Over the past decade, digital transformation has impacted every industry across the globe in several ways. While some industries have totally ingrained digital elements into their functioning and offerings, more traditional sectors like banking still have scope for advancement. The current banking technology landscape consists of heavily engineered and customized core banking systems integrated with applications for Trading, AML, Regulatory reporting and Internet banking. However, as the industry becomes more customer focused and as the customer becomes more digitally aware, the banking industry has to step up in imbibing digital transformation to stay relevant in the race.
The need for a legacy overhaul
Legacy heavy sectors like banks are armed with decades of transitional data and bound by rigid regulatory requirements. Operational and functional systems developed over the years cannot be changed overnight. Banks need to use technology to build transparent, flexible and agile systems to tailor itself to the digital era. Banks need to align their internal processes using customized solutions that can integrate its multiple complex systems, aggregate data, generate user specific content and automate work processes.
Banks, like any other industry, need to be ‘customer focused’ to stay relevant. As customers become digital savvy, they demand simpler payment platforms and mobile friendly interactions. While banks provide internet banking and other such facilities, they need to improve the way they interact and engage with their customers. The banking systems need to be internally capable of engaging customers through relevant campaigns, customer notifications and other engagement activates. Banks should also be able to equip relationship managers with relevant data to better assist them. On the other hand, banks should work on enhancing the user experience of their platforms and mobile apps by making them simple and intuitive to use.
Present banking technology architecture is not workflow based which impacts productivity. Most core banking systems do not support approvals, automatic task assignment and time based escalations creating inefficiencies. Banks need to rely on technology that can connect its different systems and enable collaboration and smooth functioning of the organization. Processes should be automated wherever possible to ensure efficiency.
The success of payment platforms like PayPal is surely proof of how customer mindset is changing. It’s time that banks embrace and set the change in motion as the race to be an industry leader in digital transformation is only just heating up.
Appistoki consulting works with versatile platforms like Liferay and JBPMS to help you help build a bespoke solution to complement your existing technology landscape