Why does IT still feel like a cost center for banks and credit unions — and what can leaders do to change that?
In this episode of Executive Edge, Lauren Langer, Director of Marketing at Hartman Executive Advisors, sits down with Matt Gill, Executive Advisor and former CIO, and Shea Gabrielleschi, Relationship Executive, to explore how financial institutions can shift their technology function from overhead to a driver of growth.
The discussion covers aligning IT with business goals, tracking ROI, overcoming “shiny object syndrome,” and leading cultural change so technology becomes a core enabler of performance and profitability.
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Lauren Langer:
Welcome to Executive Edge, where we explore technology and business leadership topics in under 20 minutes. Today I am joined by two of Hartman’s financial services leaders.
First, Matt Gill, a seasoned CIO advisor who has led IT strategy for banks and credit unions, helping them align technology investments with growth, risk, and operations. Welcome, Matt.
Matt Gill:
Thanks, Lauren.
Lauren Langer:
We are also joined by Shea Gabrielleschi, a relationship executive who partners with CEOs and CFOs to make sure IT drives performance and competitive advantage, not just expense. Welcome, Shea.
Shea Gabrielleschi:
Thank you.
Lauren Langer:
Our topic today is Why IT Still Feels Like a Cost Center for Financial Services Companies and How to Fix It. Many executives still see IT as overhead, even as budgets increase. What is reinforcing this perception?
Shea Gabrielleschi:
Many of the banking clients we work with do not have a true IT strategy. What they have is a list of IT projects. Those projects may be necessary, but they are often not tied to business outcomes. That disconnect creates frustration, and IT starts to feel like a drag on the business instead of a driver of it.
Matt Gill:
Exactly. There are always unavoidable IT costs like infrastructure, vendors, and maintenance, but when the business and IT are not aligned, those costs feel like noise. The goal is to make sure IT planning happens alongside business planning so that both are aligned around the same strategy. That alignment improves communication, transparency, and efficiency.
Lauren Langer:
So when IT spending is truly aligned with strategy, what changes? What does ROI on IT look like in practice?
Shea Gabrielleschi:
It becomes much clearer. Many CEOs do not have visibility into how IT drives value, so they assume there is no ROI. But what you cannot see, you cannot measure. When IT strategy aligns with business strategy, leaders gain visibility and can actually see how technology impacts operations and growth.
IT today touches every part of the organization. It is no longer just about keeping the lights on; it is about enabling business performance. When that alignment happens, IT has a seat at the leadership table rather than operating in a silo.
Matt Gill:
Yes, and every IT expense can be tied to a return. Sometimes that return is directly connected to the brand. For example, if your institution’s brand promise is around convenience or digital access, your IT investments in mobile banking or self-service tools directly support that brand.
Those investments must work consistently and deliver measurable customer value. The return is not always immediate, but when those experiences strengthen your brand, that is a direct business outcome.
Too often, projects start because someone returns from a conference excited about a new product without fully evaluating whether it fits the organization’s goals. Leaders need to calculate the impact up front and define how success will be measured before investing.
Shea Gabrielleschi:
That is such an important point. Artificial intelligence is a perfect example. Executives hear about new AI tools and want to implement them immediately, but if those tools are not tied to strategy, they only create distraction. Technology has to be driven by the business priorities, not the other way around.
Matt Gill:
Exactly. Leaders need to focus on what differentiates their organization. For financial institutions, that differentiator is no longer geography. It might be service, speed, or digital experience. Technology should reinforce that unique value, not compete with it.
Shea Gabrielleschi:
Right. Many banks and credit unions fall into a herd mentality, trying to keep up with what everyone else is doing. But they need to focus on what makes them different. Every technology decision should support that.
Lauren Langer:
Only 21 percent of banks track ROI on their technology investments. For CEOs and CFOs who are unsure how to measure it, where should they start?
Matt Gill:
It begins with budgeting. During planning season, leadership needs to identify where they want the organization to be next year and align capital spending accordingly.
Operational expenses will always exist, but they can be managed more efficiently. Capital budgets should focus on measurable outcomes. That means reviewing the effectiveness of past investments and understanding both financial and human resource capacity.
If a project is expected to improve loan decisioning by 50 percent, for example, leaders should track that outcome. Even a rough measurement creates accountability and helps evaluate long-term value across all projects.
Lauren Langer:
What kind of leader is capable of making this shift from IT as a cost center to IT as a business driver?
Matt Gill:
The leaders who succeed at this care deeply about both their people and their customers. They have conviction about their business goals and are open to ideas from subject matter experts. They understand that some operational costs are essential for reliability and that cutting corners can be more expensive in the long run.
Strong leaders build open communication with IT and make it part of the strategic conversation. That alignment creates efficiency and helps balance short-term costs with long-term business impact.
Shea Gabrielleschi:
Yes, and communication is everything. Successful leaders maintain regular conversations with IT and view it as a partner, not a vendor. They also have credibility across the executive team by understanding both business and technology.
Matt Gill:
We often recommend forming an investment committee or governance group. That group reviews ideas, measures ROI, sets priorities, and ensures alignment. IT decisions should not rest solely with the CIO or CEO. When multiple leaders are involved, the organization makes better choices.
Lauren Langer:
Final question for you both. What one piece of advice would you give to an executive who still sees IT as a cost center?
Shea Gabrielleschi:
Look at your IT leadership. If your technology leader is not strategic, that is where the problem starts. You cannot outspend bad strategy. Doubling your IT budget will only double your problems if the strategy is not sound.
Matt Gill:
I agree. Ask yourself if your IT leader can clearly articulate your organization’s strategic goals. Are they part of those conversations? If IT operates in a silo, it cannot make the right decisions.
At Hartman, we always say there are no IT projects, only business projects. IT exists to enable business success. Alignment and communication are what transform technology from a cost into a driver of growth.
Lauren Langer:
Thank you both, Matt and Shea, for sharing your insights. For financial services leaders, the path forward is clear. IT cannot operate as a separate function. It must be integrated with business strategy to create measurable impact.
To learn more about how Hartman Executive Advisors helps financial institutions align IT and business outcomes, visit hartmanadvisors.com and subscribe to Executive Edge for more industry insights.
Matt Gill:
Thank you.
Shea Gabrielleschi:
Thank you.
Featuring
- Matt Gill, Executive Advisor, Financial Services
- Shea Gabrielleschi, Relationship Executive
- Hosted by: Lauren Langer, Director of Marketing, Hartman Executive Advisors
Learn More: https://hartmanadvisors.com
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