In this episode of the Digital Banking podcast, you’ll get to hear from Trey Maust, the Co-Founder and Executive Chairman of Oregon City, Ore.-based Lewis & Clark Bank. Trey brings over 25 years of banking experience to the table, having served as CEO and Director at several leading financial institutions.
Josh DeTar, host of the Digital Banking Podcast, and Trey Maust discuss the benefits of community financial institutions (CFIs) and their role in the future of banking. Trey’s passion for the industry is contagious as he shares his thoughts and conclusions about fintech and CFIs.
Trey and Josh talk about the differences between technology platforms and banks in terms of innovation. Trey offers great advice on how financial institutions can secure their place in the future of fintech.
⚡ As companies grow, they become more process-oriented and less in touch with the community. CFIs have the opportunity to harness that community feel. With so many high-tech companies on the global market, it’s hard for banks and other financial institutions to compete, especially since it sometimes feels not everyone abides by the rules. The immense advantage that CFIs hold over their competitors is the ability to put the community first. Trey explains, “We care as individuals about others in our community or within our circle. It’s hard to deal with an organization that you feel doesn’t. So it goes back to that concept of, as CFIs, we have this ability to harness that community feel, and we care about those that we deal with.”
⚡ What’s the role of FIs in the future of banking? The fintech industry is inevitably growing. On the other hand, the harsh reality is that banks play an increasingly smaller role in the financial eco According to Trey, “if we don’t provide a path to fintech companies to access the banking system infrastructure, they’re going to figure a way around it. And we’ve already seen that with cryptocurrency.” The role that banks will play in the future financial system depends on their ability to join forces with fintech.
⚡ In fintech, there has to be a balance between safety and innovation. Technology platforms are pretty appealing, and it’s understandable why consumers are drawn to them. Still, we need to keep in mind that not everyone can start a credit union or a bank. There are rules, regulations, and processes that need to be put in place to ensure safety. “Consumers will continue to be drawn to technology platforms created by those on the high-risk side of the spectrum. They’re the ones that are going to figure out what’s the next best thing, but all that stuff has to be powered by an insured depository institution.”