To survive and thrive in today’s digital age; banks need to adapt to a new way of doing business, especially when it comes to core banking. The stakes are high, especially as banks continue to face a multitude of disruptive forces brought about by the digital revolution; challenges that include expanding customer demands for everything from online banking to direct mortgages and trading, ever-evolving technology and increasingly stricter regulations.
How banks adapt to this new digital landscape depends on if they choose to be an enabler or an inhibitor to positioning themselves as an Everyday Bank – a bank that embraces the transition to digital and sets its focus on moving closer to customers and becoming central to their transactions.
The evolution to digital core banking does not always mean radical change. For the banks on the path to becoming an Everyday Bank, the evolution to digital core banking will mean moving beyond tactical approaches to make core banking a central position in customers’ daily lives. These banks must push through their traditional boundaries to become digitally fit, analytically strong, open to creating an engine for personalized everyday bank interactions and adaptive to new paradigms. While this evolution toward digital core banking may require redesign or replacement of existing core banking platforms, the transformational journey to digital can happen selectively and in gradual steps.
For established high-performance banks, the journey has already begun as they look to obtain key capabilities that are critical to becoming an Everyday Bank. These include capabilities such as integrated, omni-channel sales and service processes, an extended customer ecosystem-centric model and analytics-based actionable insight that, for the most part, are enabled by core banking systems.
No matter what digital path a bank chooses, core banking will play a pivotal role as either an enabler or an inhibitor of digital adoption. How ready are your bank’s core banking and legacy systems to adapt to the digital world? To find out, see our latest report on The Role of Core in Digital Adoption.