In the News

A new report from Alkami Technology and Cornerstone Advisors shows that digital banking performance among U.S. financial institutions is becoming more uniform, signaling a shift in how banks and credit unions compete in the digital space.

Institutions impacted by their vendor’s acquisition should begin to pay extra attention to the actions and technology road map of their new partner, says Sam Kilmer, who leads fintech advisory as a managing director at Cornerstone Advisors.

Now in its sixth year, the report equips banks and credit unions with critical intelligence to evaluate and benchmark their digital banking performance. This year's edition marks a significant evolution in the research analysis.

"The checkout process is by definition friction. The ability to eliminate lines and friction especially at live events is a potentially big win," said Tony DeSanctis, a senior director at Cornerstone Advisors. "The question remains how seamless and efficient the process is for the end consumer and whether there is any loss to the merchant associated without a formal checkout process."

With the right strategy, banks can usually make a niche lending line profitable within six to 12 months, says Joel Pruis, senior director in the commercial and small-business segments at the consulting firm Cornerstone Advisors. But these hiring opportunities are rare.

A recent survey from Cornerstone Advisors found that nearly two-thirds of banks and credit unions have entered at least one fintech partnership over the past three years. The same Cornerstone study identified technology integration as the biggest hurdle for bank-fintech partnerships.

In this episode, we speak with Ron Shevlin of Cornerstone Advisors to explore how fintech has paved the way for credit union innovation.

"We're looking at the law of unintended consequences. We may see a 'COVID-type' impact on supply chains, and then have prices going up," John Meyer, a managing director at Cornerstone Advisors, told American Banker. "Much like the beginning of the pandemic, you'll have not just higher prices for supplies, but also uncertainty about the supplies."

Distributing Affirm's card product across multiple sponsor banks helps Affirm get the most out of debit interchange, which is capped for financial institutions with assets over $10 billion, said Tony DeSanctis, senior director at Cornerstone Advisors.

Without a more concerted attempt to define and demonstrate ethical behavior, the romanticization of fintech’s alleged moral superiority is going to backfire.