Alloy Labs : driving innovation within banking
Jason Henrichs , CEO and Co-Founder of Alloy Labs , describes how the consortium is facilitating collaboration between banks through tech and innovation
Formed in 2018 , Alloy Labs is a consortium of over 40 leading community and mid-sized US banks working together to adopt new technology , drive innovation and shorten the path between the conception and implementation of ideas . Jason Henrichs , CEO and Co-Founder , informs us that , by combined assets , Alloy Labs ranks as one of the top 25 banks in the US .
At the moment there is a digital arms race taking place , where the largest banks and some of the more specialised or most profitable banks are noticeably further ahead in their digital transformation ,” he explains . “ However , the small and medium sized banks are at a disadvantage : they haven ’ t raised hundreds of millions of dollars in venture capital to fund their development and they don ’ t have the balance sheet , tech teams and incubators like larger players do . By working together , they can be both more efficient and effective at what they do .”
Digital transformation is taking hold in the banking sector ; what was once viewed as a purely cosmetic process undertaken by a few now holds revolutionary potential . This is in no small part , Henrichs points out , because of the COVID-19 pandemic which illustrated how all-pervasive digital technology in finance could be . As the first wave focused on user interface gives way to a second phase overhauling back office processes , Alloy Labs is helping to foster the greater utilisation of data through AI ( artificial intelligence ) based automation
Jason Henrichs @ Alloy Labs
and embedded financial experiences . “ If you look at even the challenger banks of today , they are mobile and technology first but they still look and feel a lot like traditional checking , savings and spending accounts ,” he continues . “ When we get to the third wave - business model transformation - we ’ re going to see some very interesting things .”
Frequently working side-by-side with Quontic bank , members of Alloy Labs have been able to help Patrick Sells , CIO , navigate specific industry and technical requirements as Quontic Bank develops its ‘ true digital bank ’ concept . Conversely , Quontic Bank ’ s experience with APIs , contactless payments and cultural transformation adds significant value to Alloy Lab ’ s other members . The cornerstone of Alloy Labs ’ approach is ‘ understanding ’: what are the challenges of the modern banking sector , what is the customer ’ s perspective and how can things be better ?