June 17, 2024

Advancing Digital Growth

Pioneering Technological Innovation

Fintech investments: Navigating the future of banking in the digital age

4 min read

In an era where technology spending is surging across the banking sector, the focus has increasingly shifted towards financial technology (fintech) as a key area of investment. However, with the rise in expenditure, questions about the tangible benefits and the correlation between tech spending and growth have become more pronounced. This article delves into the significance of investing in fintech, outlines strategies for monitoring and prioritising these investments, and provides insights into selecting the right fintech partnerships. As the landscape of financial services continues to evolve, understanding these elements becomes crucial for navigating the complexities of technology investment.

The Importance of Investing in Financial Technology

Investing in financial technology has become a cornerstone for banks aiming to stay competitive in a rapidly evolving market. Despite the lack of a direct correlation between tech spending and immediate growth, the strategic deployment of financial technology can significantly enhance operational efficiency and customer experience. For instance, investments in cloud computing, data platform modernisation, and artificial intelligence (AI) represent not just cost centres but crucial bets on the future of banking. These “moonshots” require a vision that aligns with the bank’s long-term strategy and a commitment to innovation that may not yield immediate returns but are essential for adapting to future market demands. As technological advancements continue to accelerate, the ability of banks to strategically invest in fintech will increasingly differentiate the leaders from the laggards in the financial services industry.

Monitoring Spend on Financial Technology

Effective monitoring of financial technology spending is paramount for banks to ensure that investments are yielding the desired outcomes. Many banking institutions have historically struggled with tracking the productivity and cost-effectiveness of their technology investments. Advanced telemetry systems have emerged as a solution, enabling a more informed view of technology operations in real-time. These systems can track a variety of metrics, including the amount of time spent on administrative tasks versus development, the specific projects developers are working on, and the performance of third-party vendors. By adopting such enhanced monitoring tools, banks can shift from focusing merely on activities to evaluating outcomes. This shift not only aids in identifying productive efforts but also in fostering a culture of engineering excellence, where technology investments are closely aligned with the bank’s strategic goals and operational efficiency.

Strategies for Prioritising Technology Investments

In the complex landscape of financial technology investments, prioritising where to allocate resources is a critical challenge for banks. A structured approach to this challenge involves setting clear objectives and key results (OKRs) that are deeply integrated with the bank’s strategic vision. This process requires a robust framework for strategic prioritisation, ensuring that investments align with the bank’s long-term goals, such as enhancing scalability or improving customer experience. For instance, if a bank prioritises scalability, focusing on technologies that lower the fully-loaded cost-per-transaction becomes imperative. Additionally, the management of “moonshot” investments in emerging technologies like AI or cloud computing necessitates a clear vision and incremental markers of progress to persuade stakeholders of their long-term value. By adopting these strategies, banks can ensure that their technology investments are not only strategic but also accountable, driving towards tangible outcomes that support the bank’s overarching objectives.

Finding the Right Fintech Partners

Selecting the appropriate fintech partners is a crucial step for banks aiming to enhance their technological capabilities. The process begins with a thorough understanding of the bank’s specific needs and the identification of fintech solutions that can address these needs effectively. Attending national and regional mortgage conferences, following leading mortgage technology publications, and engaging with fintech sales executives are practical strategies for gaining exposure to potential fintech partners. Moreover, involving a broad team in the evaluation process ensures that the chosen technology aligns with the operational realities and challenges faced by end-users. Creating a Technology Comparison Chart can facilitate this process by comparing fintechs based on their technological advancement, problem-solving capabilities, and ease of integration. Additionally, considering smaller or less established fintechs can be beneficial, as they often bring innovative solutions and a higher level of adaptability to the table.


The strategic investment in and monitoring of financial technology are imperative for banks to remain competitive. By prioritising technology investments wisely and selecting the right fintech partners, banks can navigate the complexities of the digital age, ensuring sustainable growth and operational efficiency in an ever-evolving financial landscape.

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