Banking and fintech leaders share perspectives on core banking, small business, AI and digital transformation

Community banks are navigating a pivotal moment. Cloud adoption, AI acceleration, fintech innovation and new payment models are reshaping the industry, but trust, stability and strong relationships remain essential to community banks' identity.  Each institution’s modernization path is unique, but peer insights offer valuable direction: prioritize a core-centric strategy that strengthens today’s foundation and builds flexibility for tomorrow.
 

The core is the heart of banking

The core remains the system of record – where transactions, data and relationships originate. Modernization works best when banks start by taking a close look at their goals and then weigh those plans against the capabilities of their tech stack to identify gaps. 

As banks grow and compete with fintech disruptors, the ability to adapt without losing the essence of relationship banking becomes critical, says Jackie Mahler, EVP Chief Financial and Chief Operations Officer at Availa Bank.

"We’ve had significant growth over the last 12 or 13 years. When I started at the bank, it was a $300 million organization, and we’ve since grown to $1.6 billion. As we move forward and compete with other banks, fintechs and disruptors, we need to implement technology that makes a meaningful difference for our consumers and allows us to deliver the real-time service they expect. 

Our core needs to be nimble and able to accommodate the software platforms we choose to adopt. No matter what you do long term, the core is the core – it’s where your data lives. Most importantly, it connects us to every other opportunity we have to serve customers."

Mahler’s insight reflects what many community banks are navigating today. To compete in an evolving landscape, financial institutions need a platform that is open and adaptive enough to support current and future needs as well as growing customer expectations.
 

Measured steps toward modernization

Modernization is a journey, not a destination. Open architecture and APIs enable capabilities to be layered over time, so the institution can maintain control over pace and priorities.

New capabilities – think AI and cloud – can be accelerators, but should be aligned to intentional business outcomes, says David Bove, Chief Information Officer at Unity Bank.

"I think Fiserv’s strategy for delivering great customer service starts with consolidating technologies. The steps they’re taking – moving from 16 cores to 5, pairing the core with AI to get answers faster, and investing in the tools that will drive technology and solutions for community banks – make a real difference. Now we can focus on deepening relationships with our customers rather than logging in and out of multiple systems."

Informed by client feedback for incremental, non-disruptive innovation, the Fiserv strategy is designed to enable modern cloud-native capabilities, improve operational efficiency and simplify technology environments – helping banks deliver richer customer experiences.
 

Flexibility through openness

API-driven ecosystems enable choice and differentiation, so institutions can offer new capabilities faster and attract new customers. That’s how Capra Bank became one of America’s fastest growing institutions, says the bank’s founder and CEO, Tut Fuller.

"Capra is a fast-growing bank. Since our inception, we’ve grown about $1 million a day in deposits and have eclipsed $1 billion in assets. About 80% of that deposit growth has come from operating company checking accounts. We’ve onboarded between 500 and 600 new clients in a little over a year, and the onboarding process takes very little time because of how streamlined we’ve made it with Fiserv.

The center of our bullseye – our target market – is medium-sized businesses and larger. To serve them well, you need a full suite of offerings that makes a medium-to-large business just as satisfied with you as they would be with any regional or national bank. That’s who we’re competing against in this space."

Growth and simplicity enabled by open, API-driven ecosystems can fuel the kind of rapid scale Capra Bank has achieved.
 

Power small business growth

Payments and cash-flow visibility become strategic differentiators when core-connected insights translate data into daily value for small businesses. Matt Wilcox, Deputy Head of Financial Solutions & Chief Growth Officer at Fiserv, says that data connection is an untapped opportunity.

"There are now more than 36 million small businesses in the United States, representing nearly half of private-sector employment. Research indicates that about one-third of these businesses are looking for more sophisticated fraud-prevention options, while roughly 4 in 10 are exploring technology-enabled financial tools.

These figures suggest a marketplace that values security and innovation in equal measure. They also hint at a competitive shift: Small businesses no longer view financial services as a single relationship but rather as a network of capabilities that help them operate efficiently.

For many banks, this creates both a challenge and an opening – to reimagine how relationship banking can evolve to meet new expectations."

According to Wilcox, the opportunity lies not in adding more products but in connecting the ones banks already have into a unified experience. That means small businesses can interact with their financial institution in a way that feels more collaborative – seeing it less as a service provider and more as a partner that supports smarter, faster decisions.

 

Digital banking as a relationship engine

Community banks can deliver hyper-personalized digital experiences that consumers love. Whitney Stewart Russell, President, Digital Solutions, Financial Solutions at Fiserv, says the time is now.

"For many customers, digital banking isn’t just part of their experience – it’s their only experience. As consumers increasingly integrate digital platforms into nearly every aspect of daily life, their expectations have risen. They now demand seamless, intuitive and personalized interactions each time they log in.

For example, many users expect to conduct in-depth research or receive relevant guidance with just a few swipes or prompts.

At the same time, one of the largest wealth transfers in history is approaching, with trillions set to pass from baby boomers to their heirs. Together, these factors make it more critical than ever for banks, credit unions, and fintechs to deliver a truly robust digital experience."

To capture this opportunity, Stewart Russell says core data and AI are essential and can enable experiences like predictive insights, proactive issue identification, automation and enhanced security.

Next steps: Leadership reflections

As you explore the path toward modernization here are a few questions to consider:

• Where is our core strong – and where does it need to be extended?

• How flexible is our architecture to support SMB cash flow and payments?

• Are we using AI proactively or reactively?

• Does our digital experience reflect our relationship model?

• Where could openness accelerate innovation without increasing risk?