Banks Revamp their Legacy Systems and Evolve Modern Practices

By CIOReview | Friday, June 21, 2019

Change is the only permanent thing, and banking is changing in tandem with the demands of digital customers.

FREMONT, CA: As the banking Industry reels under digitalization-affected changes, banks are making efforts to come to terms with modern customers. With the legacy systems that banks have been using till date, it becomes a little tough to handle all the transformations. Hence, banks are looking to upgrade themselves in accordance with technological changes and regulatory requirements.

A complete revamp can be very costly, and hence, banks are generally looking to retrofit the legacy systems. It is possible to handle customer expectation and offer excellent customer experience only when banks ease the processes, take all services online, and provide instant and mobile modes of operation. According to a report, 26 percent of customers divulged easy enrollment and login to be the essential criteria on which they base their choice of banks. These days customers expect convenient services, and hence, the banks that offer the feature of online registration have a clear edge over banks that do not. No wonder people hate having to be physically present at a bank branch with physical identification cards.

The smoother the customer onboarding process becomes for the customers, the more difficult and expensive it becomes for the banks. In order to achieve faster and simpler on-boarding methods, banks are having to compromise on a lot of important factors like thorough evaluation and careful supervision. Modern technologies can make this process easier. With the help of automation tools, companies can make an assessment of applications faster and significantly error-free.

Another aspect on which banks have to spend a lot of their resources includes the regulatory compliance part. Regulations are becoming stringent and taxing on the banks. Evading the regulations is not an option for the banks either as authorities levy hefty fines upon non-compliance. These don’t just prove to be expensive but also play a part in damaging the reputation of concerned banks, subsequently causing a loss of customers. Banks should treat regulatory compliance with priority and opt for compliance monitoring services.

Banks can deliver services to new-age customers and still manage a reasonable margin of profit if it utilizes the correct tools for the right purposes. The market offers many technology-driven solutions that can effectively help banks retrofit legacy systems and master modern markets.