Think of an industry, and a buzzword can be created.

Every aspect of travel and hospitality has been disrupted by technology – reservations, pricing, reviews, interface, cost comparisons, yield maximization, systems utilization – for airlines, hotels, restaurants, casinos, resorts, amusement parks, etc. Just ask a travel agent what TravelTech has done to their business.

The retail industry has certainly been disrupted by technology – internet shopping, coupon code sites, resale opportunities – for old brick and mortar brands, large shopping malls, mom and pop stores, collectables, etc. Just ask any of them about RetailTech.

Even something as simple as ordering up a car and driver to take you from one place to another has been technologically disrupted. Is that TaxiTech or UberTech?

The list goes on and on – telephones: TeleTech, recording industry: MusicTech, home movies: VidTech, publishing: MagTech, dating: DateTech, marketing: AdTech, photography: PhoTech, entertainment: EnterTech, insurance: InsurTech – we could go on for days. In every Technolution, business has had to change and consumer experience has improved.

Will fintech change the way your business operates and interacts with consumers? Yes. Will fintech disrupt today's norm? Yes. Will established legacy organizations need to evolve or die? Yes. Will entrepreneurs fill voids that sometimes voids the legacy organizations never even saw? Yes.

Will fintech change consumers' experience for the better? Yes. Are fintech disruptions already happening? Yes. Is fintech affecting financial institutions already? Yes. Is the what, when and where of the next disruption difficult to predict? Yes. But that doesn't mean it can't be prepared for.

As a company that deals with vendors and contracts, and their relationships with banks and credit unions, we have a vast database of experience in making sure those banks and credit unions maximize their relationships with vendors, even disruptive technologies, from a cost and revenue perspective. What that encompasses has changed in our 24 years. It continues to change with technology, but even the newest developments have a foundation in the past.

In the midst of change, to us, it all boils down to four basic foundations that determine what banks and credit unions need to think about with the adoption of technology.

• Trust. Any new technology adoption must instill trust in end-consumers' minds.

• Benefits. A technology that is adopted by a bank or credit union must be beneficial on three levels. It must be financially fair to the bank and credit union. It must be financially fair to the technology providing company. This is where contract negotiations and benchmarks come into play. And, it must offer a perceived benefit to the end-consumers. For example – drive efficiencies and savings through automation like blockchain.

• Solutions. Does the technology offer a solution to a current problem for either the industry or the consumer? For example, heighten security or reduce fraud-like card controls.

• Convenience. In banking today, convenience is paramount. Most new technologies add to convenience for a financial customer or member. For example, increased accessibility.

Still, don't expect that all fintech is a friend to financial institutions. When you think about it, PayPal was probably the original successful fintech disruptor. It has become a consumer convenience that costs financial institutions with every transaction, either with missed revenue or an added cost. For many fintechs, the fundamental goal is to claim a piece of the current value chain. Financial institutions need to be particularly aware of fintech that threatens to offer alternatives to traditional services at a lower cost, add an intermediary that might erode margins, provide a barrier to data or threaten "top of wallet" status.

Change is happening at unimagined speeds. Fintech will impact every aspect of our business in one way or another. Be prepared, adapt, adopt and change. But do so with those four words in mind: Trust, benefits, solutions and convenience. They are the foundation of every business.

Bob Koehler is EVP of Strategic Resource Management, Inc. He can be reached at 731-300-7052 or [email protected].