Bank executives are inundated with FinTech pitches, but deciding which are worth the time and investment is rarely straightforward. Industry research shows that nearly two-thirds of community banks and credit unions have partnered with at least one FinTech in the past four years.
Banks are under pressure to keep pace with rising customer expectations for speed, personalization, and seamless digital experiences. To remain relevant, executives must think beyond traditional banking and consider how to embed financial services into broader platforms and applications.
Developing cutting-edge, compliant, and scalable technology in-house can be prohibitively expensive and time-consuming, especially for small to mid-sized banks that lack the specialized expertise. With more than 34,000 FinTechs in the U.S. alone, identifying the right partner requires disciplined strategy and strong leadership.
The real question is not which vendor looks promising, but what business problem the bank is trying to solve. Technology should be a driver of business results, not a shiny distraction. Whether the objective is reaching new customers, improving underwriting, or streamlining operations, the most effective fintech partnerships start with clarity of purpose.
A strong fintech partner aligns with business objectives and integrates smoothly with legacy systems to minimize operational disruption and avoid hidden costs. They also demonstrate regulatory awareness, a critical factor in an industry where compliance missteps can quickly erode trust.
FinTechs that emphasize speed over compliance or quick fixes over lasting value often introduce greater risk than reward. The best partners understand that meaningful transformation takes time, collaboration, and alignment with long-term goals.
Banks should be cautious of FinTechs that create more risk than reward. Common warning signs include:
For most community banks, piloting solutions against core needs before scaling is the most effective way to avoid these risks and prove value early. These risks highlight why strong governance and executive oversight are essential to making FinTech partnerships successful.
Governance is the safeguard against these risks, turning potential distractions into partnerships that create lasting value. FinTech selection is not a technology project but an enterprise-wide initiative that requires clear governance, risk management, and leadership from the top. Successful banks apply discipline to the process by:
Without this level of structure, FinTech partnerships can expose banks to operational vulnerabilities, data breaches, or reputation damage. With it, banks can build partnerships that deliver measurable value and evolve alongside the bank’s strategy. With this discipline, partnerships are based on strategy rather than shiny tools, and that is what drives lasting impact.
At the end of the day, the most successful fintech relationships are partnerships, not transactions. Vendors sell products; partners share responsibility for outcomes. For community banks, this means finding FinTechs that align with customer needs, reinforce strategic priorities, and build long-term competitive advantage.
Technology will continue to evolve at breakneck speed, but strategic leadership, not hype, determines which partnerships truly move the needle.
At Hartman Executive Advisors, we help bank leaders cut through the noise of FinTech pitches to focus on the partnerships that matter. Our unbiased CIOs and advisors work alongside executives to define the real problems worth solving, evaluate options objectively, and ensure integration supports strategy, compliance, and customer impact. Because we have no vendor ties, our only priority is helping community banks make confident technology investments that drive growth and efficiency. Contact us to start a conversation about how we can support your bank’s next FinTech decision.