How Can Financial Services Innovate Digitally Within the Constraints of their Legacy Infrastructure?

Debating legacy systems and the issues with imitating the digital experience

How Can Financial Services Innovate Digitally Within the Constraints of their Legacy Infrastructure?

We’ve just hosted another successful Live Debate, our second of the year in a series of stimulating panel discussions.

Our topic on the day was, ‘How Can Financial Services Innovate Digitally Within the Constraints of their Legacy Infrastructure?’ it proved to be an energetic discussion with the panel.

What stood out to me was the fact that legacy systems are one of the biggest stumbling blocks keeping banks from imitating the digital experiences provided by major non-financial brands such as Amazon. These global companies are able to deliver a more personalised, streamlined and faster service than banks. And with strong competition, means they are constantly refining the experience of their customers and delivering services them more quickly and efficiently.

The changing face of banking: the needs of modern tech-savy customers

Nowadays, all the information we need is ready for us with a click of a mouse or even a tap on the screen of our smartphones to simply switch in most industries, but despite this new streamlined account switching service this process still takes 7 days in banking. One member of the panel made the point that the way we use the bank has changed. The millennial generation are no longer loyal to a particular provider, and will often have many current accounts, as opposed to having one provider for all their services such as savings. Consumers are now more tech savvy, wanting to manage all our accounts over a variety of different devices and are more interested than ever in the user experiences that our financial services providers can give us. Global brands such as eBay are one of many companies driving the digital world in a direction of real-time, anywhere access to services, data, and analytics for customers.

Members of the panel believed that that the banks’ legacy systems prevent the ‘360-degree’ view of their customers’ profile that this is required to provide personalised service to customers anywhere, anytime.

The complexities of digital banking channels

Over time, traditional banks have gathered up a lot of information on their customers. Most of this information is stored in complicated legacy systems.  The complexity of these systems, makes it difficult to extract relevant customer data, which the banks need to create digital channels such as new mobile apps and social media customer service functions through the use of Twitter and video calling. This complexity also means banks can’t progress quickly: most banks struggle to update their mobile banking apps twice-a-year, or tie together their smartphone, tablet, and online banking experiences.

It was concluded that banks and other financial service providers need to adopt a new, simplified, model that starts from the within the bank. Established banks cannot afford to sit and wait though, they must act.

Full highlights of the Live Debate will be available on The Digital Banking Club portal soon, so keep checking back.

The next Live Debate promises to be yet another thought provoking event, will you be joining us? We will be hosting our next Live Debate on Wednesday, 7th October. Keep an eye on The Digital Banking Club portal to find out more on the chosen topic and panel.