6 de novos explain their technological choices

The technology options for de novo banking are plentiful and, some argue, stronger than ever.

“The choices have never been greater,” said Charles Potts, chief innovation officer at Independent Community Bankers of America. “What was once the best tailor-made banking solution suitable for mid-sized regions or superregions is now within reach for banks of all sizes.”

De novos has largely promoted the digital delivery of lending and deposit services as they emerge. They tend to use cloud-based software that supports open application programming interfaces. Their technology integrations can be relatively seamless from the start because there is no legacy infrastructure to connect to.

“A shiny new, shiny de novo bank with better tools and capabilities can be a challenge for institutions of all shapes and sizes,” Potts said. “It’s something we know our community banks are paying attention to.”

Bank of Burlington, which is slated to open in South Burlington, Vermont, this summer, reports that its product implementations are exceeding timelines initially estimated by its vendors. “Every time we meet, we hear, ‘You don’t have data, so we can do this faster,'” said Victoria Bronner, vice president of de novo.

The six de novo banks below that have either launched in the last three years or have yet to open have found value in everything from purchasing all of their technology needs from one vendor choosing the best software from several vendors. Here are their strategies for building a tech stack from scratch.

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