Highlighting consumer demand for seamless digital delivery of financial services, FDIC Chairman Jelena McWilliams today emphasized the role of core banking technology companies in facilitating digital transformation. “Banks must evolve with these expectations, and their technology service providers must evolve as well,” she said at the St. Louis Fed’s community banking conference.
McWilliams highlighted several challenges banks face when innovating on today’s core platforms. “Existing core processing systems typically provide a number of different platforms for lending and deposit-taking activities,” she said. “These platforms may use differing data standards and may not interact with one another let alone solutions from other companies.”
She envisioned “a future where next generation core service providers offer an end-to-end digital banking experience to their partner banks” that will allow banks to “develop their own technology or partner with fintechs—all while providing flexible access to the data on the core providers systems.” McWilliams also highlighted actions the FDIC is taking to facilitate innovation, including providing technical assistance, hosting “tech sprints” and “identify[ing]and eliminat[ing]unnecessary regulatory burdens that limit innovation.”