Traditionally, legacy systems were the type of approach used by banks in the past to manage general functions, tasks and carry out procedures, not involving computers or not at least in the these devices are utilized today, but registering everything on paper as a good classic way to go.
Of course, this legacy method was fine until internet and computers became a standard and were cheap to obtain, as the main tools that brought a great set of possibilities of interconnection, communication, automation and other benefits that banks and financial institutions simply could not leave behind. This is when “Fintech” or financial technologies and software banking were born.
With banking software and Fintech possibilities financial entities and banks embraced the future and the new possibilities brought by cyberspace, computing platforms and coding, and from these two bases were born incredible technologies and stages that are used today, such as CORE banking, retail, corporate and universal banking, mobile banking and many more tools.
Being like this, it actually does not come to be surprising that most of the large banks and financial organization changed their legacy approach for a banking software and Fintech one, due to the many benefits involved.
Nevertheless, as shocking as it may seem to this day there are still banks with a legacy-based approach, mostly because of their classic focus of privacy and for other reasons that also may have to do with budget, since purchasing a banking software from a vendor is not cheap at all.
For whatever reason may be, the reality is that there are financial entities under legacy systems that want to take the ultimate step and keep on with innovation by the hand of financial technologies and software banking.
To do so, there are some considerations to take into account that are worthy to stand out, in order to make the move and start the transformation process, giving the answer to the general doubt on why to choose software banking and make such a great investment, which at the short, mid and long term will be absolutely paid off.
First steps on moving from legacy systems and what not to do
To begin with, the first thing to know about moving from legacy system to software-based platform is that is not an easy process by any mean, even resulting quite more complex than it looks at first instance due to the many matters that are involved, from the technical and support point of view to modifications and aspects that are completely new applied or removed.
Fortunately, the transition process is possible to be carried out less traumatically and easier with the required and needed assistance from the banking software vendors, who usually as specialist providers are capable of leading the process in the best way as possible. This support is valuable mostly respecting small and mid-size banks, financial entities and credit unions.
In this way, between the cooperation of vendors and hiring entities the transformation process will bring guaranteed growth, saving and preparing the banking business for the future and helping to meet with customers´ expectations that result higher every day in the digital era, which such moving process will assure the imperative flexibility, reliability and speed features.
Having cleared out that the moving process between legacy systems and banking software will be complex in any case, it would be also worthy to stand out that banks stuck in the past will be override by the new approach and paradigm, as well as those that consider the digital transformation a simple “to-do list”, by only a adding a simple web site or application.
In other words, not all banks and financial entities are prepared to make the investment in time, effort and monetary resources to make the move, since adding simply digital channels in a fast and messy way to be considered trendy and modern just does not work. Usually, such intention and bad approach end up unsuccessful since results do not meet with clients´´ needs.
The good way to follow respecting moving from legacy systems
Definitely, the way to go respecting moving from legacy systems to banking software solutions is to look for vendors and software providers with experience, who will offer in first instance plans that will be focused on user experience or also known as UX as the imperative function such solutions must have, which are designed to offer the best experience to clients in speed.
In details, design thinking, user-centric approach and UX are the most relevant matters to achieve clients´ expectations, and on those pillars the new banking software solution must be based on, not simply as marketing tools but actual foundations of the whole moving process.
Great user experience, responsive systems based on the customers, reliability and intuitiveness are the best way to start in the digital world of banking. Of course, to achieve this goal there must be present other elements, such as protocols, technologies, service platforms, hardware and more, but UX always should be taken into account.
After the vendor is hired and ideas are cleared, the migration process may start by digitalizing documents without a backup, as well as guaranteeing that the platform about to be released is corresponded to the bank and its clients´ needs. This has to do with some previous idiosyncrasy, approach and goals that re important to always emphasize.
Banking software solutions and particular needs
Depending on the specific needs financial entities have the migration process may be more delayed or fast, depending on some aspects. For example, customization is possible and for mobile and web-based tools the resulting platforms are unique, addressing the specific theme from the bank in terms of logs, color, design, approach and more.
In many cases banking software is modular, allowing vendors and related owners to add or remove functions and technologies that at some point may be considered required or not.
The same thing happens respecting CORE solutions or also known as retail banking, as the platform that allows the financial entity to connect all of its branches at once, being one of the most powerful functions in comparison to legacy systems, with such CORE platforms also having modular nature and customization options for the best or customers and the owing bank.