What do fintech and Rome have in common?

Andrew Jamison is the CEO and co-founder of virtual card issuing platform and spend management software firm Extend. He was previously the head of B2B corporate payments products at American Express.

Rome wasn’t built in a day — nor was it torn down and rebuilt from scratch. Instead, it evolved over decades, layering new infrastructure onto its solid foundations.

The current fintech landscape could take a page out of the history books. 

While the rise of exciting new fintech startups has illuminated the need for change, too many of these companies have embraced a disruptive narrative. It’s tempting to think of fintech as an industry in need of a full-scale overhaul, but the reality is that total disruption is not realistic for the established financial institutions millions rely on. The legacy infrastructure that underpins our entire world of payments is too critical — and too monumental — to take on the risks that come with a total rip-and-replace approach. 

Much like Rome built upon its foundation, I believe the path forward is about getting smart with how financial technology can leverage the systems we have in place and adapt existing infrastructure to support the innovations we all want to see. 

The risky business of ‘rip and replace’ 

Despite the modern and customized service offerings of neobanks and cloud-based banking-as-a-service providers, there’s a reason why Main Street banks still dominate the commercial space. The trust they have earned stems from their longstanding reputations and the stringent regulatory compliance that provide their customers with peace of mind.

Fintechs and startup banks that ignore or attempt to reimagine foundational infrastructure often stumble over regulatory complexities, security concerns and scaling challenges that ultimately prove how impractical a true rip-and-replace approach is. The costs are astronomical, and the risk of alienating existing customers or triggering operational chaos is too high. It’s why many fintech companies fail to deliver on their promises of disruption. Meanwhile, there are a host of fintechs that are quietly innovating from the inside out, collaborating with banks and their technology providers to achieve meaningful innovation across the world of finance and payments. 

The best of both worlds through a collaborative innovation strategy

Rather than joining the race to reinvent the wheel, as so many others are doing, I believe fintechs have an opportunity to make their modern payment experiences available to the masses by building on existing banking infrastructure. Partnering and integrating with established processors and networks enables a fintech company to offer banks the products and solutions their customers want. Not only does this offer mutual success for all parties, but for customers, it means they don’t have to choose between the old and the new. They can get the best of both worlds: the reliability of their trusted bank partner combined with the speed, flexibility and efficiency of modern finance solutions.

Why this model wins over the long term

The benefits of a collaborative innovation model create wins for every stakeholder, including processors, networks, banks and the businesses they serve. 

Banks can remain competitive by leveraging their strengths, upholding trust and delivering enhanced digital services that work seamlessly with their core operations. Meanwhile, customers gain access to modern financial tools without the disruption of a full technological migration or the risk that comes with switching to a startup bank. 

In a $1.4 trillion commercial payments market, the ability to layer innovation on top of existing infrastructure is transformative. A collaborative approach can pave the way for fintechs to evolve and improve the financial services on which businesses depend. Rather than forcing an industry-wide pivot, driving strategic impactful change encourages long-term stability and growth for all. 

Charting the path forward

The future of payments innovation rests on the ability of new fintechs and established players to work together. For existing financial institutions, that means finding the right partners who not only complement their existing products and services but also serve as an innovation arm, supporting ongoing and future growth strategies to meet the ever-evolving needs and expectations of today’s customers.

True fintech partnership combines the proven reliability of traditional banks with bold, forward-thinking ideas that fuel progress. Together, we can create a secure, efficient ecosystem ready to tackle tomorrow's challenges.