WRITE-UP
Meeting Digital Disruption Head On: Building Your Core Modernization Banking Roadmap
Banks are under increasing pressure to embrace digital transformation, not only to meet the needs of today’s connected consumers but also to accommodate new regulations and thrive in the face of an uncertain economic outlook. Given these challenges, it’s no wonder panelists on the recent MoneyLIVE and FIS webinar, Meeting Digital Disruption Head On, agreed that the need for incumbent banks to rapidly modernize and unlock seamless, secure and scalable transformation is no longer an option but a necessity.
It’s a daunting task for a risk-averse industry with a track record of costly over-runs when it comes to overhauling increasingly unmanageable and unfit-for-purpose legacy systems. Given the scale of the challenge, and the risks should it go wrong, it’s vital that banks spend time up front carefully plotting a roadmap, guided by a clear strategic vision, rather than chasing a digital bandwagon.
"Start with the customer experience and work backwards from there"
‘Start with the customer experience and work backwards from there,’ said Joshua Daniel, Director of Digital Platforms at US Bank, which started its own journey eight years ago with a ‘start small and fail fast’ philosophy to innovation. ‘Big bang was never an option for us.’
It’s a commonsense approach for a highly regulated industry that can’t afford to take risks with customers’ money, data or its own reputation.
‘You don’t need to solve everything at once,’ said Rick Foresta, Business Unit Executive, Modern Banking Platform at FIS. ‘These programs are long and difficult, and technology and people will change and evolve over the course of the transformation, so you need to be able to show value early and have flexibility in your program DNA.’
These bite-sized projects deliver incremental value that over time compound into real transformation, and this really matters when persistent inflation, subpar growth and geopolitical shocks make for an uncertain macro-economic backdrop.
"Progressive modernization allows the bank to evolve while staying operational"
Corey McDougle, Partner/Principal, FSO Technology Consulting at EY, calls this approach ‘progressive modernization’.
‘It’s more manageable, and minimizes disruption and risk, and allows the bank to evolve while staying operational,’ said McDougle, who likened it to upgrading an airplane while mid-flight.
‘It’s tricky but you are still in the air, still moving forward and still able to service customers and provide them with the experiences they desire,’ he said.
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