The Blue Dot Banking Era

Introduction

How does an Ironman mindset shape the evolution of a bank? In this candid interview, Steve Bishop, President of OMBX, shares his take on the challenges of blending tradition with technology, the future of embedded finance, and why resilience—both in business and life—is the key to success. 

Read on as we explore his strategies for navigating industry change, building meaningful partnerships, and driving success in a fast-paced, tech-driven future.

“If you keep doing things the same way, you’ll get the same results…. staying relevant in the next five to ten years requires fresh perspectives. Whether it's embracing AI, undertaking core conversions, or other innovations, leaders must be willing to take risks.”

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Interview

Omri: Let’s begin with your career journey. What led you to where you are today?

Steve Bishop: I started my career at Jack Henry & Associates, transitioning data from legacy core systems and teaching myself programming. I then joined AT&T’s finance leadership program, and later Citibank, where I managed operations. Returning to Jack Henry, I managed digital platform development before joining OMB Bank as chief operating officer. Over the past four years, I’ve led a tech refresh, completed a core conversion, and launched a banking-as-a-service platform, which now supports multiple fintech programs and over $100 million in deposits.

Omri: You didn’t mention the 11 Ironman competitions and 30 marathons you completed. Do you apply your determination, resilience, and strategic thinking to your professional life?

Steve: Completing an Ironman is as much about mental strength as physical ability. Standing at the starting line and thinking about 140.6 miles can be overwhelming, so you learn to break it into manageable chunks and focus on the next step.

That mindset translates directly into business. For example, building our embedded finance program took two years of careful planning and partner selection, but that groundwork has driven our success over the past nine months. There were moments when giving up seemed tempting, but persistence and determination carried me through—both in races and in business. Whether it’s relationships or long-term projects, sticking with it and refusing to quit has been key to my success.

Omri: Your last role of COO is quite unique in banks—you don’t see it often, and when you do, it varies significantly. What drew you to the COO role, and what advice would you give to those aspiring to a similar position?

Steve: I’m not a traditional banker by any means. My journey to COO was unconventional, driven more by opportunities and relationships than a structured path. A mentor once called me "the least community banker" he knew, which reflects how I approach the role. Our CEO values talent over traditional fits, much like signing free agents in sports—finding the right person and figuring out where they best contribute. 

For aspiring COOs, there are two paths: The traditional route of learning bank operations deeply or, like me, bringing a mix of skills from outside of banking and bridging innovation with financial services. My work, especially with our recent OMBX brand launch, focuses on strategy and innovation rather than day-to-day operations. The key is finding what excites you, building relationships, and gaining the trust of someone who believes in your ability to deliver. That trust has allowed me to thrive in this role, where I design and implement strategies that truly make an impact.

Omri: When should the CEO of a community bank consider hiring for the COO role?

Steve: If you keep doing things the same way, you’ll get the same results—which has worked for traditional community banks for decades. But the banking industry is changing rapidly, and staying relevant in the next five to ten years requires fresh perspectives. At our bank, our CEO brought in non-traditional leaders alongside experienced community bankers. This mix allows us to explore innovative ideas while ensuring compliance and maintaining balance. Without that diversity of thought, banks risk becoming echo chambers and struggling to evolve.
Whether it's embracing AI, undertaking core conversions, or other innovations, leaders must be willing to take risks. Staying on the same core or maintaining status quo feels safe, but it doesn’t prepare banks for the fast pace of change ahead.

Omri: Given your vision of the market moving forward, what trends do you see shaping how banks remain profitable and grow over the next few years?

Steve: One of the things I love about embedded finance is that it’s not a zero-sum game—it’s collaborative. Banks and fintechs can succeed together, which makes it easier to sell the concept to boards by showcasing new revenue streams. But the real transformation is in the evolution of banks into tech-driven companies. This shift—from how banks operate to how they structure teams and incentivize them—requires a complete mindset change, all while staying compliant.

