Future-proofing mid-size banks: Leveraging MSPs for innovation and growth

In today's rapidly evolving financial landscape, mid-size banks around the world are facing unprecedented challenges - from ever-changing regulatory requirements to disruptive technologies and shifting client demands. The need for future-readiness has never been more critical.

At Finastra, we've witnessed firsthand how the right MSP partnerships can be transformative for banks. Our Customer Value Selling Lead Benjamin Barwick recently had the opportunity to sit down with industry leaders Kevin Pemberton,Senior Business Strategy Advisor at Microsoft and Nicola Tassan, Managing Director at Accenture, to unpack some actionable strategies for navigating these complexities and positioning banks for long-term success.

Whether beginning to explore MSP partnerships or looking to optimize existing relationships, here are our top insights in how mid-size banks can drive innovation, enhance operational efficiency, and deliver superior customer experiences.

Seizing the moment in banking transformation

The banking sector is undergoing a profound transformation, driven by technological advancements, changing customer expectations, and an increasingly complex regulatory environment.

Kevin Pemberton emphasizes the scale of this change: "The field of technology is constantly evolving. We're pushing boundaries and transforming industries. One such revolution is the emergence of Gen AI, more specifically leveraging the power of AI and reengineering artificial intelligence to increase business productivity, transforming business models and reimagine the customer experience."

"We also have advanced technologies such as Machine Learning (ML), which is the opposite side of the coin of AI, cognitive services as well as natural language processing, all being leveraged to future proof,’ adds Pemberton.

The AI Revolution in banking

Artificial Intelligence is no longer a futuristic concept – it's a present reality reshaping the banking industry. Pemberton explains the impact: "What we’re hearing across banking and capital markets partners is that there is a potential for enterprise benefits to increase revenue, lower internal and external operating costs and improve the employee experience as well as the company culture."

Nicola Tassan provides a practical example from a recent implementation of a Finastra trading system with Microsoft Azure in Italy. Accenture managed the project up until the go live by using GenAI. “This showed us we were able to really compress the time of delivery of the system integration project through different phases of the delivery, from the requirement gathering to the business analysis, the development of interfaces between the platform and the rest of the architecture of the client, including the testing and the testing factory," explains Tassan.

Key priorities for forward-thinking banks

What do banks need to do to stay in the game? According to our experts, they need to focus on three key areas:

1. Prioritizing automation: "This enables front office employees to focus on crucial aspects of their business, as well as more strategic communications and initiatives," says Pemberton. For mid-sized banks, automating time-consuming tasks is crucial for enhancing operational efficiency and freeing up resources to innovate and drive growth, ultimately leading to a more predictable revenue stream. <
2. Enhancing client experience: Pemberton notes, "Clients are really interacting now in a conversational manner right through this period of AI." Prioritizing personalized communication allows mid-sized banks to build trust and strengthen relationships, meeting clients where they are and addressing their needs more effectively, which can differentiate them in a competitive market.
3. Boosting operational efficiency: "We’re now in a period where we could automate these processes," highlights Pemberton. By streamlining workflows and reducing manual effort, mid-sized banks can minimize errors and enhance resilience, positioning themselves to respond quickly to market changes and client demands, ultimately supporting sustainable growth.

MSPs are the key to future readiness

MSPs started out as a mere provision of services. Today they’ve evolved into strategic partners that are essential for navigating the complex world of banking technology. Tassan highlights this shift: "We recognized that Generative AI isn't just an innovation; it's a game-changer for Tier 2 and 3 banks. It drives cost reduction and accelerates the implementation of new project platforms. In today's fast-paced market, speed is everything. The ability to deploy new platforms quickly and efficiently is no longer a luxury - it’s a necessity for staying competitive.

“Companies are at varying stages of their AI journey—some are just beginning, while others are actively exploring options, gathering insights, and planning diverse use cases to shape their strategy. As MSPs, our role is to meet them wherever they are in this journey, guiding them from exploration to execution with the right expertise and support.”

This tailored approach is a powerful benefit of partnering with an MSP, providing mid-sized banks with much needed flexibility and specialized knowledge to accelerate their AI adoption and drive results.

Unlock ROI and competitive edge

Pemberton highlights the strategic role of MSPs: "MSPs act as critical enablers in the AI journey, supporting everything from planning to building and integrating AI deeper into a business. This guidance accelerates ROI by helping banks implement AI more efficiently and effectively." He also underscores the importance of cloud infrastructure decisions: "Many midsize banks are still navigating their path to the cloud, and these decisions will shape how robust and engaging their AI applications and platforms will be."

Tassan concurs, adding, "Our partnership with Finastra and Microsoft began five years ago because we recognized our clients needed a comprehensive, unified solution. As an MSP, our mission has always been to deliver top-tier services through innovative application and infrastructure solutions, all while remaining cost-effective."

Tassan further highlights tangible benefits MSPs offer: "We’re focused on reducing implementation and managed service costs, which are critical demands from the market. By addressing these needs, we help banks achieve quicker, more impactful ROI."

Pemberton broadens the perspective: "AI is pivotal for maintaining a competitive edge. Recent research found that two-thirds of technology decision-makers at enterprise banks view AI, including Generative AI and traditional AI, as core to their competitive advantage. Partnering with MSPs ensures they can capitalize on this, driving value and results."

Conclusion

MSPs are not just service providers – they are essential business enablers for mid-size banks who find themselves navigating an increasingly complex and fast-paced industry.

The future of banking is here, and it's being shaped by innovative partnerships between banks and MSPs. And it’s not only large enterprise banks. By leveraging these partnerships, mid-size and smaller banks can unlock critical access to cutting-edge technologies, streamlining operations, and focussing on what truly matters – serving their clients and growing their business.

At Finastra we are committed to helping you navigate this journey. Whether you're just starting to explore MSP partnerships or looking to optimize existing relationships, we're here to support you every step of the way.

For more information on how Finastra can support your journey, please don't hesitate to reach out.

If you're interested in exploring our previous LinkedIn Live events, you can find out more about how we debunked common myths around MSPs here or how we've explored how MSPs can help banks transform to compete here.

Meet our expert contributors

Benjamin Barwick, Customer Value Selling Lead, Europe and Americas at Finastra

Kevin Pemberton:Senior Business Strategy Advisor at Microsoft

Kevin advises tier-one clients across the banking and capital market sector on their cloud adoption and digital transformation journeys. His extensive career started in investment management with roles at Putnam Investments, Legg Mason, and Citigroup Asset Management. Kevin holds a Bachelor of Arts in Economics from Harvard and an MBA from MIT Sloan School of Management.

Nicola Tassan: Managing Director at Accenture

Nicola leads the Technology Financial Services division for Italy, Greece, Poland, and Central Europe, managing a team of over 7,000 professionals. He has a background in management consulting and plays a leading role in Gen AI applications for essential services. Nicola brings invaluable insights into the practical implementation of innovative technologies in the banking sector.