4 Types Of Technology That Are Changing The Business Banking Game!

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 the future of business banking, 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 said, 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.  One of the banks that is working on deploying Embedded Banking is Live Oak Bank.  Live Oak what?  If you are not familiar with Live Oak Bank, they are responsible for bringing nCino to the financial services industry.  Many of you are already using some form of nCino.

Embedded Banking is going to disrupt business banking but it is not all bad…if you are prepared to deal with 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.

What is BaaS?

Banking as a Service (BaaS) is a model that allows financial services companies to offer financial products & services to their customers without having to build their own banking infrastructure. Under this model, a bank or financial institution provides the underlying banking infrastructure and licenses its technology and services to other companies, which then offer banking services to their own customers under their own brand. For example, a credit union or fintech that wants to take on the big business banking players no longer needs to spend hundreds of millions of dollars upgrading or building out their own infrastructure. BaaS makes it possible for the credit union or fintech to license technology that will enable it to go toe-to-toe with the big players!

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

• The Good: it gives smaller lesser-known players a fighting chance against the bigger more dominant players! BaaS levels the playing field and makes it possible for more business bankers to fight for the same business customer! BaaS will inherently offer a lot more automation.  Automation will remove the paper pushing aspect of business banking so that business bankers can focus on business development and delivering core value to business customers.
• The Bad: there will be more competition in an already crowded marketplace. You will need to figure out how to stand out in a crowded arena of business bankers. You will need to become a digital marketer and business banking influencer…like fast!
• The Opportunity: it is the same as Embedded Banking. 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.

What is ChatGPT?

If you have not already heard of or looked into ChatGPT, you are in the dark and need to look for the light ASAP! ChatGPT is the most recent technology to hit the marketplace, and it has become quickly and overwhelmingly obvious that it is a game changer across many—if not all—industries! I am predicting that it will have a profound impact on the financial services industry! I recently wrote an article solely dedicated to how business bankers can use ChatGPT to be more productive and the impact the technology will likely have on the industry. Use the following link to read the LinkedIn article: https://www.linkedin.com/pulse/how-business-bankers-can-use-chatgpt-more-productive-victor-castillo/?trackingId=gkZbsqT9SvihbMv3hnq7sA%3D%3D

LinkedIn

I know the majority of you know and use LinkedIn. The “will you have a job in the future” question is: are you actively using LinkedIn to advance your career? The primary purpose of LinkedIn is increasingly becoming to establish and promote your personal “professional” brand. Prospects, clients, referral sources, and recruiters are increasingly relying on your LinkedIn profile to determine if they want to do business with you. If they don’t like what they see, you will likely not get an email or a phone call! Your personal brand (aka your LinkedIn profile) is the new resume. People use it to quickly determine if you are the right business banker for the job! I wrote an article entirely dedicated to establishing and nurturing your personal brand. Use the following link to read the LinkedIn article: https://www.linkedin.com/pulse/you-want-succeed-business-banking-start-building-your-victor-castillo/?trackingId=lowtmeGERrS3hupiiTYE6g%3D%3D

You need to be honest with yourself…the digital economy is here to stay and it will be very disruptive.  Are you ready for it?  Have you taken a look at your resume and skill set?  Do you have the necessary skills and experience to thrive in the future of business banking?  Do you know what skills and jobs will remain in demand?  Jobs in sales or those that require specialized skills like business credit underwriting will weather the digital storm that is coming!

Bizpetrol has information, insight and tools that will help you become a Business Banking Superstar!  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!