In the face of new regulatory requirements, dynamic customer expectations and agile digital-based rivals, banks are finding that their application service provider (ASP) model as a core banking platform is becoming increasingly inflexible and restrictive. Being handcuffed to it is putting them at risk of becoming digitally irrelevant.
So, what can banks do?
To stay competitive, banks must strategically break free from the ASP model. They must transform core banking to be hyper-flexible, enabling them to change as quickly and often as needed to deliver the in-the-moment personalized advice and product information customers want at their fingertips. It’s one way that banks can regain their core banking strength and ready themselves for the future.
Whereas the ASP model at most banks is a Frankenstein-like system of many stitched-together pieces, which is rigid, costly to maintain and slow to change, competitive, digital-ready core banking requires banks to evolve to a modern core IT architecture through two strategic actions: