Fintech Enablement’s role in modernizing legacy systems
As legacy core systems become inefficient, slow and unable to keep pace with today’s customer expectations, more and more financial institutions are facing the same question: how do we modernize these systems without the high costs and long turnaround times?
The answer is fintech enablement. Fintech enablement aims to bridge old processes with new ones by integrating new technologies and tools into traditional financial systems to improve their overall efficiency, speed and accuracy. This gives financial institutions the ability to offer the meaningful products and services their customers are looking for without completely uprooting their existing systems.
What are the benefits of Fintech enablement?
There are three benefits that come with embracing fintech enablement as your solution to outdated legacy systems:
- Automation – Fintech enablement gives financial institutions the opportunity to automate processes that were previously done manually. This cuts costs, saves time and improves the overall customer experience.
- Agility – By integrating new technologies, financial institutions can adapt to changes in the industry more quickly to stay more competitive. Mobile apps and digital wallets, for example, are new products and services financial institutions can now offer seamlessly using fintech enablement.
- Data – Many older systems lack the ability to collect and analyze data in real time. That’s where fintech enablement can come in, helping financial institutions integrate tools like artificial intelligence and machine learning to enable better business decisions.
By automating processes, improving agility through integration and capturing real-time data, it is clear that fintech enablement is playing a significant role in modernizing today’s legacy systems.
Why today is the best time to modernize
Modernizing the old system is essential if you want to keep up with customers’ changing expectations and stay ahead of the innovation that is currently taking the financial industry by storm. Here are four factors you should be aware of when making your decision.
1. The effect of changing expectations
With the availability of new technology and tools comes higher expectations from customers. They now expect a seamless, convenient, transparent and personalized banking experience. The value they receive for being a customer should be clear, and any questions or concerns they may have should be answered quickly and efficiently. Because of this, many financial institutions are creating a more customer-centric approach, providing customers with a wider range of services.
2. Substitutions can be risky
If your current legacy system is significantly impacting your financial institution’s business in a negative way, you may be tempted to replace the system entirely. This route comes with some serious risks. These systems are often deeply integrated into an organization’s operations, and replacing them completely can be a complex and costly process. Not to mention the disruption it can cause to your day-to-day business operations during the transition. Many of the benefits that come with a complete system replacement can be achieved through fintech enablement.
3. Fintech Enablement’s Accelerated Innovation
A fintech enablement platform is a technological infrastructure that can be adapted to the specific needs of a financial organization, without relying on a third-party provider. They are uniquely designed to reduce complexity and accelerate innovation as they launch, service and expand financial solutions and products to meet customer expectations.
4. Another necessity: Embedded Finance
The growth of embedded finance is driven by the emergence of digital platforms and increased demand for seamless customer experiences. As more financial institutions are affected by the integration of financial services into non-financial products and services, they must remain competitive by developing new customer journeys, workflows and product designs. Partnering with a company that can provide the necessary infrastructure can drive growth for your organization.
Future-proof your investments with Fintech enablement
Leveraging a fintech enablement platform gives you added flexibility, automation and insights that can keep you ahead of the competition when it comes to matching customer demands and keeping up with the expectations set by the industry.
When it comes to choosing a fintech enablement platform provider to work with, there are a few things to keep in mind:
- They have a proven track record of delivering innovative solutions.
- They prioritize working together to modernize core infrastructure and create customer-focused journeys.
- They focus on reducing the risks and costs associated with traditional digital transformations by using low-code or no-code infrastructure.
- Their offerings are scalable and able to keep pace with market changes.
Whether you are a large financial institution or new to the market, a fintech enablement platform can be the solution to your current and future business goals. Learn more here.