Fintech Enablement’s Role in Modernizing Legacy Systems
As core legacy systems become inefficient, slow, and unable to keep up with present day customer expectations, more and more financial institutions are facing the same question: how do we modernize these systems without the high costs and long turnover time?
The answer is fintech enablement. Fintech enablement aims to bridge the gap between old processes and new 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There are three benefits that come with embracing fintech enablement as your solution to outdated legacy systems: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 allows financial institutions the ability to automate processes that were previously done manually. This cuts down costs, saves time, and improves the overall customer experience.
- Agility – by integrating new technologies, financial institutions can adapt to changes within the industry faster to stay more competitive. Mobile apps and digital wallets, for example, are new products and services financial institutions can now seamlessly offer with the assistance of fintech enablement.
- Data – many legacy systems lack the ability to collect and analyze data in real-time. That’s where fintech enablement can come in and helps 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’s clear fintech enablement plays a significant role in modernizing today’s legacy systems.
Why Today is the Best Time to Modernize
Modernizing your legacy system is essential if you want to keep up with customers’ shifting expectations and stay ahead of the innovation currently taking the financial services industry by storm. Here are four factors to be aware of as you make your decision.
1. The Effect of Shifting 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 are receiving 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 broader range of services.
2. Replacements Can Be Risky
If your current legacy system is significantly impacting your financial institutions’ business in a negative way, you may be tempted to replace the system completely. 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 expensive process. Not to mention the disruptions it may 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 technology infrastructure that can be customized to the specific needs of a financial organization, without being dependent on a third-party provider. They are uniquely designed to reduce complexity and accelerate innovation as they launch, serve, and expand financial solutions and products to meet customer expectations.
4. Another Necessity: Embedded Finance
The growth of embedded finance is driven by the rise of digital platforms and increased demand for seamless customer experiences. As more financial institutions are being impacted by the integration of financial services into non-financial products and services, they will need to stay competitive by developing new customer journeys, workflows, and product designs. Partnering with a company who can provide the necessary infrastructure can drive growth for your organization.
Future-proof Your Investments With Fintech Enablement
By leveraging a fintech enablement platform, you gain additional flexibility, automation, and insights that can keep you ahead of your competitors when it comes to matching customer demands and keeping up with expectations set by the industry.
When it comes to choosing a fintech enablement platform provider to partner with, here are a few things to keep in mind:
- They have a proven track record for delivering innovative solutions.
- They prioritize working together to modernize core infrastructure and create customer-focused journeys.
- They focus on reducing risks and costs associated with traditional digital transformations by using low-code or no-code infrastructure.
- Their offerings are scalable and able to keep up with market changes.
Whether you’re a large financial institution or new to the market, a fintech enablement platform may be the solution to your current and future business goals. Learn more here.
