Texas National Bank is looking outside its core for a modern banking platform to help launch its direct digital bank.
HUTCHINSON, Kan., March 15, 2022 /PRNewswire/ — Banks typically work exclusively with a primary vendor that provides innovative business solutions for the bank and its customers. It’s less common for a bank to use two cores, operating independently of each other, to serve different lines of business, but that’s exactly the Texas National Bank approach, a $170 million bank headquartered in Pure watergoes on to add Data Center Inc. as a primary partner for its direct digital bank.
President and CEO of the National Bank of Texas, Mike Fernandez, knew that the future of his bank would depend on continuing to grow in innovative ways. “We are geographically constrained for branch growth, and the economy is not as strong in our markets as in other regions, which presents headwinds to growing and securing new business. The traditional solution to this problem is to pursue an acquisition opportunity, whole bank or branch, or to enter the market de novo, but these solutions are incredibly expensive, especially compared to the direct digital banking approach” , explained Fernandez.
“We turned to bankers to help bankers”
“When we first explored the idea of direct digital banking, we contacted our current primary provider, and while they are an excellent provider for our primary banking processing, they simply weren’t. able to confidently help us create a solution for our direct digital banking needs. . This forced us to look for other options and solutions.” Fernandez details how they looked at the “highly visible” cores, but determined they weren’t the right solution either. “Eventually,” Fernandez continued, “we turned to Bankers Helping Bankers [a new, bankers only, platform designed for collaboration and communication among bankers]. They listened to our issue and put us in touch with Data Center, Inc.”
“What most people don’t realize about DCI is that we’ve been working with banks that have been exploring Fintech solutions outside of the ‘normal’ banking model for almost a decade,” says DCI Senior Vice President. of Digital Channels, Tanna Faulkner. “Our integrated offerings and systems are a perfect match for what Mike and his institution seek to accomplish. These innovative solutions and unusual collaborations are exactly what will save and secure community financial institutions for years to come, and that’s why DCI looking forward to these types of partnerships.”
It became clear to both parties after initial meetings that DCI’s progressive and modern services would help Texas National bring their idea to fruition. “I knew DCI was the right choice, not only because their technology beat everyone else, but when Tanna asked to see our business plan, I knew we weren’t just another contract for them and that “They were really invested in helping us succeed. We had a partner, not just a supplier,” says Fernandez.
The result, Bankers Lender, a direct digital bank tailored to bankers and delivered through a digital platform. Application, approval and movement of funds will be done online and through a single source. Fernandez and his team are planning an April launch with initial customer offerings of:
- Unsecured Revolving Lines of Credit;
- Unsecured closed-end loans;
- Secured Revolving Lines of Credit;
- Closed-end secured loans; and
- Current accounts
“We have a rich history of providing deposit and lending services to bankers in our geographic area, and Bankers Lender will further strengthen our reach and reputation,” says Fernandez. “This venture is coming to fruition because we have found the right partner who also sees the void that this service fills and provides the tools to make the program work with an attractive interface for our customers.”
For DCI, this project fits directly into their culture and their vision of ensuring the future of local financial institutions. “When they came back with their plan and their specific target audience, we were thrilled with the concept. It is imperative that community banks help each other, even as customers. We are incredibly excited to see where this will take Texas National Bank and we are proud to partner with them,” adds Faulkner with his own excitement.
DCI and Texas National are in the midst of implementation with plans to launch Bankers Lender in April of this year, and while the approach may be rare, both parties believe that one of the most dangerous phrases in the business is “we’ve always done it this way.” Progress is rarely made using ideas from the past, and this project is a potential model for how others can move community banking forward.
SOURCE Data Center Inc.