It goes without saying that for commercial, business and retail banks, the digital experience is becoming synonymous with the customer experience. If banks want to keep up with the megabanks in the industry, they will need to adopt a more digital approach. However, for those stuck in a tangled web of legacy technology architecture, going digital is easier said than done. Many technology solutions simply stack on top of the legacy plumbing rather than integrating, which creates a domino effect of solutions that don’t talk to each other and creates even worse bottlenecks than before.
The answer to the legacy technology problem is a solution that is easy to integrate, cost-effective and agile. With the right solution, making technology changes is not as daunting as it seems. It can be overwhelming trying to select a technology provider that solves existing problems rather than creating new ones. Fintech solutions, like Fenergo, focus on helping banks improve their technology landscape to address the demands of a digital-native clientele as well as pressing regulatory compliance challenges.
When considering investing in new technology to counteract and complement legacy technology, banks must ensure that it FITS:
Flexibility – To manage rigid, immovable legacy technology, new technology solutions must integrate seamlessly to any system, from core banking providers or internal bank IT. Small technology solutions tend to be able to react quickly to new challenges and needs from the bank, such as new products or regulations.
Industry-built – Many banks speak to their customers face-to-face about their pain points but aren’t able to do the same with their own peers. A community approach to best practice (such as Fenergo’s community approach to regulatory compliance), can deliver much needed insight. Find a solution that shares your client-centric approach and takes your opinions and needs as seriously as you do for your own customers.
Transparent – With a technology stack made of several moving parts, a common complaint is that employees cannot access their clients’ data from different systems, creating an inefficient and siloed business process. A solution with transparency at its core will allow relationship managers and clients alike to have a 360° view of processes like onboarding.
Solution-oriented – Old core banking solutions can create bottlenecks and prevent banks from delivering the digital experience their customers need. A solution that is adaptable, has ‘plug and play’ capabilities in addition to a strong out-of-the-box offering will be able to solve current problems such as siloed processes and lack of configurability, as well as future proof against any unexpected issues.
To keep up with a digital-first client base, banks must take a hard look at their technology stack and determine if it FITS, both with their current tech architecture and their target business model. A flexible, configurable digital solution with a strong client-centric focus can help bridge the gaps and enable banks to transform how they do business and maintain their competitive edge.
To learn more, download our whitepaper; Tackling Inflexible Tech in Mid-Market Banks here.