Progressive Banking Modernization
Over recent years, many banks have reshaped their organizations into increasingly agile workplaces that aim to deliver change in days and weeks, instead of months and years.
As the financial industry continues to see disruption, and the pace is accelerating as fintechs and non-banks leverage modern cloud technology to successfully enter the market, a technologically agile institution is critical to survival.
To accelerate change and therefore compete, highly configurable and extendable services are a prerequisite. These can deliver agility through seamless integration, elastic scalability, and continuous updates, and therefore keep up with the pace of modern banking. But banks can only reach real agility gains when all significant elements of their technology ecosystem are able to deliver in the same agile way of working: the authenticated delivery nature of incumbent core technology can’t match the speed and agility of modern technology where it needs to integrate with.
A modular, cloud platform approach delivers agile and open services for what we traditionally know as core technology. It provides the option to adjust or change discrete services as part of a financial solution in a matter of hours. As monolithic and on-premises managed technology can’t keep up with such agility, they must give way to modular, and cloud-delivered services.
In an increasingly more competitive world, finance is consumed at the fingertips of customers, and this is where banks also need to compete.
New banking business models like embedded finance, Banking-as-a-Service and platform banking, all rely on far-reaching open and scalable banking services: Open technology is a prerequisite to get access to new revenue streams, where cloud and SaaS sit at the heart of all new business models in banking.
Here the authenticated nature of core systems is holding back banks. Historically they were originally built to be closed systems to fight security and create resilience in isolation. But this specific aspect contradicts the open and composable banking services that are today’s prerequisite to participate in the new world of finance.
Open technology to drive opportunities An open, composable banking platform such as the Temenos Banking Cloud delivers easy connectivity for different purposes. Next to integrations to separate capabilities as part of a financial solution, the connectivity towards the value chain of a partner organization will be pivotal as the new mass opportunities for financial services providers no longer necessarily surface within their own branches and channels.
Efficiency and cost predictability are key, especially amongst economic headwinds.
The business case for cloud banking technology is made: Leveraging readymade services that cover far-reaching functional, helps banks to limit complexity through an end-to-end SaaS service. This results in predictable costs while providing value through frequent releases with the relevant features and changes to meet new market circumstances in a matter of days, instead of months or even longer.
Continuous Updates Through SaaS-delivered services, banks consume evergreen services that come with leading security, support, operations, expertise, and governance in one go, at a packaged price and elastic scaling to match usage. Through Temenos’ cloud-delivered services and continuous updates, banks can cut down investments for upgrade programs and can leverage contemporary integration techniques that put an end to cumbersome connectivity between authenticated technology.
Pay-for-use SaaS services are consumed on a pay-for-use basis and as such will enable business cases and make innovation decisions much more straightforward now success and investments go hand-in-hand. Else, the cost base can be positively influenced as consuming, composing, and extending banking services through low code tooling and initiative UX takes much less effort and lead time compared to the implementation of new services on the monolithic alternatives of the past.