I like to think of it as moving from the "black dot" generation, where customers navigate to the bank, to the "blue dot" generation, where banks move to meet the customer wherever they are. Traditional banks still expect customers to adapt to them, but the future lies in embedding banking services into customer-centric ecosystems. That’s what makes BaaS so impactful. It’s the same banking product, just delivered differently—meeting customers where they already are. While there are challenges, especially with regulatory understanding, BaaS done compliantly is a game changer and a key driver of the industry’s future.

Omri: Do you think it's the end of brick-and-mortar branches? 

Steve: Not entirely—there’s a time and place for them. Routine tasks like transferring money should be done digitally, but life-changing decisions like buying a first home often require, or at least customers seem to prefer, that this be a face-to-face interaction. It’s about balancing both worlds—leveraging technology for scale while staying rooted in local impact.

Omri: And on the tech side, or the BaaS program we discussed, how do you see your bank evolving its sponsor-bank partnerships? Many banks stop short, leaving credit offerings to fintechs or alternative lenders.

Steve: Credit cards are definitely on my radar, though the biggest hurdle is expertise. I’m exploring partnerships with a company building a card management program to bridge that gap. The key is also having the right tech providers. When we did our core conversion, my priority was adaptability—ensuring we could integrate with others, even with companies that might not yet exist. Some providers were too rigid, but we chose one that supports third-party integrations and an API-first mentality. That flexibility allows us to adapt as the market changes, whether for cards or other innovations. The focus is on having the tech capability and the right partners to stay ahead.

Omri: Some of the BaaS pitfalls that led to some consent orders were typically related to lack of good oversight. Companies signed agreements committing to compliance but didn’t have the tools to monitor what was happening under the hood. How are you looking at that angle?

Steve: Compliance can’t be outsourced or handled “in a box.” Some providers try, but we knew early on that maintaining control was non-negotiable. We’ve proactively built our compliance framework, expanded our team, and regularly engage with examiners—meeting with them over the last two years to keep them informed about our plans and partnerships.
Each fintech is unique, so we tailor compliance monitoring for every partner, investing in tools to verify that their processes align with our standards. We've also brought on specialized consultants and are exploring regtech and AI solutions to automate compliance testing and improve efficiency. Our approach is simple: Trust but verify. Compliance isn’t just about ticking boxes; it’s about proving to examiners that we’re actively monitoring and addressing issues as they arise. That’s what lets us maintain our charter and confidently scale these partnerships.

Omri: You mentioned the strong lending arm of the bank and the new, innovative BaaS program. How do you see these converging over time to support each other?

Steve: I believe the true growth will come from OMBX, though our traditional lending will continue its steady growth. While lending sees consistent increases, the BaaS program offers growth more like a tech company due to its partnerships with tech players.

This shift is opening eyes—particularly among traditional community bankers who were skeptical of my investments and new initiatives. As we gain traction, it’s clear that the BaaS program isn’t just innovative. It’s becoming a core, valuable part of our business strategy.

Omri: Last question - what's the one thing you wish you knew before taking the role?

Steve: That’s a great question. Looking back, I wish I’d understood the importance of telling the story of BaaS internally sooner. While I’ve had strong support from the board and other executives, navigating the politics and building buy-in for such a major shift took more time than I anticipated. I’ve also had to evolve from an operations-focused leader to a more sales-oriented one, which was a big adjustment. Early on, I was focused on learning the space myself, but in hindsight, I could have involved others in that journey to create alignment earlier. 

Omri: Steve, good luck with the new brand and thank you for your great insights!

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Steve Bishop- Bio

Steve Bishop drives OMB Bank's growth and innovation, focusing on new revenue streams through OMBX, the bank's integrated banking brand, where he serves as president. Since joining OMB in 2020, he has led IT, organizational development, and strategic partnerships.

Previously, Bishop held leadership roles at Jack Henry & Associates, AT&T, and Citibank. He serves on the Missouri State University Design Thinking Advisory Board and holds master’s degrees in Operations, Finance, Strategy, and Information Management from Washington University in St. Louis, along with a bachelor’s in Economics & Finance from Missouri Southern State University.