Worcester Business Journal

12 Worcester Business Journal | October 20, 2025 | wbjournal.com BANKING & FINANCE Tech support Community banks are partnering with fintechs to deliver a competitive mobile banking experience while keeping the human touch BY ERIC CASEY WBJ Managing Editor I n 2012, a WBJ review found less than half of Central Massachusetts banking institutions had a mobile banking app. Today, you'd be hard pressed to find a bank or credit union that doesn't have its own Android and Apple apps, as it's become second nature for banking customers to deposit a check or move money from one account to another via their smartphone. A 2024 survey by the American Bankers Association found 55% of banking is conducted via mobile app, while a further 22% is via the web. With apps now ubiquitous, local banks are looking to AI and other emerging technologies in order to keep innovating. Leveraging the power and technology of larger fintech firms can help local insti- tutions compete with larger banks while keeping their local roots, said Kate Gallo Megraw, chief operating officer/chief infor- mation officer at Auburn-headquar- tered bank Webster Five. "We leverage fintech partner- ships and internal innovation to really compete at scale," she said. "We are not necessarily trying to be a bigger bank, but we're just trying to allow our customers to be smarter and faster." e emergence of AI offers opportu- nities, but local banks are aware of the potential pitfalls of rolling out AI-backed technology in a rush to stay ahead of the curve. Despite its virtual presence, the human touch remains a key aspect of mobile bank- ing, said Michael Welch, CEO of Whitinsville-based UniBank. "We're really at a national focal point of how we define banking and financial ser- vices," he said. "ere are a lot of people getting lost in the cyber world, and a lot of collateral damage along the way. We're doing well by balancing the person with the technology, and that's what the customers who are gravitating towards us appreciate." Keeping up with tech E-banking emerged in the days of di- al-up internet, long before smartphones. But as these devices have become an integral part of customer's everyday life, the importance of adding new features to mobile banking apps has become paramount, said Jamie Conaghan, senior vice president of marketing and digital at Marlborough-based Main Street Bank. "Mobile needs to be first when looking at financial services and fintech," she said. "We've embedded certain things within that mobile banking app, like credit score monitoring, credit report access, and money management tools. It's really about making it a one-stop place and partnering with fintech, so that we can offer that fully-integrated experience." For business customers, Main Street Bank has partnered with ZSuite Technolo- gies, a Boston-based firm. is rela- tionship has allowed business account holders to instantly create sub-accounts without coming into a branch, helping keep track of money coming in-and-out by allowing funds tied to particular proj- ects or departments to be kept separate from the main account. "A good use case for ZSuite would be property managers with multiple tenants," Conaghan said. "ey have multiple deposits from tenants, like security deposits. ey can manage and see all those separate deposits, but it all flows up into one main account they can then manage." While other banks have decided to put virtual banking kiosks in their branches, Main Street Bank has instead added Video Connect, a feature allowing customers to speak to a banker directly from the app. "is is in contrast to some financial institutions putting virtual terminals in their branches," Conaghan said. "We took the opposite approach: If people are going to a branch, they're going in order to talk to a person. But if there's somebody who wants to embrace that technology, they can do it from the com- forts of their own home or office." Webster Five has teamed up with New York-based fintech Spiral, whose features allow banking customers to round-up debit card transactions. is leover change can be deposited into a savings account or donated to nonprofits. "Maybe it's the YMCA, maybe it's the Worcester Housing Alliance," Gallo Megraw said. "If you spend $20.98, those two cents are going to go to a cause you care about. It's a nice piece of technology that enables my customers to hit multiple goals." Far from something that's only benefit- ed big national banks, new technology has helped local banks level the playing field, Gallo Megraw said. "I don't find fintech and AI to be a threat," she said. "It's really a multiplier for community banks, and it's going to be what brings us into the next wave. Strategically, I think most community banks have certain areas they're trying to grow, and so you naturally need to find partners that are going to enable you in a Michael Welch, CEO of UniBank Kate Gallo Megraw, chief operating offi- cer/chief information officer at Webster Five Jamie Conaghan, senior vice president of marketing and digital at Main Street Bank PHOTO | COURTESY OF WEBSTER FIVE

• Cover