Re-imagining modern banking for business growth
Banking systems are the heart and backbone of an institution's technology infrastructure and provide the foundation for business growth, being the primary enabler. These systems are designed to be highly secure, scalable and reliable, enabling banks and financial institutions to offer efficient, competitive, regulatory-compliant services focused on the best possible user experience, to grow the business and satisfy customers.
The pandemic accelerated the adoption of new digital technologies by banks and institutions to ensure uninterrupted customer service during the crisis. However, the global economic situation has increased pressure, mainly on revenues and profitability, making it clear that there is a need to find ways to grow the business and make it profitable.
Additionally, the sector has quickly realised that simply enabling digital channels does not guarantee business growth, as this typically involves offering the same services, but through a digital channel. This helped with customer retention, but to ensure growth there must be innovative services, which requires a core system able to keep up with the demands, enabling product innovation. When working with a legacy core, achieving this becomes challenging.
There are two paths to modernisation:
- Legacy core refactoring: this strategy comes with complexities associated with software development. In addition, this requires correct component redesign and precise definitions on the functional scope perimeter of each component.
- Adopt a new financial product processor: in this strategy we would not have the same complexities of refactoring, as these financial product processors already come with a robust and proven architecture from a large number of banks around the world. The challenge is ensuring that the platform is implemented in the right way.
