Community Banks Face Core Processor Frictions
The Office of the Comptroller of the Currency issued a December Request for Information about community banks’ relationships with core processors, and commenters responded by the end of the commentary period late last month. PYMNTS Intelligence shows 32% of lower-revenue SMBs favor community banks while 52% of Gen Z and millennials would consider switching if local banks match competitive technology; respondents cited API delays, opaque pricing, data portability limits, and AI governance gaps.
Key Points
- 1Identify integration delays: banks report waiting 12–18 months for basic data extraction from core providers
- 2Explain market concentration limits negotiating leverage, raising switching costs and hindering technology adoption
- 3Recommend standardized open APIs, clearer contracts, and proportional supervision to accelerate bank modernization
Scoring Rationale
Strong, industry-wide diagnostic with official responses; limited novelty beyond documenting known integration, contract transparency, and AI governance issues.
Sources
Public references used for this report.
Practice with real Banking data
90 SQL & Python problems · 15 industry datasets
250 free problems · No credit card
See all Banking problems
