Worcester Business Journal

32 2022 Economic Forecast • Worcester Business Journal • www.wbjournal.com B A N K I N G & F I N A N C E e electronic banking revolution COVID accelerated fintech and customers' use of mobile banking. Expect more to come in 2022. F inancing and banking are the lifeblood of all businesses and organizations. From techno- logical innovations to changing the concept of traditional banking, the future of finance is go- ing digital and breaking free from its previous brick and mortar confines. Physical bank locations will transform For years, banking apps and online banking have offered convenience, security, and efficiency. Initially, popular among younger demographics, online bank- ing saw a huge surge across all ages when coronavirus lockdowns forced users to quickly adapt. e increase in online banking has changed the way that banks look at their physical locations and the traditional teller banking-model. Some banks see the technological transition as an opportunity to turn physical locations into consultation centers focused on services not easily provided through an app, such as one-on-one advice. However, others see a future where branches are com- pletely automated where clients meet with tellers virtu- ally. Meanwhile, other institutions plan on consolidating their workforces and eliminating unnecessary physical branches. Remote work and users accustomed to online banking have opened new doors for changing the way banking services are delivered. BY SLOANE M. PERRON WBJ Staff Writer A greater threat of ransomware As the world came to a stand still during the lockdowns, businesses had to quickly adapt to online models and or risk going under. rough the power of innovation, new models and soware systems were developed to fill this need. is also demonstrated the importance of cybersecurity as online purchases, financial information, personal data, and credit cards, are accessible to hackers and scammers alike. Ransom- ware, the withholding of an organization's important online data by hackers in exchange for payment, spiked significantly in 2021. Cybersecurity will need to be proactive and innovative in order to protect the ever-in- creasing number of online users and businesses from ransomware. Fintech startups will rival traditional banks While financial technology is used by all banking and financial institutions, the future of fintech startups is experiencing unprecedented growth. Apps such as Venmo, Cash App, and Zelle allow instant financial transactions to take place while other services like Mint encourage saving habits and budgeting. Fintech startups are giving the public unprecedented access to the financial services they need. e new generation of fintech startups can be used by anyone with access to a smartphone and do not require savings accounts. More than 60% of Americans do not have more than $400 in their banking accounts, said Robert Sarnie, Worcester Polytechnic Institute professor of practice of finance and director of the WPI FinTech Collaborative and Wall Street FinTech Project Center. Fintech startups are raising the level of competition as they change the banking landscape through innovation and accessibility. Thomas Bartholomew President & CEO Bartholomew & Co. Inc., in Worcester Bartholomew has the innate ability to take complicated financial concepts and break them down into easy to understandable anecdotes. He has witnessed many ups and downs in the world of finance. In the wake of the COVID pandemic, Bartholomew's financial predictions couple objective facts with a positive outlook on the state of the financial sector. Banks are federally mandated to have contingency plans for emergencies such as the pandemics. In order to mitigate financial losses caused by COVID, banks reserved vast amounts of assets. As a result, Bartholomew is very vocal about his confidence in the banking system and its ability to bounce back. Tina Sbrega President Lighthouse Biz Solutions, in Gardner Sbrega is a strong proponent of small businesses, particularly cannabis startups oen facing problems securing funding, as marijuana remains illegal federally. Lighthouse Biz Solutions is a cannabis financial services subsidiary of GFA Federal Credit Union in Gardner, where Sbrega was formerly CEO, and was the first in the state to provide banking services to cannabis companies. Sbrega is very cognizant of the unique challenges cannabis operators face, as Lighthouse offers consultation and access to professional networks to help operators get their businesses off the ground. Derek Canton Founder & CEO paerpay, founded in Worcester Canton first saw technology's ability to help people when he created an app to help his grand- mother's congregation. Since then he has formed his career around the belief the purpose of finan- cial technology, or fintech, is to address the needs of the community. In 2017, Canton founded paerpay, an app allowing users to digitally pay their restaurant bills. is app is beneficial for merchants who cannot afford transaction fees or do not have the operating systems to facilitate secure online payments. Canton's energy and excitement for the fintech field is infectious. Necessity is the mother of invention, and as the pandemic has spurred new innovations, Canton is on the cutting edge. Three people in banking & finance to meet in 2022 W W Berkshire Bank, which owns the Commerce Bank locations in Worcester, has a new electronic interface at its branches. PHOTO | COURTESY OF BERKSHIRE BANK

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