As financial services increasingly transition to digital platforms, traditional banks are forging partnerships with FinTech companies to cater to the evolving needs of consumers. The First National Bank of Omaha (FNBO), with a history spanning over 167 years, exemplifies this shift as it aims to enhance its service offering through strategic collaborations.
In an interview with PYMNTS, Tammy Trilli, senior vice president of FNBO’s Commercial Payments Organisation, highlighted the fundamental principle guiding these collaborations: the pursuit of a mutually beneficial alliance that delivers an expected customer experience. “Being able to introduce a third party that we can stand by — where we can show up together — to deliver the experience that our customers expect,” said Trilli. This is particularly important as many consumers may not yet fully understand their requirements in the ever-evolving financial landscape.
Recent findings from PYMNTS Intelligence indicate a significant trend within the banking sector, with two-thirds of banks engaging in partnerships with FinTechs. Furthermore, 75% of surveyed credit unions and banks acknowledge that such collaborations are vital to meet customer expectations. This growing interest underscores a broader recognition of the necessity of technological enhancements to reach digitally savvy consumers.
Historically, FNBO operated within the Omaha area; however, it has strategically expanded its branch network across eight states, now serving over 6.6 million customers and boasting assets exceeding $31 billion. Trilli remarked, “Many of the businesses that we operate today have come from partnerships — so that’s at our core.”
A notable focus for FNBO has been on innovation driven by application programming interfaces (APIs) and advancements such as OpenAI's ChatGPT. Yet, as Trilli cautions, the allure of new technology must align with customer needs. “We have to be careful that we don’t chase partnerships that simply offer the new shiny penny, unless that new shiny penny is something that the customers want,” she stated.
One area where FNBO has seen particular success is in supporting financial services innovation within the agricultural sector, a critical economic focus in Nebraska and its neighbouring regions. Trilli identifies that innovative technology, including various APIs, holds the potential to significantly enhance payment frameworks for a diverse array of businesses.
Long-term success in partnership initiatives requires thorough understanding between institutions regarding their collaboration benchmarks, including the measurement of performance indicators. Trilli noted the importance of synchronising key performance indicators (KPIs) to evaluate progress: “What are the KPIs that you are using, and what are the KPIs that they are using?”
In her discussion with PYMNTS, Trilli offered a candid perspective about partnership accountability. While portraying a quintessentially Nebraska attitude, she emphasized, “That does not mean that we’re not going to hold our partners accountable. And they need to hold us accountable as well.” She firmly stated that FNBO will maintain its commitment to quality: “We will not fast track, we will not cut corners.”
Ultimately, the prioritisation of customer experience remains paramount for FNBO, which seeks to uphold its reputation as a reliable financial institution while navigating the digital evolution of banking services. As financial technology continues to develop, partnerships facilitating this transition are likely to play a crucial role in shaping future business practices within the industry.
Source: Noah Wire Services