Postgame with Amount: Key Takeaways from the ABA Conference for Community Bankers
The ABA Conference for Community Bankers brought together industry leaders to discuss the evolving role of community banks in an increasingly digital landscape. From leveraging AI-driven personalization to enhancing small business banking strategies, the discussions underscored the need for community banks to modernize their offerings while staying true to their core mission: serving their communities.
This year, I had the privilege of presenting at the conference, where we explored how financial institutions can unlock hidden value in their consumer lending portfolios. The session focused on forward-thinking approaches for enhancing consumer lending, leveraging data-driven insights, and improving operational efficiency. Here’s a recap of both the broader conference discussions and key takeaways from my session, Consumer Lending 2.0: The Playbook for Finding and Unlocking Hidden Value.
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1. The Evolving Consumer Lending Landscape
The lending industry is shifting rapidly, driven by digital-first consumer expectations and increasing margin pressures. According to S&P, community banks are facing challenges in lowering deposit costs quickly due to their reliance on certificates of deposit. At the same time, fintech partnerships remain a critical growth lever, with 60% of banks prioritizing commercial and industrial loans, followed closely by mortgage and home equity lending. With megabanks and fintechs posing a growing competitive threat, it’s crucial for community banks to adapt and innovate.
2. Leveraging Data to Uncover Hidden Value
One of the biggest opportunities for financial institutions is utilizing data-driven insights to optimize lending strategies. In my session, we discussed how Liberty Bank successfully launched a personal loan product using Amount’s digital origination capabilities. By integrating AI-driven automation, Liberty Bank was able to process 300 applications per day with just a single employee. Their success underscores how financial institutions can use data to not only improve customer acquisition but also refine risk assessment and engagement strategies.
3. Enhancing Operational Efficiency Through Technology
Streamlining lending processes is key to reducing costs and boosting productivity. Banks are increasing their technology investments, with 73% planning higher tech spend in 2025. However, a lack of integration between systems remains a top challenge. Financial institutions must focus on automation, improved system interoperability, and workflow optimization to enhance efficiency. As demonstrated in our session, consolidating applications and automating manual processes can unlock over $500,000 in savings annually.
4. The Future of Personalized Consumer Lending
Today’s borrowers expect a seamless, tailored experience similar to what they get from brands like Amazon and Netflix. By leveraging data analytics, banks can deliver personalized loan offers, prefill applications, and optimize customer journeys. We highlighted how Amount’s partnership with Credit Karma enables lenders to provide tailored offers to over 136 million members, enhancing conversion rates and improving the borrower experience.
5. Small Business Banking Needs a Digital-First Approach
As small businesses continue to be a critical segment for community banks, institutions must prioritize digital-first solutions that integrate with business management tools. Providing seamless access to capital, AI-driven insights, and scalable platforms will help small businesses grow and thrive. Beyond transactional banking, community banks can differentiate themselves by offering advisory services and value-added resources that strengthen customer relationships and drive loyalty.
6. Building a Playbook for Growth
As we wrapped up the session, we outlined actionable steps for financial institutions looking to position themselves for long-term success:
Conduct a portfolio health assessment to identify untapped value.
Implement data-driven insights incrementally to optimize lending strategies.
Enhance operational efficiency through automation and technology investments.
Personalize consumer lending experiences to deepen customer relationships.
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Final Thoughts
The ABA Conference for Community Bankers reaffirmed that banks embracing digital transformation while maintaining strong community connections will be best positioned for future growth. I enjoyed sharing these insights and engaging in meaningful discussions about the future of consumer lending. If you’d like to continue the conversation, feel free to connect!
