New-age customers today expect banks to provide the same kind of intuitive features and services that they routinely receive from companies on the leading edge of digital innovation, like eCommerce and more. And, within the BFSI vertical, fintech companies are providing stiff competition to banks with their customer-friendly products and fast-paced services.
Do you know that the world retail banking report 2022 also suggests that 75% of customers surveyed preferred the seamless and cost-effective services of fintech over traditional banks? And 95% of top global banking executives revealed that their legacy systems and core banking platforms are failing them.
With the rapidly changing market dynamics and increasing customer expectations, age-old systems are no longer helping the banks. What’s even more critical is the fact that the operation and maintenance of the said legacy systems would become even more difficult and costly going forward. So, delaying the modernization of their core banking system could not only impact their profitability but also risk their survival.
Through this article, we’ll get into the details of modernizing legacy banking systems – the need, benefits offered, best practices, real-life use-cases & helpful technologies. So, Let’s get started!
Table of Contents:
Outdated software brings many process challenges to banks.
Here are some of the factors that suggest why the modernization of banking legacy software is crucial:
Upgrading the core systems can be expensive, and you want to complete this project smoothly. Here is a list of best practices to follow:
Leverage our two-decade IT partner experience, to modernize age-old IT structures that cripple growth and undermine profitability.
Upgrading core systems is a big project. You would want to know how other banks have performed with their software reconstruction efforts before starting your own. So, here are some real-life examples of major banks:
One of the largest banks in the US, JPMorgan Chase started undergoing a digital transformation and moving away from legacy systems around 2016.
Within 2 years, by 2018, their efforts to scale up the technology and prepare for the next generation of banking resulted in:
Having a presence in 11 western states, Zions Bancorporation transformed its core loan and deposit systems that were customized for every affiliate into a single core platform. It helped them simplify and modernize their operations and technology infrastructure.
The transformation resulted in:
Here’s a list of tech blocks that could take your revamping efforts to the next level and ensure that your business is future-ready:
We have over 20 years of software development experience and have successfully delivered legacy application modernization services for clients from different industries.
Our committed team comprises highly skilled and experienced developers who have the required know-how with clean coding best practices. They maintain transparency in every interaction while providing personalized attention & customizing the solution for your needs & wants and delivering them on time.
A renowned US-based venture capital firm wanted to centralize its document management portal so that all account metrics across the business entities are visible in real time.
The challenges included:
Our team integrated disparate data sources and optimized information architecture to modernize the legacy portfolio management portal. It helped enhance collaboration & transparency among users and improved user experience for search & contextual help.
The developed solution resulted in:
In this age when everything is going digital, the time to stick with traditional banking practices is long gone. The changing industry dynamics have left no other choice but to opt for modernization of the banking system.
Banks and other financial institutions must weather the storm while adapting to the new reality dictated by the rapid evolution of fintech. This would enable attracting newer customers and unlocking profitable revenue streams. However, this can’t and shouldn’t be a solo journey. Finding a trusted software provider is the natural first step.
So, the obvious next step is to connect with an experienced and reliable IT partner, like Rishabh Software. With a dedicated team who can analyze your business needs, provide recommendations, and create top-quality custom solutions that fit your current and future requirements.
We can help! Our team of specialists can help evaluate your core problem areas & help leverage modern technologies and application management approaches.