making it a preferred choice for many financial institutions .

There are three main strategies for banks considering progressive modernisation : journey-based , segment-based , and headless approaches :

Journey-based modernisation :

The journey-based approach focuses on modernising specific customer journeys , starting with those that offer a high return on investment ( ROI ) or a significant impact on cost .

For example , a bank might begin by revamping the customer onboarding process , ensuring a smoother , more userfriendly experience from start to finish . This method is particularly advantageous because it allows banks to focus on discrete areas of their operations , enabling incremental improvements without overhauling their entire system .

A typical mid-sized bank has over 1,500 customer journeys ( across business units , product lines , and customer interactions ) according to a recent report from McKinsey . Every journey needs to count .

Segment-based modernisation :

The segment-based approach focuses on specific areas of a bank ’ s operations , such as the onboarding or servicing segments , replacing older applications and services with modern alternatives . This approach is broader than the journey-based model , as it targets entire operational segments rather than individual customer journeys .

While the segment-based approach often requires more resources and coordination , it can deliver significant improvements in functionality and efficiency . This method is particularly useful when banks need to enhance operational areas that affect multiple customer journeys . For example , a bank might modernise its entire lending process , from application to servicing , providing a seamless experience across different product lines .

Headless modernisation :

Headless modernisation involves a fundamental shift in a bank ’ s digital architecture . It focuses on separating the front-end and back-end systems , allowing the bank to adopt a digital banking platform that powers different channel applications . By decoupling these two layers , banks can reduce the duplication of logic across their technology stack and improve the flexibility of their entire core systems .

This approach is ideal for banks with a high level of IT sophistication . These are often mid-sized or larger institutions that can manage the transition to a unified digital platform . The headless model enables banks to deliver a consistent user experience across various channels – such as mobile , online , or in-branch – by leveraging a central platform that supports all customer-facing applications .

Headless modernisation offers several strategic benefits , including the ability to scale digital services more efficiently and www . intelligentfin . tech

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