Core Modernization Becomes the Norm in Financial Services
Key catalysts shaping today’s banking industry include Open Banking — the federation of the value chain in banking — as well as demanding and tech-savvy customers who expect and require great digital experiences. Continuous rapid change is one of the few constants, and achieving business agility is one of the key challenges. Banks and their technology teams need to address this situation in an environment characterized by low margins; the “good old days” of great margins are unlikely to return.
Pathway to the Future for Financial Services Firms
Targeted core replacement initiatives are now viewed by many banking firms as the pathway to the future. Some institutions view core replacements as a necessity that can no longer be ignored, while others (especially those in growing markets) recognize that targeted replacement initiatives may be key to capitalizing on new opportunities
Development of a Targeted Modernization Approach
The FIS Enterprise Product Organization (EPO) has proactively been executing a corporate component-based strategy and architectural approach to core modernization for the financial services market for the past 5 years. Our component-based architecture features easy-to-configure components in lieu of functionality typically embedded in “silo” channel applications across the enterprise. This approach allows banks to preserve existing IT investments, freeing up capital for innovation and improvements that attract and retain customers for the bank.
Banking Market Challenges
Continued regulatory pressures related to Open Banking, GDPR, PSD2, and CMA are representative examples of the banking market challenges that are driving the need for core banking modernization. To address the challenges that are in play, banks are investing in core components to transform and modernize legacy applications to deliver API/Open Banking payments and digital products and services.
Today’s core banking market is adapting to these changes in the banking industry, especially digital banking. The leading trend in establishing these critical capabilities is componentization and finacle is a market leader in this regard.
Technology is very spread now a days.
The way we use to determines its advantages and disadvantages technology to society or negative.
Through technology banking, education, entertainment and many other sectors are getting advanced.
Other things also like Social networks which interact with friends, family and strangers.
Blockchain’s initial development’s origin lies in preventing fraud in digital currency exchanges.
With smart contract solutions, sellers of anything, from entire buildings to medicines, can prevent fraud significantly.
For example, if we purchase a pair of shoes online, a “digital escrow” holds the payments until the shipper marks the package as ‘shipped’.
It ensures that buyers are not losing their money, as well as sellers are not taking risk of not getting paid.
Any exchange, deal, or agreement can use this concept.
But, the issue is that an intermediary digital escrow service facilitates the process, which is costly and prone to errors and even hacks.
Blockchain technology has influenced banking or financial sector to a great extent.
Read this article to know more about how blockchain technology replaces the existing system and helps overcomes its limitations.
Technology is rapidly disrupting the banking and financial services sector.
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