Bankruption

Bankruption + Website offers a survival guide for community banks and credit unions searching for relevance amidst immense global competition and fintech startups. Author John Waupsh is the Chief Innovation Officer at Kasasa, where he helps spearhead financial product development and implementation across hundreds of institutions. In this guide, he draws on more than a decade in the industry to offer clear, practical advice for competing with the megabanks, direct banks, non-banks, and financial technology companies.

The discussion separates futurist thinking from today's realities, and dispels common myths surrounding the U.S. community banking model in order to shed light on the real challenges facing community banking institutions. It follows with clear solutions, proven strategies, and insight from experts across banking and fintech. All arguments are backed by massive amounts of data, and the companion website provides presentation-ready visualizations to help you kickstart change within your team.

In the U.S. and around the globe, fintech companies and non-banks alike are creating streams of banking services that are interesting, elegant, and refreshing—and they're winning the hearts and minds of early adopters. Not a one-size-fits-all approach, this book offers many different tactics for community banks and credit unions to compete and flourish in the new world.

• Analyze fintech's threat to the community banking model
• Learn where community banking must improve to compete
• Disprove the myths to uncover the real challenges banks face
• Adopt proven strategies to bring your organization into the future

Community banks and credit unions were once the go-to institutions for local relationship banking, but their asset share has been on the decline for three decades as the big banks just got bigger. Now, fintech companies are exploiting inefficiencies in the traditional banking model to streamline service and draw even more market share, as community banking executives are left at a loss for fresh tactics and forward-looking strategy. Bankruption + Website shows how community banks can be saved, and provides a proven path to success.

Preface ix

Introduction xv

Additional Thanks xvii

Chapter 1: An Overview of the Bankruption 1

Chapter 2: Community Banking is Broken 7

Chapter 3: The Opportunity for Community Financial Institutions 75

Chapter 4: Advice from Others 157

Chapter 5: Finishing Move 257

About the Author 269

About the Companion Website 271

Index 273

JOHN WAUPSH is a renowned speaker at top FinTech and banking conferences. With one hand in community banking and the other in FinTech, he is well-regarded for balancing straight-talk consultation with research-backed ideation. Waupsh has pioneered integrated FinTech and nancial marketing solutions, including Kasasa^®, a national brand of nancial products offered exclusively at hundreds of community nancial institutions around the United States.

For the last three decades, community banks and credit unions have watched their asset share decline as consumers give less value to local relationship banking and migrate to bigger banks. Now, new FinTech companies focused on streamlining service by exploiting inefficiencies in the traditional banking model are taking away even more market share and leaving community banking executives at a loss for how to regain relevance.

Bankruption dispels the most widely believed myths about community banking and presents tactical guidance for short- and long-term survival planning.

Inside, you’ll see it is truly a matter of survival for community banks and credit unions by way of up-to-date data revealing why they are fading into the past.

A potent combination of primer, inspiration, and game plan, this practical guide reveals what FinTech really means to community banking and illuminates a variety of different ways to embrace and create solutions centered on attracting and retaining account holders.

Busy executives and board members can find solutions for today—not a hypothetical tomorrow—in illustrative examples from the real world illuminated by easy-to-understand explanations.

Then, hear from a remarkable collection of more than twenty real-world industry pioneers who are growing their organizations using the methodologies inside to:

• Put together a data-supported, motivating innovation agenda everyone can support
• Rewrite the denition of community banking and fully explore all the benets of partnering with FinTech to create personalized, scalable services
• Assess and develop methods of gaining consumer insight and improving the overall customer experience

Forget what you have read about the assured demise of community banks and credit unions. With a renewed focus and a commitment to shed “what got us this far” thinking, community banking can thrive in this time of extraordinary change.

Bankruption is the groundbreaking survival guide for leadership at community banks and credit unions that cuts through the FinTech hype and offers solutions for today.

Don’t forget to access this book’s valuable companion website, which contains dozens of downloadable color charts ready-made for presentations!