Driving Innovation in the

Financial Industry
Charles E. Potts
EVP, Chief Innovation Officer
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Themes to
Discuss
 Insights on Driving Innovation in the Financial Industry
 Exploring the Transformative Potential of Emerging
Technologies
 Strategies for Achieving Growth and Competitive
Advantage in Today’s Digital Landscape
The Independent Community Bankers of
America® has one mission: to create and
promote an environment where community
banks flourish. We power the potential of the
nation’s community banks through effective
advocacy, education, and innovation.
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ABOUT COMMUNITY
BANKING

• Community banks comprise of 99%

of all banks and have 50,000+
locations nationwide
• Provide over 60% of all small
business loans
• Make over 80% of agricultural
loans
• Employ nearly 750,000 people
• Are the only physical banking
presence in
one-third of U.S. counties
ABOUT US
 National Representation Through Advocacy:
ICBA engages members of Congress and federal
regulators to help them understand our industry
and our concerns—continuously pushing for pro-
community bank policies.
 Best-in-class Education:
ICBA’s Community Banker University® trains
more than 120,000 community bankers annually
with webinars, live events, online courses and
certification programs.
 Ongoing Innovation in Services & Solutions:
ICBA offers payments, reinsurance and
investment solutions to members while
providing access to a vast network of community
bank-focused providers and fintech companies.
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Insights on Driving Innovation in the Financial Industry

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What is innovation?
 It’s not just technology.
 It’s not just a shiny object.
 It’s adjusting to consumer preferences.
 It’s evolving to help people and institutions stay connected.
 It’s a continuous journey.
“Innovation is taking two things that exist
and putting them together in a new way.“
- Tom Freston (born 1945), Co-founder of MTV
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“The ability to learn faster from customers is the
essential competitive advantage that startups must
possess.”
― Eric Ries, The Lean Startup: How Today's Entrepreneurs Use
Continuous Innovation to Create Radically Successful
Businesses
 Sample Footer Text 11

Technology Evolution: 60 Years in the Making

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Why Community
Banks Should
Innovate?
Improved Customer Internal Efficiency Deposit Acquisition &
Experience Retention

Efficient Reporting and Insights

Implementation of for Decision-Making
New Regulations
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Exploring the Transformative Potential of Emerging

Technologies
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 NCR began in 1884 when John

Patterson began to make
mechanical cash registers. It was
widely regarded as a ‘high tech’
company and even made some of
its resources available to code-
breaking groups during WWII.
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Emerging Technologies

 Automation, A.I. and M.L.

 Fraud
 Data Analytics
 Embedded Finance
 Quantum Computing
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Fintech: Friend, Foe or Frienemy

What is a FINTECH?
Fintech’s Wide Reach
Finance,
Business
Intelligence Payments
“…incumbent financial
& Liability
Mgmt Cloud &
Data &
institutions have been able
API
Cyber- to catch up faster than many
security
expected, treating the
proliferation of fintechs as
a supermarket for
Compliance
& RegTech Marketing, capabilities that allow them
Sales &
Wealth & CRM to use acquisitions and
Personal
Financial
partnerships to rapidly
Mgmt deploy new offerings.”
Data & — R. Jesse McWaters, Financial Innovation
HR,
Lending
Analytics Lead at the World Economic Forum
Benefits
&
Training
U.S. SMARTPHONE OWNERSHIP
A Competitor in Your Pocket

• ~ 7 Million Credit Card Holders

• ~ 150 Million iPhone Users
• ~ $1B in Deposits
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Neobank Dave launches DaveGPT chatbot

Challenger bank expects chatbot to resolve up to 75% of customer inquiries
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Strategies for Achieving Growth and Competitive

Advantage in Today’s Digital Landscape
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ICBA Innovation - How we serve

Thought Leadership ThinkTECH Accelerator Innovation Programming Strategic Solutions

• Podcast • Demystify Webinar Series • Preferred Service Provider
Two 10-week hybrid programs
• Blog annually resulting in 12 new • Solutions Forums • Corporate Member
corporate members
• Speaking at conferences • ThinkTECH in an Instant • Solutions Directory

• ThinkTECH Connect
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ThinkTECH Accelerator
Our Methodology

ID Problems Evaluate Incubate Deals

Assemble stakeholders We lead the stakeholders in the Prepare during week one with Help facilitate deals with
to identify problem sets evaluation of the prospective practice “visits”, 1:1’s, gap stakeholders and potential
and evaluate. solutions through a series of analysis and value prop reviews follow-on investment where
interviews that unpack the value to make ready for bank visits. applicable.
proposition of those selected.

Source Solutions Select Accelerate Alumni Support

Leverage our global network to Distilled down from 100’s to 8 weeks of 30-minute meetings Prepare during week one with
seek out solutions providers about a dozen, we do more due with 100 or more bankers, practice “visits”, 1:1’s, gap
and unique tech and founders diligence to select the final SME’s, Regulators and VC’s analysis and value prop reviews
to solve problems identified. cohort and offer to make an collecting data to provide to make ready for bank visits.
investment in those companies. feedback for additional support.
 Accelerator Program

Week 1 Week 2 Week 3 Week 4 Week 5

Orientation Due Diligence Pricing Sales Strategy Strategic

Partnerships

Week 6 Week 7 Week 8 Week 9 Week 10

Regulatory Funding Marketing Culture/HR Demo Day

& Compliance & VC’s & PR
 HR & Benefits
Payments

Marketing, Customer
Service & Acquisition

CRM, Research,
Data & Analytics

Lending &
Underwriting
Wealth management
& Brokerage

Capital Markets
& Investment
Solutions
Accounting, Finance &
Treasury

Information
Technology

Education & Training

Security, Risk, Fraud, & Compliance
Management
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Center for Innovation in

Atlanta!

 999 Peachtree
 6K+ sq feet
 Training/Event Room
 Co-working Space
 In the heart of tech in midtown
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Questions?
Charles E. Potts
ICBA Executive Vice President & Chief
Innovation Officer
678.575.0971
[email protected]
@charlesepotts