Valley Bank today is launching Valley Foundry, a unit designed to speed up how the bank evaluates and adopts emerging technology such as AI and cybersecurity tools from its network of startups, fintechs and venture partners. 

“Valley has long operated as a technology-forward bank, investing in differentiated capabilities and fostering a deep ecosystem in this space to better serve our clients,” Chief Operating Officer Russ Barrett told FinAi News. “Technology is changing at an extraordinary rate, and Valley is focused on staying on the front foot by actively engaging with the ideas, companies and technologies driving that change.”

Barrett said Foundry grew out of gaps in Valley’s existing technology ecosystem — its tech banking business, its Valley Ventures arm, its partner banking and embedded finance work.  

Those channels identified plenty of startups, he said, but the bank lacked a structure to evaluate them. 

“We think we are in a really unique place for startups and fintechs,” Barrett said. “We’re a unique place to partner because we think we’re a very good access point to the long tail of banks.” 

If startups can make something work at Valley, they could probably do well and build a very strong business in banking if that’s their target audience, he added. 

“The difference between an idea and innovation is execution,” Rappaport said. “Valley Foundry is designed to create a highway between Valley and the startup, fintech and venture communities.” 

Staffing at Foundry 

Staff at Foundry is just shy of 10 technologists pulled from cybersecurity, fintech, data, AI and engineering roles across the bank. That team can run “light experiments very independently,” he said, before looping in Valley’s chief innovation officer, chief data officer and head of AI on opportunities that move past initial evaluation. 

Barrett distinguished the unit from Valley Ventures, the bank’s venture arm. 

While Valley Ventures focuses on investing in and supporting early stage companies, he said, Foundry brings “more of a technology-based lens,” staffing engineers and practitioners rather than investors to test technology within the bank. 

Valley assesses 12 to 15 outside opportunities a year, Barrett said, and expects to double that pace next year following the Foundry launch.  

Initial focuses include AI, cybersecurity, data and analytics, process improvement, and operational efficiency, according to the bank. 

The $64 billion bank picked Michael Rappaport to lead Foundry, Barrett said, adding that having Rappaport on the team elevates the floor. Rappaport has also served as the head of strategic initiative and innovation at HSBC where he helped develop innovative tech to improve the bank’s operations, according to his LinkedIn. 

“When you look at Mike’s experience of previously working in banking on one side, having a lot of consulting experience, we just think he just showed up and understood the high-level objectives of what we were trying to build,” Barrett said. “Everyone felt that they were going to get better because of him.” 

FinAi Lending Summit, set for Oct. 7-8 in Las Vegas, will include speakers from Fifth Third and Capital One as well as a fireside chat with U.S. Bank Senior Vice President – Lending Operations Group Manager Suzanne Rathbun. To learn more about the 2026 event and register, visit here.