks Money integrates with QuickBooks Checking to capture the payments being processed through QuickBooks Money. If you have not realized it yet, there is no mention of a business banker! There is no business banker needed for a business owner to setup these powerful cash management tools and the business checking account to capture the payments. This is the tip of the iceberg and Intuit is not the only corporation working on embedded banking! A lot of banks are feverishly trying to figure out how to embed their products & services into non-financial platforms. It is not just cash management tools and checking accounts. It is business credit products as well!

Embedded Banking is going to disrupt business banking but it is not all bad…if you are prepared to do something about it! Let’s talk about the bad, the good and the opportunity in Embedded Banking.

• The Good: it removes widget business banking from the equation and will make it possible for Business Bankers, who take their roles seriously, to take on a more advisory or consultative role in the marketplace. Look at your resume...do you have the skill set to step into a business advisory or consultative role?
• The Bad: business bankers who are widget pushers are going to have to upgrade their skill set or get left behind. The business bankers most at risk are those who identify a business banking opportunity and refer it to a more capable business banker that will take on an advisory or consultative role to close the deal!
• The Opportunity: banks, credit unions and fintechs will be looking for and paying top dollar to bankers who have the skill set to easily step into advisory or consultative roles. The skill set includes mastering all aspects of the business lending cycle, financial statement analysis, credit structuring, adept at digital marketing & prospecting and others.

I am a “glass half full” kind of person! The business bankers that will have a very difficult time surviving in an all-digital business banking future will be those that don’t future-proof their careers and resumes! There is hope if you are willing to roll up your sleeves and future-proof your career! What should you do to prepare? Glad you asked!

• Personal Brand & Digital Marketing: If you are going to survive in an all-digital world, you need to create and nurture your personal brand on social platforms. It is the new resume. The longer you take to create and promote your personal brand the farther behind you will fall and the more likely you will get displaced! You also need to get up to speed on digital marketing strategies & tools to promote your personal brand on social platforms. The data shows that prospect, clients, referral sources and employers are increasingly using your personal brand to determine if they will reach out to you and hire you for the job!
• Consultative and Advisory Skills: If you want to survive the all-digital business banking shake out, you need to bring more the table! AI-enabled technology like ChatGPT will be able to do most of your job’s routine tasks! And do it better! What is left at that point? It is being able to step into advisory or consultative roles. These are skills that will take a long time to be replaced by Artificial Intelligence! Wells Fargo conducted at study that showed that technology, advisory and consultative skills will remain in demand into the foreseeable future. This also means that you need to establish yourself as a thought leader and advisor in your marketplace.
• Tech Savvy: an all-digital banking future is the result of technology. You can’t survive in the future of business banking without being tech savvy! This does not mean that you need to learn how to code! It means that you need to get up to speed on the technology that will keep you relevant and in front of your target audience!
• Solid Business Credit Skills: business bankers with strong business credit skills are in high demand and command top dollar! This will remain true into the foreseeable future! This is a crucial skill that will help you transform into an industry though leader and advisor. You will be able to quickly convince prospects, clients, referral sources, and recruiters that you are the right business banker for the job!

Bizpetrol has information, insight and tools that will help you become a Business Banking Superstar! Enroll in the Business Banker Development Program. Learn more at https://www.bizpetrol.com/business-bankers. You can see all the Business Banking articles (like this one) at www.bizpetrol.com/blog. You can access a series of how-to business banker guides at https://www.bizpetrol.com/Downloads-Free. Please spread the knowledge and share the article with your colleagues!  Follow #bizpetrol on LinkedIn!