Building next generation platforms to succeed in next-generation banking ecosystems
To reinvent themselves, banks need to leverage customer data within innovative business models. For that, technology platforms must evolve. This requires banks to become more agile and develop the right partnerships.
Successfully meeting these four transformation challenges and opportunities for the future of banking – responding faster to customer’s demand; optimizing costs radically; creating new revenue streams with open platforms; providing predictive security and compliance - will impact the banking business models, organizational strategies, and resources. It will also impact the very foundations of banking technologies.
Bringing legacy tech into the digital era
For decades, banks have built bullet-proof information systems that combine powerful and reliable technologies. They have pioneered mainframes, payment systems and high-performance computing for high-frequency trading.
However, systems for loans, savings and other banking activities were usually built in isolation. Now, based on dated technologies, these systems often fail to provide the agility and scalability banks need in today’s fast-moving landscape.
Banks have already launched a wealth of modernization initiatives. Motivations vary: catching up with digital innovation, experimenting with the cloud, developing mobile banking, or even improving customers’ digital experiences.
And while success has been plentiful, increasing competition from the global tech players and FinTechs means banks must accelerate their efforts.
Preparing for a paradigm shift
Adapting to the new era requires a quantum leap. To embrace the challenges of a digital world and take a winning position within it, three core principles will be essential for banks:
- Become wholly customer-centric, ensuring 360° omnichannel engagement with clients, smart devices and machines.
- Provide intelligent data-driven orchestration, enabling adaptation to market changes and evolving customer demands in a real-time, prescriptive way.
- Adopt open platform foundations, providing the best financial utility services.
The road ahead
To thrive, banks will need to create the right partnerships and convene the largest ecosystem to enrich their offering, monetize their data and turn it into profit. Banks should begin building new supporting architectures today. Modernizing legacy IT and fully embracing the latest cloud, automation, big data and mobile technologies is only the start of the journey.
More disruptive technologies will emerge. While some may only appear as dots on the horizon today, they will turn out to be transformational in the years to come.
To learn more, read Look Out 2020+ for Banking