Banks usually collaborate with a single core provider who provides new business solutions for both the bank and its clients. It’s less common for a bank to use two cores to support various lines of business, but that’s exactly what Texas National Bank, a $170 million bank based in Sweetwater, is doing by partnering with Data Center Inc. as a core partner for its direct digital bank.
Mike Fernandez, President, and CEO of Texas National Bank recognized that his bank’s future would be based on finding new ways to develop. “We are geographically confined in terms of branch expansion, and the economy in our markets is not as strong as it is in other areas, posing challenges to growth and getting new business. The typical solution to this challenge is to hunt for an acquisition opportunity, such as a full bank or branch, or to enter the market from scratch, but both of these approaches are extremely costly, especially when compared to the direct digital bank method “Fernandez elaborated. “We turned to bankers helping bankers,” says the author.
“We contacted our current core supplier when we initially considered a direct digital bank, and while they are a terrific vendor for our main bank processing, they were just unable to reliably assist us in developing a solution for our direct digital bank needs. We were obliged to explore for other possibilities and solutions as a result of this.” Fernandez explains how they talked to the “extremely visible” cores but decided they weren’t the appropriate fit as well. “”We eventually resorted to Bankers Helping Bankers [a new, bankers-only portal created for collaboration and communication among bankers],” Fernandez stated. They took the time to listen to our issue and linked us with Data Center, Inc.
Tanna Faulkner, DCI Senior Vice President of Digital Channels, adds, “What most people don’t recognize about DCI is that we have been working with banks who are researching Fintech solutions that fall outside the ‘conventional’ banking paradigm for close to a decade. Our offerings and integrated systems are a perfect match for what Mike and his institution are looking to achieve, and these innovative solutions and unusual collaborations are exactly what will save and secure community financial institutions for years to come, which is why DCI is eagerly seeking these types of partnerships.”
DCI and Texas Nation
Following the initial conversations, it became clear to both sides that DCI’s advanced and modern services would assist Texas National in realizing its vision. “I knew DCI was the perfect choice because, not only did their technology outperform the competition, but when Tanna asked to view our business strategy, I knew we weren’t just another contract to them and that they were truly invested in our success. Not only did we have a provider, but we also had a partner “Fernandez clarifies.
Bankers Lender, a direct digital bank specialized to bankers and supplied via a digital platform, is the result. The application, approval, and transfer of funds will all be done online and through a single source. Fernandez and his colleagues plan to debut in April, with the first customers arriving in May. the launch of initial customers offerings of:
● Secured closed-end loans;
● Unsecured closed-end loans;
● Secured revolving lines of credit;
● Unsecured revolving lines of credit; and
● Demand deposit accounts
“We have a long history of providing deposit and lending services to bankers in our area, and Bankers Lender will expand our reach and reputation,” says Fernandez. “This project is coming to completion because we discovered the perfect partner who recognizes the need for this service and provides the tools to make the program work smoothly for our consumers.”
Vision of Project
This project is in accordance with DCI’s philosophy and vision of ensuring the long-term viability of community financial institutions. “We were ecstatic with the notion when they returned with their plan and particular target audience. Even as consumers, it’s critical that community banks assist one another. We’re very thrilled to see where Texas National Bank goes with this, and we’re honored to work with them,” Faulkner adds her own excitement to the mix.
DCI and Texas National are in the midst of implementation, with plans to debut Bankers Lender in April of this year. While the technique is novel, both parties think that “we’ve always done it this way” is one of the most dangerous statements in business. Progress is rarely made by recycling old ideas, and this project could serve as a model for how others in the community banking industry can move forward.