Data-first strategies strengthen relationship banking and help smaller banks compete

Here’s another installment in our periodic Q&A series highlighting women leaders in the fintech space. These interviews share valuable viewpoints on what it takes to bring a range of talent and skills to this fast-changing industry. And they explore business opportunities on the horizon for financial services providers and their technology partners.

Kim Snyder founded KlariVis in 2019 to solve what she saw as a data conundrum in the financial services industry. Her experience as chief financial officer of a then $900 million publicly traded bank fueled her desire to create a leading-edge, transformational data analytics solution to enable community banks and credit unions to directly compete with larger rivals.

Snyder has also provided strategic planning, merger & acquisition planning and integration, operational excellence, financial management, succession planning and incentive plan development for financial services firms.

Share a snapshot of the data frustration apparent in our industry that drove your solutions-minded entrepreneurship and any pivots as you developed your business along the way?

I spent nearly a decade as the chief financial officer of a community bank, and from day one I was frustrated with our technology infrastructure. Everything was clunky; extracting information from different systems felt impossible at times and the manual work of putting it together in a format that was digestible and useable was exhausting. I convinced myself at the time that this was a small community bank problem and pressed on.

As the bank grew, the same data challenges persisted. And when I went on to begin a consulting business — working with dozens of institutions ranging in size and working on different systems — I noticed that each suffered from the exact same data issues: They could not easily access the data that was rightfully theirs. I realized that this clearly was not a small community bank problem; it was an every bank problem.

During the four and a half years I ran my consulting business, nearly every project we took on involved a reporting component, which was often the most labor-intensive aspect of our work.  While my team excelled at what I like to call “Excel Wizards,” the manual effort required to not only extract the necessary data but also organize it into a format that could be both analyzed immediately and reused by the bank in the future was challenging, to say the least. The issue wasn’t that the banks lacked the data they needed to fully understand their operations – it was that they simply didn’t have access to it in a manner that was easily shared and understood across the organization. One day, a “light bulb” finally went off and we recognized the need for a solution that would enable financial institutions to truly leverage the wealth of data at their disposal. This is how KlariVis was born.

We have come so far since our decision to found KlariVis in 2019. Each step, pivot, and redirect has only made the company stronger. The most significant change in our businesses occurred at the onset of the pandemic. After going all-in on our initial product launch in the first quarter of 2020, we had to pause sales as the pandemic disrupted the country, and our community banks became heroes through their work with the PPP program. Instead of waiting for the market to stabilize, we took the opportunity to double down on product development, ensuring we could fulfill the promises made to our early prospects.

Another area where we pivoted was external funding. KlariVis had been self-funded, but the pandemic pushed us to pursue an external capital raise. Raising capital can be particularly challenging, especially for women entrepreneurs. Fortunately, I had strong relationships with several local angel investors, many of whom had either served on my previous bank’s board or were familiar with the industry. Additionally, one of our earliest customers stepped up to invest in the company.  As the pandemic dragged on far longer than we anticipated, we leaned into that strategy, attracting three more community bank clients as investors. Having bankers with a vested interest has been a tremendous asset, keeping us grounded and focused on what banks truly need rather than just chasing the latest trends.

What’s your high-level outlook for community banking as more leverage digital partners and yet seem to be able to differentiate in ways that matter to small business (a big growth area) and the unique demands of young Millennials and Gen Z?

There is no doubt that digital is where the world is headed. I completely agree, but firmly believe that no one bank can do digital transformation without an understanding of their data. Many banks want to do digital first, then figure out what’s in their data later. In my experience, banks need to shift that mindset, because the data will show them exactly where to focus their investments in digital and beyond.

Community banks have a unique opportunity to meet the needs of Millennials and Gen Z by adopting a data-first strategy that strengthens relationship banking. These younger, tech-savvy customers expect more than just digital conveniences – they want personalized, seamless experiences that reflect their financial habits and values. By leveraging data, community banks can provide tailored solutions, offering the transparency and convenience that these generations prioritize.  However, at the heart of this approach is relationship banking. Combining data insights with the trust and personalized service that community banks are known for allows them to build deeper connections, anticipate needs and deliver real-time solutions. This blend of data-driven strategy, digital innovation and human touch ensures that community banks remain essential to younger customers while staying true to their core mission.

 Any advice that may be unique to women in leadership roles when it comes to M&A planning, change management, etc., so that unique strengths are put to effective use during transition periods for organizations?

During our consulting days, we worked on several M&A transactions, and I noticed that female leaders were often entrusted with managing those transitions. It became evident to me that women truly excel at change management. Successfully navigating the complexities of people, processes and technology requires a delicate balance, and women bring a unique level of empathy that helps achieve that harmony. For young women aspiring to leadership roles, it’s essential to tap into and cultivate those empathetic leadership skills, as they are key to driving successful change and fostering team collaboration.

I’ve also observed that women in leadership tend to be more open to diverse perspectives and ideas. In fact, research consistently shows that companies with women on their boards significantly outperform those without. This belief is something I prioritize in my own business. I encourage my team to challenge me, just as I challenge them, because it’s through this exchange of ideas that we grow as individual leaders and drive the company forward. This is true both inside and outside our organization. I learn from other women in this industry every single day. This is why we launched our Banking on Brilliance Awards to recognize and highlight the innovative and forward-thinking work that women in community banking are doing. Their accomplishments and stories are something we can all learn from, and if these awards reach one young woman early on in her career, I believe we’ve succeeded.

Kim Snyder is CEO and Founder of KlariVis.

Read BAI’s Q&A “Why creativity is a banking-talent attribute” with Lee Farabaugh, Cofounder and President of Monarch Professional Services Group (Monarch), a division of Core10.

And, “AI’s key role in uncovering hidden value in document and data automation” with Shelby Austin, the CEO and Cofounder of Arteria AI.