At Future Branches Austin 2025, Ben Maxim, Chief Innovation Officer at MSUFCU, delivered a keynote case study on “Innovation in Action: Building an R&D Team to Drive Transformation.” He explained why his organization created an R&D function to test emerging ideas before they enter the innovation lab, and how that structure helps financial institutions balance core operations with transformation. The session offered practical guidance for leaders navigating disruption, digital expectations, and new technologies.

Key Takeaways

1. Disruption starts with low-end or new-market opportunities

Using examples like Netflix and Uber, Maxim reinforced that true disruption often begins by serving overlooked users or creating a new market foothold. He contrasted that with companies that stayed focused on their existing business model, such as Blockbuster and Kodak. The lesson for financial services is clear: leaders need to look beyond current product performance and ask where unmet needs are creating room for new models.

2. Core business strength funds future innovation

Maxim emphasized that financial institutions cannot afford to abandon operations while chasing every emerging trend. Instead, the core business should generate the resources that support experimentation over time. He framed this as a balance between “artists” who invent and “soldiers” who run the business, noting that organizations succeed when they protect both functions and allow each to do its job well.

3. Design thinking keeps experimentation human-centered

The session showed how design thinking helps teams avoid solving the wrong problem. Maxim stressed empathy, customer insight, and a focus on the real job the user is trying to accomplish. Rather than building features because they are technically possible, his team starts with member feedback, employee input, research, and product strategy to make sure ideas solve actual friction points in lending, payments, and servicing.

4. Fast testing is better than long, uncertain project cycles

Maxim described a repeatable process of running experiments, creating test cases, and building business cases only after an idea shows promise. His team aims to fail fast and learn fast, which shortens the path from concept to validation. That approach helps reduce wasted effort and gives leaders the confidence to move forward, stop, or refine an idea based on evidence rather than assumptions.

5. Tokenization and AI are emerging areas, but use cases still matter most

Looking ahead, Maxim pointed to stablecoin, tokenized deposits, AI, and agentic AI as areas worth exploring, while stressing that adoption should be driven by real member value. He argued that financial institutions should focus on practical money movement, faster payments, and easier experiences rather than chasing technology headlines. In his view, the best innovations are the ones people actually want to use.

Why It Matters

For banking and credit union leaders, the session underscored a major operational challenge: how to innovate without overwhelming the core organization. Maxim’s approach offers a practical framework for doing both. By separating early-stage R&D from later-stage innovation, teams can test emerging ideas, reduce risk, and make better decisions about where to invest. The message is especially relevant as institutions navigate AI, real-time payments, digital expectations, and competitive pressure from fintechs. Transformation is no longer about one big leap; it is about building a repeatable system for learning, validating, and scaling what works.

Actionable Insights

• Create a dedicated R&D lane: Separate early experimentation from formal product development so ideas can be tested with less friction.
• Start with customer pain points: Use design thinking to identify the real job customers are trying to accomplish before proposing solutions.
• Run small, fast experiments: Validate concepts quickly, learn from results, and refine or stop projects before they become costly.
• Prioritize practical use cases: Evaluate AI, tokenization, and payment innovations based on measurable member value and operational fit.