It’s been just over two months since we founded TurmaFinTech, and for me, now is the right time to reflect on why we chose to make this step. Customer retention and growth are perennial issues across US regional and community banks, and despite some critics, technology will be needed to solve them both. 

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Let’s zoom out to the wider industry picture. The ‘big four’ – JPMorgan Chase, Wells Fargo, Citigroup and Bank of America – are only gaining more of the market’s profit share. These titans raked in nearly $88 billion in profits in the first nine months of 2024, leaving smaller players in an uphill battle. For regional and community banks, remaining competitive against these LFIs is and will only continue to get harder.

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Yet, underutilizing data and technology could make it near-impossible.

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At TurmaFinTech, we’re standing with US banks to eliminate this technological lag. With our RedBee Platform, we have designed and developed a sophisticated digital solution to help regional and community banks optimize their customer touchpoints, drive sales and increase overall revenue growth. And all with their unique needs in mind. 

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But there’s another issue at hand – and one that could prevent US banks from modernizing and digitalizing completely. In fact, it’s one that our team saw and addressed very recently...

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The truth is that some banks simply like the old way of doing business and are skeptical about the use and integration of emerging technology. For them, techs like AI and ML can prove more expensive than they’re worth, and too difficult or complex to implement. 

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In response, I’d urge them to look at their larger competitors. 

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The big four have integrated technology throughout their organizations and have set a competitive industry benchmark in doing so. JPMorgan has invested over $10.6 billion in AI, Citigroup has over 70 dedicated AI researchers, and Wells Fargo leverages AI to manage at least 300,000 customer service requests each month. While these banks currently dominate the market, there’s no doubt that their adoption of emerging technology will only strengthen them further.

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I understand that regional and community banks don’t have the reserve capital to invest mountains in emerging tech – or deal with the experimentation costs. But the fact is that digitalization doesn’t have to be unaffordable. Fintechs like us can take away the risks of implementation in-house and can deliver affordable solutions designed specifically for each respective bank or financial institution. 

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I’ll break down the benefits. Embracing tech can:

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• Enhance customer experience: Keeping clients happy with personalization, rewards and loyalty programs, and tailored marketing.

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• Increase customer retention: With AI-driven insights, you can identify and retain at-risk customers, anticipate customer needs, and predict purchase patterns.

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• Drive revenue: By enabling targeted offers, accelerated marketing, and cross-selling of products, AI and ML insights can supercharge revenue growth.

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And in today’s industry landscape, these are all critical for remaining competitive.

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As a community bank, you have at your fingertips close and sometimes decades-long relationships with your customers. The ties are already there. It’s time all banks across the US – large, regional, and community – make the move into the modern world.