More complex than rocket science

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. 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.

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

• Commercial
  What is the role of technology in recent customer developments?

• Users
  What opportunities do internal users, such as advisors and admins, see?

• Baseline
  How do the pain-points and opportunities translate to a baseline for commercial and operational indicators?

• Ambition
  What is the magnitude of ambition and what is the aspired source of distinctiveness? How will success be measured?

Step 2: Consider Vendors

Not all enterprise fintech vendors are created equal. Before engaging, assess:

• Customers
  Who else has successfully used their solutions?

• Locations
  Do they understand your market and regulatory landscape?

• Project Delivery History
  Have they proven their ability to execute?

• Impact
  Do they have a proven and credible impact record, or is there a material execution risk?

Selecting the right vendor starts with understanding their track record, expertise, and fit for your needs.

Step 3: Start with an Intro Meeting

• Meet the team
  Get a feel for the vendor’s expertise, approach, and ability to solve your challenges.

• Decide if it’s worth continuing
  If the fit isn’t right, walk away. No wasted time.

• Next steps
  Invite the vendor to a project meeting, RFI (Request for Information), or RFP (Request for Proposal).

• Present a project
  Let them propose a solution that fits your requirements.

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.

• See the technology in action
  Validate that it works with your systems.

• Understand the working relationship
  Experience how the vendor operates.

• Demonstrate value to internal stakeholders
  Prove the benefits before requesting full budget approval.

• Minimize risk
  A smaller project scope limits initial costs while confirming benefits.

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:

• Does it work?
  Can it handle your specific requirements?

• Will it add efficiency and solve real-world problems?
  If it doesn’t, stop here.

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:

• Technical Requirements – Does it fit with your architecture and security policies?

• Practical Requirements – Can it be integrated seamlessly with your current processes?

• Key Considerations – Make sure you remember A, B, and C (specifics depend on your internal criteria).

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:

• What is needed from your internal team?
• When are resources required?
• Who will be involved?
• What knowledge transfer is required?
• What is the test and acceptance process?

Market Readiness:

• How will the solution be introduced to customers?
• What is the go-to-market strategy?

Continue or walk away—depending on readiness.

Step 8: Select Vendor and Sign

Before signing:

• Confirm all key details
  Technical, financial, and compliance considerations.

• Ensure mutual expectations are clear
  No surprises later.

• Align on pricing, support, and long-term collaboration.

Step 9: Project Kickoff

At kickoff, both teams should be fully aligned on:

• Common Goals and Baseline
  Clear common North Star with SMART goals and a baseline performance on KPIs

• Scope & Milestones
  Clear deliverables and expectations

• Communication & Governance
  Who is responsible for what, and how do we conduct value reviews?

• Risk Management & Escalation
  Processes for resolving issues

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:

• Allowing for early exits
  Banks can walk away at any stage if the software or partnership isn’t the right fit.

• Testing and proving value early
  A PoC confirms whether the solution works before full commitment.

• Reducing vendor-side risk
  Vendors can price projects accurately based on validated needs, avoiding over-promising or misalignment.

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.