When Malvern, Penn.-based Customers Bank made the decision to augment its third-party risk processes with the assistance of a fintech, it joined nearly 100 other community banks to shop for one via vendor platform True Digital. True Digital allows banks to connect with fintechs in various banking technology areas, essentially making it possible for financial institutions to compare experiences to those of similarly sized banks to help select a vendor, Jesse Honigberg, executive vice president of products and platforms at Customers, told Bank Automation News.
The ability to genuinely exchange experiences with fintech platforms is one of the greatest benefits of using True Digital, Honigberg said, noting that vendors typically point potential clients to their most satisfied FI customers rather than one that will give an honest response.
Customers Bank was one of nearly 100 community banks that joined the newly launched platform as part of True Digital’s latest partnership with Mid-Size Bank Coalition of America, an alliance representing the nation’s mid-size banks, and the nearly 100 financial institutions, according to a True Digital release.
The platform connects banks with fintechs to help FIs make technology decisions that fit their needs, True Digital co-founder Patrick Sells told BAN. There are 187 technology categories represented on the platform, ranging from deposit technology to digital account opening to virtual lending optimization, he added.
“What we built was a way to think about bringing technology to the relationship between banks,” Sells said. “Part of the partnership was the understanding that we built this to behave like an industry utility, and the more banks that are on it, the more valuable it becomes to the rest of the industry.”
Financial institutions are responsible for adding fintech vendors they use to the platform, which includes Jack Henry, FIS, Fiserv and MANTL, a True Digital spokesperson told BAN.
Fintech vendors are not charged to be listed on the platform, but banks using True Digital are required to pay a subscription fee based on asset size. Banks with $2 billion or more in assets pay $10,000 per year, FIs with between $1 billion and $2 billion in assets pay $5,000 per year, and banks with less than $1 billion in assets are charged $2,500 per year, according to the company’s website.
A similar initiative was launched in November 2022, as the BTech Consortium, primarily made up of smaller FIs, looked to help fintech startups by pooling funds to invest in technology areas such as lending, cybersecurity, and payments, Fred Cummings, founder and president at VC Elizabeth Park Capital Management, which backs the consortium, previously told BAN.
Note: This information was originally shared via Bank Automation News.