APIs and cloud-based systems and low code developer tools are enabling banks to create a more open service, and this hybrid utilisation of new technology with legacy systems is a way to deliver new services, fast, without undergoing wholesale core transformation.
Legacy replacement can be catastrophic if it goes wrong, amplified in no small degree by the myriad and instant social media channels of today. At the same time, however, there can be a discord between IT and business divisions within financial organisations, and therefore getting the strategy right for mutual benefit and organisation-wide growth is crucial.
“There are two ways of looking at technology. You can look at it as a necessary evil and hire a CIO to keep costs down. Or you can see it as a strategic differentiator and hire a CTO or CDO to drive fundamental changes in the way technology is being developed and deployed,” says Thomas Nielsen, chief digital officer, Deutsche Bank, in the report.
The strategy of technology innovation and implementation is of major importance and impacts the business culture of banking organisations. Those that go beyond the viewpoint of it being a necessary evil, with a focus to keep costs down at every juncture, won’t win out.
Digital transformation is being driven by other sectors, as well as financial regulation and the trend towards platformification is considered an increasingly viable way to address the limitations of legacy infrastructure, according to a new report by Finextra, in association with Finastra.
Download this new paper to find out how to create a competitive and agile API and cloud-based strategy to maximise the business benefits of legacy transformation in the most efficient yet least risky manner.