#3110: Cornerstone Advisors Banking Research Shows Credit Union Concerns in 2023...

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If you're looking for insights on banking leaders' thoughts for 2023, then look no further than Cornerstone Advisors' “What’s Going On In Banking 2023” report. This annual, comprehensive study covered everything from talent acquisition, digital transformation, and lending processes to cryptocurrency, conversational AI, and payments -- and much, much more.

In addition to those items covered, there are a plethora of quotes from the banking executive respondents, providing their opinions on the year ahead in many of these categories. It's a fascinating read if you like to get a peek as to what these leaders are thinking about that will help them steer their financial institutions in 2023.

To get the backstory on this recent research, we invited Cornerstone Advisors Chief Research Officer Ron Shevlin and Cornerstone Advisors Editor-at-Large Mary Wisniewski to come on the show and share their insights on these findings.

Here are some of the highlights we discussed with Ron and Mary:

• Growing deposits will be a priority in 2023. Banks’ concerns over small business deposits soared to 72% from 41% in 2022. For credit unions, retail deposits topped the list, skyrocketing from 18% in 2022 to 70% in 2023.
• Banks and credit unions remain seemingly indifferent to the revenue growth potential of real-time payments. Nearly 40% have not determined an RTP strategy.
• 72% of banks place a high priority on growing deposits from small businesses
• Banks plan to invest nearly $4 million in fintech startups in 2023 (an increase of $1 million over 2022) while credit unions plan to invest just over $1 million (a slight decrease from 2022)
• 51% of credit union execs believe 2023 will be more favorable for mergers than 2022
• 16% plan to replace or select a new consumer LOS in 2023, down from the 21% that expected to do so in 2022
• 25% of institutions said they’re three-quarters or more done with their digital transformation efforts
• Banks (more so than credit unions) will be stepping up their investments in fintech startups in 2023.

We'll leave you with a couple of predictions for 2023 from the report:

• Embedded fintech will be bigger than embedded finance
• Buy now, pay later will make a comeback at banks’ expense

Check it out and let us know your thoughts. And be sure to watch the entire episode with Ron and Mary below for all the details. Lots to digest here.