Five Things FinTech Needs to Fix, by Steve Round of SaaScada

Today I'm bringing you an exclusive set of views from Steve Round, Co-Founder and President of core banking leader, SaaScada.

I think is highly accurate to describe Steve as a (youthful) elder statesman in FinTech. You only have to look at his LinkedIn to get a sense of all the compelling financial services projects he's been involved in over the years.

Steve always has a unique take on the marketplace given his close involvement across the financial services ecosystem, not just in the UK but internationally.

In today's piece, I asked Steve to outline 5 issues that are exercising him at the moment, especially as we begin 2026.

As always, my questions are in bold. Over to you Steve:

Inclusivity at the core: Why do so many FinTechs still treat inclusivity as a side project rather than a central business principle? What does it look like when it's done properly?

Too often, financial inclusion is approached as a tick-box exercise rather than a core business principle. Firms launch one "inclusive" product in a sea of others that deliver no real social value, or offer second-class financial products that aren't tailored to consumer needs. This is largely because many firms are still hampered by data silos, with information scattered across a web of systems. Without a complete view of the customer, it is difficult to understand their needs and identify opportunities to address real-world challenges.

When done properly, financial inclusivity is embedded at the heart of banking models, not layered on at the edges. Financial institutions must aim to offer first-class products to all—including customers who don't meet single-metric measures of eligibility in traditional banks. That means moving away from rigid, one-size-fits-all models and recognising that people with non-traditional financial profiles still deserve access to quality financial services.

To drive real inclusivity, banks need to modernise their core banking infrastructure and build a 360-degree view of the customer. With access to real-time data streams, banks can make more informed lending decisions, better understand customer needs and create tailored offerings that support people before they reach a point of financial distress.

AI beyond the chatbot: Everyone's talking about AI for customer service, but where are the real opportunities for AI to transform internal operations and decision-making?

AI has become banking's favourite talking point, but too often it's just window dressing. Bolting intelligence to the front end isn't transformation—it's theatre. The real opportunity lies behind the scenes, in how banks operate and make decisions. Data shows UK banks have been slow to embrace AI beyond low-risk, customer-facing tools such as automated savings and smart bill management, leaving huge efficiency gains untapped.

Internally, AI can transform operations by automating regulatory reporting, reconciliations and compliance checks. These are labour-heavy tasks that AI can handle quickly and accurately, freeing teams to focus on higher-value work. There's also enormous potential for AI to support lending and risk assessments. By analysing real-time data, AI is able to deliver insights that inform credit decisions, predict market trends and identify customers at risk of vulnerability.

However, without a strong data foundation, AI-driven innovation will never get off the ground. Banks that invest in a modern, cloud-native core will be the ones that move beyond experimental pilots and achieve real value from AI. With the right architecture, data can move in real time, systems can talk to each other, and decisions can be made in the moment rather than weeks later, giving banks the perfect platform to drive tangible AI success.

Technology without open-heart surgery: Legacy systems are often cited as the biggest barrier to innovation. How can FinTechs implement meaningful change without tearing everything down and starting again?

Modernising core banking platforms is rarely a proactive decision. No bank CEO wakes up and decides to overhaul their core system for fun. Instead they are compelled to action due to some kind of event or a culmination of many—increasing customer churn, delayed product development, rising costs, and the ongoing frustration of not having real-time data to hand. But despite the need to modernise, tearing everything out is risky, costly and unnecessary. Banks can't afford downtime when millions of customers rely on their services—it's like performing open-heart surgery with the patient walking about.

Most banks now adopt a multi-core approach, running new cloud-native systems alongside legacy cores. This dual-core strategy allows innovation and modernisation to happen in parallel, without disrupting existing services or increasing operational risk. This approach simplifies regulatory reporting, reduces reliance on fragile legacy systems and makes integrating new technologies like AI far easier.

However, co-existence only works if the new core is genuinely cloud-native. Banks are sick of vendors slapping a "cloud" label on old products without providing the agility, scalability or innovation that fully cloud-native solutions offer. To modernise effectively, banks need event-driven, API-first architectures—the kind that unlock real-time customer insights and lower costs and give them the flexibility to innovate at speed.

By layering a cloud-native core on top of legacy systems, banks can gradually transform their operations, experiment safely with new features and migrate workloads in stages. Done right, it turns the burden of legacy systems into a platform for sustainable growth.

Culture eats technology for breakfast: What's the biggest mistake companies make when rolling out new technology, and how should leaders be preparing their teams for change?

The biggest mistake companies make when rolling out new technology is assuming that transformation is a technology problem, not a cultural one. Risk-averse leaders who are reluctant to sign off on new projects are quietly killing banks' ability to innovate at speed. In that environment, even the best technology investments will underperform.

Leaders need to shift the culture from "don't fail" to "test more, fear less." That means creating safe, controlled environments where teams can experiment and launch small projects to learn fast without jeopardising core services. By plugging in a truly cloud-native core that runs parallel to existing systems, banks can begin experimenting from day one, without committing to pointless RFPs or enduring months of delays from legacy technology.

Preparing teams for change isn't about training them on new tools alone, it's about giving them permission to innovate. When leaders reward learning and experimentation, technology finally has the space to deliver real value.

The ecosystem imperative: Why is the "go it alone" mentality still so prevalent in banking, and what will it take for the industry to embrace genuine collaboration?

Banks' "go it alone" mentality persists largely because the conversation around financial inclusivity has been framed as a competition. Banks view fintechs as disruptive upstarts, fintechs see banks as slow giants, and Mobile Network Operators (MNOs) pursue standalone digital financial services. This fragmented race for market share misses the bigger picture: true financial inclusion demands collaboration, not competition.

What it will take for the industry to shift is a recognition that opportunity lies in building ecosystems, not silos. Banks offer trust, capital and regulatory expertise; fintechs deliver agility, innovation, and personalisation; MNOs deliver scale and reach. Independent efforts will fall short but together, they can build a financial system that is inclusive, resilient, and sustainable.

True collaboration also means engaging governments, local stakeholders, and regulators to develop an enabling infrastructure, interoperability standards, and consumer protection frameworks. Some fear collaboration dulls competitive edges, but the financial inclusion market is vast and underserved—there's room for all to thrive. The value lies not in "owning" the customer but in building ecosystems rooted in trust and accessibility.

Finally—what's your one prediction for FinTech in 2026?

In recent years, major banks have withdrawn from their sustainability goals, with leading industry body the Net Zero Banking Alliance shutting down. This retreat is driven by a combination of factors. Including political backlash against sustainable investments, pressure to prioritise national interests over long-term global goals, and a broader trend where immediate financial gain is overtaking long-term environmental and social responsibility.

However, in 2026 FinTechs will play a growing role in reversing this trend. As banks face renewed pressure from governing bodies like the European Central Bank to deliver on sustainability and inclusivity, FinTechs will step up as the enablers. FinTech platforms provide the infrastructure and real-time data that help banks translate sustainability goals into real products and responsible lending decisions.

Europe may be lagging behind other regions, but elsewhere FinTech-led innovation is already making an impact. In Africa, green microfunds or climate agricultural loans are growing as a form of embedded finance for farmers, giving farmers access to much-needed capital while supporting economic development in local communities.

Sustainability must become a priority again for financial services, especially as lending to assets exposed to acute climate risk increasingly carries penalties. That's where FinTechs come in, giving banks the tools and real-time data to factor climate and social considerations into every lending and risk decision, turning lofty ESG goals into tangible action.

I'd like to thank Steve for sharing his insights with us.

To learn more about SaaScada's work modernising banking infrastructure, visit their website or connect with Steve on LinkedIn.