De-risking procurement in your digital transformation in banking
Digitalisation of financial services is not a new thing. Yet, customer expectations for digital journeys and financial institutions’ increased efficiency needs are driving widespread technology modernisation with transformation across the entire technology stack from core banking to loan origination and management software and beyond.
More complex than rocket science
Realising this transformation efficiently while ensuring long-term robustness and flexibility is complex - some might even say that transforming a large bank’s legacy technology environment is more complex than rocket science. For this reason, stories of large, successful modernisation journeys with transformative impact in banking remain few.
The perfect storm of challenges
The complexity facing financial institutions is vast. Technology from the 80s still power many large banks to this date, while said banks have run decade-long modernisation programmes with low completion rates and high budget overruns. Add to this challenge some significant regulatory development, geographical heterogeneity, disruption of adjacencies (such as payments) and higher customer expectations, and you got the perfect storm for the banks.
Realising this transformation efficiently while ensuring long-term robustness and flexibility is complex - some might even say that transforming a large bank’s legacy technology environment is more complex than rocket science. For this reason, stories of large, successful modernisation journeys with transformative impact in banking remain few.
What is needed to succeed
Navigating this perfect storm requires scarce IT talent across a broad range of domains - often intermittently during peak loads of the transformation. As the pace of innovation is faster than ever, the transformation also requires open innovation capabilities in the sense of a clear ecosystem strategy.
Our research, interviews and more than 40 years of experience in the industry indicate that the financial institutions who increase external capabilities (such as vertical-specific software, outsourcing and partnerships) in their technology environments are more likely to succeed with their banking transformations. In fact, Gartner forecasts spending on vertical-specific software among banks in Europe to grow about 60% faster than their overall IT budgets over 2024 to 2028.
Vast value potential
Compared to in-house journeys, the financial institutions with more external capabilities, and in particular standardised and modular software, often enjoy benefits across workforce, costs, customer experiences and future tech flexibility. The benefits are vast, such as 100% credit process automation as default, 80% reduction in approval times and 80% or more case handler efficiency gains.
Starting the journey sparks another challenge
However, software procurement and in particular implementation for financial institutions are complex processes. Banks need solutions that fit their architecture, meet regulatory requirements and add measurable value—all while avoiding costly mistakes.
The Stacc way
At Stacc, we believe that the best approach is step-by-step: modernising journeys end-to-end, one journey at a time. Instead of committing to a massive implementation upfront, banks should be able to test, validate and adapt before making a full commitment. We believe we can deploy in weeks and months what others would do in months and years.
For example in mortgage modernisation, the implementation could start with the mortgage pre-approval journey end-to-end, utilising a composable platform with standardised and modern software. After initial experiences with one journey (for example, we see 35% or even up to 300% improvement in customers’ lead conversation with modern loan origination software), the bank could take learnings before deciding to proceed to other journeys in their portfolio.
Here is a structured approach to buying enterprise fintech software the smart way.
Step 1: Understand pain-points and define North Star
Step 2: Consider Vendors
Not all enterprise fintech vendors are created equal. Before engaging, assess:
Selecting the right vendor starts with understanding their track record, expertise, and fit for your needs.
Step 3: Start with an Intro Meeting
At every step, you can continue or walk away based on what makes sense for your bank.
Step 4: Start Small with a Proof of Concept (PoC)
A PoC allows you to test the software in a real-world setting before committing to full-scale implementation.
This step ensures that you’re making an informed investment—not a blind commitment.
Step 5: Test and Evaluate the PoC
Now it’s time to answer the key questions:
If the PoC delivers the expected results at the right speed and impact, then discussions about full pricing and contracts can start in parallel—avoiding delays between PoC and full implementation.
Again, continue or walk away based on the results.
Step 6: Request Pricing from the Selected Vendor
At this stage, vendors should provide clear, structured pricing based on:
Only move forward if the value matches the cost. Continue or walk away.
Step 7: Plan Ahead for a Successful Implementation
A well-planned rollout reduces risks and ensures success.
Internal Preparations:
Step 7: Plan Ahead for a Successful Implementation
A well-planned rollout reduces risks and ensures success.
Internal Preparations:
Market Readiness:
Continue or walk away—depending on readiness.
Step 8: Select Vendor and Sign
Before signing:
Step 9: Project Kickoff
Continue or walk away if conditions aren’t met.
Why This Approach Works
Many banks hesitate to buy software because of “scope fears”—the fear of committing to a large, expensive project with unknowns.
Our approach solves this by:
Final Thought: Buy Smart, Build Confidence
Financial institutions don’t need to gamble on software purchases. By taking a step-by-step approach, banks can ensure they select the right vendor, the right technology, and the right solution—with minimal risk.
Ready to transform your financial institution? Let’s start the conversation.