As increasing numbers of FinTechs and challenger banks emerge , offering boutique products and personalised offerings , traditional banks must ensure they can understand and meet their customers ’ needs . To do this , banks need a technology stack that is able to provide them with detailed , real-time insights on their customers ’ behaviours , allowing them to offer products that are relevant to their customers .

This technological shift requires significant buy-in from key decision makers – including at the board level . But , in many cases , change is unwelcome among senior bankers . Recent research found that 77 % of innovation leaders at banks admit that banks need to modernise , but feel that challenging the status quo often puts careers at risk . This fear perpetuates a culture where junior employees are encouraged not to rock the boat or ask why certain processes are done certain ways . This widespread view is indicative of a reluctance to challenge existing processes and shows the vital cultural shift required for banks to embrace technological change .

Better the devil you know . . .

Many established banks run on legacy core banking systems , built on architecture that originated in the 1970s . These core banking systems are still widely used today – albeit with layer upon layer of updates , workarounds and plugins . This presents a significant challenge , especially as consumers increasingly look for their banking provider to be flexible , able to adapt at a moment ’ s notice , and provide them with relevant , personalised banking products . In reality , data is the most important currency a bank can have – and legacy systems are unable to access it in real time .

Meeting evolving customer demands is not the only challenge for banks who still use legacy core banking systems . Although two-thirds of bankers feel unable to move on from legacy technology because it was selected and implemented by decision makers still in the organisation , these systems are complex , hard to manage , and expensive to maintain . To fully reap the rewards of modern banking systems , banks must adopt cloud-native technology , giving them the flexibility they need to prioritise customer-focussed objectives and deliver a better banking experience .

However , in many cases , senior bankers prefer legacy systems because they were responsible for bringing them in and are used to how they work . Those same senior bankers are also responsible for promotions and raises . This reluctance to change can lead to inertia throughout the whole team , with no incentive for the status quo to be challenged . When www . intelligentfin . tech

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