It’s to no one’s surprise, artificial intelligence has completely transformed the banking sector. According to Jenna McNamee at Insider Intelligence, 

“Not all banks are able to tap fully into the powerful technology. Fintech partnerships may also be adding to smaller banks’ tech disadvantage.”

At Posh, we were aware of this problem when the company was first created. Technology in banking was influenced by large banks and as a result, did not align with what smaller banks needed and was not feasibly accessible. Credit Unions and smaller, community institutions were often left by the wayside simply because there were no accessible solutions out there. 

This is why our mission from the very beginning, was to democratize access to banking through conversational AI. Our specific focus has been and will continue to be credit unions and community banks.  

We understand the importance of community banking and how financial freedom can only be achieved by access to banking. Our Posh AI solutions are designed to make that a reality, one conversation at a time. But, while we know how easy it can be to implement conversational AI, we can understand the inherent hurdles and hesitations behind doing so. 

Let’s unpack some of the common challenges - as detailed by Insider Intelligence’s AI is less accessible to small banks and credit unions—fintechs could be exacerbating the gap - that smaller financial institutions can face when it comes to integrating conversational AI and how we are actively mitigating those challenges. 

The Challenges 

McNamee makes another great point, “Community banks need access to the same tech solutions as larger FIs to survive.” 

The Issue: “Most small banks are already behind in their digital journeys. They often lack the budget and resources to complete a major tech overhaul in a short period of time.”

Our Solution: Posh has a range of solutions that are built to meet clients where they are at. We have a set of solutions that are designed for small to large financial banking institutions that take into consideration size, scope of problems to be solved, and the current ability to integrate AI. This further ensures a VIP experience for each client, ensuring that their individual needs are addressed with solutions built into our packages.‍

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The Issue: “Fintech partnerships are a quick and easy solution to the lag, but some AI-focused fintech providers are making the gap worse.”

Our Solution: This is absolutely true. AI has become the hottest new technology for fintechs. However, not all AI fintech solutions were created equal. There are companies out there who are scrambling to develop AI solutions to “ride the wave,” and we’re seeing companies with no historical background in generative or conversational AI suddenly venture into this branch of technology for the sake of it. 

However, better solutions exist. We have mentioned in detail the importance of finding an AI partner that understands that conversational AI is not an add-on, but rather a platform. It is important to find a vendor who not only understands the power of AI but also can act as a trusted partner and guide along the journey. 

The Issue: “Many fintechs are opting not to work with small banks because they don’t see a partnership as worth the time and effort. Fintechs that do work with community banks typically offer them different solutions than they offer larger banks with a bigger tech budget.”

Our Solution: At Posh, we work with small banks and credit unions because we understand the inherent value they have as financial institutions. Credit Unions and community banks hold a valuable place in the community and refusing to work with them automatically denies access to financial freedom to a large majority of individuals. 

As it stands, there are approximately 130+ million individuals who bank with credit unions. It is our goal to empower credit unions to reach every single one of those members. 

The Issue: “Small banks leaning on AI to personalize their offerings may lose out because they can’t source tools powerful enough to provide the level of customization they desire.”

Our Solution: We understand that adding AI to current systems can seem like the largest hurdle. At Posh, we are designing our solutions to be easily deployable -  specifically for small banks and credit unions - without requiring a lot of time and money to be spent on these integrations. 

How Do We Know This? 

Because we’re helping our clients - a mix of credit unions and community banks - achieve success with our conversational AI every day. 

• $900K+annual savings in third-party costs (OneNevada Credit Union) 
• 1000+ staff hours save/mo+ minutes saved (FirstLight Federal Credit Union) 
• Solving 90% of requests (Florida Credit Union) 
• 35% of chats are handled after hours (Hudson Valley Credit Union)

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