What do you see when you think of a bank? Probably a traditional brick and mortar branch. There is nothing wrong with this picture, but it obscures the fact that the bank’s main product is digital.

When you apply for a mortgage or open a checking account, you will not receive any physical benefits. Instead, you get a digital product, and the driving force behind that digital product is an overlapping process that allows millions of code lines and banks to deliver the products and services that customers need.

These heritage codes – many of them were written during the last three decades of the 20th century.Th Century – Often confusing, it can be a reflection of business processes and modern products. Today’s customers want fast and easy access to modern financial products, so this legacy of technology and related monolithic processes will enable banks to grow their businesses faster to keep pace with the digital transformation that is taking place in the banking and other industries. Banks know they need to renew their systems over time, but transformation can be expensive and complex, and many banks decide to stop the change to some degree in the future.

When the epidemic disrupts consumer behavior and consumers’ interactions with the bank, we see the need to adapt quickly and drive change and scale. Banks affected by the epidemic have a model that allows customers to quickly adapt to order, digital-start services. That model is rooted in cloud-based technology and the ever-improved CI / CD pipeline, which allows customers to easily access their financial products and services, allowing banks to “always fly” cost-effectively. Road.

Real digital transformation can be costly, as it involves the elimination of tried and tested processes that banks have long relied on. Instead of simplifying digital transformation, banks are putting new fixes on existing code, and with each modified post code it becomes more complex and difficult to change or adapt. Ultimately, this is what keeps many stuck with the old code and related business processes.

While banks know they can’t afford to work with the old code, switching to an efficient IT organization is difficult when interrupted by internal silicon, disconnected channels and older operating IT systems.

To overcome these barriers, banks need to use API-driven micro-interconnected technology environments and business partnerships to leverage existing infrastructure and bring existing systems with ready-made options.. Such ecological partnerships will enable key components of cloud-based architecture to improve the bank’s technology landscape and make it more cost-effective.

Part of building a more efficient bank is understanding and anticipating customer needs. Future-oriented change requires channel cross-platform analysis in conjunction with the aforementioned cloud-native technology. This allows the bank to quickly provide improved customer experience that can be measured on demand. The right approach can keep the bank focused on financial products without having to worry about the impact on legacy codes or algorithms. It makes operational management more efficient and effective because new resources or infrastructure should not be created from scratch.

Once banks break away from the traditional, channel-based approach, they can provide flexible digital ecosystems that are often a hindrance to innovation, tailored to customers’ “always on” solutions. In the post-epidemic world, where financial technology companies have disrupted their customers’ expectations of their financial products, the availability of a ready-made and complex consumer journey will determine who will win the war for future generations of financial services. .

The question is, “How much does it cost us to be smart, efficient bank?” It doesn’t have to be.

Michael Engel He is the Vice President of Banking Software at Debold Nickdorf.