Benchmark’s Predictions, From Interest Rates to Services and Devices
2023 proved tough for financial institution (FI) leaders. As banks and credit unions faced mounting pressures due to inflation, regulatory considerations, and higher interest rates, it got more challenging to stay on course with technology investments. However, we believe bankers will find 2024 to be a much better environment, particularly if they act strategically to leverage the right partners and resources.
Here are a few things our Benchmark team members have seen in their crystal ball for the upcoming year:
“The banking industry faced significant challenges in executing larger projects, many of which were deferred to 2024 or strategically divided between the two years. With the surge in bank mergers, the need for hardware and services standardization has become paramount, compelling financial institutions to seek comprehensive solutions. Recognizing the value of partnerships, banks are now actively engaging with companies offering full-service packages. These encompass everything from sourcing new equipment at competitive prices to providing repair options, facilitating installations and implementing buy-back programs for retired hardware.
Stephanie Johnson, Senior Account Executive
Our Predictions
Deals are no longer based on price alone. Deals are based on how the tools fit a bank’s needs and if it is the right time to invest in the tech. During COVID, banks couldn’t get their hands on enough equipment because they were setting up many different merchants or remote deposit capture and onboarding services. Over the past 12 months, banks have been looking to justify what they are buying and are more measured, especially with concerns over the economy. Additionally, banks see their core providers as their trusted advisors and rely on them to provide a full suite of solutions that fit the budget and the need.
Another driving factor will be mergers and acquisitions. I predict that there will be significant consolidation in the financial world, and we will see smaller banks selling to medium-sized banks and even medium-sized banks merging with larger banks. During a merger and acquisition, banks need assistance installing their hardware, converting their treasury management clients to new software, and other key functions. To meet our customers’ needs, our managed device services offering will be key this year.”
Aaron Hodge, Senior Account Executive
Edie Davis, Senior Account Executive
Tim Wolfe, Senior Account Executive
“With the industry’s anticipated surge in mergers and acquisitions, there’s a strategic opportunity for the organizations involved to build a foundation for operational success. However, there is an ongoing labor shortage that has not only delayed or stalled branch transformation projects but has also made mergers and acquisitions more challenging.
In 2024, there will be a strong need for technology professionals to enable everything from seamless equipment installations and deinstallations to the efficient deployment of software and robust hardware support. The good news is that banks and credit unions can turn to managed device services partners to not only address the operational challenges associated with mergers and acquisitions but to also ensure that they have the technical resources to improve customer experiences and pursue other branch transformation projects. As the industry undergoes a period of significant change, our team is dedicated to empowering banks and credit unions with innovative solutions that set the benchmark for fintech excellency.”
Edie Davis, Senior Account Executive
Robert Haran, Senior Account Executive
Let’s Make 2024 a Success
In gearing up for 2024, it’s important to stay informed of industry trends; however, it’s even more important to have the capacity to respond rapidly to change. By working with Benchmark Technology Group, you gain the agility you need to pursue your goals and objectives, no matter what’s on the horizon. We understand the industry and your organization’s challenges and opportunities, and we can leverage our technology expertise and experience to deliver the outcomes you need.
Fintech solutions, customer expectations and the regulatory landscape have become even more complex, and it is an advantage to work with a partner who can move quickly on your behalf. For nearly 40 years, we have worked with financial institutions to migrate to new technologies and business models that provide best-in-class service and convenience. Whether implementing or upgrading branch automation solutions, executing a branch transformation strategy or fully managing help desk support or device fulfillment programs, Benchmark Technology Group can help your financial institution achieve its goals.
Don’t just take our word for it – read what some of our customers say about Benchmark. Please do not hesitate to reach out to any of our experts to find out how we can drive growth and productivity at your financial institution in 2024 and beyond.