Pub. 11 2021-2022 Issue 3


It’s Not Hip To Be Square

Colorado-Bankers Association-logo
This story appears in the
Colorado Bankers Association Magazine
Pub. 11 2021-2022 Issue 3

The phrase, “It’s Hip to Be Square,” couldn’t be further from the truth when it comes to fintechs and the risk they pose to community banks. Some fintechs may seem innocent, but in reality, they are quite powerful, and they are quickly taking away both commercial customers and depository fee income from community banks.

Know the Risk

As merchants seek convenience, providers such as QuickBooks and PayPal are offering payroll solutions, taking payments, and, eek, making loans, thereby obscuring the lines for merchant services and jeopardizing your long-term relationship with business customers.

Seize the Opportunity

Does your institution integrate with QuickBooks? QuickBooks partners with a competing bank and is providing competitive services such as interest-yielding accounts, ACH transfers and Visa debit cards directly to your commercial account holders.

Fitech recently helped a community bank in South Carolina identify hundreds of its commercial accounts using PayPal, Square and QuickBooks. This lost business equated to nearly $27 million in initial deposits and $60,000 worth of merchant fee income in one year!

If your commercial portfolio is declining, it’s likely that your customers are going elsewhere. You need a payment partner that will help you to compete in the marketplace, protecting you against customer attrition.

Think Outside the Square

Fintechs-turned-bank eliminate barriers to payment processing by providing rapid onboarding, but fast doesn’t mean good. Square often works with higher-risk businesses and has been known to hold merchant funds, sometimes for days or weeks, without notifying the merchant. Plus, Square requires the purchase of equipment that cannot be used with other systems.

Fitech offers numerous ways to securely set up a merchant account and can have the merchant accepting payments in as few as 24 hours. Our equipment is system agnostic, so merchants don’t have to worry if their equipment will work, and funds deposit the next day — no unexpected account holds.

Pick the Right Partner

Speed and convenience are important in a tech-driven environment, but don’t ignore service. Your payment partner should create a roadmap that reinforces your brand and deliver a superior customer experience 24/7.

Fitech, like the CBA, focuses on the interests of community banks. For help crafting an advantageous payment strategy, contact Erin Jester, Director of Sales, at 559.908.4010 or