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For many years, banks preferred to build their own technology so they could keep full control of their systems. Today, this is changing. More institutions now see collaboration with fintech companies as a practical and scalable way to modernise.
This shift is happening because innovation cycles are getting shorter, competition is increasing, and regulations continue to evolve. In this environment, working with fintech partners is becoming a natural part of many institutions’ digital strategies.
For many teams, this is now a key element of their fintech partnerships strategy, helping them stay efficient and responsive. Today, we explore the main operational, technical, and organisational reasons behind this change.
What Are the Challenges of Building In-House?
1. Operational complexity
Most banks work with systems that have been built and updated over many years. These older systems, along with on-premise servers and separate data environments, often make even small upgrades difficult and time-consuming.
Banks also follow strict internal governance processes, which are important for risk control but can add delays to any IT project. As a result, innovation often moves more slowly compared with technology firms that can prototype and test ideas more quickly.
2. Resource limitations
There is strong competition for digital specialists like developers, cloud engineers, UX designers, and data experts. Recruiting these profiles can be costly and slow, and keeping them can be just as challenging.
Many digital professionals prefer environments where they can experiment and iterate quickly. For banks, this can make it difficult to maintain a steady in-house development capacity.
3. Regulatory constraints
Regulations such as PSD2, the Digital Operational Resilience Act (DORA), and the cybersecurity requirements included in Directive (EU) 2022/2555 (NIS2 Directive) add further complexity to internal builds. (1)
Ensuring that every step meets regulatory expectations takes time, and updates are frequent. This naturally slows down the launch of new internal tools.
Why Collaboration Wins: The Strategic Case for Partnering
#1 Shared innovation model
Fintech companies usually work with modular, flexible technology. When banks partner with them, they can use proven components that fit smoothly into existing systems.
This reduces the pressure on internal R&D teams and allows institutions to introduce new capabilities at a more manageable pace. This is a general observation, not a guarantee of outcomes.
#2 Speed and scalability
Fintech platforms that are ready to integrate can help banks bring digital services to market more quickly. At the same time, banks can continue using their own governance and risk standards.
This mix of speed and control is a major reason why partnerships are becoming more common.
#3 Focus on core strengths
Banks are strong in areas like client servicing, risk management, and regulatory oversight. Fintechs typically bring technical agility and deep expertise in areas like user experience and cloud-based design. Working together allows each side to focus on what they do best, without suggesting any comparison or superiority.
#4 Compliance-safe framing
It is important to highlight that collaboration provides a structure and tools that can support modernisation, but it does not guarantee results. Each institution manages its own strategy and responsibilities.
What Partnership Models Are Emerging in Europe?
Across Europe, several partnership models are becoming common. These are adaptable depending on how closely a bank wants to work with a technology provider:
#1 White-label technology integrations
Fintechs supply the core technology, while banks stay in full control of the client relationship.
#2 Co-development frameworks
Banks and fintechs work together in innovation labs or sandbox environments to test new ideas.
#3 API-driven ecosystems
APIs allow secure and controlled data sharing, helping banks add new features without replacing core systems.
#4 Strategic alliances within financial groups
Some groups enable subsidiaries or affiliates to use fintech tools, supported by shared governance.
These models align with the European Commission’s publicly available Digital Finance Strategy, which highlights how digital tools can support innovation while keeping strong regulatory protections in place. (2, 3)
How To Address The Risk Factors?
Partnerships offer flexibility, but they also require careful management. Important areas to consider include:
#1 Operational alignment
Banks must ensure that any new technology fits smoothly with their existing architecture and risk controls.
#2 Vendor management
Clear service-level agreements, audit processes, and documentation help maintain operational resilience.
#3 Regulatory vigilance
Banks remain fully responsible for compliance. Public guidance, such as the EBA Outsourcing Guidelines, outlines what supervisors expect in terms of oversight, governance, and risk management.
#4 Clarity of responsibility
Even with third-party partners, banks remain accountable for client protection and regulatory duties. Roles and responsibilities should therefore be clearly defined.
Gambit’s Position: How We Support Institutional Digitalisation
At Gambit, we believe digital transformation works best when technology is flexible, easy to integrate, and aligned with an institution’s own standards and governance.
Our aim is to support banks and wealth managers in strengthening their digital engagement and advisory experiences, always in a way that fits their internal processes.
As a provider of IT solutions, our approach is built around:
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Modular design: Institutions can adopt components step by step, following their own roadmap.
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Ease of integration: Our tools are meant to complement existing systems, not replace them.
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Configurable interfaces: Institutions can adapt our solutions to their internal requirements and controls.
To be clear, our work is strictly technological. We do not provide:
- Investment advice
- Portfolio management
- Order execution
- MiFID-regulated services
- Legal, tax, compliance, or regulatory advice
Those responsibilities remain entirely with the licensed financial institutions we serve. Our digital tools are:
- Designed only for regulated financial institutions.
- Not intended for consumer use.
- Implemented within each institution’s own governance framework.
We want to be a reliable technology partner for institutions, enhancing their digital capabilities by keeping our role focused and transparent.
This fits naturally with the wider shift towards collaboration, especially within a modern fintech partnerships strategy where banks work with specialised providers while keeping full responsibility and oversight.
Closing Thoughts
The growing partnerships between banks and fintech companies mark a practical shift in digital strategy.
Instead of building everything themselves, many financial institutions are choosing models that balance control with flexibility.
Partnerships can help accelerate digital progress while keeping strong internal governance and regulatory alignment in place.
As regulations evolve and client expectations change, collaboration offers a practical way forward. It allows banks and fintechs to bring together their different strengths in a balanced and responsible way.
The future of financial digitalisation is more about building shared ecosystems where technology, governance, and expertise work smoothly alongside each other.
