Is Your Institution Growing – or Just Moving?
Financial institutions pursuing digital transformation must distinguish genuine growth from the illusion of it. Open banking is projected to reach $191 billion globally by 2034, yet only 30% of digital transformation initiatives succeed. The primary barrier is not technology itself, but disconnected data and fragmented core systems. Allied Solutions EVP and Chief Growth Officer Mark Bugalski identifies cultural alignment and strategic data integration as the defining factors that separate a vendor from a true growth partner. Institutions that defragment their data environment, evaluate build-versus-buy decisions carefully, and align with partners who simplify integration, such as PortX, are best positioned to capitalize on AI-driven transformation and achieve sustainable competitive advantage.
"Growth isn't about doing more. It's about doing the right things – faster."
This idea is gaining traction, prompting financial institution leaders to question what truly drives digital transformation growth and what simply creates the illusion of it.
Recently on the Allied Angle podcast, Mark Bugalski, Executive Vice President and Chief Growth Officer at Allied Solutions, shared his perspective on how global open banking trends are impacting growth at the institution level.
Legacy Banking Doesn't Align with Open Banking Trends
Open banking is in a hypergrowth phase, with $42 billion in projected global growth this year, and is predicted to rise to $191 billion by 2034. As millions of transactions flow through expanding data ecosystems, disconnected data becomes a primary challenge. Legacy systems, layered point-to-point solutions, and manual workarounds weren't designed for this level of connectivity.
A Connected Foundation Dismantles Fragmentation
Only 30% of digital transformation initiatives are considered successful. Most projects miss the mark, not due to lack of technology, but rather how that technology is, or isn't, connected.
In the race to modernization, many institutions are increasingly tapping into the power of partnership and investing in new platforms and technologies as force multipliers. But partnerships only deliver value when they strengthen the existing tech strategy and unify foundational data.
Connecting foundational data and core systems speeds up growth. Most core systems don't need a software upgrade — they need smarter, more strategic integrations. In the absence of integration, there is operational drag and lost momentum. It's no surprise that many CEOs point to fragmented core systems as one of the heaviest drags on momentum.
How a Frictionless Ecosystem Builds Enterprise Momentum
Removing friction from the data ecosystem generates growth that impacts every corner of the institution. But it's a balance between staying on the cutting edge of data integrations and being a cautious adopter, and it isn't always a clear-cut answer.
Mark says what differentiates a vendor from a partner that acts as a force multiplier is cultural alignment: "One of the most important things we look at [in a partner] is cultural alignment…the collaborative effort to be willing to solve problems together. If [cultural alignment] isn't there, we'll never be able to scale the partnership."
Allied tested this theory with a new data exchange integration partner: "With PortX, we quickly realized that there was a shared alignment to simplify data integration. This integration has the potential to change the trajectory of what we are doing as an organization and how we can impact the industry."
This raises an important question: where is your institution actually gaining momentum — and where is it just creating the appearance of it?
When Adoption Masquerades as Acceleration
Tech discovery and adoption can generate growth at the onset, but when regulatory overhead and legacy infrastructure drag come to light, the reality is often slowed progress toward enterprise goals. In complex tech environments, it's easy to mistake adoption activity for acceleration, especially when every initiative promises transformation.
On the journey to defragment data, there will be distractions that generate motion without progress. One such distraction is the recurring debate between building versus buying a solution. Building in-house often comes with hidden expenses, yet outsourcing to an underprepared partner can dampen growth too. A carefully deliberated decision, whether to build data integrations from the ground up or buy an off-the-shelf solution, reveals how a tech partner either drives growth or adds complexity.
Multiplying forces through strong partnerships becomes a unique competitive advantage. Strengthening existing partnerships can elevate existing systems without redesigning the entire tech strategy.
The organizations winning at growth today are the ones that, earlier, aligned with partners who simplified their data environment.
Want to pressure test your approach to growth?
This conversation is a strong place to start. Listen to the full podcast.
Turn Down the Noise of AI
AI isn't risk-free, and it deserves caution. Yet, when prudence distracts from intentional adoption, it's time to turn down the volume. Turn down the noise of AI by leaning into your strategy and tapping your strong partnerships.
Mark notes: "If you can launch faster, you can learn faster. If you learn more, you can make better decisions and become more competitive."
AI is making digital transformation more attainable, but only for institutions with the right data foundation. Seamlessly integrating data is the AI aha moment, and a true competitive advantage.
