Building Better, Together: How Massachusetts Banks and Fintechs Can Forge Stronger Partnerships

Insights from Our Recent “From Friction to Functionality” Panel with the Mass Bankers Association

As the digital transformation of banking continues to accelerate, banks face a pivotal choice: continue business as usual and risk falling behind, or embrace strategic partnerships with technology-led companies to unlock new growth. That was the key takeaway for attendees at our recent Leaders Forum, co-hosted by us at Mass Fintech Hub with the Massachusetts Bankers Association. Industry leaders came together to discuss how banks and fintechs can (and must!) work together to build scalable, innovative solutions that benefit not only the customer experience, but the institution itself. 

Kathleen Murphy, President and CEO, Massachusetts Bankers Association, moderated the panel and kicked off the discussion highlighting how the industry has been evolving. “Banks today are in varying stages of digital transformation and awareness-building about what’s possible.” Acting with a sense of urgency and attracting technology talent to the industry are key for banks as they address regulatory headwinds and limitations to innovation as a result of the use of outsourced core systems.  Meanwhile, “we have come to appreciate that modern fintechs are building better software from the ground up, proving that agility and control over core infrastructure are the keys to long-term success.” Kathleen continued to lead the discussion to share a powerful mix of perspectives and actions for this community to take. 

Problem-solving for impact, not disruption 

One clear theme that emerged from the panel: successful bank-fintech partnerships start with mutual understanding, not disruption. As Ashley Eknaian, Chief Digital Officer at Boston-based Eastern Bank, emphasized, “Fintechs should aim to be partners, not disruptors.” This mindset shift is crucial, she explained, to creating intentional conversations, piloting new ideas, and “building trust through small, testable steps.” It’s also what allows banks to experiment with innovation in a way that includes risk management and compliance teams from the outset, ensuring sustainable growth.

Stephen Dow, CEO and Co-Founder of Monit, a local fintech which empowers bankers with the tools they need to deepen SMB relationships, echoed the importance of this alignment. He urged fellow fintech startups to “gather feedback from banks and build solutions around their real-world challenges.” Proofs of concept, he said, should be shaped not by hypothetical value, but by real conversations with banks about what they truly need. “Community banks are at an inflection point,” Dow noted. “They’re great at building relationships and have access to valuable data. But they’re not software companies. The most successful banks will be those that forge thoughtful technology partnerships to meet rapidly evolving customer and employee expectations.”

Innovation as a non-negotiable 

While banks have traditionally moved cautiously (and for good reason), given the regulatory environment and the need to preserve customer trust – that caution can’t come at the expense of progress. Brooke Ybarra, SVP of Innovation & Strategy at the American Bankers Association, reinforced this point: “We have to innovate—it’s an imperative. We don’t want to end up in a four-bank country.” Our panelists agreed that industry consolidation and competitive stagnation are real risks if smaller regional and community banks fail to evolve.

Ybarra also cautioned banks against focusing exclusively on customer-facing tech. “The flashiest innovations are often customer-facing,” she said, “but ignoring the employee experience can be detrimental.” Investing in fintech partnerships can improve internal workflows and employee satisfaction just as much as customer satisfaction, especially as digital expectations rise across all touchpoints.

Keeping people at the center

Marco Bernasconi, Chief Operating and Innovation Officer at Country Bank, serving Central and Western Massachusetts, addressed the elephant in the room: fear that automation and AI will replace jobs. “AI isn’t here to replace people. It’s here to make their work more impactful.” For community banks like his with a goal of scaling from $5 billion to $10 billion in assets, focusing on growth doesn’t mean doubling headcount. Instead, the focus is on leveraging fintech partnerships to drive efficiency, enabling existing teams to take on additional responsibilities, adopting more strategic roles.

He continued, “The banking sector needs contemporary solutions to attract and retain talent. Fintechs are a key contributor to this, helping us grow without simply bringing in more people.” In an uncertain labor market, providing bank employees with modern tools and smarter systems can be a compelling advantage to retaining talent and attracting top talent with today’s critical technology skills. 

Building a stronger banking ecosystem

Together, our panelists’ voices painted a clear picture: Massachusetts banks that embrace fintech partnerships aren’t just innovating to modernize. They’re positioning themselves to compete, scale, and serve today’s banking customers better. We’re proud to champion the local ecosystem, creating a space where fintechs and banks can engage openly, pilot collaboratively, and build the trust needed for long-term success.

The discussion made clear that meaningful, successful collaboration between banks and fintechs is in full swing, and Massachusetts is leading the charge. This partnership panel is a valuable result from a Mass Fintech Hub workstream, focused on connecting the fintech and banking communities to unlock real opportunities in the marketplace. Murphy shared during the discussion, “As a partner of Mass Fintech Hub, the Massachusetts Bankers Association has been enthusiastically onboard to drive this initiative forward and serve both communities to create a bridge that would drive change and adoption.”

For organizations looking to stay ahead of the curve, we invite you to join the Mass Fintech Hub community. Membership opens the door to direct dialogue, partnership opportunities, and events that bring innovation to life. If you’re ready to help shape the future of financial services in Massachusetts, get involved. Click [here] to see our upcoming events that connect ideas with action.