You Can Bank on Better Customer Experiences with a More Modern Core

Core banking systems need updating and modernizing to cater to customers ‘new normal’ expectations, from real-time payment support to more relevant product recommendations with personalized pricing based on their specific circumstances.  

Modernizing core banking systems is essential for enhancing customer experiences. Yet, modernizing the core is not an overnight sensation and can require transition roadmaps that span several years. Therefore, finding ways to offer customers more personalized experiences is essential while the benefits of digital transformation are delivered in parallel.  

The biggest challenge for banks is overcoming the limitations of legacy systems in a microservices era. Nowadays, interoperability and seamless integrations are critical to creating smooth processes within the bank and a frictionless customer experience.  

From a customer data perspective, there have been multiple business functions that banks have built within the core that should typically sit outside of these.  

The benefit of a smart CDP is that you can aggregate customer data from the core and apply analytics on top, providing customer intelligence that can create much more intuitive customer engagements. It enables the business to be a downstream beneficiary of aggregated core data in creating personalized journeys.  

McKinsey suggests that banks apply ‘Progressive Modernization’ to build a more digital bank that operates in parallel with the legacy CBS. This is covered in the first of their three principal phases of core banking modernization. 

Progressive migration, as referenced in Finextra, is a popular strategy among banks, mainly because there is a need to realize personalization efforts in the market as quickly as possible to compete with the FinTechs already leading in digital engagement. In summary, banks can avoid personalization pitfalls by working with legacy systems while simultaneously building a more modern core architecture. 

NGDATA’s Intelligent Engagement Platform allows banks to personalize processes with intelligent algorithms and sophisticated scoring early in the modernization transformation journey. A critical use case to illustrate this is onboarding with pre-eligibility checks and education, which the Intelligent Engagement Platform performs. Therefore, banks can achieve a faster time to revenue while staying compliant with KYC rules. 

Read more on The Power of a CDP in Banking Digital Transformations.