Despite “digital transformation” being a key buzzword in banking for the last five years, many banks are still early in their journey to adopt new technologies. The reasons are unique to each institution, but as a whole, banks often fall victim to a number of misconceptions about digital transformation before the process even begins.

But that doesn’t have to be the case.

We’re here to help banks bite off the low-hanging fruit of their digital transformations and overcome perceived hurdles. To begin, let’s demystify the five myths we most commonly hear from banks about adopting digital capabilities.

Myth 1: Digital Platforms Are Too Complex and Expensive

Complexity and cost often deter community banks from implementing digital platforms. In reality, there are cost-effective solutions designed for community banks. These solutions often incorporate APIs and cloud-based technology, enabling banks to build upon existing legacy systems without a complete technological overhaul. Additionally, digital banking providers often offer managed services, reducing the need for an extensive in-house IT team.

Implementing digital platforms doesn’t have to be complex. Community banks can set their pace for innovation, adopting a crawl, walk, run approach. The journey toward digital innovation is non-linear and varies from bank to bank. The key is taking action and establishing strategies to sustain progress.

Myth 2: Going Digital Means Sacrificing In-Branch Customer Service

While many customers prefer online banking, over 20% still seek an in-branch experience, especially for significant and complex banking decisions. To remain competitive, community banks must adopt digital-first strategies and personalized in-branch experiences that build customer relations.

Empower both customers and bank teams with omnichannel digital solutions that offer the same services in-branch and online. Embracing digital doesn’t mean compromising the in-branch experience; it means ensuring a consistent experience, regardless of where or how customers choose to bank.

Myth 3: Digital Platforms Are More Suited for Mid-to-Large Size Banks

Asset size does not correlate to how advanced a bank’s digital ecosystem should be. Every bank is at a different stage of its digital transformation journey, and all banks should focus on embracing innovation through a strategic selection of fintech resources tailored to the institution’s needs.

Programs such as the ICBA ThinkTECH accelerator, of which Core10 is a graduate, are fueling a growing interest and investment in fintech solutions specifically designed to fit the needs of community banks. This initiative plays a significant role in ensuring community banks are equipped with the technology they need to succeed in the digital age.

Myth 4: Implementing Digital Platforms Increases Fraud

Digital platforms don’t inherently expose community banks to a higher risk of security breaches. When community banks partner with fintech providers with the proper security protocols and certifications, they have built-in safeguards to identify and prevent fraud attempts.

Rather than viewing digital solutions as a catalyst for heightened fraud, embrace these tools to enhance your security strategy and improve the overall efficiency of the banking experience.

Myth 5: Digital Transformation Means Replacing Employees with Technology

Digital transformation doesn’t replace bank employees but elevates them to their full potential. Deloitte found customers continue to prefer human interactions for complex financial products and services. Digital tools automate routine tasks, enabling employees to focus on building stronger customer relationships and driving business growth.

At Core10, we’re committed to supporting community banks in their modernization efforts. Our Accrue platform offers a comprehensive omnichannel solution for digital lending and deposit account opening. Our Mesh middleware layer provides a flexible, modern infrastructure to enhance your technology ecosystem. And, with a wealth of experience and expertise accumulated over the years providing API and product development support, Core10 stands as your trusted partner for digital innovation.

Digital transformation is not just a buzzword; it is a crucial step that community banks are taking to remain competitive in today’s evolving landscape. Don’t let the common myths above keep your team from growing as you serve your communities!