Reimagining Financial Services in the Digital Age

Misti Mostiller, Executive Vice President, Director of Consumer Banking and Enterprise Innovation, Extraco Banks.

Misti Mostiller, Executive Vice President, Director of Consumer Banking and Enterprise Innovation, Extraco Banks.

In an interview with CFO Tech Outlook, Misti Mostiller, executive vice president, director of consumer banking and enterprise innovation at Extraco Banks, sheds light on her view of implementing emerging technologies to seamlessly manage the financial operations of a business.

Could you briefly chart your career trajectory in the finance industry?

I am the Executive Vice President and Director of Consumer Banking and Enterprise Innovation at Extra CoBank. It is a family-owned, privately held community bank located in the central Texas area with assets exceeding $2 billion. Over my 19-year tenure at the bank, I have spearheaded numerous initiatives encompassing digital transformation, omnichannel transformation, branch transformation, and people-centric projects. These ventures promote the establishment of centralized training and retail leadership programs, the conversion of digital banking platforms and debit card systems, the enhancement of the customer experience, and the development of an inbound call centre and an outbound retention unit. Presently, I am accountable for overseeing the lobby network, managing the omnichannel environment, and implementing consumer payment strategies within the bank.

Could you share insights on notable technological advancements that have significantly impacted the CFO world and the overall financial industry?

The past decade has witnessed significant emerging technologies and transformations in the financial sector. The new horizon seems to hold promising, transformative environments and ecosystems. Consumer preferences are changing at a rapid pace in terms of operational speed, accessibility, convenience, and privacy. Organizations that can effectively bundle these components, along with personalization and predictive capabilities tailored to each unique customer, will emerge as winners in the realm of customer experience.

"Consumer preferences are changing rapidly in terms of operational speed, accessibility, convenience, and privacy. Financial organizations that can effectively bundle these components, along with personalization and predictive capabilities tailored to each unique customer, will emerge as winners in the realm of customer experience."

For banks, and particularly for smaller ones, the question of which fintech partners can help deliver such innovations at a comparable pace remains a hot topic. It becomes a daunting task to keep up with the evolving landscape as customer expectations shift and demand increases. Alongside the pursuit of innovation, banks must navigate the intricacies of risk management, due diligence, and appropriate vendor management when venturing down this path.

What are the perennial challenges that you believe are most prevalent in today's financial landscape?

The disintermediation created by non-traditional financial institutions is an ongoing issue that has spanned over a decade and remains a persistent and substantial threat. The evolving landscape has witnessed customers increasingly preferring superior experiences that incorporate financial elements, which is gradually building trust and confidence in these alternative providers.

As customers desire personalized attention and intentional interactions, once they discover an organization capable of delivering such experiences, they will gradually shift their primary relationship away from traditional banks. The conventional reliance on trust alone, where customers would deposit their money in FDIC-insured institutions for security, is facing a breakdown as progressively more consumers are entrusting alternative options rather than traditional banks. Consequently, banks are proactively seeking solutions, exploring potential partnerships, or considering internal development or acquiring technology capable of delivering the desired customer experience.

Could you elaborate on the strategic measures you implement to support your team members in adapting to the ongoing changes?

The essence lies in recognizing the paramount importance of employees. As a leader, maintaining a laser focus on the employee experience becomes crucial. This entails thoughtfully considering their journey and employing a tactical approach. Similar to the attention given to the customer experience, consistency should be sought in shaping the employee experience. Listening to employees and assessing the systems they employ to execute their tasks are vital aspects. Just as we aim to minimize customer effort when interacting with us, the same mindset should extend to our employees.

Identifying potential barriers that hinder efficiency, such as time-consuming tasks or obstacles to building confidence in customer interactions, is essential. Equipping employees with the necessary tools for success becomes a priority.

What are the upcoming changes that are likely to have a profound and transformative impact on the future of the financial industry?

When considering the banking sector, it is important to acknowledge the diversity in operational size of the banks. Specifically, from the perspective of communities and smaller banks, the adoption and utilization of technologies such as blockchain are still nascent as compared to their larger counterparts. Emerging technologies like blockchain, Web 3.0, generative AI, the metaverse, and cryptocurrencies have garnered significant attention. While there may be a surplus of rhetoric surrounding these technologies, it's crucial to recognize their relevance within the technological ecosystem.

What is your advice for peers in the industry?

My advice for peers would be to have an inquisitive mindset about emerging technologies. Be curious while initially uncertain about incorporating such topics into organizational discussions because it is imperative to stay engaged and informed. Although the extent of the influence of these technologies remains uncertain, it's only a matter of time before they have a substantial effect.