Modernizing Core Banking: Key Trends & Elements
Customer-Centric Expectations
Modernization in core banking is driven by the need to meet evolving customer expectations for seamless, personalized, and omnichannel experiences. Legacy systems often struggle to keep up with these demands, prompting banks to upgrade their infrastructure.
Fintech Disruption and Innovation
The emergence of agile fintech companies has raised the bar for customer-centricity and innovation in banking. To stay competitive, banks are compelled to modernize their core systems to match the speed, agility, and customer focus of fintech disruptors.
Cloud-Native Solutions and Open Banking
The adoption of cloud-native core banking solutions and open banking architectures offers banks greater scalability, flexibility, and cost efficiency. Regulatory requirements such as PSD2 also push banks towards adopting open API-based architectures, further driving the modernization agenda.