In today’s rapidly evolving financial landscape, the pressure is on mid-sized banks and credit unions to rethink how they operate—especially when it comes to payments. I recently sat down with Brian Anderson from finzly, to tackle some of the most persistent myths holding back innovation in the industry—and laid out a roadmap for turning payments into a powerful revenue and retention engine. Here’s a breakdown of key insights from the conversation—and why now is the time to act.
Payments Are More Than a Utility—They're a Strategic Lever
Traditionally, payments have been viewed as just another function. But forward-thinking institutions are flipping the script. Brian Anderson emphasized that payments represent a consistent source of non-interest income, offering a buffer against fluctuating interest rates and economic cycles. One of our early adopters generated 40% of their income from payments, Brian shared. That’s significant—and shows what’s possible. From real-time payments to fee-based services like instant transfers and bulk disbursements, payments are increasingly becoming central to a bank's value proposition.
There Is Room to Compete with Fintechs and Mega Banks
The myth that mid-sized institutions can’t keep up with big banks and flashy fintechs is just that—a myth. You’re not trying to be a fintech. You’re trying to serve your community—in a modern way. Brian explained that with the right fintech partners and APIs, even smaller institutions can deliver modern, intuitive digital experiences. Behind every mobile wallet or app like Robinhood or Venmo, there’s a bank. And many of those are community banks. Through fintech collaborations, banks can offer: high-yield savings accounts, embedded payment services, and middleware platforms that make it easier to innovate quickly. We’re democratizing access to modern tech, Brian said. And it’s not as expensive or complex as many assume.
Innovation Builds Stickiness—and Loyalty
Attracting and retaining the next generation of customers requires more than friendly service. Gen Z and millennials expect fast, intuitive, and real-time financial tools. If those tools aren’t available, they’ll find them elsewhere. But here’s the opportunity: offer those tools and pair them with personal service, and you’ve got a winning combo that fintechs can’t match. When you control workflow—banking-based, file-based, or API-based—you make the relationship stickier, Brian said. Customers don’t just stay—they grow.
Middleware = Freedom and Flexibility
A recurring theme in the episode was the power of middleware. By inserting a flexible technology layer between their core system and third-party providers, banks can break free from vendor lock-in and gain better control over data and strategy. Middleware empowers institutions to: plug and play with different fintech partners, collect and analyze data in real time, and improve scalability and agility. And the cost? Surprisingly manageable. “Middleware gives you flexibility and hands-on control—and it’s not that expensive,” Brian noted.
Leadership Buy-In: The Final Frontier
One of the biggest barriers to transformation isn’t technology—it’s mindset. This is the hardest myth to bust, Brian admitted. So many institutions treat tech as an IT line item, not a strategic investment. Shifting this thinking starts at the top. Boards and executives must begin to see technology decisions as business strategy, not IT projects. That means budgeting for innovation—not just maintenance—and creating roles (like Chief Payments Officer or product leads) that can drive initiatives forward.
The Bottom Line: Be Open, Be Ready
In closing, Brian encouraged community institutions to embrace what’s possible: Be optimistic and be open. Things have changed more in the past 10 years than most realize. There are better ways to do things—and your customers are ready for it. Whether it’s reducing operational friction, creating new revenue streams, or deepening relationships, payments innovation isn’t a tech trend. It’s a growth strategy. And it’s one that community financial institutions are uniquely positioned to deliver—if they’re willing to reframe the conversation.
Listen to the full interview with Brian Anderson on the Wrestling Payments Podcast: FinTech in Open Water – Seize the Opportunity While Maintaining Control.
Continue the conversation at the 2025 Future of Payments Symposium. View the full agenda.
NEACH - New England Automated Clearing House Association is a neutral, member-focused advocate. Our role is to give you the intelligence, context, and connections you need to make informed strategic decisions. We bring together industry leaders, policymakers, and innovators so you can evaluate innovation through the lens of your institution’s mission and market strategy.
NEACH launched the FinTech Inclusion and Exploration Initiative to help members harness the power of FinTech partnerships. It began with our Payments Program & FinTech Relationship Survey and now continues with the release of our FinTech Shark Week podcast series. We’re keeping the conversation going at our upcoming Future of Payments Symposium.