January 23, 2024

As we begin 2024, many institutions are reflecting on their goals and plans for the year ahead. And some may even begin evaluating whether to change core providers as current contracts near expiration. But what should bankers consider when deciding upon the best core bank system?

Anecdotally and empirically, community bank lending has been relatively productive during this multi-year rate cycle. Many conversations I’ve had with bankers in all regions of the country sound alike: Loan demand has been healthy, and even better, credit quality has held up very well even though rates hit a 15-year high toward the end of the year. It sure seems like the industry learned its lessons from the last big downturn just prior to the Great Recession.

As we kick off the new year, our budgets have been set and our plans developed. But you know what they say about the best-laid plans: They change. Fortunately, community banks thrive on their ability to respond to market drivers, and in 2024, those demands point to instant payments.

I recently came across a quote from the Pulitzer Prize-winning poet Theodore Roethke: “Over every mountain, there is a path, although it may not be seen from the valley.” As an avid hiker myself, it resonated because as you look up toward the climb ahead, you may not see the route, but you know it’s there — not unlike the situation we face in community banking today.