By FintechOS - August 23, 2023
Futureproofing Insurance Legacy Systems with Fintech Enablement
The concept of futureproofing has become synonymous with innovation. Learn how you can innovate and modernize on insurance legacy systems
Retail Banking
Retail Banking Overview
Gain new customers by creating experiences and products quickly and easily
Account Opening
Create journeys powering customer acquisition
Personal Lending
Design and launch personalized products quickly to meet customer needs
Mortgage Automation
Build tailored mortgage offers to win new customers
Small Business Banking
Small Business Banking Overview
Grow your small business customer base
Account Opening
Engage and onboard small businesses using frictionless digital journeys
Small Business Lending
Create relevant loan products to meet the specific needs of different business segments
General Insurance
General Insurance
Meet the need for new forms of cover and high-quality digital experiences
Small Business Insurance
Create personalized propositions that meet the unique needs of small businesses
Pet Insurance
Increase share of wallet with cover customers love as much as their pets
Embedded Finance
BNPL and Embedded Lending
Deliver lending products directly to where they are needed
Partners
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Service and Support
Leverage our team of experts for singe projects or a complete digital transformation
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Marketplace
Transform your business with data-driven, hyper-personalised financial services solutions
Customer Case Studies
Learn what our global customers are saying about the value of FintechOS
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Community news, leadership series, interesting topics in financial technology and everything in between
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Get insights from the latest customer case studies, whitepapers, webinars, and more
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Partner Portal
All the business and marketing resources you need to sell FintechOS solutions
Platform Documentation
Comprehensive documentation for the FintechOS platform including release notes, APIs, and SDKs
Retail Banking
Retail Banking Overview
Gain new customers by creating experiences and products quickly and easily
Account Opening
Create journeys powering customer acquisition
Personal Lending
Design and launch personalized products quickly to meet customer needs
Mortgage Automation
Build tailored mortgage offers to win new customers
Small Business Banking
Small Business Banking Overview
Grow your small business customer base
Account Opening
Engage and onboard small businesses using frictionless digital journeys
Small Business Lending
Create relevant loan products to meet the specific needs of different business segments
General Insurance
General Insurance
Meet the need for new forms of cover and high-quality digital experiences
Small Business Insurance
Create personalized propositions that meet the unique needs of small businesses
Pet Insurance
Increase share of wallet with cover customers love as much as their pets
Embedded Finance
BNPL and Embedded Lending
Deliver lending products directly to where they are needed
Partners
Join us on our mission to make fintech innovation available to every company
Service and Support
Leverage our team of experts for singe projects or a complete digital transformation
FintechOS Academy
Start your journey to becoming an expert with FintechOS free training opportunities
Marketplace
Transform your business with data-driven, hyper-personalised financial services solutions
Customer Case Studies
Learn what our global customers are saying about the value of FintechOS
Blog
Community news, leadership series, interesting topics in financial technology and everything in between
Resource Center
Get insights from the latest customer case studies, whitepapers, webinars, and more
Leap
Learn and network at the most innovative financial services conference of the year
Partner Portal
All the business and marketing resources you need to sell FintechOS solutions
Platform Documentation
Comprehensive documentation for the FintechOS platform including release notes, APIs, and SDKs
Established banks and insurance companies have been around a long time, and many are working with legacy technology, or outdated computer hardware or software technologies, that were introduced more than half a century ago. When the first computer systems were introduced in the 1960s, there was little expectation that this new technology was here to stay, and it wasn’t intended to be upgraded or replaced. It wasn’t, in other words, designed with future-proofing in mind.
Fast forward to 2023 and the financial services industry has changed beyond all recognition. Digital start-ups are disrupting the marketplace, customer expectations of digital integration and seamless transactions are sky-high, and banking services are no longer simply the preserve of established financial institutions.
Working within an established financial institution can feel like you’re at the helm of a supertanker, and the digital disrupter startups are agile speedboats, whizzing around you and racing off into the distance with their innovative products that exceed customer demands. To continue the analogy, to change the direction of an established bank, like a supertanker, is slow, laborious and involves lots of people.
But the process of updating or replacing legacy technology for established banks isn’t completely bleak. Like supertankers, with their size, resources and momentum, these institutions can weather the storm while the nimble disruptors will be at risk (as Klarna’s round of redundancies in the summer of 2022 demonstrates). And with their financial stability, customer base and solid reputations that the digital disruptors lack, some may question why these established institutions need to innovate at all.
A PWC survey from June 2020 found that 41% of customers would switch providers due to a lack of digital capability. Nowadays, everything is online and customers are increasingly expecting the latest technology across all their financial interactions. Apple and Google have set the bar high for digital experiences, and companies that can’t meet these high standards are quickly relegated.
As Gen-Z comes of age, the teenagers who have grown up with smartphones as standard will expect intelligent technology as a simple fact of life. But it’s not just from a customer-facing point of view: staff working within these organizations will have higher expectations too, and will be reluctant to work with outdated tools.
The changing scenery can be bewildering for established banks with legacy technology, not least because research from BCG has shown that 70% of digital transformations failed in the last few years. Complicated and costly legacy core banking transformation projects are negatively impacting profits and not hitting the mark with consumers.
By introducing digital innovation in a smarter way, there is an opportunity for the supertankers to alter their course while maintaining their strength: through no-code/low-code product creation.
No-code/low-code high-productivity fintech infrastructure (HPFI) allows organizations – not just financial institutions but any company operating digitally (retailers, telcos, and agriculture and utility companies) – to create and launch new digital products without the need for a full digital transformation.
FintechOS’s HPFI is also a full-stack technology solution that works with existing legacy systems and can transform them into efficient, automated ecosystems. Hyper-personalized customer journeys become simple, which not only better caters to existing customers but also wins over new ones, and backend processes can be automated, which saves time, resources and money.
Traditionally, there are three ways for established financial institutions to innovate.
For established financial institutions, creating innovation labs allows for the best of both worlds. Going back to the supertanker analogy, it allows for the huge boat to maintain its steady course while its own agile speedboats zip around, creating innovative products to match its nimble digital competitors. And with no-code/low-code HPFI, these small, innovative teams aren’t reliant on legacy systems and teams of tech support. Instead, they can simply build, launch and iterate innovative financial products that meet the needs of their market.
This idea of small teams working to solve specific problems and develop solutions is a principle that Amazon’s founder, Jeff Bezos, has used to his great advantage. Referred to as the two-pizza team rule, it works on the belief that nothing will be accomplished by any team that needs more than two pizzas to feed it. If two pizzas aren’t enough, then there’s too much complexity and red tape in the team.
By finding a way to balance legacy institutions with agile innovation, traditional financial establishments will reap two significant benefits. Firstly, they’ll be more attractive to the increasingly dominant Gen-Z, who expect seamless technology across all aspects of life, and secondly, digitally superior financial institutions will see dramatically reduced costs compared to their competitors.
Currently dealing with outdated legacy technology? Book a demo to learn about our no-code/low-code high-productivity fintech infrastructure solutions here.
FintechOS is the global leader in fintech enablement, on a mission to make fintech innovation available to every company. As the world grows increasingly complex, FintechOS strives to simplify and accelerate financial technology so anyone can build, launch, service, and expand new products in weeks, not months or years. The FintechOS platform empowers banks, credit unions, and insurers of any size to grow revenue, lower operating costs, and achieve a faster time to value without dependency on core infrastructure and costly tech talent. Headquartered in New York and London, FintechOS has partnered with some of the world’s best brands, including Groupe Société Générale, Admiral Group, Oney, eMag, Deloitte, EY, and PWC.