R&D for the Rest of Us: A Community Bank's Innovation Playbook - Heath Fountain, CEO of Colony Bank
Fri Jan 23 2026
In this new format "brief" episode of the Operate Podcast, I caught up with Heath Fountain, CEO of Colony Bank, the largest community bank in Georgia with locations spanning Georgia, Alabama, and the Florida Panhandle. We explored how community banks can approach innovation strategically without overextending their resources. Heath shared the practical thinking behind his bank's decision to get involved in collaborative innovation efforts such at BankTech Ventures and how that choice has paid dividends in unexpected ways.
Our conversation centers on a fundamental challenge facing community banks today: the technology landscape is evolving rapidly, but most institutions lack the internal resources to evaluate every emerging solution on their own. Heath described how his team framed their innovation investment as research and development expense, a mental model that helped his board understand the value of staying connected to the broader fintech ecosystem. Rather than trying to be on the bleeding edge, Colony Bank has found success positioning themselves just behind the leading edge, keeping pace with change without taking on unnecessary risk.
Heath offered candid insights into the tangible outcomes of this approach, including how networking with other technology-forward bankers led to hiring their Chief Innovation Officer, someone they would have never encountered otherwise. We discussed how having access to vetted portfolio companies has streamlined vendor evaluation, helping the bank discover solutions they didn't even know they needed. The conversation also touched on Heath's advice for peers trying to make the case to their own boards, including the simple math of spreading investment over time and comparing it to the cost of consultants or dedicated hires.
Throughout our discussion, Heath emphasized that the goal isn't to chase every trend, but to have the knowledge and relationships in place to make informed decisions when opportunities arise.
LINKS
Colony Bank (https://www.colony.bank )
Heath Fountain on LinkedIn (https://www.linkedin.com/in/heathfountain/ )
Bank Tech Ventures (https://www.banktechventures.com/ )
Chapter Markers
00:00 Preview
00:29 Intro
00:45 Sponsor
01:19 Why Community Banks Need Outside Innovation Partners
02:53 Finding a Chief Innovation Officer Through Networking
03:20 Getting Practical Value from Portfolio Companies
04:16 Making the Case to Your Board
05:15 Thinking About It as R&D Expense
06:27 Staying Just Behind the Leading Edge
06:53 Outro
More
In this new format "brief" episode of the Operate Podcast, I caught up with Heath Fountain, CEO of Colony Bank, the largest community bank in Georgia with locations spanning Georgia, Alabama, and the Florida Panhandle. We explored how community banks can approach innovation strategically without overextending their resources. Heath shared the practical thinking behind his bank's decision to get involved in collaborative innovation efforts such at BankTech Ventures and how that choice has paid dividends in unexpected ways. Our conversation centers on a fundamental challenge facing community banks today: the technology landscape is evolving rapidly, but most institutions lack the internal resources to evaluate every emerging solution on their own. Heath described how his team framed their innovation investment as research and development expense, a mental model that helped his board understand the value of staying connected to the broader fintech ecosystem. Rather than trying to be on the bleeding edge, Colony Bank has found success positioning themselves just behind the leading edge, keeping pace with change without taking on unnecessary risk. Heath offered candid insights into the tangible outcomes of this approach, including how networking with other technology-forward bankers led to hiring their Chief Innovation Officer, someone they would have never encountered otherwise. We discussed how having access to vetted portfolio companies has streamlined vendor evaluation, helping the bank discover solutions they didn't even know they needed. The conversation also touched on Heath's advice for peers trying to make the case to their own boards, including the simple math of spreading investment over time and comparing it to the cost of consultants or dedicated hires. Throughout our discussion, Heath emphasized that the goal isn't to chase every trend, but to have the knowledge and relationships in place to make informed decisions when opportunities arise. LINKS Colony Bank (https://www.colony.bank ) Heath Fountain on LinkedIn (https://www.linkedin.com/in/heathfountain/ ) Bank Tech Ventures (https://www.banktechventures.com/ ) Chapter Markers 00:00 Preview 00:29 Intro 00:45 Sponsor 01:19 Why Community Banks Need Outside Innovation Partners 02:53 Finding a Chief Innovation Officer Through Networking 03:20 Getting Practical Value from Portfolio Companies 04:16 Making the Case to Your Board 05:15 Thinking About It as R&D Expense 06:27 Staying Just Behind the Leading Edge 06:53 Outro