Core Modernization as Path to Banking Success: Four Approaches
- Core Modernization is key for regional banks to revitalize and stay competitive
- Four solution paths for core modernization are described
- OrboGraph's solutions can help regional banks with core modernization in three ways
We noted earlier this month that progressive modernization of technology is key for banking success. As stated by the post's author, Forbes Councils Member Rodrigo Silva:
With the right approach to technology, regional banks have the potential to innovate their way to competitiveness and higher profits.
This is a strategy we've seen in check processing, where financial institutions are investing in technologies like AI and machine learning from vendors like OrboGraph to automate the process -- creating new efficiencies.
However, each bank will dictate the approach to updating their systems, including their core.
Core Platform Modernization Approach
A post by Tremenos explores how Core Modernization is the key for regional banks to revitalize and stay competitive.
For regional banks, competing with large national and multinational banks with huge technology budgets can be a daunting challenge. But instead of trying to keep up with the Joneses when it comes to technology spending, regional banks should rethink and adapt business models to focus on customer experience and then wisely invest in core modernization to accelerate business growth and agility.
“Regional banks must evolve to meet changing market needs,” notes Rodrigo Silva, President—Americas, Temenos. “Modernizing the core helps banks to be more efficient, scale faster, launch new products, respond to regulatory changes, and anticipate consumer needs while staying ahead of the competition.”
Silva adds: “A modern core builds the foundation for banks to be data driven, as well as to benefit from new developments such as open banking.”
Toward that goal, Tremenos describes four solution paths:
Each financial institution will need to decide which approach fits their timeline and risk tolerance. However, the overarching goal is to modernize their core platform, remaining competitive and meeting the changing needs of their customers.