Meeting customer needs is an imperative for financial institutions aiming to stay competitive. But innovations often run into the elephant in the room: outdated and incompatible banking tech stacks.
Offering financial and payment solutions such as blockchain and stablecoin services isn’t as simple as flipping a switch; it requires a reimagined back end capable of delivering speed, security and scalability.
“Going back into my career, the challenges we saw between FinTech companies creating new products and the natural friction with bank partners inspired us to build a bank from the ground up that caters to FinTech and blockchain,” Miles Paschini, CEO at FV Bank, told PYMNTS.
“FV Bank was really founded out of necessity,” he added, noting that the FV, which stands for “FinTech Ventures,” reflects this mission.
As the demand for blockchain-based services grows, driven by client interest in cryptocurrency custody, tokenized assets, and real-time settlement, banks are under pressure to revamp their core infrastructure.
Stablecoins in particular have emerged as one way for banks to stand up the crypto and FinTech innovations their customers desire. However, incorporating stablecoins into banking operations is not without its challenges. Banks require robust infrastructure to ensure seamless, secure and compliant stablecoin integrations.
“This isn’t about replacing existing systems. It’s about providing an additional option. Where stablecoins offer superior benefits, customers will naturally gravitate toward them,” Paschini said, noting that he views stablecoins as complementary to traditional payment rails like ACH, Fedwire, and Swift.
