Customers today are expecting banks to provide the most recent and efficient features that any digitally advanced company provides. Due to legacy systems within banks, banks find it difficult to keep up to speed.As a result, they are not able to meet the market expectations. Moreover, the operation and maintenance of legacy systems are expensive, difficult to maintain and the technical expertise needed to operate these systems is shrinking by the day.
The process of modernizing legacy systems is expensive for banks. They would also want to streamline their operations by reducing the notableexpense of maintaining such systems. These expenses only grow further if the updates are delayed, as technologies designed to support them grow obsolete and become more expensive to operate. And they will want to adopt the latest technologies simply to benefit internally from the improvements that those innovations offer in terms of utility as well as reduced risk and bolstered security.
So, what does modernizing legacy system mean?
The modernization process typically involves moving from mainframe-based legacy platforms to solutions built on cloud and other modern digital technologies. As you shift from a customized set of legacy systems to a configurable set of Cloud applications, it is essential to preserve the valuable data in your existing business rules.
With core and app modernization, the IT model shifts from in-house, on-premises legacy systems to modern cloud-based solutions provided by third-party vendors. Also, the focusnow for IT departments shifts from complex coding to simple configuration.
• Digital competitiveness: Enables core systems to support the digital features and capabilities required by today’s marketplace.
• Smarter use of talent: Reduces dependency on increasingly scarce and expensive legacy specialists
• Better service: Supports improved service levels and better customer experience.
• Lower costs and improved efficiency: Reduce service delivery costs, with potential savings early on.
• Improves business value creation: Faster business process cycle time, enables data insights, and process automation that can create new opportunities to serve clients.
• Flexibility: Cloud-based solutions enable strategic flexibility and scalability.
Where to start
There are several options available, any start is a smart choice because anywhere you choose is better than not starting at all. The gap between digital leaders and banking instituteshindered by their legacy systems is growing wider every day. And the challenges, risks, and costs associated with operating and maintaining outdated legacy systems will only increase the longer you wait.
Banks now have multiple platform options that can enable them to not only modernize their applications but also infuse the new applications and processes with their own business rules through business rules extraction. The approach chosen must be one to show quick results as when you invest in change the business leaders need to see the benefits immediately.
Cloud-native platforms. These are platforms that leverage microservices-based architectures with application programming interfaces (APIs) that provide access to and from other internal and external services. They support real-time processing and—because they’re cloud-native—typically have a pay-per-use subscription model.
To determine which option is best for your business, you need to establish a modernization profile based on the sustainability of your existing platform, your appetite for risk, the need to innovate your product and service offerings, your urgency to transform, and the complexity of your data strategy.
Deploying an integrated technology platform to provide a uniform and ubiquitous experience has become the key to making this partnership successful.
Whether you are talking about the entire system or a specific application modernization, we should understand that this process is multi-faceted, tedious, and high-risk. Banks should be aware of the challenges and risks associated with both addressing and neglecting this concern. Postponing these requirements can lead to drastic consequences. By continuing to utilize these legacy systems, you hinder innovation, bring your progress to a standstill, and give your competitors the edge against you.
With the right solution banks can seamlessly connect legacy systems to new internal applications and external services, without replacing core systems or creating new ones for each new capability. To learn how Intense Technologies can help your enterprise create the much required great first impression, ensuring better & enhanced customer experience, email us at [email protected] or visit our website https://in10stech.com/. We look forward to helping you on your path to better customer communications.