Core banking modernization Archives

Strategic partnerships – those relationships between traditional financial institutions and fintechs – have become really integral as banks seek to modernize their offerings and fintechs aim to scale their operations and get distribution.

KeyBank and Qolo have teamed up on an embedded finance offering. On today’s episode, we sit with Jon Briggs, Head of Product and Innovation at KeyBank, and Patricia Montesi, Co-founder and CEO of Qolo.

Their collaboration story begins two years ago when a single slide in Qolo’s pitch deck caught KeyBank’s attention. “We still talk about it today,” Montesi recalls. “It was the ‘Series A: Winter Slide’, which was all about how fintech had created this spiderweb ecosystem of suppliers. And sort of put the burden back on banks and corporates to bring it all together.” Their shared goal of simplifying fintech sparked a partnership that’s addressing how treasurer think about and use banking.

As Briggs explains, “We enter partnerships because they need a lot of mind share, a lot of sweat equity.” What set Qolo apart was their deep understanding of banking-grade compliance and operational risk. This makes the integration process less painful. The result of their collaboration? KeyVAM, a virtual account management system that simplifies money movement by consolidating balances and transactions in a virtual platform, reducing the need for organizations to manage multiple accounts or complex account structures.

KeyBank’s Jon Briggs and Qolo’s Patricia Montesi are my guests today on the Tearsheet Podcast.

Genesis of a Powerful Fintech Partnership

The collaboration between KeyBank and Qolo is a testament to the power of strategic bank-fintech partnerships. Briggs highlights the importance of cultural alignment. He states, “What distinguishes a partner from a vendor is that cultural and executive alignment.” Their shared vision has been key in overcoming the challenges of launching a new product.

Unveiling KeyVAM: A New Era in Treasury Management Solutions

KeyVAM represents a significant leap in core banking modernization. Briggs describes it as “a hyper-modern core ledger” that allows clients to open sub-accounts instantly. What sets it apart is its robust UI and API capabilities. This puts self-serve at the forefront of the product.

Rethinking Account Opening and Management

One of the most striking features of KeyVAM is its ability to streamline account opening. “We put our clients in the driver’s seat,” Briggs explains. “They can do it in as little as 60 seconds.” This quick speed and instant payment setup mark a major step forward in digital banking.

Strategic Importance of Embedded Finance

The development of KeyVAM is not just about solving current client needs. It is a strategic move in the evolving landscape of embedded finance. Briggs notes, “Deposits are going to become even more important for banks going forward, and it’s frankly going to be the gating item for growth.” KeyVAM allows KeyBank to compete with technology and innovation rather than just on rate.

Overcoming Challenges in Fintech Integration

Montesi stresses the importance of education when introducing new technologies in traditional banks. “It’s a really big part of understanding it at that level because a lot of real-time, instant, virtual – a lot of risk and compliance people get nervous when they hear these things,” she explains. This focus on education has been essential for adapting and integrating smoothly.

The Big Ideas

Cultural Alignment has been crucial in navigating challenges and ensuring a successful partnership. Briggs shares, “What distinguishes a partner from a vendor is that cultural and executive alignment.”

KeyVAM is a recent innovation in core banking systems. Briggs explains, “Nobody’s innovated around the core operating account which is at the centre of every banking relationship.” Such banking innovations represent a significant step forward in business banking solutions.

Speed and Efficiency are the game-changers in digital banking. The ability to open accounts in as little as 60 seconds is a game-changer. Briggs notes, “We put our clients in the driver’s seat,” highlighting the focus on client empowerment and efficiency.

KeyVAM helps KeyBank stay competitive by focusing on the value of deposits. This approach is key in navigating today’s changing regulations. Briggs highlights, “Deposits are going to become even more important for banks going forward.” KeyVAM positions KeyBank to compete effectively in this landscape. It results in efficient cash flow management by streamlining accounts.

Montesi stresses the importance of education and the integration of new technologies. He states, “You have to spend the right amount of time educating folks along that journey.” This focus on education has been crucial in overcoming integration challenges.