If modernizing core banking infrastructure were straightforward, every financial institution would have done it by now.
The pressure to deliver digitally the full range of banking services available in a branch became acute during the past years.
Customers worldwide get used to seeing the financial side of a transaction embedded in a service. They also get more apt at building on their devices their portfolio of financial services apps – which most often do not belong to their “main bank”. Banks for sure acknowledge this, but achieving such agility and personalization is not easy.
There are operational reasons for transforming internal mechanisms, too. Legacy infrastructure is expensive and cumbersome to manage. The cost of maintaining old systems curbs the ability to fund innovation and be price-competitive in the market.
"Until innovation starts touching customers, it’s just theatre. We've seen banks buy things, we've seen banks create things. But have they really driven the scale of change they wanted? No. Digital isn't about a channel to sell the products you've been selling for years. It’s a fundamentally different way of operating. And there’s still a long way to go."
Founder and CEO, financial services consultancy 11:FS