Rory Holland, a pioneer in Fintech marketing, and Founder & CEO of CSTMR Fintech Marketing Agency.
For the past few years, I’ve been part of an experience called the “Fintech House” at SXSW (South by Southwest), and it’s been a major highlight. Hosted by Alloy Labs, the event is a place for fintech pioneers and leaders to compare notes and have meaningful discussions about the industry. As the CEO of a fintech marketing agency, I talk to a lot of entrepreneurs and leaders about their business, so that part isn’t unusual. What is unusual is the energy people bring to Austin, Texas, during SXSW.
The guests at the Fintech House were no exception. The vibe of the entire conference was dynamic, bordering on unpredictability, reflecting a broader social trend for our country and economy.
Thankfully, I recorded interviews with several guests who stopped by (they’ll be released as future episodes on the CSTMR Mighty Finsights podcast), but I thought it would be worthwhile to touch on some of the themes at a high level as well as my takeaways for fellow leaders in the industry.
Community Financial Institutions: A Balancing Act
One thing I repeatedly heard is that community banks and credit unions continue to serve America in critical ways. While I agree, their business model is facing massive challenges.
This might sound crazy to say in 2025, but there’s a consensus that community financial institutions must integrate digital solutions into their operation to remain competitive.
The challenge is that many of them rely on legacy infrastructure that was built before the internet. Yes, we have smart refrigerators with touchscreens, but your checking account is powered by software that might have been written on a display with two colors: green and black.
So, if these banks and credit unions are going to make it, they need to thread a very difficult needle. They must modernize their technology stacks and maintain (or improve) their ability to deliver warm, human-centered service while being highly regulated.
I’m hopeful and watchful on both issues.
Data maturity is going to make some companies and break others.
In the fintech and financial services world, data is plentiful, but knowledge of how to properly capture and capitalize on it fully is scarce.
Some fintechs I spoke with are experiencing this issue up close, watching organizations make needless mistakes with their credit decisioning models. They’re too entrenched in the conventional approach to assessing creditworthiness and underwriting.
On the other hand, when an organization embraces advanced data tools, including AI modeling, it can improve margins, lower risk and safely extend credit to underserved demographics, such as gig workers and those with unconventional income. That’s a huge win-win, and it’s just one example of how data maturity opens new opportunities.
A new fintech founder I spoke with brought some great perspectives on this issue. Her company helps small-business loan applicants gather their application information more easily. By getting involved at the start of the application, they help financial institutions process that data and customize loan packages to match the borrower’s industry vertical, credit profile and other needs. This level of analysis also helps improve financial inclusion for small-business borrowers, which is lagging far behind the levels for consumer lending.
Some companies I talk to have the data, they’re just not clear on the best ways to use it. Others struggle to capture and process it in a unified system that can power the rest of their tech stack. Thankfully, there’s no shortage of companies stepping in to help organizations transform it into valuable, actionable insights.
Adaptation never looked so appealing as it does today.
Many industries are in upheaval right now. Businesses that thought they had rock-solid business models are suddenly trying to figure out where their revenue went.
It’s easy for journalists, armchair experts and everyone else to look at a business and talk about how obvious the problems and solutions are. I notice the same phenomenon when watching an NFL or NCAA game with my friends and family—they suddenly become championship coaches.
Unfortunately, when you’re responsible for the change, it’s never easy or clear. Companies and financial institutions are under increasing pressure to bake sustainability into everything they do. The crucial insight from SXSW and the Fintech House was the undeniable link between sustainable innovation and the very future of financial institutions. Without a proactive commitment, they face a growing risk of being displaced by agile fintechs that understand sustainability is a core differentiator, not a mere afterthought.
Which way is the wind blowing?
In retrospect, another theme emerged to me, even though it wasn’t something anybody called out explicitly. Rewind to late fall 2024, most entrepreneurs, bankers and business people were feeling renewed optimism about the future. They anticipated regulatory relief and economic tailwinds.
Fast forward to spring 2025, and the prevailing mood is uncertainty. Maybe the financial sector will face regulatory tailwinds and economic headwinds, resulting in much ado about nothing. Maybe the changes will stimulate growth and wholesale improvements to how things are run. We’ll have to wait and see.
What is clear to me is that the next era of financial services will be dominated by financial institutions that treat fintechs as beneficial partners, not dangerous disruptors. I can see that future taking shape already, and it’s very exciting.
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