Mission Matters Business Podcast with Adam Torres

Modernizing Banking Through Fintech with Adam Aspes

·16 min·1 clip

Adam Aspes explains how most bank cores still run on 1950s COBOL technology, creating a patchwork system.

The episode begins with host Adam Torres introducing guest Adam Aspes as part of the iConnections Miami series. Aspes shares his positive experience at the iConnections event, noting it was his first time back post-COVID and he met high-quality investors. He then describes FinTop as a venture capital firm focused on fintech, founded by former entrepreneurs and operators. A key detail is FinTop's LP base includes about 100 banks with combined assets of $1.8 trillion, plus non-bank strategic partners like Fiserv and Q2. Aspes explains their high-engagement model with bank LPs, involving monthly calls, quarterly calls, and eight working groups to understand pain points. He recounts his background spending over 20 years on Wall Street in various roles, building deep relationships with community banks. While on the board of a Louisiana bank, he saw firsthand the technology issues banks face. He contrasts this with modern fintech software from companies like Brex and Robinhood. Aspes notes most bank core systems are based on COBOL technology from the 1950s, integrated poorly due to decades of M&A. He states banks risk obsolescence if they don't fix their tech stacks. The COVID pandemic forced banks to adopt new software rapidly, such as for PPP loans, changing their mindset. Low-hanging fruit includes digital account opening and moving data from Excel to better interfaces. Aspes discusses how AI is now dominating their investments, with themes like tokenization of real-world assets and AI-driven efficiency gains. He gives an example of an AI investment for commercial lending that automates manual tasks. The episode concludes with contact information for Aspes and a call to subscribe to the daily show.

As heard by us

A clear primer on how legacy bank cores helped create room for fintech.

Bank modernization comes through here as a story of old infrastructure meeting sharper fintech expectations. Adam Aspes, a FinTop partner, traces his move from more than 20 years investing in banks into venture investing, shaped in part by seeing bank technology up close while…

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Why you'd press play

Curious why banking can feel polished up front while the core underneath still dates back decades?

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