Spring Cleaning Your Tech Stack: Why Consolidation Matters in Financial Services

This article was originally published on Forbes through the Young Entrepreneur Council (YEC), where Sal Rehmetullah shares insights as a member.

Spring is synonymous with renewal, clarity and efficiency. Just as we take time to declutter our homes and workspaces, businesses—especially those in financial services—should use this season as an opportunity to evaluate and streamline their technology stacks. With the increasing complexity of financial regulations, evolving data requirements and the growing demand for seamless user experiences, the concept of “spring cleaning” should extend beyond desks and storage closets to the very tools that power your organization.

For enterprises serving small and mid-sized businesses (SMBs), the challenge isn’t just about keeping up with change—it’s about staying ahead. The build vs. buy debate continues to dominate discussions in financial services, but the reality is clear: Buying comprehensive solution sets is now more critical than ever. Here’s why.

The Problem with a Fragmented Tech Stack

Many organizations find themselves in a situation where they’ve accumulated a wide range of software solutions over time, each solving a specific problem. This can lead to an overly complex and disjointed tech stack, causing inefficiencies such as:

• Inconsistent User Experience: A mix of standalone tools can lead to a fragmented user journey, making it harder for teams to navigate and integrate workflows.
• Higher Operational Costs: Licensing fees, maintenance and integration efforts multiply when relying on multiple vendors.
• Security and Compliance Risks: Financial services are heavily regulated, and ensuring compliance across multiple tools increases the risk of data breaches and audit failures.
• Lack of Interoperability: Standalone solutions often don’t communicate well with one another, leading to data silos and inefficiencies.

To address these issues, many businesses attempt to build custom integrations or internal solutions. But in financial services—where regulation, compliance and data complexity evolve rapidly—building often becomes a never-ending cycle of updates, patches and retrofits.

The Case for Buying Solution Sets

1. Regulatory Changes Require Agility

Financial regulations are a moving target. Compliance requirements shift frequently, and businesses must remain nimble to adapt. Consider the recent finalization of the CFPB’s Dodd-Frank 1033 rule, which mandates that financial institutions provide consumers with seamless electronic access to their financial data. Organizations relying on fragmented tools or custom-built solutions may struggle to keep pace with such regulatory changes, whereas a consolidated, vendor-managed solution can quickly adapt to new mandates.

Take Plaid, for example. As an open banking infrastructure provider, they continuously update their APIs to reflect compliance changes, relieving their clients of the burden of constant monitoring and development. Companies that choose to buy into platforms like Plaid gain instant access to compliance-ready updates without needing to overhaul their internal tech.

2. The Need for Dynamic and Scalable Data Solutions

Data is the backbone of financial services, but as SMBs become more sophisticated, their data needs evolve. Today’s businesses require:

• Real-time access to transaction data
• AI-driven insights for fraud detection
• Automated financial workflows

Building a data infrastructure that keeps up with these requirements is an ongoing challenge. 

By buying a comprehensive solution instead of piecing together multiple tools, businesses can ensure seamless data aggregation, accuracy and security—all while reducing IT overhead.

3. Enhancing User Experience for Internal and External Stakeholders

User experience (UX) isn’t just about aesthetics; it directly impacts efficiency, adoption rates and customer satisfaction.

• Internal teams need intuitive interfaces that allow them to process transactions, analyze risk and onboard customers without toggling between multiple applications.
• SMB customers expect a seamless experience, where banking, lending and payment services integrate smoothly.

A perfect example is Brex, a financial technology company that consolidates expense management, corporate credit cards, and financial insights into a single platform. By providing an all-in-one solution, Brex eliminates the need for SMBs to juggle multiple banking and financial software, resulting in a more fluid user experience.

When financial services companies consolidate their own tech stacks, they enable SMB clients to do the same—creating a ripple effect of efficiency across the ecosystem.

Spring Cleaning Checklist: How to Start Consolidating

If your organization is ready to spring clean its tech stack, here’s where to begin:

✔ Audit Your Existing Tools – Identify overlapping functionalities and inefficiencies.

✔ Evaluate Compliance & Security Needs – Determine which tools align with evolving regulations.

✔ Assess Vendor Offerings – Look for solution providers that offer bundled services to reduce complexity.

✔ Prioritize Interoperability – Choose platforms that integrate well with existing systems.

✔ Consider Long-Term Scalability – Opt for solutions that will evolve alongside your organization and your SMB clients.

So where does that leave us…

Spring cleaning isn’t just for physical spaces—it’s a mindset that should extend to the way financial services companies approach their technology and operations. In a world where regulatory compliance, dynamic data needs and seamless user experience define success; buying robust, integrated solutions beats building fragmented, custom ones.

By consolidating tools, reducing inefficiencies, and embracing comprehensive platforms, your organization can enhance productivity, improve compliance and better serve SMBs—all while saving time and resources.

This season, don’t just clean out your closet—clean up your tech stack. Your teams, your customers and your bottom line will thank you.

---

Read more from our Co-Founder and CEO Sal Rehmetullah here.