It comes as no surprise that community banks are increasingly focused on developing fintech relationships. At the start of 2026, the Independent Banker Community Bank CEO Outlook cited these partnerships as a top business opportunity. In August, analyst firm S&P Global reported that more than half of bankers plan to partner with a new fintech vendor over the next 12 months.
While this growing fintech engagement signals a positive trajectory, many community bankers are apprehensive about the nature of these relationships. Because most fintechs have less market experience than established incumbents like core providers, partnerships raise important questions about long-term feasibility. But these concerns should not prevent community banks from fully exploring their options or entering into beneficial partnerships.
Why? Because your existing due diligence approach likely will mirror the vetting process used with any other third-party provider. You run scenarios that support various outcomes and identify a path forward like you do with any engagement. In short, it’s about approaching these relationships thoughtfully and with the right mindset.
Incorporating fintech partners
Fintech partnerships offer a unique opportunity for active collaboration. In many cases, your needs influence product design and direction for these companies, which may differ from traditional third-party engagements. With that in mind, consider the following seven tips to inform your approach to fintech collaborations:
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Identify a problem or opportunity for your bank, and source solutions accordingly. Fintechs often bring forward the latest technology and innovative interfaces, so it can be easy to get caught up in the buzz around their offerings. But if the product doesn’t address an existing need or already planned expansion for your bank, it’s not relevant. File it away for future consideration.
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Start with a simple solution. Fintech collaborations don’t have to be massive-scale projects, and you don’t have to dive into the deep end with a new integration or a system overhaul. Look for a solution with an easier implementation to help test the proverbial fintech waters. For instance, consider a product that helps you modernize branch operations or supports back-office efficiencies.
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Consider growth-stage fintechs. Identify fintechs that hit the sweet spot of corporate maturity while allowing you to influence product development. Ensure you’re not entering the relationship at an overly ripe stage where all you are offered is an out-of-the-box solution. ICBA ThinkTECH Accelerator companies meet these specifications automatically because of the Accelerator’s detailed selection process, led by community bankers.
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Don’t overlook cultural fit. Ask yourself, does this company reflect the values and have a cultural match with my bank? If those points are aligned, the relationship will work more often than not.
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Connecting with the founder is just as important as the company. When ICBA Innovation and the ICBA ThinkTECH Accelerator Selection and Advisory Committee interview potential cohort companies, we’re evaluating the founders as much as we are investigating the solutions. Founders need to have community banks at the forefront of their minds and be willing to get into the trenches with us to truly support our needs.
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It’s OK to say “no” fast. Community bankers are, by nature, focused on relationships and look for ways to strike a deal. But sometimes a quick “no” with an explanation is just as instructive. Your feedback will help them in tailoring their pitch and shaping their products for other bankers. Who knows? Maybe that “no” today will turn into a “yes” a few years down the road.
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Turn to ICBA Innovation for support. In 2027, we will launch our 12th ThinkTECH Accelerator cohort. We have built up a wealth of experience and value any opportunity to share our knowledge with bankers. We’ll either point you to existing fintechs that can support your needs or use your insights to identify future Accelerator cohort prospects. Either way, it’s about finding solutions. Our job is to solve your problems, not just provide opinions.
This isn’t rocket science, but it can be challenging to sift through the noise and find the product that’s right for you. And when there are seemingly limitless possibilities, it can drive analysis paralysis: You look at 30 solutions and leave without advancing any of them. Everyone experiences that. To negate its impact, you just have to take a step back, return to the problem you most need to solve, and narrow the lens accordingly.
ICBA Innovation is here to support you at every stage of fintech engagement. We want to do more than just offer solutions that solve today’s challenges; we want to help you iterate for tomorrow’s possibilities. When implemented well, fintech partnerships can inspire an innovation mindset to support you into the future.
Pierce Sloan is vice president of innovation programs at ICBA.