April 18th, 2023 • Neo banks by Marketing Skaleet

Universal banks: how to accelerate your innovation?🎢

Universal, or traditional, banks are constantly looking to the future to deliver banking experiences that meet the expectations of tomorrow's customers. In addition, consumers demand increasingly personalized advice from banks, while tech giants such as GAFAM are increasing their presence in the financial market.

In this context, banks need to accelerate their innovation more than ever to meet market demand while competing with this new form of competition. But how to achieve this? All the answers are in this article!

Universal banks: constraining technical issues 🏦

Despite the rapid evolution of technology, banks often continue to use core banking systems that were not designed to meet current customer needs. This creates a significant problem for banks, which find it challenging to deliver personalized experiences due to the complexity and inflexibility of their technical infrastructures, reinforced by new regulations.

  • An Accenture survey on banking operations shows that 80% of top bank executives are concerned about the future of their organization if their technology is not updated to be more flexible and able to accelerate their innovation.

Because of its architecture and infrastructure, the Core Banking System limits the ability of universal banks to offer scalable and innovative services. Although stable for the most part, monolithic technologies remain rigid and slow to change. This makes it difficult for banks to comply with new regulations, develop new products and services, and improve the customer experience.

The maintenance costs of legacy core banking systems are also relatively high. Upgrading a monolithic system requires changes to the technical approach, which is costly and requires considerable project time.

As a result, the IT systems on which banks rely no longer allow them to respond to market needs and innovate to stay ahead of the game.

Universal banks: 3 levers to accelerate your innovation

1.      Automate the management of non-differentiating products

Customer account management, payment orchestration, card issuing and processing, reporting... Many activities are "basics" for universal banks. To save time, the most efficient solution is to automate these operations. You can concentrate on higher value-added elements and, thus, carry out innovative projects to differentiate yourself on the financial market.

Read also: Payment players: delegate your non-differentiating products to a Core Banking Platform

2.      Leverage modularity to develop new products and services rapidly

Modularity overturns the codes of monolithic technical infrastructures previously used by universal banks, thanks to an agile and open architecture based on microservices. This architecture allows the different modules to communicate with each other while remaining autonomous, which makes system upgrades more straightforward and less impactful for the entire bank.

  • Modular, the bank can quickly experiment and develop new innovative financial products in response to customer needs, with a Time to Market reduced to a few months.

Thus, modularity allows you to quickly cover new customer needs without compromising the availability of your services or the customer experience. By reducing development time, accelerating time to market, and reducing costs, modularity improves the customer experience while facilitating innovation in the banking industry!

Read also: Modular Bank: what is a modular bank?

3.      Adopt a modern and scalable Core Banking Platform for continuous innovation

To focus on innovation, universal banks must re-evaluate their technology systems and adopt a new generation of core banking: Core Banking Platforms. These modern, scalable technologies leverage modularity and APIs to deliver several benefits:

  • The orchestration and APIs layer facilitates connecting to the software and functionality needed to deliver innovative services.
  • Best-of-Breed" partner integrations allow us to leverage the best solutions within Core Banking.
  • Thanks to its modular architecture, the Core Banking Platform enables the release of new payment products and services in just a few months without modifying the entire technology.
  • Microservices are communicating but autonomous, which makes it possible to control the end-to-end IT system and create new products and services by acting on a single module without impacting the others.

As you can see, Core Banking Platforms enable banks to compete with the tech giants by offering cutting-edge technologies, innovative services at lower costs, and rapid and continuous customer experience improvement through an open and flexible architecture, allowing you to lead innovative projects to stand out!

Read also: Financial Institutions: Gain Efficiency with a Next-Generation Core Banking Platform

Universal banks: become an innovative player with Skaleet!💡

To meet the challenge of universal banks and enable them to accelerate their innovation, Skaleet has developed a new generation Core Banking Platform, which :

  • Allows you to delegate and automate your non-differentiating products and services so you can focus on your innovation projects;
  • It offers a flexible and modular architecture as well as a catalog of APIs and best-of-breed solutions, so you can quickly experiment and develop new banking products and services to stay on the cutting edge of innovation;
  • We offer you a modern and scalable technology in continuous delivery, which guarantees you to continuously benefit from new functionalities every 2 months to reinvent your offers.

So, become your own business architect and build your innovative ecosystem with Skaleet: contact us!

  • #innovation

  • #banks

  • #corebanking

  • #modularity