Banking on the Future
Instability and the collapse of several banks have focused attention on the banking industry. We asked two alumni experts to share some guidance on where the industry is headed.
Phil Picillo ’79
Senior Vice President, Webster Bank
There have been so many changes in banking over the past five years. What began as a simple digital banking platform with little functionality has advanced to a robust platform. Now, people and businesses at the click of a mouse or keystroke can borrow, transact, open accounts and do pretty much anything they used to have to do in a traditional brick-and-mortar branch. Many banks are evaluating their brick-and-mortar footprint, and we are seeing more branch closings each year across the country.
Clearly, technology will continue to shape the banking industry’s direction. We have seen many new advancements, such as voice-activated payments. As more of the population who grew up in the age of Apple and Meta enters the workforce, they will bring with them their experiences and new requirements to conduct their banking. Those old enough may remember when we prepared financials very manually using green accounting paper. Gradually, we transitioned to Windows and Excel. And now the banking industry is moving toward a full embrace of artificial intelligence and ChatGPT. The future will continue to provide opportunities to enhance the client experience.
Rick Muskus ’91
Chief Lending Officer and Director of Business Banking, First County Bank
When consumers and business owners are in search of a bank, the need for reliance and longevity has become incredibly important. In the wake of recent banking turmoil, the knowledge that your banker will remain a reliable part of your personal and professional ecosystem is crucial.
It is no surprise that community banks have become a popular choice, offering a level of safety where larger banks can fall short. The relationship goes beyond just maintaining a checking or savings account, which rarely requires any personal interaction with a banker. What the customer now looks for are products and services combined with a trusted adviser. “Know your customer” at a community bank takes on a different meaning when your bank really knows you: your banking tendencies, the evolution of supporting your needs versus onboarding quotas and providing a high level of personal service.
What many consumers and businesses rightly consider when choosing a bank is the need for secure technology and digital services. With the evolution of Banking as a Service (BaaS), the integration of technology and innovation now gives smaller financial institutions a broader menu of solutions to offer customers.